Lanzatech Global Inc (LNZA) 2023 Q3 法說會逐字稿

Good day, and welcome to LanzaTech Global, Incorporated third-quarter 2023 earnings conference call. (Operator Instructions) Please note that this event is being recorded. I'd like to turn the conference over to Mr. Omar El-Sharkawy, Vice President of Corporate Development at LanzaTech. Please go ahead.

美好的一天，歡迎參加 LanzaTech Global, Incorporated 2023 年第三季財報電話會議。 （操作員說明）請注意，該事件正在被記錄。我想將會議交給 LanzaTech 企業發展副總裁 Omar El-Sharkawy 先生。請繼續。

Good morning, and thank you for joining us for LanzaTech Global, Inc's third-quarter 2023 earnings conference call. On the call today, I'm joined by our Board Chair and CEO, Dr. Jennifer Holmgren; and our CFO, Geoff Trukenbrod.

早安，感謝您參加 LanzaTech Global, Inc. 的 2023 年第三季財報電話會議。我們的董事會主席兼執行長 Jennifer Holmgren 博士也參加了今天的電話會議。以及我們的財務長傑夫‧特魯肯布羅德 (Geoff Trukenbrod)。

Earlier this morning, we issued a press release with our third-quarter 2023 financial and operating results, as well as an investor presentation summarizing the company's performance and key operational highlights for the quarter. We intend to file with the SEC our quarterly report on Form 10-Q for the quarter ending September 30, 2023, after market close today. Both our press release and results summary investor presentation can be found in the Investor Relations section of our website at www.lanzatech.com.

今天早些時候，我們發布了一份新聞稿，其中介紹了 2023 年第三季的財務和營運業績，以及投資者介紹，總結了公司本季的業績和主要營運亮點。我們打算在今天收盤後向 SEC 提交截至 2023 年 9 月 30 日的季度 10-Q 表格季度報告。我們的新聞稿和業績摘要投資者簡報均可在我們網站 www.lanzatech.com 的投資者關係部分找到。

Before we begin, I'd like to direct you to the disclaimers in the front of the company's investor presentation and remind you that today's call may include forward-looking statements. Any statements describing our beliefs, goals, plans, strategies, expectations, projections, forecasts, and assumptions are forward-looking statements. Please note that the company's actual results may differ from those anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control. Please see our recent filings with the Securities and Exchange Commission, which identify the principal risks and uncertainties that could affect our business, prospects, and future results. We assume no obligation to update publicly any forward looking statements.

在我們開始之前，我想引導您閱讀公司投資者介紹前面的免責聲明，並提醒您今天的電話會議可能包含前瞻性陳述。任何描述我們的信念、目標、計劃、策略、期望、預測、預測和假設的聲明均為前瞻性聲明。請注意，由於多種原因，公司的實際結果可能與此類前瞻性陳述的預期有所不同，其中許多原因超出了我們的控制範圍。請參閱我們最近向美國證券交易委員會提交的文件，其中確定了可能影響我們的業務、前景和未來業績的主要風險和不確定性。我們不承擔公開更新任何前瞻性聲明的義務。

We would also like to remind you that our previously provided 2023 guidance, as or if updated on this call, constitutes the entirety of the company's financial and operational guidance and no other prior projections or forecasts from the company should be relied upon. In addition, we will be discussing and providing certain non-GAAP financial measures today, including adjusted EBITDA. Please see our earnings release and filings for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measure.

我們也想提醒您，我們先前提供的 2023 年指導（如本次電話會議更新或更新）構成了公司的全部財務和營運指導，不應依賴公司先前的其他預測或預測。此外，我們今天將討論並提供某些非公認會計準則財務指標，包括調整後的 EBITDA。請參閱我們的收益報告和文件，以了解這些非公認會計準則衡量標準與其最直接可比較的公認會計準則衡量標準的對帳情況。

Today's call will begin with remarks from Jennifer providing an overview of our performance, Geoff will then review in greater detail our financial results from the third quarter, and Jennifer will conclude with a few closing remarks. At the conclusion of these prepared remarks, we will open the line for questions.

今天的電話會議首先由 Jennifer 概述我們的業績，然後 Geoff 將更詳細地回顧我們第三季度的財務業績，最後 Jennifer 將做一些總結發言。在準備好的發言結束後，我們將開放提問專線。

With that, I'll turn the call over to Jennifer.

這樣，我就把電話轉給詹妮弗。

Thank you, Omar, and thanks to everybody for joining us today. We had an exceptional third quarter. Commercially, we grew quarterly revenue to $19.6 million, that represents a 52% sequential increase and 143% year-on-year improvement. This performance was fueled by robust growth across all three of our business lines, our core biorefining business, our CarbonSmart business, and our joint development and contract business. In addition, we reduced our quarterly cash burn to $24.2 million in the third quarter from $33.8 million in the second quarter.

謝謝你，奧馬爾，也謝謝大家今天加入我們。我們的第三季表現非常出色。在商業方面，我們的季度營收成長至 1,960 萬美元，季增 52%，年增 143%。這項業績得益於我們所有三個業務線、核心生物精煉業務、CarbonSmart 業務以及共同開發和合約業務的強勁成長。此外，我們將季度現金消耗從第二季的 3,380 萬美元減少到第三季的 2,420 萬美元。

Operationally, our team has kept us on track to start-up three new commercial plants in 2023, as outlined on slide 5 of the presentation. Our joint venture partner, Shougang steel, started up its fourth plant, a 60,000 ton per year facility at ferroalloy mill. Also during the quarter, our partner IndianOil started up its 33,500 ton facility at the Panipat refinery. This is our first commercial scale project in India and the first commercial facility that will convert carbon dioxide rich refinery off-gas into ethanol. Both bioreactors have demonstrated ethanol production, and we are now focused on ramping up to full production capacity.

在營運方面，我們的團隊使我們能夠在 2023 年啟動三個新的商業工廠，如簡報投影片 5 所述。我們的合資夥伴首鋼鋼鐵公司啟動了第四家工廠，即年產 6 萬噸的鐵合金工廠。同樣在本季度，我們的合作夥伴 IndianOil 啟動了位於帕尼帕特煉油廠的 33,500 噸設施。這是我們在印度的第一個商業規模項目，也是第一個將富含二氧化碳的煉油廠廢氣轉化為乙醇的商業設施。兩個生物反應器都已證明可以生產乙醇，我們現在的重點是全面提高產能。

Our partner, ArcelorMittal, just started the first bioreactor at 64,000 ton per year facility at a steel mill in Ghent, Belgium. The steel mill is scheduled for a routine maintenance in mid-November. And following completion of that maintenance, we will restart with ramp-up to full production in early 2024.

我們的合作夥伴安賽樂米塔爾剛在比利時根特的一家鋼鐵廠啟動了第一個年產 64,000 噸的生物反應器。該鋼廠計劃於11月中旬進行例行維護。維護完成後，我們將在 2024 年初恢復全面生產。

Recurring revenue from the 2023 plant startups will contribute to the top line in 2024 through the payment of royalties and sales of microbes, media, and software services. It's important to recall that the four plants operating in China are held through a joint venture and that the royalties for these plants are structured differently than with the other licensees as some of our royalty value manifests itself through our equity ownership in (inaudible). And to date, the profits have been reinvested in building additional commercial plans.

2023 年工廠新創公司的經常性收入將透過支付特許權使用費以及微生物、媒體和軟體服務的銷售為 2024 年的營收做出貢獻。重要的是要記住，在中國運營的四家工廠是透過一家合資企業持有的，這些工廠的特許權使用費的結構與其他被許可人不同，因為我們的一些特許權使用費價值通過我們的股權體現在（聽不清楚）。迄今為止，利潤已重新投資於建造額外的商業計劃。

The addition of these 2023 plant startups will bring our total installed nameplate capacity to more than 300,000 tons, that's approximately 100 million gallons of annual ethanol production. This increased production will enable us to secure more offtake volumes to supply our growing CarbonSmart business. While these six commercial plants represent half a million tons of annual carbon dioxide abatement. We need to get to gigatons. This requires us to deploy in an increasingly accelerated rate.

這些 2023 家工廠的啟動將使我們的總裝置容量達到 30 萬噸以上，相當於年乙醇產量約 1 億加侖。產量的增加將使我們能夠獲得更多的承購量，以供應我們不斷成長的 CarbonSmart 業務。這六座商業工廠代表每年減少 50 萬噸二氧化碳。我們需要達到十億噸。這就要求我們以越來越快的速度進行部署。

To that end, in addition to continuously developing our core licensing project pipeline, were actively partnering with good strategic capital partners to co-develop project opportunities. We have talked previously about our partnership with Brookfield Renewable, which is focused on the US, EU, and UK markets, and we recently announced a joint venture with Olayan Financing Company, a subsidiary of the Olayan group, to develop projects in the Kingdom of Saudi Arabia.

為此，除了不斷開發我們的核心授權專案管道外，我們還積極與優秀的策略資本合作夥伴合作，共同開發專案機會。 We have talked previously about our partnership with Brookfield Renewable, which is focused on the US, EU, and UK markets, and we recently announced a joint venture with Olayan Financing Company, a subsidiary of the Olayan group, to develop projects in the Kingdom of沙烏地阿拉伯.

We are extremely excited about this partnership and through it, the we can get more steel in the ground and more power plants online to capture and recycle waste carbon. This joint venture will develop project opportunities and source outside investment partners, ensuring that the projects are more akin to capital-efficient, high-return licensing deal. With partner Brookfield, we continue to progress to co-development projects. (inaudible) based industrial projects are progressing through early engineering phases and we anticipate that one of these projects will move into the advanced engineering early next year, setting us up to transfer the project in Brookfield at FID within the first half of 2024.

我們對這種夥伴關係感到非常興奮，透過它，我們可以在地下獲得更多的鋼鐵，並在網路上獲得更多的發電廠來捕獲和回收廢碳。該合資企業將開發專案機會並尋找外部投資合作夥伴，確保專案更類似於資本高效、高回報的授權交易。我們與合作夥伴布魯克菲爾德繼續推進共同開發專案。基於（聽不清楚）的工業專案正在早期工程階段取得進展，我們預計其中一個專案將在明年初進入高級工程階段，使我們能夠在 2024 年上半年在 FID 轉移位於布魯克菲爾德的專案。

FID or Final Investment Decision, is a critical project milestone in the development life cycle, signifying the project is ready for construction after the completion of major engineering work, site selection and procurement, permitting, offtake contracts, and financing packages. Our work with partners like Brookfield and Olayan not only provide access to incremental offtake and additional economic upside, but also enables us to condense certain aspects of the project development time line, which in turn accelerates our growth and pace of deployment. We have a high degree of confidence around our global commercial project pipeline, and we continue to advance projects through various stages of the project and engineering development cycle. As shown on slide 8 of the presentation.

FID（最終投資決策）是專案開發生命週期中的一個重要里程碑，標誌著專案在完成主要工程、選址和採購、許可、承購合約和融資方案後即可開始施工。我們與 Brookfield 和 Olayan 等合作夥伴的合作不僅提供了增量承購和額外經濟優勢的機會，而且使我們能夠壓縮專案開發時間軸的某些方面，從而加快我們的成長和部署速度。我們對我們的全球商業專案管道充滿信心，並將繼續在專案和工程開發週期的各個階段推進專案。如簡報的投影片 8 所示。

The growth and momentum across our business is visible and tangible. Third quarter we delivered the first Basic Engineering Package, or BEP, for Project Dragon, an integrated gas fermentation to sustainable aviation fuel plant in the UK. We anticipate that the Front-End Engineering Design or FEED of this alcohol content portion of the project will be completed this month, driving continued engineering services revenue through the fourth quarter and into next year.

我們整個業務的成長和勢頭是看得見、摸得著的。第三季度，我們為「龍計畫」交付了第一個基礎工程包（BEP），龍計畫是英國的一個整合氣體發酵到永續航空燃料工廠。我們預計該專案酒精含量部分的前端工程設計或前端工程設計將於本月完成，從而推動第四季度和明年持續的工程服務收入。

Globally, new material secondary policies and corporate commitment to driving customers to seek recycling solutions such as LanzaTech, that keep materials in use and out of landfill, with an estimated 415 million tons of carbon embedded in chemicals and materials annually, we have an urgent need to deploy our scalable recycling technology globally to enable circular carbon economy. The apparel industry will generate 92 million tons of global textile waste annually, represents an area of particular interest demand for picking up customers. New end of life product legislation in the EU and beyond that's a extended producer responsibility and public disclosure of unsold products discarded is putting pressure on producers to pursue material recovery technologies.

在全球範圍內，新材料二級政策和企業承諾推動客戶尋求 LanzaTech 等回收解決方案，使材料能夠繼續使用且不被填埋，估計每年有 4.15 億噸碳嵌入化學品和材料中，我們迫切需要在全球部署我們的可擴展回收技術，以實現循環碳經濟。服裝業每年將產生 9,200 萬噸全球紡織廢料，是吸引客戶特別感興趣的需求領域。歐盟及其他地區新的報廢產品立法延長了生產商的責任，並公開披露廢棄的未售出產品，這給生產商施加了追求材料回收技術的壓力。

It remains evident that our early mover advantage and demonstrable experience in processing solid waste for conversion to chemicals has led to additional partnerships beyond our long-standing partnership with Sekisui in Japan and continue to bolster our project pipeline. While we are advancing early-stage engineering work on several commercial scale municipal solid waste projects with Sekisui in Japan. We are developing additional commercial scale solid waste projects across the diverse geography base, including Europe, the Middle East, and North America.

顯而易見的是，我們在處理固體廢物轉化為化學物質方面的先發優勢和明顯經驗，使我們在與日本積水集團的長期合作夥伴關係之外建立了更多的合作夥伴關係，並繼續加強我們的項目管道。同時，我們正在與日本積水集團合作推進幾個商業規模的城市固體廢物項目的早期工程工作。我們正在歐洲、中東和北美等不同地區開發更多商業規模的固體廢棄物專案。

We have recently hit major development milestones across all of these projects that serve as an important component of our go-forward financial momentum. For the NextChem Rome project, we completed basic engineering and are commencing the FEED stage for 64,000 tons per year waste with the ethanol facility. A second NextChem waste to ethanol project in Italy is now moving through the early stages of engineering.

我們最近在所有這些專案上都達到了重要的發展里程碑，這些專案是我們前進的財務動力的重要組成部分。對於 NextChem 羅馬項目，我們完成了基礎工程，並開始使用乙醇設施進行每年 64,000 噸廢物的 FEED 階段。 NextChem 位於義大利的第二個廢棄物製乙醇計畫目前正處於工程的早期階段。

In the United Arab Emirates, our work with Tadweer, the Abu Dhabi waste management company, is progressing with an ongoing feasibility study for an integrated solid waste to sustainable aviation fuel projects.

在阿拉伯聯合大公國，我們與阿布達比廢棄物管理公司 Tadweer 的合作正在取得進展，正在進行一項將固體廢棄物轉化為永續航空燃料計畫的可行性研究。

In the United States, a commercial project, Basic Engineering Package is under execution with a multinational tire company to utilize waste products such as end-of-life tires and municipal solid waste, providing an innovative solution and market where there are approximately 1 billion end-of-life tires generated per year.

在美國，一個商業項目Basic Engineering Package正在與一家跨國輪胎公司合作實施，旨在利用報廢輪胎和城市固體廢物等廢品，提供創新的解決方案和擁有約10億終端用戶的市場。每年產生的使用壽命輪胎。

All these projects will continue to contribute to the top line in the form of engineering services revenue through the fourth quarter and into 2024. In parallel, we advanced several projects utilizing industrial and testing center. We completed a feasibility study for integration into steel facility with JSW, one of India's largest business conglomerate and the largest steel manufacturer. We are also working with Jindal Steel and Power Limited or JSPL, an Indian steel company under the Jindal group and the third largest private steel producer in India. JSPL has received around $20 million through grants available in India for commercial projects for the deployment of our technology in one of their steel mills.

從第四季到 2024 年，所有這些項目都將繼續以工程服務收入的形式為營收做出貢獻。同時，我們利用工業和測試中心推進了幾個項目。我們與印度最大的商業集團之一和最大的鋼鐵製造商 JSW 完成了整合鋼鐵設施的可行性研究。我們也與金達爾鋼鐵電力有限公司（Jindal Steel and Power Limited，簡稱 JSPL）合作，該公司是金達爾集團旗下的印度鋼鐵公司，也是印度第三大私人鋼鐵生產商。 JSPL 透過印度的商業項目獲得了約 2000 萬美元的贈款，以便在他們的一家鋼廠部署我們的技術。

Turning now to CarbonSmart and the various applications for ethanol within the transportation sector from road to aviation to marine fuels. These few opportunities unlock significant markets, can measure with the volumes of commercial ethanol we have available. We have been following closely the policy developments and recycled carbon fuels, and as we assess the fuel markets in Europe, we have been slower than expected progress on the policy and steel certification front. Technical specification of fuel requirements are yet to be clarified and approvals by the European Commission to accredited certification bodies for the certification of recycled carbon fuels for sales within the EU has been delayed.

現在轉向 CarbonSmart 以及乙醇在交通運輸領域（從公路到航空再到船用燃料）的各種應用。這些機會開啟了重要的市場，可以用我們現有的商業乙醇量來衡量。我們一直在密切關注政策發展和再生碳燃料，在評估歐洲燃料市場時，我們在政策和鋼鐵認證方面的進展慢於預期。燃料要求的技術規範尚未明確，歐盟委員會對在歐盟境內銷售的再生碳燃料進行認證的認可認證機構的批准也已推遲。

But once approvals are granted and the technical details are outlined, we expect to progress on fuel certification for sales in Europe wherein increasing numbers of EU member states have included this new fuel category in their national regulation. Certification and approvals will support significant new market for CarbonSmart. We see enormous opportunity for ethanol to be utilized to help the shipping industry, achieve its goal of reducing greenhouse gas emissions by at least 50% by 2050 and are developing a go-to-market strategy with potential customers for the use of ethanol in the marine sector were global demand for marine fuels is expected to reach 15.8 million tons in 2030.

但一旦獲得批准並概述技術細節，我們預計在歐洲銷售的燃料認證方面將取得進展，其中越來越多的歐盟成員國已將這種新燃料類別納入其國家法規。認證和批准將為CarbonSmart 的重要新市場提供支援。我們看到了利用乙醇來幫助航運業的巨大機會，實現到 2050 年將溫室氣體排放量減少至少 50% 的目標，並正在與潛在客戶一起制定在航運業使用乙醇的市場策略。海洋部門預測，到2030 年，全球船用燃料需求量預計將達到1,580 萬噸。

We are encouraged by recent announcements by [Ford Silla], a leading marine transportation propulsion company, and Raízen, the world's largest producer of sugarcane ethanol, to conduct tests on [doom] engine vessels with both traditional marine fuel and with ethanol. Currently being produced at scale on a global basis, ethanol has the potential to supplement methanol as a second generation fuel to help meet the industry's emission reduction goals.

領先的海洋運輸推進公司 [Ford Silla] 和世界上最大的甘蔗乙醇生產商 Raízen 最近宣布將在使用傳統船用燃料和乙醇的 [doom] 發動機船上進行測試，這令我們感到鼓舞。目前，乙醇在全球大規模生產，有潛力作為第二代燃料補充甲醇，幫助實現產業的減排目標。

Turning now to sustainable aviation fuel. The LanzaJet Freedom Pines is expected to begin operations in early 2024. As you can see on slide 6 of the presentation, once operational, this plant will be the world's first alcohol-to-jet SAF facility and will produce approximately 10 million gallons of sustainable fuels per year, 9 million gallons of SAF and 1 million gallons of renewable diesel. And together with Project Dragon in the UK, this represents significant progress in the production of SAF. We're encouraged by this incredible demand for marine and aviation sectors provide for ethanol production facilities which can deliver fuel without impacting land, water, or food resources.

現在轉向可持續航空燃料。 LanzaJet Freedom Pines 預計將於2024 年初開始運營。正如您在演示文稿的幻燈片6 中看到的，一旦運營，該工廠將成為世界上第一個酒精噴射SAF 設施，並將生產約1000 萬加侖的永續燃料每年生產 900 萬加侖 SAF 燃料和 100 萬加侖再生柴油。與英國的 Project Dragon 一起，這代表了 SAF 生產的重大進展。我們對海洋和航空領域對乙醇生產設施的巨大需求感到鼓舞，這些設施可以在不影響土地、水或糧食資源的情況下提供燃料。

Recently, our [new entity] completed EU reach registration for ethanol, which allows us to produce and import ethanol or finished products containing ethanol. Additionally, we do believe that having third party sustainability and certification is critical to doing business and allows us to become a reliable supplier of sustainable carbon smart products to brands.

最近，我們的[新實體]完成了乙醇的歐盟註冊，這使我們能夠生產和進口乙醇或含有乙醇的成品。此外，我們確實相信擁有第三方永續發展和認證對於開展業務至關重要，並使我們能夠成為品牌永續碳智慧產品的可靠供應商。

To this end, we continue to work with the roundtable on sustainable biomaterials, a robust and credible sustainability framework for third party certification at our commercial facilities. In addition, this quarter two of our commercial facilities in China achieved ISCC CORSIA and ISCC PLUS certification. This ISCC PLUS certification is well recognized in the chemicals market as a voluntary sustainability certification and the ISCC CORSIA certification has been improved by the International Civil Aviation Organization and positions our existing Chinese facilities as potential suppliers of ethanol feedstock into the regulated SAS market.

為此，我們繼續與永續生物材料圓桌會議合作，這是我們商業設施的第三方認證的強大且可信賴的永續發展框架。此外，本季度我們在中國的兩家商業設施獲得了 ISCC CORSIA 和 ISCC PLUS 認證。 ISCC PLUS 認證是化學品市場公認的自願永續發展認證，而 ISCC CORSIA 認證已由國際民航組織改進，並將我們現有的中國工廠定位為受監管 SAS 市場的乙醇原料潛在供應商。

Transparency and sustainability and working with credible third parties is important as we continuously improve our technology and scale. Thanks to feedback from various market touch points over the last several months, I'm pleased to share that you can now find details of our lifecycle for some of our products on our website.

在我們不斷改進技術和規模的過程中，透明度和永續性以及與可信任的第三方合作非常重要。感謝過去幾個月各個市場接觸點的回饋，我很高興與大家分享，您現在可以在我們的網站上找到我們某些產品生命週期的詳細資訊。

Let's transition out to CarbonSmart materials, which you can see outlined on slide 9 of the presentation. Craghoppers, a British performance wear brand, released a collection of performance fleeces made from polyester fibers derived from CarbonSmart ethanol, and remain in active discussions for additional commercial product launches with our CarbonSmart ethanol.

讓我們轉向 CarbonSmart 材料，您可以在簡報的幻燈片 9 中看到概述。英國功能服裝品牌 Craghoppers 發布了一系列由源自 CarbonSmart 乙醇的聚酯纖維製成的功能羊毛系列，並且仍在積極討論使用我們的 CarbonSmart 乙醇推出更多商業產品。

And we've also recently announced a partnership with Dow to sell for fabcon, made from carbon emissions. Surfactants are an important chemical compounds found in everyday products like shampoos, detergents, and soap. Through this partnership entry to a market of many end users who already work with Dow as part of their supply. LanzaTech continues to sell to other interesting customers in the surfactants business, including long term partner with Dow.

我們最近也宣布與陶氏化學公司建立合作關係，銷售由碳排放製成的晶圓廠。界面活性劑是一種重要的化合物，存在於洗髮精、洗滌劑和肥皂等日常產品中。透過這種合作關係，進入了許多最終用戶的市場，這些用戶已經與陶氏合作作為其供應的一部分。 LanzaTech 繼續向界面活性劑業務中的其他有興趣的客戶銷售產品，其中包括與陶氏化學公司的長期合作夥伴。

In 2024, we estimate that total sales in the CarbonSmart business of around $1 million, a number we expect to grow significantly over the next [four] years.

到 2024 年，我們估計 CarbonSmart 業務的總銷售額約為 100 萬美元，我們預計該數字將在未來 [四年] 內大幅增長。

We are building an ecosystem with brand leaders for transforming sustainable raw materials into products. With CarbonSmart as an enabler and trusted third-party certifiers and validators, we are giving consumers a choice about which products they use in their everyday life. We are seeing CarbonSmart brand partners planning multiple corrections rather than pursuing a one-time demonstration collections with materials made from recycled carbon. Not simply a marketing ploy, this first CarbonSmart products as a first step towards validating supply chains that do not require virgin fossil carbon.

我們正在與品牌領導者建立一個生態系統，將永續原料轉化為產品。透過 CarbonSmart 作為推動者以及值得信賴的第三方認證機構和驗證機構，我們為消費者提供了在日常生活中使用哪些產品的選擇。我們看到CarbonSmart品牌合作夥伴計劃進行多次修正，而不是追求使用再生碳材料製成的一次性示範系列。這不僅僅是一種行銷策略，這首款 CarbonSmart 產品是驗證不需要原化石碳的供應鏈的第一步。

Building on the successes to date, as well as the recent certifications achieved, we continue to anticipate planned commercial campaigns from existing and new brand partners across various consumer product verticals in the fourth quarter and through 2024. We are proud of CarbonSmart's growing position as a decarbonization enabler across industries and economy and we're looking forward to continuing growth and expansion of the business.

基於迄今為止的成功以及最近獲得的認證，我們繼續預計第四季度至2024 年現有和新的品牌合作夥伴將在各個消費產品垂直領域開展計劃的商業活動。我們對CarbonSmart 作為一家不斷增長的地位感到自豪跨行業和經濟的脫碳推動者，我們期待業務的持續成長和擴張。

In addition to the successes that we've achieved this quarter, we advanced a number of initiatives to ensure our process competitive. We continue to work at the Suncor demonstration facility in Canada to produce a key new product stream, making isopropyl alcohol or IPA at scale. This high value chemical is commonly used as solvent -- as a chemical intermediate or sanitizers. IPA commands a large market of approximately $3 billion annually and market, which today is almost exclusively net nitrogen fossil-based products, IPA can also be used as a feedstock for the production of polypropylene, a chemical with an annual market size of approximately $123 billion. And that is also nearly exclusively produced with virgin fossil input.

除了本季的成功之外，我們還採取了許多措施來確保我們的流程具有競爭力。我們繼續在加拿大 Suncor 示範工廠開展工作，生產關鍵的新產品流，大規模生產異丙醇或 IPA。這種高價值化學品通常用作溶劑—化學中間體或消毒劑。 IPA 佔據著每年約 30 億美元的龐大市場，目前該市場幾乎完全是淨氮化石產品，IPA 還可用作生產聚丙烯的原料，聚丙烯是一種年市場規模約 1230 億美元的化學品。而且它幾乎完全是用原始化石輸入生產的。

Polypropylene is a polymer used for medical devices, including syringes and IV bags, as well as for large-scale applications in automotive, furniture, textiles, and other everyday products. We're currently negotiating our first commercial idea production license, so we can move quickly into the commercialization of our first non ethanol producing micro. Additionally, we surpassed the critical intermediate milestones for the direct microbial production of monoethylene glycol or MEG, a key ingredients in polyester fibers and PET bottles. We have now produced MEG directly from real oil and gas derived from nonrecyclable solid waste.

聚丙烯是一種聚合物，用於醫療器械，包括注射器和靜脈輸液袋，以及汽車、家具、紡織品和其他日常產品的大規模應用。我們目前正在談判我們的第一個商業創意生產許可證，因此我們可以快速將我們的第一個非乙醇生產微型設備商業化。此外，我們也超越了直接微生物生產單乙二醇或 MEG（聚酯纖維和 PET 瓶的關鍵成分）的關鍵中間里程碑。現在，我們直接從不可回收固體廢棄物中提取的真正石油和天然氣中生產 MEG。

LanzaTech has partnered with (inaudible) waste management and then receiving financial support from the US Department of Energy for upscaling of nonrecyclable solid waste to MEG via gasification of the waste and then production of MEG via microbial fermentation of the waste the rise again. In the race to become cost competitive with conventional fossil, the direct production of MEG turns to force the process into one step. Further decreasing energy consumption and eliminate substantial water and chemical use associated with that four step conversion.

LanzaTech 與（聽不清楚）廢棄物管理部門合作，然後獲得美國能源部的財政支持，透過廢棄物氣化將不可回收的固體廢棄物升級為 MEG，然後透過廢棄物的微生物發酵生產 MEG。在與傳統化石燃料競爭的成本競爭中，直接生產 MEG 迫使這個過程進入一步。進一步降低能源消耗並消除與這四個步驟轉換相關的大量水和化學品的使用。

Our constant collaboration demonstrates the ability to turn waste, plastics or apparel that have reached end of life directly back into the key building blocks for PET plastic and polyester. Circular energy for production of plastics and polyester fibers is great, gaining interest from many consumer brands, such as Danone, with whom we have collaborated on this new microbial catalog.

我們的持續合作表明我們有能力將已達到使用壽命的廢棄物、塑膠或服裝直接轉化為 PET 塑膠和聚酯的關鍵組成部分。用於生產塑膠和聚酯纖維的循環能源非常有用，引起了許多消費品牌的興趣，例如達能，我們與達能合作開發了這個新的微生物目錄。

Overall, our science team's goal is to develop new commercial strains for the direct production of defense, industrially relevant molecules. To that end, the synthetic biology team has recently decreased the time it takes us to produce new strains for has traditionally been a bottleneck in our new product development pipeline. This process improvement is enabling the acceleration of the prototyping and testing of new products producing strain. Additionally, we have also been developing the capability to produce single-cell protein as a primary product from our gas fermentation platform.

總體而言，我們科學團隊的目標是開發新的商業菌株，用於直接生產國防、工業相關分子。為此，合成生物學團隊最近縮短了我們生產新菌株所需的時間，因為這一直是我們新產品開發流程中的瓶頸。這項流程改善能夠加速新產品生產應變的原型設計與測試。此外，我們也一直在開發透過氣體發酵平台生產單細胞蛋白質作為主要產品的能力。

Lastly, and most importantly, in the third quarter, we are proud to have zero lost injuries and zero recordable injuries once again. This important achievement reflects safe execution across our operations, including our offices, laboratories, as well as global commercial scale plants. This high standard of safety remains at the forefront of everything we do.

最後也是最重要的是，在第三季度，我們再次實現零損失傷病和零可記錄傷病，對此我們感到非常自豪。這項重要成就反映了我們整個營運的安全執行，包括我們的辦公室、實驗室以及全球商業規模的工廠。這種高安全標準仍然是我們所做的一切的首要考慮。

With that, I'll turn the call over to Geoff to provide details on our financial performance. Geoff, please go ahead.

接下來，我會將電話轉給傑夫，以提供有關我們財務表現的詳細資訊。傑夫，請繼續。

Thank you, Jennifer. Good morning, and thank you to everyone joining us today. As seen on slide 11 of the presentation, total revenue for the third-quarter 2023 of $19.6 million grew by 52% sequentially and 143% year-over-year. Revenue from our bio-refining carbon capture and utilization category grew 256% year on year, reaching $12.4 million, driven mainly by ongoing and recently initiated engineering services work on several projects, as well as from growth and licensing.

謝謝你，詹妮弗。早安，感謝今天加入我們的所有人。如簡報第 11 張投影片所示，2023 年第三季總營收為 1,960 萬美元，季增 52%，年增 143%。我們的生物精煉碳捕獲和利用類別的收入同比增長 256%，達到 1,240 萬美元，這主要是由幾個項目正在進行和最近啟動的工程服務工作以及增長和許可推動的。

We achieved approximately 23% quarter-on-quarter growth in engineering services revenue, reflecting the ongoing work of Project Dragon, as well as work on several of our solid waste value projects. Research and development revenue, which includes our joint development and contract research work, grew 70% year-on-year and 122% quarter-on-quarter to $5 million, reflective of ongoing as well as meaningful contribution from new customer projects.

我們的工程服務收入實現了約 23% 的季度環比增長，這反映了 Project Dragon 正在進行的工作以及我們在幾個固體廢物價值項目上的工作。研發收入（包括我們的共同開發和合約研究工作）年增 70%，季增 122%，達到 500 萬美元，反映出新客戶專案的持續貢獻和有意義的貢獻。

Our CarbonSmart revenue grew 34% year-on-year and 124% quarter-on-quarter to $2.3 million in the third quarter, consistent with our second-half weighted plan. CarbonSmart sales in the third quarter came from a diverse set of products sold to customers, including podium (inaudible). Total consolidated revenue for the first nine months of 2023 totaled $42.2 million, a 64% increase year-on-year.

第三季我們的 CarbonSmart 營收年增 34%，季增 124%，達到 230 萬美元，與我們下半年的加權計畫一致。 CarbonSmart 第三季的銷售額來自多種向客戶銷售的產品，包括 podium（聽不清楚）。 2023 年前 9 個月的合併總收入總計 4,220 萬美元，年增 64%。

Looking at revenue for the remainder of 2023, we expect another quarter of robust quarterly growth. While our growth targets remain consistent with our views when we established our full year outlook for 2023, when considering our results to date and certain opportunities that have slipped into next year from a timing standpoint, we target full year 2023 revenue to fall at the low end of our guidance range of $80 million to $100 million.

考慮到 2023 年剩餘時間的收入，我們預計另一個季度將出現強勁的季度成長。雖然我們的成長目標與我們確定2023 年全年展望時的觀點保持一致，但考慮到我們迄今為止的業績以及從時間角度來看明年已經出現的某些機會，我們的目標是2023 年全年收入降至最低水準我們的指引範圍為 8,000 萬至 1 億美元。

We anticipate that fourth quarter revenue performance will be driven by contributions from multiple sources, including continued engineering services revenue from our Project Dragon in the UK, and our waste value project focused on end-of-life tires in the United States, as well as from engineering services on new projects with partners like JSPL for steel off gas project in India. We also anticipate contribution from our project with partner Adnoc for a perspective, carbon dioxide plus hydrogen project in Abu Dhabi, which has recently commenced analysis for.

我們預計第四季度的收入表現將由多個來源的貢獻推動，包括來自英國龍項目的持續工程服務收入，以及我們專注於美國報廢輪胎的廢物價值項目，以及與JSPL 等合作夥伴為印度鋼鐵廢氣項目提供工程服務。我們也預計我們與合作夥伴 Adnoc 的計畫將為阿布達比的二氧化碳加氫計畫做出貢獻，該計畫最近已開始分析。

On the CarbonSmart side, we expect to run additional campaigns for existing customers like Codian Nobel as well as for several new customers. We expect our JD and contract research business to benefit from contributions from several existing projects, as well as from projects with partners, L'Oreal and SHV, that completed the phases of their initial scopes and they're now moving into the next phases.

在 CarbonSmart 方面，我們希望為 Codian Nobel 等現有客戶以及一些新客戶進行更多活動。我們預計我們的 JD 和合約研究業務將受益於多個現有項目以及與合作夥伴歐萊雅和 SHV 的項目的貢獻，這些項目已完成其初始範圍的各個階段，現在正在進入下一階段。

In the third quarter, gross margin sequentially increased to 27% from 16%, which in conjunction with strong revenue growth resulted in gross profit increasing 150% quarter-over-quarter to $5.2 million. This quarter-on-quarter improvement reflects the increased contribution from higher margin, recurring and engineering services revenues as well from strong margins from several JDA projects. We continue to the engineering development work on our project Dragon in the UK for which we have a 20% cost share obligation associated with the grant awarded by the UK government.

第三季度，毛利率從 16% 環比增至 27%，加上強勁的收入成長，毛利較上季成長 150% 至 520 萬美元。這一季度環比的改善反映了更高的利潤、經常性和工程服務收入以及幾個 JDA 項目的強勁利潤所帶來的貢獻增加。我們繼續在英國進行 Dragon 專案的工程開發工作，我們有 20% 的成本分攤義務，與英國政府授予的補助金相關。

Gross margin on this project in the quarter improved as we increased our internal labor utilization on its product development. Again, while the Project Dragon is a current drag on gross margin percentage, we are advancing the project (inaudible) with the support of the grant funding with the goal of selling the rights to the project in 2024.

由於我們增加了產品開發的內部勞動力利用率，該專案本季的毛利率有所改善。同樣，雖然龍計劃目前拖累了毛利率，但我們正在撥款資金的支持下推進該項目（聽不清楚），目標是在 2024 年出售該項目的權利。

Operating expenses in the third quarter increased 31% year-on-year, reflecting our growing operational base. It's important to note however, that operating expenses declined 9% compared to the second quarter, predominantly as a result of lower R&D expenses quarter-on-quarter from better labor utilization contributing to COGS from lower SG&A. As we mentioned on our last earnings call, our ongoing investment in people, innovation, and process improvement in our gas fermentation platform and micro commercialization activities beyond ethanol producing microbes was pulled forward into the first half of the year from the lower R&D expenses in the third quarter reflect a normalization in this expense.

第三季營運費用年增 31%，反映出我們不斷增長的營運基礎。但值得注意的是，與第二季相比，營運費用下降了 9%，主要是由於勞動力利用率提高，銷售成本及一般管理費用 (SG&A) 下降，導致研發費用較上季下降。正如我們在上次財報電話會議上提到的，我們對氣體發酵平台的人員、創新和工藝改進以及乙醇生產微生物之外的微商業化活動的持續投資被推遲到今年上半年，因為研發費用較低第三季反映出該費用的正常化。

Overall, we continue to expect operating expenses for the second half of 2023 to be less than those reported in the first half. Net loss in the quarter was negative $25.3 million and adjusted EBITDA was negative $19.1 million. Adjusted EBITDA loss improved by 20% quarter on quarter, thanks to higher gross profit and sequentially lower operating expenses. As we've discussed previously, the key to turning adjusted EBITDA positive is to continue growing gross profit exceed our operating expenses. This quarter, we significantly increased gross profit without increasing operating expenses, demonstrating our continued progress towards profitability. We're proud of the significant growth we've delivered in 2023, expect a robust commercial pipeline to continue the strong growth momentum into 2024 and beyond.

總體而言，我們繼續預計 2023 年下半年的營運支出將低於上半年報告的水平。本季淨虧損為負 2,530 萬美元，調整後 EBITDA 為負 1,910 萬美元。由於毛利增加和營運費用較上季下降，調整後 EBITDA 虧損較上季改善 20%。正如我們之前討論的，調整後 EBITDA 轉正的關鍵是毛利的成長繼續超過我們的營運費用。本季度，我們在未增加營運費用的情況下大幅增加了毛利，這表明我們在盈利方面持續取得進展。我們對 2023 年實現的顯著成長感到自豪，預計強大的商業管道將在 2024 年及以後繼續保持強勁的成長勢頭。

Turning now to the balance sheet, we want to highlight that our latest 10-Q to be filed later today, due to a change in our interpretation of the applicable accounting rules, we revised the accounting treatment for certain elements of our forward purchase agreement or FPA. Specifically, this change involve the reclassifying the prepayment amount of $60.5 million, which was previously recorded as part of a net non-current derivative asset to equity. The remaining liabilities of $38.1 million previously netted against the prepayment amount are reflected as long-term liabilities.

現在轉向資產負債表，我們想強調的是，我們將於今天晚些時候提交的最新 10-Q 報表，由於我們對適用會計規則的解釋發生了變化，我們修改了遠期購買協議或焦平面陣列。具體來說，這項變更涉及將 6,050 萬美元的預付款項重新分類，該金額先前記錄為非流動衍生性商品淨資產的一部分，轉為權益。先前從預付款項中扣除的剩餘負債 3,810 萬美元反映為長期負債。

This updated accounting treatment was reflected in the financial statements in the 10-Q to be filed today, which are subject to quarterly review by our independent auditor. As a result of this specific non-cash accounting treatment change, we filed an 8-K this morning stating that our first and second quarter 2023 financials can no longer be relied upon, and we expect to restate them to reflect this change. This expected restatement as a result of an exclusively for the same isolated FPA accounting item I just described.

此更新的會計處理方法已反映在今天提交的 10-Q 財務報表中，該報表須接受我們的獨立審計師的季度審查。由於這一特定的非現金會計處理方式的變化，我們今天早上提交了8-K 報告，聲明我們不再依賴2023 年第一季和第二季的財務數據，我們預計將重述這些數據以反映這一變化。這項預期重述是由於我剛才描述的同一獨立 FPA 會計項目的專門結果。

Importantly, such a restatement for the first and second quarters of 2023 is not anticipated to impact any other balance sheet or income statement accounts, nor our earnings, cash flows, or ongoing operations in any way. Also, this revised accounting treatment is already reflected in the third-quarter financial results as they were reported to and discussed with you today. We appreciate your patience as we complete this process and are focused on completing these filings as soon as possible.

重要的是，預計 2023 年第一季和第二季的此類重述不會影響任何其他資產負債表或損益表帳戶，也不會以任何方式影響我們的收入、現金流量或持續營運。此外，這項修訂後的會計處理方法已反映在今天向您報告並與您討論的第三季財務業績中。感謝您在完成此過程時的耐心等待，我們將專注於盡快完成這些備案。

Finally, we exited the quarter with cash on hand of $136.9 million, which includes cash, cash equivalents, restricted cash, and investments in US treasuries and high-grade corporate bonds. Cash burn in the quarter reduced to $24.2 million, nearly $9.6 million lower than the $33.8 million cash burn in the second quarter. We expect to see ongoing improvements in cash flow from operations, net of working capital swings quarter-over-quarter as we advance and grow the business to positive cash flow. And at this time, we see no need to pursue any dilutive finance.

最後，本季結束時，我們手頭現金為 1.369 億美元，其中包括現金、現金等價物、限制性現金以及對美國國債和高級公司債的投資。該季度的現金消耗減少至 2,420 萬美元，比第二季的 3,380 萬美元減少了近 960 萬美元。隨著我們推進業務並將其發展為正現金流，我們預計營運現金流將持續改善，並扣除營運資本後，季度將環比波動。目前，我們認為沒有必要追求任何稀釋性融資。

I will now turn the call back over to Jennifer for some closing remarks before we open the call for Q&A. Jennifer?

現在，在我們開始問答環節之前，我將把電話轉回給詹妮弗，讓她做一些結束語。詹妮弗？

Thank you, Geoff. In summary, we had another strong quarter with continued growth across our business. We continue to focus on executing our business plan and this is reflective of our 64% year-on-year revenue growth for the first nine months of 2023.

謝謝你，傑夫。總而言之，我們又經歷了一個強勁的季度，整個業務持續成長。我們繼續專注於執行我們的業務計劃，這反映了我們 2023 年前 9 個月營收年增 64%。

We are in the midst of what the UN called the triple planetary crisis, the climate crisis, a biodiversity crisis, and a pollution crisis, each compounding one another in complex ways. The Intergovernmental Panel on Climate Change estimates that in order to meet our climate targets, we must achieve nearly an 8% year-over-year reduction in greenhouse gas emissions by 2030. Experts are skeptical that this can be done in the six remaining years, yet I remain optimistic. I participated in New York Climate Week and one of the clear focus areas throughout the week with how to accelerate widespread deployment of new decarbonization technologies.

我們正處於聯合國所說的三重行星危機、氣候危機、生物多樣性危機和污染危機之中，每個危機都以複雜的方式交織在一起。政府間氣候變遷專門委員會估計，為了實現我們的氣候目標，我們必須在 2030 年將溫室氣體排放量比去年同期減少近 8%。專家對在剩下的六年內能否做到這一點表示懷疑，但我仍然保持樂觀。我參加了紐約氣候週，本週的明確重點領域之一是如何加速新脫碳技術的廣泛部署。

We will not end the carbon curve by continuing to operate in the status quo. We were honored to receive the Decarbonisation at Scale award at ADIPEC last month in recognition of our commercial progress and steadfast commitment and efforts towards delivering to our planet a gigaton scale solution. As LanzaTech were no strangers to the challenges of doing something different, we're challenging the status quo that is driving society toward an unlivable planet for future generations in the absence of immediate change. That is not for the faint hearted.

我們不會透過繼續維持現狀來結束碳曲線。我們很榮幸上個月在 ADIPEC 上獲得了大規模脫碳獎，以表彰我們的商業進展以及為向地球提供十億噸級解決方案而做出的堅定承諾和努力。由於 LanzaTech 對做一些不同的事情的挑戰並不陌生，我們正在挑戰現狀，在不立即改變的情況下，這種現狀正在推動社會走向一個不適合子孫後代居住的星球。那不適合膽小的人。

We have been tirelessly working with partners and deals, policymakers, and media to show how carbon recycling can be part of a more sustainable future for all. And to do that, we have had to help create new policy framework, be the first of a kind to get certification, and create new markets. It all takes time and patience, and we're proud of where we stand today, but we're still on a journey to change things.

我們一直不懈地與合作夥伴和交易、政策制定者和媒體合作，展示碳回收如何成為所有人更永續的未來的一部分。為此，我們必須協助創建新的政策框架，成為第一個獲得認證的機構，並創造新的市場。這一切都需要時間和耐心，我們對今天的處境感到自豪，但我們仍在努力改變現狀。

We believe that our technology has the potential to change the trajectory of our climate crisis. We are not just nibbling away at the edges. For the sake of our planet and society's future, we must be successful. This is why we continue to passionately focus on deploying our carbon recycling solutions at scale around the world. And I look forward to continuing to deliver positive results.

我們相信我們的技術有潛力改變氣候危機的軌跡。我們不只是在蠶食邊緣。為了我們的星球和社會的未來，我們必須取得成功。這就是為什麼我們繼續熱衷於在全球範圍內大規模部署我們的碳回收解決方案。我期待著繼續取得正面成果。

Thank you again for joining us and to so many of you for your support as we realize our vision of creating a circular carbon economy. Operator, we can now open the lines for Q&A, please.

再次感謝您加入我們，並感謝你們在我們實現創建循環碳經濟的願景過程中給予的支持。接線員，我們現在可以開通問答線了。

(Operator Instructions) Leo Mariani, Roth MKM.

（操作員說明）Leo Mariani，Roth MKM。

Hi. Just wanted to follow-up on your comments just around guidance for the year. Sounds like you expect to be at the low end of revenue guide here in '23. If my math is right here, it looks like you have to roughly double revenue in 4Q versus 3Q to get there. So just can you provide maybe a little bit of additional color. I know you cited some of the sources where that comes from, but that's obviously a pretty big increase. So maybe just a little bit more clarity around that and your confidence you'll be able to do that.

你好。只是想跟進您對今年指導的評論。聽起來您預計 23 年的收入將處於低端​​。如果我的數學是正確的，那麼看起來你必須將第四季的收入比第三季的收入大約翻一番才能實現這一目標。所以你可以提供一點額外的顏色嗎？我知道你引用了一些來源，但這顯然是一個相當大的成長。因此，也許只要更清楚一點，你就有信心能夠做到這一點。

Absolutely. Thank you for the question, Leo, and thank you for continuing to support and follow us. First of all, yes, your math is absolutely impeccable. We do have to double -- pretty close to double the third quarter. And we believe that we are on track to do that. We will get those revenues from all three business lines. All of them will contribute, so licensing as well -- the biorefining CarbonSmart, as well as the joint development projects. So it's all three of our business lines together that will help us achieve that number.

絕對地。感謝您提出問題，Leo，也感謝您繼續支持並關注我們。首先，是的，你的數學絕對無可挑剔。我們確實必須翻倍——第三季幾乎翻倍。我們相信我們正在實現這一目標。我們將從所有三個業務線獲得這些收入。他們所有人都將做出貢獻，包括授權——生物煉製CarbonSmart，以及共同開發專案。因此，我們所有三個業務線的共同努力將幫助我們實現這一數字。

Okay. And I guess, do you feel like a lot of that is sort of quote-unquote kind of under contract or kind of coming on the books. Do you feel like a lot of that is sort of, you know, secure revenue as you sort of see it today? Or is there any potential for any slippage on that?

好的。我想，你是否覺得其中很多內容都是在合約下引用或不引用的，或者是記錄在案的。你是否覺得其中很多都像你今天看到的那樣，是一種穩定的收入？或者是否有任何下滑的可能性？

I would say that said it is mostly under contract. So yes, we're on a glide path to most of that.

我想說的是，這主要是在合約範圍內。所以，是的，我們正在順利實現其中的大部分目標。

Okay. That was helpful. And I was hoping you guys -- one thing I didn't hear on the call was any kind of discussion of your sort of EBITDA guidance? I know you've got a guy out there that you put out negative 55 to negative 75 here this year. Can you just comment on that? You guys still expect to be within that range?

好的。這很有幫助。我希望你們——我在電話會議上沒有聽到的一件事是對你們的 EBITDA 指導進行任何形式的討論？我知道你今年在這裡打出了負 55 到負 75 的人。你能對此發表評論嗎？你們還希望在這個範圍內嗎？

Yes, we do expect to be in that range. We'll be on the high end of that range and I think, you know, our focus -- you've seen it in the third quarter, right? We almost doubled the prior quarter as well, right? So you see the improvements across everything we do, not just on the revenue side. We increased our profits and we also reduced our costs. It comes down to margins and what we can command. But we are making progress on every financial dimension of our business.

是的，我們確實希望在這個範圍內。我們將處於該範圍的高端，我想，你知道，我們的重點 - 你已經在第三季度看到了，對吧？我們上一季也幾乎翻了一番，對吧？所以你會看到我們所做的一切都取得了進步，而不僅僅是收入方面。我們增加了利潤，也降低了成本。這取決於利潤率和我們可以控制的內容。但我們在業務的各個財務方面都在取得進展。

Okay. And then just on margins, obviously had a very strong increase here and in 3Q, 10.5% up versus 2Q. Can you just kind of talk about trends into 4Q, should we be expecting a similar margin this quarter? And if we get the big revenue increase, obviously that can significantly improve the EBITDA loss as well. So maybe just any kind of comments on margin trajectory into 4Q?

好的。然後就利潤率而言，顯然這裡和第三季都有非常強勁的成長，比第二季成長了 10.5%。您能否談談第四季的趨勢，我們是否應該預期本季會有類似的利潤率？如果我們的收入大幅成長，顯然也可以顯著改善 EBITDA 損失。那麼也許只是對第四季度利潤軌蹟的任何評論？

Absolutely. Let me pass that one over to Geoff to give you some details.

絕對地。讓我把這個轉交給傑夫，讓他給你一些細節。

Yeah, thanks. And yes, you should continue to expect that our margin improvement should be consistent -- more consistent in the fourth quarter with Q3 than it was in the first half of the year. As we've talked about before, a large new impact is our revenue mix on that. And so as we brought in additional customers and additional revenues in the back half of the year, as expected many of those are higher margin revenue sources than a lot of the work that we had earlier in the year. We also talked about how Dragon was a bit of a drain on our gross margin. And as we diversify that revenue base with other revenue customers and new revenue sources that have come out in the back half of the year, that margin improvement should perpetuate.

是的，謝謝。是的，您應該繼續期望我們的利潤率改善應該是一致的——第四季度與第三季度比上半年更加一致。正如我們之前談到的，一個巨大的新影響是我們的收入組合。因此，隨著我們在今年下半年帶來了更多客戶和額外收入，正如預期的那樣，其中許多都是比我們今年早些時候所做的許多工作更高的利潤收入來源。我們也討論了 Dragon 是如何消耗我們的毛利率的。隨著我們透過其他收入客戶和今年下半年出現的新收入來源使收入基礎多樣化，利潤率的改善應該會持續下去。

Okay. That's helpful. And then just last one for me. Just in terms of the plants that you had, you guys showed this really nice inverted pyramid in your presentation. You've got two plants that you site is under construction. Can you just provide a little bit more color on what those are and any other updates you might be able to share? I guess you've also got 11 plants and advanced engineering. I see one new plant move into that category. Could you help us all a little bit with some of the companies that are working on those 11 plants?

好的。這很有幫助。然後是我的最後一個。就你們所擁有的植物而言，你們在示範中展示了這個非常漂亮的倒金字塔。您有兩家工廠正在興建中。您能否提供更多關於這些內容以及您可能能夠分享的其他更新的資訊？我猜你們還擁有 11 個工廠和先進的工程技術。我看到一家新工廠進入了這一類別。對於正在建造這 11 座工廠的一些公司，您能幫我們一點忙嗎？

Yes, absolutely. So the plants that are, you know the plants that are showing up, right? We're talking about the LanzaJet Plant at Freedom Pines in next year and this year, our (inaudible) and the additional plant that Shougang and the plant that Indian Oil. To go over to the rest of the 11, in the more detailed pipeline, I'll hand it over to Geoff as well to talk a little bit about that.

是的，一點沒錯。那麼這些植物，你知道正在出現的植物，對吧？我們談論的是明年和今年位於 Freedom Pines 的 LanzaJet 工廠、我們的（聽不清楚）以及首鋼的附加工廠和印度石油公司的工廠。為了討論 11 個項目的其餘部分，在更詳細的流程中，我也會交給 Geoff 來討論一下。

Yes. As you saw, the pipeline has continued to progress. And we've added additional projects into the pipeline in terms of the kind of the lower end of the funnel. We've got a variety of the waste to value, so solid waste value projects that we talked about here in that advanced engineering examples like Bridgestone, and we or others that we've talked about here earlier in the call. And again, the two there's the remaining construction, our LanzaJet in our supplemental the rest kind of gone into the operating stages.

是的。正如您所看到的，管道正在繼續取得進展。我們也根據漏斗下端的類型將其他項目新增到管道中。我們有各種各樣的廢物價值，所以我們在普利司通等高級工程示例中討論了固體廢物價值項目，我們或我們之前在電話會議中討論過的其他人。再說一次，兩個還有剩餘的建設，我們的 LanzaJet 在我們的補充中，其餘的進入了運營階段。

Okay. Thank you.

好的。謝謝。

Thank you.

謝謝。

John Ennis.

約翰·恩尼斯.

Good morning all and thanks for taking my questions. For my first one, can you provide background on how the joint venture in Saudi Arabia came together? In frame, how large you see the opportunity set seeing? And then to the extent that you can share, what would be the timeline in which you'd expect to see these offers and these move into your project pipeline?

大家早安，感謝您提出我的問題。對於我的第一個問題，您能否提供有關沙烏地阿拉伯合資企業如何組成的背景？在框架中，您認為機會集有多大？然後，在您可以分享的範圍內，您期望看到這些報價並將其轉移到您的專案管道中的時間表是什麼？

Thank you for the question. The only -- the [JV] that we have with them is really to source projects and to develop those projects. The financing for those projects will come partially from them but also from others. And so the idea is that it allows us not to put projects on our balance sheet and therefore, what we will do is, as always, just have it and licensing model that supports that work.

感謝你的提問。我們與他們建立的唯一的[合資企業]實際上是為了尋找專案並開發這些專案。這些項目的資金將部分來自他們，但也來自其他人。因此，我們的想法是，它允許我們不將項目放在我們的資產負債表上，因此，我們要做的就是一如既往地擁有它和支持該工作的許可模式。

How quickly, I would say we're doing the development of the engineering agreement -- of the JV agreement. We've been developing projects in Saudi Arabia with them. So there's actually quite a few projects and opportunities in the pipeline. So we expect that to impact our pipeline very soon, including as early as next year.

我想說我們正在盡快制定工程協議——合資協議。我們一直在與他們一起在沙烏地阿拉伯開發專案。因此，實際上有相當多的項目和機會正在醞釀中。因此，我們預計這將很快影響我們的管道，包括最早在明年。

Terrific. For my follow-up, referencing slide 11, you had a nice increase in the joint development and contract business quarter-over-quarter. Could you speak to the drivers of that increase and how you see revenues in the segment pricing going forward?

了不起。對於我的後續行動，參考投影片 11，聯合開發和合約業務環比成長良好。您能否談談這一成長的驅動因素以及您如何看待未來細分市場定價中的收入？

Yeah. The projects in the joint development pipeline are of two types, one of them is the example of the Project Dragon. That is a contract research project. The joint development projects -- and I'll turn this over to Jeff in a second. The joint development projects, a lot of them are big chemical projects that we do with partners. You have projects with L'Oreal, with Sumitomo Riko, (inaudible), and others. And those are the pipeline.

是的。聯合開發計劃中的項目有兩種類型，其中之一就是龍計劃的例子。這是一個合約研究計畫。聯合開發項目——我稍後會將其交給傑夫。共同開發的項目，很多都是我們和合作夥伴做的大型化工項目。您與歐萊雅、住友理子（聽不清楚）和其他公司都有專案。這些就是管道。

We are developing a lot of new molecules with partners that we intend to put into commercial in the next few years. And that work is typically done with partners. The reason, by the way, that we use partners in that is not just because they provide some of the funding, but because they also provide a channel to market. When the molecules are ready, we have somebody who's going to immediately pick them up and we can go to commercial. So that is really what the contract research and joint development pipeline is all about and I will turn it over to Geoff in case he wants to add something.

我們正在與合作夥伴一起開發許多新分子，並打算在未來幾年內將其投入商業化。這項工作通常是與合作夥伴一起完成的。順便說一句，我們在這方面使用合作夥伴的原因不僅是因為他們提供了一些資金，還因為他們還提供了進入市場的管道。當分子準備好後，我們會有人立即拿起它們，我們就可以商業化。這就是合約研究和聯合開發管道的全部內容，如果他想添加一些內容，我會將其交給傑夫。

No, I guess the only thing I would mention is just as a reminder, we think about the joint development business is also a driver of our core licensing business. Once our partners who have come to prioritize our roadmap of these next molecules, have the molecule, in addition to being potential off-takers, in many cases, we expect them to actually license the technology and build plans as well. So we consider the joint development work to be integrated and complementary.

不，我想我唯一要提到的只是提醒一下，我們認為聯合開發業務也是我們核心授權業務的驅動力。一旦我們的合作夥伴開始優先考慮這些下一個分子的路線圖，擁有該分子，除了成為潛在的承購者之外，在許多情況下，我們希望他們能夠實際許可該技術並製定計劃。因此，我們認為聯合開發工作是一體化和互補的。

Perfect. Appreciate all that detail and thanks for taking my questions.

完美的。感謝所有這些細節，並感謝您提出我的問題。

Thank you.

謝謝。

Ryan Lynch, B. Riley FBR.

瑞安林奇 (Ryan Lynch)，B. 萊利 (B. Riley) FBR。

Hey, good morning, guys. Before reaching your target of EBITDA breakeven by the end of next year, you talked about a little bit, but is it just a matter of ramping revenue or are there some costs that you're looking to drive out as well? And if we're hitting breakeven EBITDA on a quarterly basis late next year, is it fair to say we should be thinking about positive EBITDA for the year in 2025?

嘿，早上好，夥計們。在明年年底達到 EBITDA 損益平衡的目標之前，您談到了一些問題，但這只是增加收入的問題還是您還希望消除一些成本？如果我們在明年底實現季度 EBITDA 盈虧平衡，那麼我們應該考慮 2025 年的 EBITDA 為正值嗎？

Thank you for the question, let me transfer that over to Geoff.

謝謝你提出這個問題，讓我把這個問題轉給傑夫。

Right. Thanks for joining and thanks for the question. As we think about EBITDA, as I mentioned a little bit earlier that the key is just continuing to grow the business unit gross profit up above our operating costs, and we continue to be excited about what we expect to be a really strong 2024. And our path to profitability is as we described it and you've seen progress associated with that this quarter as we did improve our gross profit significantly while holding or reducing OpEx. With that said, we'll provide more detailed guidance on 2024 in February. And while we'll continue to focus on finishing strong in 2023 and advancing projects in the pipeline, which will help drive that strong growth.

正確的。感謝您的加入並感謝您的提問。當我們考慮 EBITDA 時，正如我之前提到的，關鍵是繼續將業務部門毛利潤增長到高於我們的營運成本，並且我們繼續對 2024 年的強勁表現感到興奮。我們的盈利之路正如我們所描述的那樣，您已經看到了本季度與此相關的進展，因為我們在保持或減少營運支出的同時確實顯著提高了毛利。儘管如此，我們將在 2 月提供 2024 年更詳細的指導。我們將繼續專注於在 2023 年實現強勁成長並推進籌備中的項目，這將有助於推動強勁成長。

That's good. Thanks guys.

那挺好的。多謝你們。

Thank you. This concludes our question-and-answer session. I'll turn the call back over to Ms. Jennifer Holmgren for closing remarks. Please go ahead.

謝謝。我們的問答環節到此結束。我將把電話轉回給 Jennifer Holmgren 女士做總結發言。請繼續。

Thank you very much for joining. We really appreciate it. And we appreciate also your feedback. This is why the LCA got posted because we received feedback that that was an important element. So thank you for being part of this. And I would also say I hope you appreciate that we're really growing as a business and have had just a tremendous third quarter. The fourth quarter will be even better, and we look forward to sharing full year results with you very soon. Thank you.

非常感謝您的加入。我們真的很感激。我們也感謝您的回饋。這就是發布 LCA 的原因，因為我們收到的回饋表明這是一個重要因素。感謝您參與其中。我還想說，我希望您認識到我們作為一家企業正在真正成長，並且剛剛度過了出色的第三季。第四季會更好，我們期待很快與您分享全年業績。謝謝。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。