Danimer Scientific Inc (DNMR) 2022 Q3 法說會逐字稿

Thank you. Welcome to the Danimer Scientific Inc. Third Quarter 2022 Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Brad Cray, ICR. Please go ahead.

謝謝你。歡迎來到 Danimer Scientific Inc. 2022 年第三季度收益電話會議。 （操作員說明）我現在想將會議轉交給 ICR 的 Brad Cray。請繼續。

Thank you, operator, and thank you, everyone, for joining us today for Danimer's Third Quarter 2022 Earnings Call. Hosting the call today are Danimer CEO, Steve Croskrey and CFO, Mike Hajost. During our discussion today, we will be referring to our earnings presentation, which is available on the Investor Relations section of our website at danimerscientific.com.

謝謝接線員，也謝謝大家今天加入我們參加 Danimer 2022 年第三季度財報電話會議。今天主持電話會議的是 Danimer 首席執行官 Steve Croskrey 和首席財務官 Mike Hajost。在我們今天的討論中，我們將參考我們的收益報告，該報告可在我們網站 danimerscientific.com 的投資者關係部分獲得。

On Slide 2, please note that we may discuss forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, future results of operations, capacity, production and demand levels that could differ in a material way from those expressed or implied in the forward-looking statements.

在幻燈片 2 上，請注意我們可能會討論 1995 年《私人證券訴訟改革法案》安全港條款含義內的前瞻性陳述。這些前瞻性陳述包括但不限於未來的經營業績、能力、生產和需求水平可能與前瞻性陳述中明示或暗示的水平存在重大差異。

We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law. Today's presentation also includes references to certain non-GAAP financial measures. Reconciliations to the most comparable GAAP measures can be found in the earnings presentation.

除非法律要求，否則我們不承擔更新任何前瞻性陳述以反映本協議日期之後發生的事件或情況的義務。今天的演示文稿還包括對某些非 GAAP 財務指標的引用。可以在收益報告中找到與最具可比性的 GAAP 措施的調節。

I will now turn the call over to Steve.

我現在將電話轉給史蒂夫。

Thank you, Brad. Good afternoon, everyone. Thanks for joining. Our third quarter results were in line with our expectations as we progress further against our multifaceted growth strategy to transform the plastics market. We produced third quarter revenues of $10.4 million, with PHA revenues up 26% year-over-year, now representing 51% of our revenue. With additional capacity available to us from the expansion of our Kentucky facility during the second quarter, we believe we are extremely well positioned for several significant expected customer product launches in the months ahead.

謝謝你，布拉德。大家下午好。感謝您的加入。我們的第三季度業績符合我們的預期，因為我們進一步推進了我們的多方面增長戰略以轉變塑料市場。我們第三季度的收入為 1040 萬美元，其中 PHA 收入同比增長 26%，目前占我們收入的 51%。隨著我們在第二季度擴建肯塔基工廠的額外產能，我們相信我們在未來幾個月推出幾個重要的預期客戶產品方面處於非常有利的地位。

We have been through a long journey that we believe puts us significantly ahead of any competitors in terms of our core competencies of application development and commercial scale production. Even as COVID, inflation, and supply chain issues have impacted the timing of R&D projects and customer launches over the past couple of years, we have been able to expand our capacity and maintain strong relationships with existing customers.

我們經歷了一段漫長的旅程，我們相信在我們的應用程序開發和商業規模生產的核心競爭力方面，我們遠遠領先於任何競爭對手。儘管 COVID、通貨膨脹和供應鏈問題在過去幾年中影響了研發項目和客戶發布的時間，但我們仍然能夠擴大我們的能力並與現有客戶保持牢固的關係。

We continue to see strong interest for our biodegradable solutions. It is important to reiterate that we are focusing on the factors that are in our control and our strategic priorities, as shown on Slide 3, remain unchanged. We believe our experiences in overcoming the challenges of the past several years have made us a stronger company, and we are now better positioned than ever to accelerate our growth trajectory as customers are expected to launch new products and as we secure new customers to fill our capacity at Kentucky and beyond.

我們繼續看到人們對我們的可生物降解解決方案的濃厚興趣。重要的是要重申，我們正在關注我們控制的因素，我們的戰略優先事項（如幻燈片 3 所示）保持不變。我們相信我們在過去幾年克服挑戰的經驗使我們成為一家更強大的公司，我們現在比以往任何時候都更有能力加速我們的增長軌跡，因為客戶預計會推出新產品，並且我們會獲得新客戶來填補我們的空缺肯塔基州及其他地區的容量。

While our Georgia greenfield facility expansion remains a core part of our future leap forward, our operations in Kentucky are situated today to provide us with positive cash flow to run the business effectively as volumes grow.

雖然我們在佐治亞州的綠地設施擴建仍然是我們未來飛躍的核心部分，但我們在肯塔基州的業務今天能夠為我們提供正現金流，以便隨著業務量的增長有效地開展業務。

Turning to Slide 4. We continue to execute our growth strategy during the third quarter with PHA revenues up 26% year-over-year, now representing 51% of our revenue. Following the successful expansion of our Kentucky operations in June, we have continued to ramp up our production capabilities at that facility. We still believe that we may have opportunities for both better raw material utilization and other cost savings at the Kentucky facility in the future as we increase production.

轉到幻燈片 4。我們在第三季度繼續執行我們的增長戰略，PHA 收入同比增長 26%，目前占我們收入的 51%。繼 6 月份我們在肯塔基州的業務成功擴張之後，我們繼續提高該工廠的生產能力。我們仍然相信，隨著產量的增加，我們將來可能有機會在肯塔基州的工廠提高原材料利用率和其他成本節約。

Additionally, our learnings from the Kentucky facility construction now provide us with confidence that we can reduce our CapEx cost by up to 1/3 on future plans following the construction of our Georgia greenfield facility.

此外，我們從肯塔基州設施建設中學到的經驗現在使我們有信心在佐治亞州綠地設施建設後的未來計劃中，我們可以將資本支出成本降低多達 1/3。

In our efforts to enhance team capabilities to support growth, we were pleased to hire Stephen Martin as our new Chief Legal Officer and Corporate Secretary. His broad skill set, familiarity with numerous industries and experience managing the legal affairs of publicly traded companies will be vitalized as we continue our growth journey.

在我們努力增強團隊能力以支持增長的過程中，我們很高興聘請 Stephen Martin 擔任我們的新首席法務官兼公司秘書。隨著我們繼續我們的成長之旅，他廣泛的技能、對眾多行業的熟悉以及管理上市公司法律事務的經驗將被激發。

On the business development side, we are thrilled to announce that we recently signed a distribution agreement with Formerra, formerly Avient, a leader in specialty polymer formulations and distribution across the globe. I will discuss this agreement in more detail shortly.

在業務發展方面，我們很高興地宣布，我們最近與 Formerra 簽署了一份分銷協議，Formerra 的前身是 Avient，後者是全球特種聚合物配方和分銷領域的領導者。稍後我將更詳細地討論該協議。

I'm sure many of you are aware of my recent trip to the White House in September. I was honored to speak on behalf of Danimer at the recent White House Summit on biotechnology and biomanufacturing for the American bioeconomy.

我相信你們中的許多人都知道我最近在 9 月份訪問了白宮。我很榮幸代表 Danimer 在最近舉行的美國生物經濟生物技術和生物製造白宮峰會上發言。

Danimer was the only biopolymer company invited to the event, which was held in conjunction with President Biden, September 12 executive order, launching a national biotechnology and biomanufacturing initiative to ensure that products invented in the United States can be manufactured here as well.

Danimer 是唯一一家受邀參加此次活動的生物聚合物公司，該活動與拜登總統 9 月 12 日發布的行政命令一起舉行，啟動了一項國家生物技術和生物製造計劃，以確保美國發明的產品也可以在這裡製造。

The summit included a high-level roundtable with members of Congress, cabinet secretaries and other industry and academic leaders as well as the panel on biotechnology research and development to solve pressing challenges across our industry. The President also recently signed the landmark CHIPS and Science Act, which makes historic investments to strengthen American manufacturing, research and development, science and technology.

峰會包括與國會議員、內閣部長和其他行業和學術領袖舉行的高級別圓桌會議，以及生物技術研發小組，以解決我們行業面臨的緊迫挑戰。總統最近還簽署了具有里程碑意義的 CHIPS 和科學法案，該法案進行了歷史性投資，以加強美國的製造業、研發、科學和技術。

Overall, I left them, they are highly encouraged that our federal government is really getting behind the biopolymer industry and is taking the plastic waste issue seriously. In addition to the executive orders I just discussed, Congress' recent introduction of the Inflation Reduction Act also provides an additional $40 billion of loan authority for the U.S. Department of Energy "Title XVII Loan Guarantee Program". As a reminder, Danimer is currently in the part two application process for a loan guarantee into this program, and we continue to work closely with the DOE to secure this funding.

總的來說，我離開了他們，他們對我們的聯邦政府真正支持生物聚合物行業並認真對待塑料廢物問題感到非常鼓舞。除了我剛才討論的行政命令外，國會最近出台的《降低通貨膨脹法案》還為美國能源部“Title XVII 貸款擔保計劃”額外提供了 400 億美元的貸款授權。提醒一下，Danimer 目前正處於該計劃貸款擔保的第二部分申請流程中，我們將繼續與 DOE 密切合作以確保獲得這筆資金。

In regards to other important updates on the regulatory side, a new amendment was recently passed as part of California's previously announced ban on single-use plastic bags provided at the point of sale. This amendment calls for the ban of petroleum-based grocery store pre-checkout plastic bags by the year 2025. These pre-checkout bags are often seen near the fruits and vegetables section in grocery stores. California will be the first state to discontinue this common grocery store item, which can be replaced with Danimer's biodegradable solutions.

關於監管方面的其他重要更新，最近通過了一項新的修正案，作為加州先前宣布的禁止在銷售點提供一次性塑料袋的一部分。該修正案要求到 2025 年禁止使用以石油為原料的雜貨店結賬前塑料袋。這些結賬前塑料袋經常出現在雜貨店的水果和蔬菜區附近。加利福尼亞州將是第一個停止使用這種普通雜貨店商品的州，可以用 Danimer 的可生物降解解決方案取而代之。

Moving to Slide 5. I'll speak in more detail on some of our recent customer and business development updates. As a reminder, our customers are primarily major blue-chip multinational brands that have all made long-term commitments to make their plastic packaging recyclable, reusable or biodegradable in the years ahead.

轉到幻燈片 5。我將更詳細地介紹我們最近的一些客戶和業務發展更新。提醒一下，我們的客戶主要是主要的藍籌跨國品牌，它們都做出了長期承諾，要在未來幾年使其塑料包裝可回收、可重複使用或可生物降解。

Our multinational partner, Mars Wrigley is still on track to launch a Nodax-based bag for their Skittles brand, which we believe to be the world's first time compostable candy packaging, and we expect to provide more details on their progress in the coming months.

我們的跨國合作夥伴 Mars Wrigley 仍在為他們的 Skittles 品牌推出基於 Nodax 的袋子，我們相信這是世界上第一個可堆肥糖果包裝，我們希望在未來幾個月提供更多關於他們進展的細節。

Separately, our partner, PepsiCo, has been successful with their compostable chip bags for their Off The Eaten Path brand of chips, which are currently sold in Whole Foods stores across North America.

另外，我們的合作夥伴百事可樂成功地為他們的 Off The Eaten Path 品牌薯片設計了可堆肥薯片袋，這些薯片目前在北美的 Whole Foods 商店銷售。

As I mentioned earlier, we recently signed a distribution agreement with Formerra, formerly Avient, a leader in specialty polymer formulations and distribution across the globe. Formerra offers highly specialized tenace processing design and regulatory support for critical end market applications in the health care, consumer, industrial and mobility markets. They support leading blue-chip customers and suppliers of the value combination of commercial and technical expertise, global market knowledge and industry-leading logistics and service capabilities.

正如我之前提到的，我們最近與 Formerra 簽署了一份分銷協議，Formerra 的前身是 Avient，後者是全球特種聚合物配方和分銷領域的領導者。 Formerra 為醫療保健、消費者、工業和移動市場的關鍵終端市場應用提供高度專業化的 tenace 加工設計和監管支持。他們為領先的藍籌客戶和供應商提供商業和技術專長、全球市場知識以及行業領先的物流和服務能力的價值組合。

With an extensive customer base and knowledge, we are excited for the future of Danimer's Nodax to reach a broader array of customers and applications. In regards to Nodax-based products that are currently sold through our converter partners, our partner WinCup phade straw brand made from Nodax is now in approximately 315 distribution centers in 238 cities across the U.S. Phade straws are now in WinCup's fastest-growing product.

憑藉廣泛的客戶群和知識，我們對 Danimer 的 Nodax 未來能夠覆蓋更廣泛的客戶和應用感到興奮。關於目前通過我們的轉換器合作夥伴銷售的基於 Nodax 的產品，我們的合作夥伴 WinCup phade 吸管品牌由 Nodax 製成，目前遍布美國 238 個城市的大約 315 個配送中心。Phade 吸管現在是 WinCup 增長最快的產品。

Separately, we're also happy to report that all Costco store food courts in the U.S. now offer Danimer's Nodax-based straws. These straws are produced and distributed by our partner, Eagle Beverage. Additionally, our Nodax-based straws are performing well at Starbucks locations, and we are pleased with the growth of this business.

另外，我們也很高興地報告，美國所有 Costco 商店的美食廣場現在都提供 Danimer 的 Nodax 吸管。這些吸管由我們的合作夥伴 Eagle Beverage 生產和分銷。此外，我們基於 Nodax 的吸管在星巴克門店表現良好，我們對這項業務的增長感到滿意。

As it relates to our progress with quick service restaurants, Danimer is still in discussions with and providing sample products to 5 of the top 10 largest QSRs in the world, many of which have 2025 goals to replace their current materials with recycled, compostable or biodegradable materials.

關於我們在快餐店方面的進展，Danimer 仍在與世界前 10 大快餐店中的 5 家進行討論並向其提供樣品產品，其中許多快餐店的目標是到 2025 年用可回收、可堆肥或可生物降解的材料取代現有材料材料。

We expect these prospective customers to represent significant business for Danimer in the coming years as we continue to help our customers meet their sustainability goals. The timing of customer launches is the most variable factor as it relates to the shipment of our products. As I discussed with you last quarter, interest in our solutions is increasingly strong. While on the other hand, many existing and potential customers are still dealing with supply chain bottlenecks, inflation and overall economic concerns that impacted timing of orders and deliveries.

我們希望這些潛在客戶在未來幾年代表 Danimer 的重要業務，因為我們將繼續幫助我們的客戶實現他們的可持續發展目標。客戶發布的時間是變化最大的因素，因為它與我們產品的運輸有關。正如我上個季度與您討論的那樣，人們對我們的解決方案越來越感興趣。另一方面，許多現有和潛在客戶仍在處理影響訂單和交貨時間的供應鏈瓶頸、通貨膨脹和整體經濟問題。

While these factors may continue to impact specific customer time lines in the near term, we have a diverse lineup of several significant customer product launches starting as early as this year. That said, we expect the bulk of these launches to occur in the first half of 2023.

雖然這些因素可能會在短期內繼續影響特定客戶的時間表，但我們最早從今年開始就推出了多種重要的客戶產品。也就是說，我們預計這些發布中的大部分將在 2023 年上半年進行。

These new products will consist of a wide array of applications ranging from quick service restaurant materials, CPG's food packaging, protective packaging, films and industrial applications. We project that these specific product launches over the next several months will eventually require an amount of PHA-based volume that is well in excess of our Kentucky capacity.

這些新產品將涵蓋廣泛的應用，包括快餐店材料、CPG 的食品包裝、保護性包裝、薄膜和工業應用。我們預計，在未來幾個月內推出的這些特定產品最終將需要一定數量的基於 PHA 的產品，這將遠遠超過我們在肯塔基州的產能。

To be more precise, once fully commercialized, we expect the combined volume and again, just from these specific product launches to require over 100 million pounds of PHA-based finished volume annually by 2026.

更準確地說，一旦完全商業化，我們預計到 2026 年，僅從這些特定產品發布的總量來看，每年就需要超過 1 億磅基於 PHA 的成品量。

Now it is important to remember that we expect these launches to benefit our results gradually and step with the cadence typical of our large global customers that launch new products in stages. While we have a strong line of sight on demand, that scale-up is not linear. We expect to see an initial benefit to our volume in the first 12 months of the launch, followed by a more pronounced step-up in shipments as we move beyond the first 12 months. These planned launches support our expectation to dramatically increase volumes through 2026 based on our current customer schedules.

現在重要的是要記住，我們希望這些發布能夠逐漸使我們的結果受益，並與我們的大型全球客戶分階段發布新產品的典型節奏同步。雖然我們對需求有很強的洞察力，但這種擴展並不是線性的。我們希望在推出後的前 12 個月內看到我們的銷量初步受益，隨後隨著我們超越前 12 個月，出貨量將出現更明顯的增長。這些計劃中的發布支持我們的預期，即根據我們當前的客戶時間表，到 2026 年大幅增加銷量。

Now I'd like to turn the call over to Mike to discuss our financial results and outlook.

現在我想把電話轉給邁克來討論我們的財務業績和前景。

Thank you, Steve. I'll speak to Slide 6. We closed out the third quarter with sales of $10.4 million, which were down $2.9 million or 22% compared to $13.4 million in the prior year third quarter. The sales decrease was driven primarily by a $4.4 million year-over-year reduction in PLA resin sales. This was partially offset by a $1.1 million or 26% increase in PHA-based resin sales. With PHA-based resin sales now at $5.3 million, that product now represents 51% of total sales.

謝謝你，史蒂夫。我將與幻燈片 6 交談。我們第三季度的銷售額為 1040 萬美元，與去年第三季度的 1340 萬美元相比下降了 290 萬美元或 22%。銷售額下降的主要原因是 PLA 樹脂銷售額同比減少 440 萬美元。這被基於 PHA 的樹脂銷售額增長 110 萬美元或 26% 所部分抵消。基於 PHA 的樹脂銷售額目前為 530 萬美元，該產品目前佔總銷售額的 51%。

As a reminder, a portion of PLA sales was negatively impacted by customer operations in Ukraine and Russia. We reported a third quarter gross loss of approximately $4.1 million compared to a gross loss of $230,000 in the prior year period.

提醒一下，部分 PLA 銷售受到烏克蘭和俄羅斯客戶運營的負面影響。我們報告第三季度毛虧損約為 410 萬美元，而去年同期毛虧損為 230,000 美元。

On an adjusted basis, gross loss was approximately $800,000 compared to gross profit of $2.6 million in the prior year quarter. The decrease in adjusted gross profit was primarily driven by lower PLA volumes, which continue to have a higher adjusted gross margin than PHA, although that differential is diminishing as the volumes of each product change. Said another way, our PHA margin improved as volumes of the product increased, and our PLA margins decreased as fixed costs were expensed across a lower volume base. As we have mentioned previously, we expect our average cost per unit at our existing facilities to improve as PHA production scales.

在調整後的基礎上，毛虧損約為 800,000 美元，而去年同期的毛利潤為 260 萬美元。調整後毛利下降的主要原因是 PLA 銷量下降，PLA 的調整後毛利率繼續高於 PHA，儘管隨著每種產品銷量的變化，這種差異正在縮小。換句話說，我們的 PHA 利潤率隨著產品數量的增加而提高，而我們的 PLA 利潤率下降，因為固定成本在較低的銷量基礎上被支出。正如我們之前提到的，我們預計我們現有設施的平均單位成本會隨著 PHA 生產規模的擴大而提高。

For the third quarter 2022, R&D and SG&A expenses, excluding depreciation and amortization, stock-based compensation, rent and onetime items were $11.2 million compared to $9.2 million in the prior year quarter, mainly attributable to an increase in headcount and salaries to support R&D efforts and our future expansion plans as well as increases in costs associated with having a larger asset base, such as property and liability insurance. In addition, this quarter includes three months of R&D and operating expenses related to Danimer Catalytic Technologies, which we acquired in August 2021.

2022 年第三季度，研發和 SG&A 費用（不包括折舊和攤銷、基於股票的薪酬、租金和一次性項目）為 1,120 萬美元，而去年同期為 920 萬美元，這主要是由於支持研發的員工人數和薪水增加努力和我們未來的擴張計劃以及與擁有更大資產基礎相關的成本增加，例如財產和責任保險。此外，本季度還包括與我們於 2021 年 8 月收購的 Danimer Catalytic Technologies 相關的三個月研發和運營費用。

Adjusted EBITDA was a loss for the third quarter of $12.9 million compared to a loss of $7.4 million in the prior year quarter, primarily due to the factors I discussed in our gross profit, SG&A and R&D results. Adjusted EBITDA excludes stock comp, other income and other add backs as reconciled in the appendix. I want to briefly mention the noncash goodwill impairment charge that we took in the third quarter.

調整後的 EBITDA 第三季度虧損 1290 萬美元，而去年同期虧損 740 萬美元，這主要是由於我在毛利、SG&A 和研發結果中討論的因素。調整後的 EBITDA 不包括附錄中調節的股票補償、其他收入和其他加回。我想簡單提一下我們在第三季度採取的非現金商譽減值費用。

Given the decline in our market capitalization during the quarter to a level well below our book equity value, we determined that the value of our goodwill was impaired. Our goodwill originated from the Novomer acquisition in August 2021, but it's important to note that the impairment determination considers the entire Danimer business and does not reflect a change in our view of the value of the Danimer Catalytic Technologies business.

鑑於本季度我們的市值下降至遠低於賬面價值的水平，我們確定我們的商譽價值已受損。我們的商譽源於 2021 年 8 月對 Noomer 的收購，但需要注意的是，減值確定考慮了整個 Danimer 業務，並不反映我們對 Danimer Catalytic Technologies 業務價值看法的變化。

We remain confident in our ability to execute against our strategic objectives with a prudent focus on profitability and cash management. Beyond the potential funding from the DOE loan program to support our expansion projects, we have multiple avenues to fund and run the existing business as we look forward.

我們仍然相信我們有能力執行我們的戰略目標，審慎地關注盈利能力和現金管理。除了 DOE 貸款計劃的潛在資金支持我們的擴展項目外，我們還有多種途徑來資助和運營我們期待的現有業務。

We continue to believe that our operations at Kentucky should provide us with the ability to run the business and manage cash effectively as we work to real in additional customer contracts, while our current customers ramp up more significantly in volume. It is important to note that we have a cost structure which is largely built out to support the expansion of our business through the coming years. That said, we have the ability to flex our spending to an appropriate level to meet demand while controlling costs to improve cash flow.

我們仍然相信，我們在肯塔基州的運營應該為我們提供有效經營業務和管理現金的能力，因為我們致力於實現更多的客戶合同，而我們當前的客戶數量將大幅增加。值得注意的是，我們的成本結構主要用於支持未來幾年業務的擴展。也就是說，我們有能力將支出調整到適當水平以滿足需求，同時控製成本以改善現金流。

Our cash position at the end of the quarter was $99.1 million. This was augmented by net cash inflow of $5.5 million of additional forgivable new market tax credit loans during the quarter. Additionally, in the third quarter, we initiated a new at-the-market or ATM program. Since that time, we have issued a modest amount of shares to cover the cost of implementing the program, making net program launch cash neutral. I would like to emphasize that we will carefully look at opportunities to enhance our liquidity and we'll be very disciplined in the levels at which we issue shares.

本季度末我們的現金頭寸為 9910 萬美元。本季度新增可免除的新市場稅收抵免貸款淨現金流入 550 萬美元，進一步加強了這一增長。此外，在第三季度，我們啟動了一項新的上市或 ATM 計劃。從那時起，我們發行了少量股票來支付實施該計劃的成本，使淨計劃啟動現金中性。我想強調的是，我們將仔細尋找機會來增強我們的流動性，並且我們將在發行股票的水平上非常自律。

Looking at our outlook for the full year 2022 on Slide 7. Based on our results year-to-date and our updated visibility through year-end, we are sharpening our full year 2022 expectation for adjusted EBITDA to be in the range of negative $45 million to negative $40 million.

在幻燈片 7 中查看我們對 2022 年全年的展望。根據我們年初至今的業績和我們到年底更新的可見度，我們將調整後 EBITDA 的 2022 年全年預期提高到負 45 美元的範圍內萬至負 4000 萬美元。

As we finish up 2022, the factors we discussed over the last few quarters have and will continue to remain intact. The positive year-over-year contribution from higher PHA-based resin volumes will be more than offset by several factors. This includes lower PLA sales, expenses associated with higher headcount and other costs to support our asset base and a full year of operating costs in Danimer Catalyst Technologies to support the future commercialization of these products.

當我們結束 2022 年時，我們在過去幾個季度討論的因素已經並將繼續保持不變。基於 PHA 的樹脂銷量增加帶來的同比積極貢獻將被幾個因素抵消。這包括較低的 PLA 銷售額、與增加員工人數相關的費用和支持我們資產基礎的其他成本，以及 Danimer Catalyst Technologies 的全年運營成本，以支持這些產品的未來商業化。

Regarding cash flow, we now expect capital expenditures in 2022 to be in the range of $165 million to $170 million, inclusive of capitalized interest and internal labor. As mentioned on prior calls, we will remain flexible with our capital spending so that we can speed up or slow down the greenfield facility construction. With this flexibility in our spending, we expect to end the year 2022 with cash between $60 million and $65 million.

關於現金流，我們現在預計 2022 年的資本支出將在 1.65 億美元至 1.7 億美元之間，包括資本化利息和內部勞動力。正如之前電話中提到的，我們將在資本支出方面保持靈活性，以便我們可以加快或放慢綠地設施建設。憑藉我們支出的這種靈活性，我們預計到 2022 年底現金將在 6000 萬至 6500 萬美元之間。

Looking beyond 2022, we continue to believe that our PHA revenue is poised to drive a significant increase in our overall profitability. PLA revenues will likely remain challenged. We have already made significant investments in our SG&A and R&D that we can now leverage over time as revenues grow. Additionally, we remain confident in the future profit contribution for our investments in Danimer Catalytic Technologies.

展望 2022 年以後，我們仍然相信我們的 PHA 收入有望推動我們整體盈利能力的顯著增長。 PLA 收入可能仍將面臨挑戰。我們已經對我們的 SG&A 和研發進行了大量投資，隨著收入的增長，我們現在可以隨著時間的推移利用這些投資。此外，我們對我們在 Danimer Catalytic Technologies 投資的未來利潤貢獻充滿信心。

Now I'll turn the call back to Steve for some closing remarks on Slide 8.

現在，我將把電話轉回給史蒂夫，讓他對幻燈片 8 做一些結束語。

Thanks, Mike. In conclusion, as we move into 2023, we will continue to focus on executing the six priorities of our growth strategy while maintaining a prudent approach to cash management. With our industry-leading application development expertise and our expanding production capacity, we believe we are better positioned than ever to capitalize on new customer contracts in conjunction with preparing our current customers' expected product launches. Interest in our best-in-class biopolymers remains strong, and we are excited to capture a growing share of the market as we move forward.

謝謝，邁克。總之，隨著我們進入 2023 年，我們將繼續專注於執行我們增長戰略的六個優先事項，同時保持審慎的現金管理方法。憑藉我們行業領先的應用程序開發專業知識和我們不斷擴大的生產能力，我們相信我們比以往任何時候都更有能力利用新客戶合同，同時為當前客戶的預期產品發布做準備。人們對我們一流的生物聚合物的興趣依然濃厚，我們很高興在我們前進的過程中佔據越來越大的市場份額。

Thank you for your time today, and we look forward to updating you on our progress. We will now open up the line for questions.

感謝您今天抽出寶貴時間，我們期待著向您通報我們的最新進展。我們現在將開通提問熱線。

(Operator Instructions) The first question comes from Jon Tanwanteng with CJS Securities.

（操作員說明）第一個問題來自 CJS 證券公司的 Jon Tanwanteng。

I was wondering, could you be more specific on what kind of ramp you're expecting with these initial volumes on these new launches, maybe just over the next 1 to 2 quarters?

我想知道，您能否更具體地說明您對這些新發布的這些初始數量的期望，也許就在接下來的 1 到 2 個季度？

What kind of visibility do you have into the timing of that and the initial volumes?

您對該時間和初始數量有什麼樣的可見性？

And then maybe just a little more specificity on how much they ramp from that?

然後可能只是更具體地說明他們從中增加了多少？

Jon, what was the follow-on question?

喬恩，後續問題是什麼？

And just how quickly do you think they ramp from there?

你認為他們從那裡開始的速度有多快？

Well, the complete scale-up will take several years. It won't be linear. It will be dictated by the actual timing of the product launches that we've been forecasting. But we expect significant growth and a dramatic improvement in the utilization of our Kentucky facility next year. But that -- the volume next year would be on the low end as compared to the volume, obviously, at the full run rate. As I said, it's not going to be linear. These things will start smaller and then grow quickly into 2024.

好吧，完全擴大規模需要幾年時間。它不會是線性的。這將取決於我們一直預測的產品發布的實際時間。但我們預計明年我們肯塔基工廠的利用率將有顯著增長和顯著提高。但那 - 與成交量相比，明年的成交量將處於低端，顯然，以全速運行。正如我所說，它不會是線性的。這些東西一開始會比較小，然後到 2024 年會迅速增長。

Okay. Got it. The reduction in CapEx this year, Mike, is that just a change in the timing of your spending? Or is there something else going on there, maybe change your estimates. I think you mentioned or someone mentioned in the prepared remarks that your capital spending estimates are coming down going forward, but I wasn't sure that reflected this year's spend as well.

好的。知道了。今年資本支出的減少，邁克，這只是你支出時間的改變嗎？或者那裡還有其他事情發生，也許會改變你的估計。我想你在準備好的評論中提到或有人提到你的資本支出估計正在下降，但我不確定這是否也反映了今年的支出。

Yes, Jon, great question. We've kind of just looked at being just very frugal with our CapEx spend, and we've just identified areas where we can slow down the CapEx spend. So we're committed to some spend out through the years, but we've been able to move those out. And that's just taken some immediate pressure off of the cash flows. And I think the slowdowns will be impactful as we're kind of waiting for the volumes to ramp up at the Kentucky facility and kind of lessen the burn rate of cash in that direction.

是的，喬恩，好問題。我們有點只是想在我們的資本支出支出上非常節儉，我們剛剛確定了我們可以放慢資本支出支出的領域。因此，我們多年來一直致力於支出一些支出，但我們已經能夠將這些支出轉移出去。這只是減輕了現金流的一些直接壓力。而且我認為放緩將產生影響，因為我們正在等待肯塔基工廠的產量增加，並在某種程度上降低該方向的現金消耗率。

So there's nothing significant that we've stopped other than the greenfield project, but that's the majority of the cash CapEx that we had don't really had in our estimate before. So majority of those are related to the greenfield.

因此，除了綠地項目之外，我們沒有停止任何重要的項目，但這是我們之前估計中真正沒有的大部分現金資本支出。所以其中大部分與綠地有關。

The next question comes from Laurence Alexander with Jefferies.

下一個問題來自 Jefferies 的 Laurence Alexander。

I guess just to follow up on that, can you just unpack a little bit what utilization rate Kentucky needs to hit to be free cash flow breakeven?

我想只是為了跟進，你能不能稍微解釋一下肯塔基州需要達到什麼樣的利用率才能實現自由現金流盈虧平衡？

And secondly, can you unpack your comment that it will take several years to hit the high end of utilization rates and that we're at the very low end next year? Do you -- are you sketching a scenario where you're at 5%, 10% utilization rate next year and you get 80% in five years or seven years? Or can you give some sort of framework around how you think the order book relates to the production ramp?

其次，您能否解釋一下您的評論，即需要幾年時間才能達到利用率的上限，而明年我們將處於非常低的水平？你——你是否在勾勒一個場景，明年你的利用率為 5%、10%，而你在五年或七年內達到 80%？或者您能否圍繞您認為訂單簿與生產坡道的關係給出某種框架？

Yes, I'll take the first part of that, Steve. I think in terms of when we think of Kentucky, Kentucky should be a strong cash generator for us. And as that levels that are certainly well below its capacity. And they don't have any SG&A for the most part and very little R&D. So everything they've got kind of going through is just going to be really gross profit is going to be pretty representative of the EBITDA at that point.

是的，我將負責其中的第一部分，史蒂夫。我認為就我們何時想到肯塔基而言，肯塔基對我們來說應該是一個強大的現金來源。而且這個水平肯定遠低於其能力。而且他們大部分都沒有任何 SG&A，研發也很少。因此，他們所經歷的一切都將是真正的毛利潤，屆時將非常代表 EBITDA。

So we're estimating levels that are probably even in the range of 20% or so of its capacity utilization on a consistent basis would be able to make that facility breakeven from an EBITDA standpoint. And so that has got to kind of grow to the point where can it start to cover then the roughly $50 million or so that we have in R&D and SG&A at the corporate level. And we don't think it's probably in the range of maybe 2/3 to 3/4 of actually using its name plate capacity to reach that.

因此，我們估計，從 EBITDA 的角度來看，即使在一致的基礎上，其產能利用率甚至可能在 20% 左右的範圍內，也能夠使該設施實現收支平衡。因此，它必須增長到可以開始覆蓋我們在公司層面的研發和 SG&A 方面的大約 5000 萬美元左右的水平。而且我們認為它可能不在實際使用其銘牌容量的 2/3 到 3/4 的範圍內。

So even on top of that, it has the ability to generate cash when fully utilized that can even then support some CapEx for the organization, but certainly not enough to fund things like a greenfield project.

因此，即使最重要的是，它也有能力在充分利用時產生現金，甚至可以為組織提供一些資本支出，但肯定不足以為綠地項目等項目提供資金。

And Laurence, it's Steve here. I'll try to answer your second question. So we're saying that just with these product launches that are in front of us and not looking at the rest of the pipeline, but just these launches that we're expecting in the next several months, we will do over 100 million pounds of product shipments in 2026, which implies we have to hit that run rate at some time in '25.

勞倫斯，我是史蒂夫。我會嘗試回答你的第二個問題。所以我們說的是，僅僅通過我們面前的這些產品發布，而不是考慮其餘的管道，但僅是我們預計在未來幾個月內發布的這些產品，我們將做超過 1 億磅的2026 年的產品出貨量，這意味著我們必須在 25 年的某個時間達到該運行率。

So we will accelerate rather quickly from '23 to '24, but we're not giving specific guidance for '23 just because of the variability of timing of customer launches, but we do expect it to be a significant growth improvement. And as I mentioned earlier, a dramatic improvement in the utilization of the Kentucky facility in '23.

因此，我們將從 23 年加速到 24 年，但我們不會僅僅因為客戶發佈時間的變化就為 23 年提供具體指導，但我們確實預計這將是一個顯著的增長改進。正如我之前提到的，23 年肯塔基州工廠的利用率有了顯著提高。

Great. And then if I may, and then I'll hop back in the queue. Can you just then tie that to how you're thinking about the minimum cash balance you want to carry in '23 and '24 and the timing of any further expenses on the greenfield.

偉大的。然後，如果可以的話，我會跳回到隊列中。你能不能把它與你如何考慮你想在 23 年和 24 年攜帶的最低現金餘額以及在綠地上任何進一步支出的時間聯繫起來。

Sure. Yes, we've kind of carefully plotted out where we believe the cash balances are going to go. And we're certainly comfortable in the $60 million to $65 million range ending this year that we've guided towards. And I think as we've said in the past, we believe the ebbs and flows, we certainly love to stay above $20 million or so on kind of a go-forward basis.

當然。是的，我們已經仔細規劃了我們認為現金餘額的去向。我們當然對我們指導的今年年底的 6000 萬至 6500 萬美元範圍感到滿意。而且我認為正如我們過去所說的那樣，我們相信潮起潮落，我們當然喜歡在前進的基礎上保持在 2000 萬美元左右。

And with the various levers that we feel like we have, most importantly, just getting volume improving through the Kentucky facility, reducing the burn rate, managing our costs and continuing to moderate spend on the greenfield until we have that funding in place. We feel like we can actually make it through for quite some time.

憑藉我們認為我們擁有的各種槓桿，最重要的是，通過肯塔基州的設施提高產量，降低燃燒率，管理我們的成本並繼續適度在綠地上的支出，直到我們有資金到位。我們覺得我們實際上可以挺過一段時間。

The next question comes from Thomas Boyes with Cowen and Company.

下一個問題來自 Cowen and Company 的 Thomas Boyes。

Maybe just I want to follow up on the greenfield facility just because I know that it wasn't in the deck anymore. Was there any spending in 3Q? I think originally, I think it was maybe $136 million as of 2Q. And then is that -- now that we're kind of decelerating there? Is that the expectation that you could still do start production in 2024? Or is that like we're going to circle up with this at a later date in time once we have better volumes in Kentucky?

也許我只是想跟進綠地設施，因為我知道它已經不在甲板上了。三季度有消費嗎？我認為最初，我認為截至第二季度可能是 1.36 億美元。然後是——既然我們在那裡有點減速？這是您仍然可以在 2024 年開始生產的期望嗎？或者，一旦我們在肯塔基州的銷量更好，我們是否會在晚些時候及時解決這個問題？

I'll go ahead and take a part of that question, and I'll let Mike answer the Q3 greenfield spend. But what I would say as far as 2024 startup, that will depend on when we get the DOE loan closed. At this point, it's still possible to hit late 2024, but it's probably more than likely it will slip into 2025 at this point. Again, just depending on the timing of the DOE financing.

我會繼續回答這個問題的一部分，我會讓邁克回答第三季度的綠地支出。但就 2024 年啟動而言，我要說的是，這將取決於我們何時關閉 DOE 貸款。在這一點上，仍有可能在 2024 年末達到，但很有可能會在此時滑入 2025 年。同樣，僅取決於 DOE 融資的時間。

Yes. I'll answer your first question. We spent just to take over $16 million on CapEx for the greenfield in Q3.

是的。我會回答你的第一個問題。我們在第三季度的綠地資本支出上花費了超過 1600 萬美元。

Got it. But should there be some nominal spending going on just over time as you're continuing to do small amounts of work? Or do the kind of the crews that you've moved over from Kentucky to go to the greenfield facility? Are they kind of going home -- or how do we think about that kind of CapEx load?

知道了。但是，在您繼續做少量工作的同時，是否應該隨著時間的推移進行一些名義上的支出？還是您從肯塔基州轉移到綠地設施的那種工作人員？他們有點回家了——或者我們如何看待這種資本支出負擔？

Okay. I'll take that. We didn't really move a crew over from Kentucky to the greenfield, Thomas. We did have a small staff there running the project, which we've handed those responsibilities over to our engineering firm. And so we've reduced our footprint there considerably.

好的。我會接受的。托馬斯，我們並沒有真正將工作人員從肯塔基州轉移到綠地。我們確實有一小部分員工在那裡運行該項目，我們已將這些職責移交給我們的工程公司。因此，我們大大減少了在那裡的足跡。

Yes. Just to add to that. So there's a couple of different major buckets we spend after the greenfield. One of those engineering and for the most part, at the end of 2022, we believe that spend will be completed. The construction is really where the slowdown is occurring there says, we don't really have much activity going on there.

是的。只是為了補充這一點。因此，我們在綠地之後花費了幾個不同的主要桶。其中一項工程，在大多數情況下，在 2022 年底，我們相信支出將完成。建築確實是那裡發生放緩的地方，我們真的沒有太多活動在那裡進行。

So we do think there's a very nominal amount of that to occur in 2023. There are some pieces of equipment that we've already ordered and those are coming in. And we do have obligations to pay for that. But overall, the spend on the greenfield for CapEx for next year will be a fraction of what it was for this year. And again, we've pushed some of these payments out will defer to, especially on the procurement side is really the area we've had some success in pushing out payments. And that's what's given us, I think, a little bit of an ease on the cash burn from a CapEx standpoint.

因此，我們確實認為 2023 年會出現非常微不足道的數量。我們已經訂購了一些設備，並且這些設備正在運抵。我們確實有義務為此付款。但總的來說，明年資本支出的綠地支出將是今年的一小部分。再一次，我們已經將其中一些付款推遲到，特別是在採購方面，這確實是我們在推出付款方面取得了一些成功的領域。我認為，從資本支出的角度來看，這就是給我們帶來的一點點現金消耗的緩解。

Got it. Appreciate it. And then maybe just -- I want to make sure if you missed it. It was just on -- originally were thinking that there would be kind of EBITDA breakeven for the Kentucky facility sometime exiting the year. Is it -- if 20% utilization is the right number, is it 13 million pounds or so at that facility. Is that something you could reasonably see in the first half of next year? Or is it kind of too early to say just based on the variability of the customer launches.

知道了。欣賞它。然後也許只是 - 我想確定你是否錯過了它。它剛剛開始——最初我們認為肯塔基州的工廠在今年某個時候會出現某種 EBITDA 收支平衡。是嗎——如果 20% 的利用率是正確的數字，那麼該設施的利用率是 1300 萬磅左右嗎？你可以在明年上半年合理地看到這種情況嗎？或者僅僅根據客戶發布的可變性來判斷是否為時過早。

Yes. I would say that we certainly have stated that we believe the Kentucky facility would be breakeven on a run rate basis at some point in the fourth quarter of this year and necessarily -- that's still our view on that. And so as we kind of move into 2023, again, things are lumpy, and we don't know the exact timing of when these launches will occur, but it would be our expectation certainly that, that facility would be breakeven as we enter into 2023.

是的。我想說的是，我們當然已經說過，我們相信肯塔基州的設施將在今年第四季度的某個時間點按運行率實現收支平衡，而且必然——這仍然是我們對此的看法。因此，當我們進入 2023 年時，情況又一次變得不穩定，我們不知道這些發射的確切時間，但我們當然期望，當我們進入時，該設施將實現收支平衡2023.

The next question comes from Jon Tanwanteng with CJS Securities.

下一個問題來自 CJS 證券的 Jon Tanwanteng。

I just wanted to follow up on the comments on the DOE loan and maybe the push out of the greenfield startup. What is the change there just in terms of timing and the various moving parts that you guys are discussing with them?

我只是想跟進有關美國能源部貸款的評論，也許還有綠地初創公司的推出。就時間安排和你們正在與他們討論的各種活動部分而言，那裡有什麼變化？

Yes. So we -- I think as we stated, we believe that we'll be in a position to submit our part 2 application before the end of this year. And we're assuming it's going to take them 4-plus months or so to probably work with that. So I think we're -- we still don't believe there'll be any funding opportunities really in Q1. We are hopeful that we'll be able to have a funding and draw starting in Q2 of 2023, and that's really kind of the best knowledge we have at this point.

是的。所以我們 - 我認為正如我們所說的那樣，我們相信我們將能夠在今年年底之前提交我們的第 2 部分申請。我們假設他們可能需要 4 個多月左右的時間才能完成這項工作。所以我認為我們 - 我們仍然不相信第一季度真的會有任何融資機會。我們希望我們能夠在 2023 年第二季度開始獲得資金和資金，這確實是我們目前掌握的最好的知識。

Okay. Great. And just with the timing and the financing in question and the construction, what is the sentiment of your customers and potential customers who probably need your greenfield, what are they thinking in terms of signing agreements with you, just given that all the stuff is in the air.

好的。偉大的。就時間安排、融資和建設而言，您的客戶和可能需要您的綠地的潛在客戶的情緒如何，他們在與您簽署協議方面的想法是什麼，只要所有的東西都在空氣。

Well, thanks for the question, Jon. Our customers, we are obviously checking in with us on volumes and commitments as they plan their launches. So they understand that we have a limited volume, but we are making those commitments individually to each customer to make sure that we can support their plan. And going into the future, we will clearly need the greenfield facility to support that growth.

好吧，謝謝你的問題，喬恩。我們的客戶，在他們計劃推出時，我們顯然正在與我們核對數量和承諾。所以他們明白我們的數量有限，但我們正在向每個客戶單獨做出這些承諾，以確保我們能夠支持他們的計劃。展望未來，我們顯然需要新建設施來支持這種增長。

But that's a ways off yet, and we have enough material on hand here to support these product launches that are coming up. But customers are also there are -- there's kind of a longer queue of customers now that are looking at signing new off take agreement.

但這還有很長的路要走，我們手頭有足夠的材料來支持即將推出的這些產品。但客戶也有 - 現在正在考慮簽署新的承購協議的客戶隊列更長。

Okay. Got it. With your existing PHA customers, not the new launches that you talked about, what are the volumes you're expecting out of them as we go forward? And I think Q3 was probably -- might have been a trough to them, but I don't know if there's more pressure ahead just given macroeconomic pressures.

好的。知道了。對於您現有的 PHA 客戶，而不是您談到的新產品，您對我們未來的預期數量是多少？而且我認為第三季度可能 - 對他們來說可能是一個低谷，但我不知道鑑於宏觀經濟壓力，未來是否還會有更多壓力。

Yes. No, good question, John. Yes, kind of looking at the macro situation in the economy, what we saw in Q3 was that existing customers are being prudent and conservative in their own business and kind of planning ahead in case there's a recession, those kind of things. And so we see a lot of activity with things like inventory reductions. We certainly see that easing into Q4, and we would expect Q4 to have higher volume from existing customers then in Q3.

是的。不，問得好，約翰。是的，從宏觀經濟形勢來看，我們在第三季度看到的是，現有客戶在他們自己的業務中持謹慎和保守態度，並且在經濟衰退等情況下提前做好計劃。因此，我們看到了很多諸如減少庫存之類的活動。我們當然會看到這種情況進入第四季度有所緩解，我們預計第四季度的現有客戶數量將高於第三季度。

Great. And then finally, do you have any update on the catalytic PHA opportunity, either with your partners in the petrochem industry or licensing?

偉大的。最後，您是否有任何關於催化 PHA 機會的最新消息，無論是與您在石化行業的合作夥伴還是許可？

Yes. No specific update, Jon, except to say that we are in deep discussion and negotiation, both with our potential colocation partner, which is going very well and also with an offtake partner, which is also going well.

是的。沒有具體的更新，喬恩，只是說我們正在與我們潛在的主機託管合作夥伴進行深入的討論和談判，進展非常順利，同時也與承購合作夥伴進行了深入的討論和談判，這也進展順利。

So we remain very optimistic and upbeat about the opportunity there and continue to -- our internal work also continues to reaffirm. I think on the last quarter's call, I mentioned that we had shown the ability to replace Nodax in several of our formulations with up to 50% of Rinnovo, which is a significant change versus the 30% that we estimated when we made the acquisition. So it continues to move in the right direction, and we're very excited about it.

因此，我們對那裡的機會仍然非常樂觀和樂觀，並繼續 - 我們的內部工作也繼續重申。我想在上個季度的電話會議上，我提到我們已經展示了用高達 50% 的 Rinnovo 替代我們幾個配方中的 Nodax 的能力，這與我們在收購時估計的 30% 相比是一個重大變化。所以它繼續朝著正確的方向發展，我們對此感到非常興奮。

The next question comes from Laurence Alexander with Jefferies.

下一個問題來自 Jefferies 的 Laurence Alexander。

Could you unpack a little bit more sort of the technical side of the partnership with Kemira, how -- where you are on the trialing of formulations, whether any product has actually moved into testing or even commercial applications at this point?

您能否更多地談談與 Kemira 合作的技術方面，如何 - 您在配方試驗中的位置，此時是否有任何產品實際上已經進入測試甚至商業應用？

Sure, Laurence. I can't get into too many specifics on the actual technical piece of the question. But to answer the last part, there is product in trials now. Product is out with customers being tested, and there are several trials scheduled. And that -- the whole project remains on track and moving forward in a favorable way.

當然，勞倫斯。對於問題的實際技術部分，我無法詳細說明。但要回答最後一部分，現在有產品在試用。產品已經推出，客戶正在接受測試，並安排了幾次試用。而且 - 整個項目仍在軌道上並以有利的方式向前推進。

And if it does scale up, would you be -- you'd be supplying it from the Kentucky facility. Is that right?

如果它確實擴大規模，你會 - 你會從肯塔基州的工廠供應它。那正確嗎？

Yes, Laurence. We would supply it from the Kentucky facility. We would be supplying either powder or a liquid solution.

是的，勞倫斯。我們將從肯塔基州的工廠提供它。我們將提供粉末或液體溶液。

No, it's obviously would be a high-class problem, but you have to keep a certain amount of capacity at Kentucky available for Kemira to -- in case they decide to proceed, do you have -- do you basically have to create sort of flex capacity and reserve for them?

不，這顯然是一個高級問題，但你必須在肯塔基州保留一定數量的容量供 Kemira 使用——以防他們決定繼續，你有——你基本上必須創建某種彈性容量並為他們儲備？

Well, we have some kind of mutually agreed minimum quantities, which are built into our plan. But we're not holding like millions of pounds without a customer or a contract. So it's not an issue that would affect us.

好吧，我們有一些共同商定的最低數量，這些都已納入我們的計劃。但我們不會在沒有客戶或合同的情況下持有數百萬英鎊。所以這不是一個會影響我們的問題。

And the next question comes from Thomas Boyes with Cowen & Company.

下一個問題來自 Cowen & Company 的 Thomas Boyes。

I just actually wanted to follow up on -- I understand the kind of the macro conditions causing a bit of delays for potentially new launches. But for previously identified headwinds, I know there were some production constraints with certain customers where they just lack the capital equipment to make the straws and some of that stuff is, I guess, on boats. And to the extent that you know has it largely been resolved? Is all that now installed and up and running for them if there was to be a return of higher levels of demand, would they be call it flat footed or are they kind of just -- is everyone ready?

我實際上只是想跟進——我了解那種導致潛在新發布延遲的宏觀條件。但對於之前確定的逆風，我知道某些客戶存在一些生產限制，他們只是缺乏製造吸管的資本設備，我猜其中一些東西在船上。就您所知，它在很大程度上已經得到解決了嗎？如果有更高水平的需求返回，現在是否為他們安裝、啟動和運行所有這些，他們會稱之為措手不及還是他們有點——每個人都準備好了嗎？

Yes. No, good question, Thomas. And my understanding in all the situations that I was personally familiar with, those issues have been ameliorated that things have settled out now, and everybody is in good shape.

是的。不，問得好，托馬斯。而且我對我個人熟悉的所有情況的理解，這些問題已經得到改善，現在事情已經解決，每個人都處於良好狀態。

Got it. And then just a final one around the [canola] production, just usually lock in pricing, what kind of average pricing are you seeing on a quarterly basis? Is there any change in the thought process there? And how far out you will kind of look to lock in pricing based on availability in 2023 and beyond.

知道了。然後是關於 [canola] 生產的最後一個，通常只是鎖定定價，你看到每季度的平均定價是什麼樣的？那裡的思維過程有什麼變化嗎？以及根據 2023 年及以後的可用性鎖定定價的可能性有多大。

I'll let Mike answer the specific questions on the pricing, but there's no change in our strategy and we continue to look up as far as a year out in conjunction with our suppliers make the best decisions possible as far as locking in those prices.

我會讓邁克回答有關定價的具體問題，但我們的戰略沒有改變，我們將繼續展望一年，並與我們的供應商一起做出盡可能最好的決定，以鎖定這些價格。

But I'll let Mike cover the specifics.

但我會讓邁克介紹具體細節。

Yes. Look just for some I guess background. Our average price in Q3 is about $0.88 per pound in terms of what we used in our product. We've locked in on average about $0.86 per pound for the first half of 2023. We have the ability to go a little further. I think we have, to some degree, Prices are probably too far off of that. And again, I think based on our conversations with industry context, there's still an expectation that prices will decline in the future as more capacity comes on.

是的。只尋找一些我猜的背景。就我們在產品中使用的成分而言，我們在第三季度的平均價格約為每磅 0.88 美元。我們已鎖定 2023 年上半年平均每磅約 0.86 美元。我們有能力走得更遠。我認為，在某種程度上，我們的價格可能與此相差太遠。再一次，我認為根據我們與行業背景的對話，隨著更多產能的出現，人們仍然期望價格在未來會下降。

This concludes the question-and-answer session. I would like to turn the conference back over to Steve Croskrey for any closing remarks.

問答環節到此結束。我想將會議轉回給 Steve Croskrey 作任何閉幕詞。

Thank you again to everyone for joining us today. I'd like to thank you for your continued interest in Danimer Scientific, and we look forward to updating you on our progress in the future.

再次感謝大家今天加入我們。我要感謝您對 Danimer Scientific 的持續關注，我們期待著向您通報我們未來的最新進展。

This concludes today's conference.

今天的會議到此結束。