Lanzatech Global Inc (LNZA) 2023 Q4 法說會逐字稿

And welcome to the LanzaTech Global Inc. fourth quarter 2003 earnings conference call. All participants will be in a listen only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Omar El-Sharkawy, Vice President, Corporate Development. Please go ahead, sir.

歡迎參加 LanzaTech Global Inc. 2003 年第四季財報電話會議。所有參與者將處於只聽模式。（操作員說明）今天的演示結束後，將有機會提問。（操作員說明）請注意此事件正在被記錄。我現在將會議交給企業發展副總裁 Omar El-Sharkawy。請繼續，先生。

Good morning, and thank you for joining us for Lonza tech global Inc's fourth 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. Earlier this morning, we issued a press release with our fourth quarter and full year 2023 financial and operating results, as well as an investor presentation summarizing the company's performance and key operational highlights. Subsequent to this call, we intend to file with the SEC our annual report on Form 10-K for the fiscal year ending December 31st, 2023. Both our press release and results summary, investor presentation can be found in the Investor Relations section of our website at www.landec.com. 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.

早安，感謝您參加 Lonza tech Global Inc 的 2023 年第四季財報電話會議。我們的董事會主席兼執行長 Jennifer Holmgren 博士和財務長 Geoff Trukenbrod 也參加了今天的電話會議。今天早上早些時候，我們發布了一份新聞稿，其中介紹了 2023 年第四季度和全年的財務和營運業績，以及總結公司業績和主要營運亮點的投資者介紹。在此次電話會議之後，我們打算向 SEC 提交截至 2023 年 12 月 31 日的財政年度的 10-K 表格年度報告。我們的新聞稿、業績摘要、投資者介紹均可在我們網站 www.landec.com 的投資者關係部分找到。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。

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 uncertain uncertainties that could affect our business prospects and future results. We assume no obligation to update publicly any forward-looking statements.

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因素。我們不承擔公開更新任何前瞻性聲明的義務。

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 in today's call will begin with remarks from Jennifer providing an overview of our performance and outlining our 2024 objectives. Jeff will then review in greater detail our financial results, and Jennifer will conclude with a few closing remarks. At the conclusion of these prepared remarks, we will open the line for questions with them.

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 GAAP 衡量標準與其最直接可比較的 GAAP 衡量標準的對賬，在今天的電話會議中，Jennifer 將首先概述我們的業績並概述我們 2024 年的目標。然後，傑夫將更詳細地回顧我們的財務業績，珍妮佛將發表一些結論。在準備好的發言結束後，我們將開通與他們提問的熱線。

I'll turn the call over to Jennifer.

我會把電話轉給詹妮弗。

Thank you, Omar, and thanks to everybody joining us today. We appreciate your ongoing interest and support of Lenta tech as we host our first year-end earnings call and fourth call since becoming a public company just over a year ago.

謝謝你，奧馬爾，也謝謝今天加入我們的所有人。我們感謝您對 Lenta tech 的持續關注和支持，我們舉辦了第一次年終收益電話會議，也是一年多前成為上市公司以來的第四次電話會議。

Starting with slide 5, we had a strong year of growth overall and as compared to 2022 increase our revenue by 68%. As discussed in our third quarter earnings call, we had a very strong quarter over quarter growth through the first three quarters of 2023 and we're proceeding on track to achieve the low end of our guidance. However, while Q4 revenue increased significantly year over year by 77% to $20.5 million, this was meaningfully below our expectations.

從幻燈片 5 開始，我們整體成長強勁，與 2022 年相比，我們的收入增加了 68%。正如我們在第三季財報電話會議中所討論的那樣，我們在 2023 年前三個季度實現了非常強勁的季度環比增長，並且我們正在穩步實現我們指導的低端。然而，雖然第四季營收年增 77% 至 2,050 萬美元，但這大大低於我們的預期。

As a result, our full year revenue of $62.6 million was well below the $80 million to $100 million full year guidance that we provided last year as several material opportunities identified as fourth quarter revenue drivers failed to materialize. Weaker than anticipated. Fourth-quarter results were primarily driven by carbon smart opportunities that did not materialize during the quarter. It is important to note that the issues were not demand-driven, which remains robust for first carbon smart product. Rather the challenges we faced late in the quarter were related to availability of off-spec supply of carbon smart ethanol from our various licensees for three main reasons.

因此，我們 6,260 萬美元的全年收入遠低於我們去年提供的 8,000 萬至 1 億美元的全年指導，因為被確定為第四季度收入驅動因素的幾個重大機會未能實現。比預期弱。第四季的業績主要是由碳智慧機會推動的，但該機會在本季並未實現。值得注意的是，這些問題並不是需求驅動的，這對於第一個碳智慧產品來說仍然很強勁。相反，我們在本季末面臨的挑戰與我們的各個被授權者提供的不合規格的碳智慧乙醇供應有關，主要原因有三個。

One, there were some facilities that were somewhat delayed and coming online in 2023 compared to our early and mid-year expectations. Two policy requirements for fuel has still not finalized at the European level, leading to delays and how to certify our ethanol ex fuel for sale in the European Union and three without clear commitments, we did not inventory significant supply and were unable to satisfy several carbon smart orders that came in late in the quarter as our licensee had already committed those volumes to us, we are taking two steps to address each of these challenges head-on. First, we're supporting our partners through the certification process.

第一，與我們年初和年中的預期相比，一些設施的上線時間有所延遲，並於 2023 年上線。歐洲層級尚未最終確定兩項燃料政策要求，導致延誤以及如何認證我們在歐盟銷售的乙醇前燃料；三項沒有明確承諾，我們沒有庫存大量供應，無法滿足多項碳排放要求由於我們的被許可人已經向我們承諾了這些數量，因此我們在本季度末收到了明智的訂單，我們正在採取兩個步驟來正面應對這些挑戰。首先，我們透過認證流程為我們的合作夥伴提供支援。

And second, we are negotiating committed offtake supply agreements with our partners in China and Europe to satisfy the growing carbon smart demand in 2024 and 2025, while adjusted EBITDA loss for 2023 was below our goal at $80.1 million, we showed quarter-over-quarter improvement throughout the year as a result of our increased focus on improving gross margin and controlling operating expenses. This cost control discipline will continue through 2024.

其次，我們正在與中國和歐洲的合作夥伴就承諾的承購供應協議進行談判，以滿足2024 年和2025 年不斷增長的碳智能需求，而2023 年調整後的EBITDA 損失低於我們8010 萬美元的目標，我們顯示季度環比由於我們更加註重提高毛利率和控制營運費用，全年業績有所改善。這種成本控制紀律將持續到 2024 年。

We ended 2023 with $121.4 million of cash on hand, including cash, restricted cash and investments, which we believe provides sufficient runway for more than 15 months. We are disappointed by the shortfall versus our guidance and accountability for performance my spend at that time, and therefore, we are addressing this underperformance head-on with several organizational changes and corrective actions we must deliver relative to our targets and we are taking actions to ensure we are demonstrating this core principles. I would highlight three specific actions we have taken, as you can see on slides 6 through 8 saves this morning were 19 a significant reorganization of our management team. The goal of this reorganization is to drive greater accountability as well as operational transparency and efficiency, ultimately, enhancing execution throughout the company.

截至 2023 年底，我們手頭現金為 1.214 億美元，包括現金、限制性現金和投資，我們相信這些現金可以提供超過 15 個月的充足資金。我們對當時的績效指導和問責制的差距感到失望，因此，我們正在透過一些組織變革和糾正措施來正面解決績效不佳的問題，我們必須相對於我們的目標採取行動，我們正在採取行動確保我們展示這核心原則。我想強調我們已經採取的三個具體行動，正如您在投影片 6 到 8 中看到的那樣，今天早上保存的 19 是我們管理團隊的重大重組。此次重組的目標是提高問責制以及營運透明度和效率，最終提高整個公司的執行力。

Dr. Stephen standing LanzaTech's Chief Commercial Officer, has elected to retire, and Carl Wolf, LanzaTech's, Chief Operating Officer, will be departing the Company to pursue other opportunities. We would like to thank each of them for their many contributions to the Company and wish him well these departures together with some additional restructuring of the executive team, it reduced the size of the go-forward executive team by 33%.

LanzaTech 商務長 Stephen 博士已選擇退休，LanzaTech 營運長 Carl Wolf 將離開公司尋求其他機會。我們要感謝他們每個人對公司的許多貢獻，並祝他一切順利。這些離職加上對執行團隊的一些額外重組，使未來執行團隊的規模減少了 33%。

Mr. Alvarez Square, our EVP of growth and strategic projects has been named President of LanzaTech in this new role. Our will be responsible for all revenue, generating business lines and engineering work. In addition to continuing to lead our Strategic Projects Group, bringing all revenue under our stewardship will create synergies and cure accountability across all three parts of our business. Having a single point of responsibility for all revenue sources as well as our engineering team will ensure focus and prioritization across all commercial activities.

我們的成長和策略專案執行副總裁 Alvarez Square 先生已被任命為 LanzaTech 總裁，擔任此新職位。我們將負責所有收入、業務線和工程工作。除了繼續領導我們的策略專案小組之外，將所有收入納入我們的管理範圍內還將在我們業務的所有三個部分中產生協同效應並加強問責制。對所有收入來源以及我們的工程團隊實行單一責任，將確保所有商業活動的重點和優先順序。

Dr. Charles Summers, our Chief Science Officer, will be additionally responsible for our scale-up and product manufacturing team. Dr. rather Convera has been named Chief Technology Officer. In addition to continuing to lead technology development at the front-end engineering design. Rob will now have responsibility for all process infrastructure technology, consolidating on department content, genre and route perspective. Leadership will also drive efficiencies being in science and synthetic biology leadership and the same move with product manufacturing will improve commercial product viability. Our scientific computing capabilities create the ability to leverage the extensive generative AI and informatics infrastructure and machine learning capabilities built within Lancet that first synthetic biology works across the business just to increase efficiency and scale engineering, workforce and business processes.

我們的首席科學官 Charles Summers 博士也將負責我們的規模擴大和產品製造團隊。康維拉博士被任命為首席技術長。除了繼續引領前端工程設計的技術開發。羅布現在將負責所有流程基礎設施技術，整合部門內容、類型和路線視角。領導力也將提高科學和合成生物學領導力的效率，產品製造的同樣措施將提高商業產品的可行性。我們的科學計算能力創造了利用柳葉刀內構建的廣泛的生成人工智能和信息學基礎設施以及機器學習功能的能力，首先合成生物學在整個企業中發揮作用，只是為了提高效率和規模工程、勞動力和業務流程。

Second, together with the management reorganization, we executed the plan, eliminating the variety of additional roles based and reprioritization of work and poor performance. Collectively, we expect these actions to reduce our annualized operating expenses, I have $5.3 million, which we expect to resolve approximately $4.2 million in annual cash savings. This will also reduce our headcount by approximately 5%. We intend to end the year with a global headcount of about 400 people as compared to the approximately 415 people at the end of 2023. We are also implementing a plan in the first half of the year to offset the $10 million in additional cash burn annually. And we will continuously review the organization and our strategic growth initiatives to ensure our team is balanced between our needs to drive sustainable, profitable growth and innovation. We believe these changes position the organization for long-term commercial success and to deliver on our target with KPIs and strategic priorities.

其次，在管理層重組的同時，我們執行了該計劃，消除了基於各種額外角色、重新調整工作優先順序和不良績效的情況。總的來說，我們預計這些行動將減少我們的年度營運支出，我有 530 萬美元，我們預計每年可節省約 420 萬美元的現金。這也將使我們的員工人數減少約 5%。我們計劃在今年年底將全球員工人數增至約 400 人，而 2023 年底的人數約為 415 人。我們也在上半年實施一項計劃，以抵消每年 1000 萬美元的額外現金消耗。我們將不斷審查組織和我們的策略性成長計劃，以確保我們的團隊在推動永續、獲利成長和創新的需求之間取得平衡。我們相信這些變化使組織能夠取得長期商業成功，並透過 KPI 和策略優先事項實現我們的目標。

So we cut the target in 2023 cash bonus payouts for the executive and management team myself included by 80% which in the aggregate represented approximately $2 million cash savings. This component of compensation for the executive and management team is tied entirely to company performance and it accounts for a significant portion of leadership's total target cash compensation. This action reinforces our alignment between compensation and performance and evidences our pay for performance culture. Together, we expect these actions to improve and streamline our execution while also reducing our cost structure. Consistent with our sharp focus on balance sheet health, rightsizing the organization and the headcount optimization will ensure focus on commercial growth in our core businesses and the cash bonus decisions will turn the clear message to management that we are focused on delivering financial results.

因此，我們將 2023 年包括我本人在內的高階主管和管理團隊的現金獎金支付目標削減了 80%，總共節省了約 200 萬美元的現金。高階主管和管理團隊的這部分薪酬完全與公司績效掛鉤，佔領導層現金薪酬目標總額的很大一部分。這項行動加強了我們薪酬與績效之間的一致性，並證明了我們按績效付費的文化。我們希望這些行動能夠共同改善和簡化我們的執行，同時降低我們的成本結構。與我們對資產負債表健康狀況的高度關注相一致，組織規模的調整和員工人數的優化將確保我們專注於核心業務的商業成長，而現金獎勵決策將向管理層傳達明確的訊息：我們專注於實現財務業績。

Turning now to slide 9, I want to recap our other execution by our each from last year and highlights of 2023 was a milestone year for Lantronix, marking our 18th in operation. That's a testament to our diligent patient resilience and perseverance of our team as well as the difficulty associated with scaling and commercializing it takes you rapid process technology in 2023, together with our partners, we started at three commercial scale plants bringing the total number of operating and commercial land at that plant?

現在轉到幻燈片 9，我想回顧去年我們每個人的其他執行情況，2023 年的亮點對於 Lantronix 來說是具有里程碑意義的一年，標誌著我們運營的第 18 年。這證明了我們團隊的勤奮耐心和毅力，以及與規模化和商業化相關的困難，它需要您在2023 年與我們的合作夥伴一起，從三個商業規模的工廠開始，使運營中的工廠總數達到以及該工廠的商業用地？

Yes, it's total installed nameplate production capacity of glass and licensees. Operating treat is approximately 310,000 tonnes per year of ethanol. With the ability to abate more than half a million tonnes per year of harvest, it would otherwise enter atmosphere, full commercial plants in China are operational, and we expect that Indian ore facility in India as well as onshore metals facility in Belgium will continue to ramp up to full capacity over the course of 2024.

是的，它是玻璃和被許可人的總裝機銘牌產能。每年營運處理約 31 萬噸乙醇。由於每年有能力減少超過 50 萬噸的收穫量，否則它將進入大氣層，中國的完整商業工廠已投入運營，我們預計印度的印度礦石設施以及比利時的陸上金屬設施將繼續到2024 年達到滿載生產。

The Indian oil facility started up in September 2023. And the team in India is working diligently to ramp up production as is normal with a new commercial feedstock refinery of gas. In this case, the start-up phase can be elongated. We are confident that successful full-scale operations will be achieved in the coming months. Our shallow metals plant started up in November 2023.

印度石油設施於 2023 年 9 月啟動。印度的團隊正在努力提高產量，就像新建商業天然氣原料煉油廠的正常情況一樣。在這種情況下，可以延長啟動階段。我們有信心在未來幾個月內成功實現全面營運。我們的淺金屬工廠於 2023 年 11 月投產。

The steel mills shut down at the end of the year for planned routine maintenance and the mill is now back in operation and the team in Belgium has restarted operations with a ramp up of production. Expect that over the next two quarters in mid-January, LanzaTech is celebrating the opening of the world's first ethanol sustainable aviation fuel facility at its $10 million gallon per year plant.

鋼廠於年底關閉以進行計劃中的日常維護，現在鋼廠已恢復運營，比利時團隊已重新開始運營並提高產量。預計在接下來的兩個季度，即 1 月中旬，LanzaTech 將在其每年價值 1000 萬加侖的工廠慶祝世界上第一個乙醇可持續航空燃料工廠的開業。

And so put that in Georgia as seen on slide 10, the SEZ plant is expected to ramp up production over the first half of the year, having the ability to produce up to 90% sustainable aviation fuel and efficient renewable diesel from ethanol, Lantronix ethanol serves as a feedstock for SAP and when coupled with lens technology enables production of fat from a variety of listed residues, including municipal solid waste and carbon dioxide or hydrogen. The latter is commonly referred to as e-fuels of power two well, we currently have an approximate 25% ownership in Massachusetts.

因此，如幻燈片 10 所示，在喬治亞州，經濟特區工廠預計將在今年上半年提高產量，能夠利用乙醇 Lantronix 乙醇生產高達 90% 的可持續航空燃料和高效可再生柴油作為SAP 的原料，與透鏡技術相結合，可以從各種列出的殘留物中生產脂肪，包括城市固體廢物和二氧化碳或氫氣。後者通常被稱為電力二井的電子燃料，我們目前在馬薩諸塞州擁有約 25% 的所有權。

Completion of this facility also represents a significant milestone for land ownership in land suggests and should we expect it to from our co-investment and others to take licenses to build their own alcohol to jet plants, which in turn triggers the issuance of additional land to get shares electric.

該設施的竣工也代表了土地所有權的一個重要里程碑，我們是否應該期望我們的共同投資和其他人獲得許可建造自己的酒精噴氣工廠，這反過來又會引發額外的土地發放獲得電動股票。

Looking now at KC, one of our core values, I do want to acknowledge that we experienced a singular recordable lost time injury during the fourth quarter first such incident since November 2018. This was the only recordable incident in all of 2023 across our global operations and was the result of a lab related incident that occurred while moving equipment. The employee made a complete recovery from the injury and returned to work quickly. We have addressed the root cause of the incident and remain vigilant in ensuring the safety of our employees and stakeholders.

現在看看我們的核心價值之一 KC，我確實想承認，我們在第四季度經歷了一次可記錄的損失時間傷害，這是自 2018 年 11 月以來的首次此類事件。這是 2023 年全球營運中唯一可記錄的事件，也是行動裝置時發生的實驗室相關事件的結果。該員工傷勢完全康復，並很快重返工作崗位。我們已經解決了事件的根本原因，並保持警惕，確保員工和利害關係人的安全。

Lastly, from a process competitiveness standpoint, at the Suncoast facility in Canada, we've demonstrated at scale the production of the key new proprietary bacterium production stream capable of making isopropyl alcohol or IPA. IPA commands a large market of approximately $3 billion annually and can be utilized for feedstock for the production of polypropylene, which has an ethanol market price of approximately $123 billion. This process is stand rate locations, and we expect to do so in 2024. Additionally, our streaming continuing and fermentation optimization work on the direct microbial production of mono ethylene glycol or MEG at Chemical with an annual market size of approximately $25 billion and a key ingredient in the production of PET fibers and bottles continued successfully as our science team's overall goal is to develop new commercial space. Fourthly, to add production of high value industrially relevant molecules.

最後，從製程競爭力的角度來看，我們在加拿大 Suncoast 工廠大規模展示了能夠生產異丙醇或 IPA 的關鍵新型專有細菌生產流程。IPA 擁有每年約 30 億美元的龐大市場，可用作生產聚丙烯的原料，而聚丙烯的乙醇市場價格約為 1,230 億美元。此過程是標準地點，我們預計在 2024 年完成。此外，我們在化學領域直接微生物生產單乙二醇或MEG 的流式連續和發酵優化工作繼續成功進行，該產品的年市場規模約為250 億美元，是PET 纖維和瓶子生產的關鍵成分，因為我們科學團隊的整體成果目標是開發新的商業空間。第四，增加高價值工業相關分子的生產。

Moving to slide 12, we outline our strategic priorities for 2024 with care safety, commercial growth and path to profitability. First and foremost, safety with safety, first, innovation and we'll continue to strive for excellence and Zero Safety interim second commercial growth. Even against somewhat difficult macro backdrop and challenging sales cycles. Our market opportunity remains outstanding, and we are committed to accelerating our growth by adding and advancing projects, US Our commercial pipeline as we progress projects and ultimately bring more plants online, we will further expand our base of long-lived, high-margin recurring revenues from royalties, the share of microbes and media and the services.

轉到投影片 12，我們概述了 2024 年的策略重點，包括護理安全、商業成長和獲利之路。首先，安全第一，創新第一，我們將持續追求卓越，實現零安全中期第二次商業成長。即使在較為困難的宏觀背景和充滿挑戰的銷售週期下也是如此。我們的市場機會仍然突出，我們致力於透過增加和推進專案來加速我們的成長，隨著我們推進專案並最終使更多工廠上線，我們將進一步擴大我們的長期、高利潤經常性基礎來自特許權使用費、微生物和媒體以及服務的份額的收入。

On slide 13, you will see our current project pipeline funnel. Since our last update, we added several opportunities to top of the funnel. And we saw five made additions to the early-stage engineering Phase I. This redemption from the TA St or from projects already in early engineering licensing is hard and dependent on the decision cycles of our licensees and many organizations around the growth have leaned away from next-generation work in this macroeconomic environment.

在投影片 13 上，您將看到我們目前的專案管道漏斗。自上次更新以來，我們在漏斗頂部添加了幾個機會。我們看到了早期工程第一階段的五個補充。從TA St 或已經處於早期工程許可的項目中進行的這種贖回是困難的，並且取決於我們的被許可人的決策週期，並且許多圍繞成長的組織已經放棄了在這種宏觀經濟環境下的下一代工作。

How ever we continue to add to our backlog, and I'm encouraged by the diversity of the pipeline, including the diversity of feedstocks in a variety of technical integration and the geographic spread.

無論我們如何繼續增加我們的積壓，我對管道的多樣性感到鼓舞，包括各種技術整合和地理分佈的原料多樣性。

With regard to diversity of feedstock in the pipeline. Industrial off cash and gasified solids make up approximately 42% and 38% of our opportunities. We expect it with other feedstocks, including carbon dioxide and hydrogen, representing the remaining 20%. Pete South center C shows the extensive reach of our technology as it distributed decarbonization solution. It is fit for purpose related to technical integration we have seen tremendous global interest and check decision unsurprising. Given the enormous market opportunity, approximately 100 billion gallons of staff is needed to meet the world's fuel needs. While the current annual production capacity of SaaS only stands at approximately 120 million gallons. We have several opportunities in the pipeline that focus on an integrated solution to take rich gas through to SaaS. I pairing lend to fix customizations technology with the land to get alcohol to jet passes. The ramifications of this are enormous shifts. It unlocks the use of locally advantage feedstocks to enable regional domestic production of SaaS at industrial scale without negatively impacting the food supply chain. Specifically, we have for integrated risk SaaS projects in early stage or advanced engineering agents, including a project in New Zealand with them is human and the New Zealand government to take predominantly gasified force through recipes through the SaaS.

關於管線中原料的多樣性。工業現金和氣化固體約占我們機會的 42% 和 38%。我們預計其他原料（包括二氧化碳和氫氣）將佔剩餘的 20%。Pete South 中心 C 展示了我們技術的廣泛影響力，因為它是分散式脫碳解決方案。它適合與技術整合相關的目的，我們已經看到了全球的巨大興趣，並且檢查決定並不令人驚訝。鑑於巨大的市場機會，需要約1000億加侖的員工來滿足世界燃料需求。而目前SaaS的年產能僅約1.2億加侖。我們正在醞釀多個機會，專注於將富天然氣轉化為 SaaS 的整合解決方案。我將貸款修復定製技術與土地配對，以獲取酒精到飛機通行證。其後果是巨大的轉變。它可以利用當地優勢原料，實現工業規模的 SaaS 區域國內生產，而不會對食品供應鏈產生負面影響。具體來說，我們有早期或高級工程代理的整合風險SaaS項目，包括在新西蘭的一個項目，他們是人類和紐西蘭政府透過SaaS透過配方來主要採取氣化力。

Our project with the drilling Africa, happy to take densified solids through the shaft. It tried to flag it in the UK to take industrial off gas through the shaft and a particularly big gasified, solid success in Australia, Derrick, significant feedstock advantage into our architecture technology and our ability to produce ethanol from multiple sources. It's a clear differentiator strategy is supported by several sub mandates for power to ex fuel in regions like the European Union to create a distinct market, some fields producing CO2. Geographically, we are seeing regional bubbles projects forming with strong partners that are focused on decarbonization. This notion of leading the way in the respective regions like the Middle East with partners like at an account that we have and in Saudi Arabia through a partnership with only and as well and has been India with partner, secondary Oil Corporation and GAIL. Overall, the buy-in were securing amongst these two leading organizations, establish a strong regional protocols allowing us to focus and resources regionally and capture large local market. We expect that engineering services revenue will be bolstered by several projects this year, including our project that we are and we'll put an app now for perspective, carbon dioxide or hydrogen projects.

我們與非洲鑽井公司合作的項目，很高興透過豎井輸送緻密固體。它試圖在英國標榜通過豎井獲取工業廢氣，並在澳大利亞取得了特別大的氣化和堅實的成功，Derrick，我們的建築技術的重要原料優勢以及我們從多種來源生產乙醇的能力。這是一個明顯的差異化策略，並得到了歐盟等地區電力轉換燃料的多項子指令的支持，以創建一個獨特的市場，其中一些油田會產生二氧化碳。從地理上看，我們看到區域泡沫專案與專注於脫碳的強大合作夥伴形成。這種理念是在中東等各個地區與我們擁有的合作夥伴一起引領潮流，在沙烏地阿拉伯也透過與印度的合作夥伴、二級石油公司和 GAIL 合作。總體而言，這兩個領先組織之間的支持是安全的，建立了強大的區域協議，使我們能夠在區域內集中精力和資源，並佔領大型當地市場。我們預計今年的工程服務收入將受到多個項目的推動，包括我們現在的項目，我們現在將推出一個用於透視、二氧化碳或氫氣項目的應用程式。

Also in Africa, our work across a couple of commercial gasified MSW projects will take issue in Japan as well as from several projects in India. Additionally, we anticipate revenues from sales of equipment packages to materialize from central projects beginning construction in the second half of the year. In addition, to the significant impact of our commercial licensing pipeline. We anticipate transitioning our first project to our infrastructure capital partner, Brookfield this year, well ramping up development of additional projects for them Additionally, we are actively developing a pipeline of project opportunities with our partner, Orion in Saudi Arabia and the broader Middle East. Overall, the health of our commercial project pipeline remains strong and we are progressing these opportunities to development plastics, setting us up for the next crop project to be placed into service in the near future.

同樣在非洲，我們在幾個商業氣化城市固體廢物項目中的工作將在日本以及印度的幾個項目中引起爭議。此外，我們預計下半年開始興建的中央專案將實現設備包銷售收入。此外，我們的商業許可管道也產生了重大影響。我們預計今年將我們的第一個項目移交給我們的基礎設施資本合作夥伴布魯克菲爾德，並加強為他們開發更多項目。此外，我們正在與我們的合作夥伴Orion 在沙烏地阿拉伯和更廣泛的中東地區積極開發一系列專案機會。總體而言，我們的商業項目管道仍然保持強勁，我們正在利用這些機會開發塑料，為我們在不久的將來投入使用的下一個作物項目做好準備。

In our carbon fiber business, we remained focused on sales into the global chemicals market for our chemicals customers. Third party sustainability certification is important, and we can provide ethanol for downstream applications that comes from round table that's sustainable biomaterials or international sustainability and carbon certification certified facilities. We are optimistic about selling carbon smart ethanol into the low-carbon fuels market, specifically in the EU. Once regulations, it settled at the European Commission and how these first of the pilot field it treats. As you know, the technical guidance continues to be provided by the commission, but is not yet final additionally approvals from the certification bodies who can officially certified recycled carbon shoots for the road air on marine market in the EU.

在我們的碳纖維業務中，我們仍然專注於向我們的化學品客戶銷售全球化學品市場。第三方永續發展認證很重要，我們可以為來自圓桌會議的可持續生物材料或國際永續發展和碳認證認證設施的下游應用提供乙醇。我們對向低碳燃料市場（特別是歐盟）銷售碳智慧乙醇持樂觀態度。一旦法規出台，它就在歐盟委員會解決了它如何對待這些第一個試點領域的問題。如您所知，技術指導仍然由委員會提供，但尚未獲得認證機構的最終額外批准，這些認證機構可以正式認證歐盟海洋市場上道路空氣的回收碳芽。

Understood. And then we are following this rulemaking closely and see significant upside potential by having smart business, actually regulatory environments, firm and certification of Pharma, a path to profitability. We are focused on developing high-quality revenue streams that will continue to expand our gross margin while maintaining a disciplined eye and operating costs. The recent reorganization of the business demonstrates our commitment to achieving the goal of sustained long-term profitability, and we've strengthened our focus, prioritization and execution of high-quality revenue opportunities and leadership team remains committed to smart growth and rightsizing the business to achieve success no matter the challenges we face. We are motivated by the importance of our work and the significant progress we have made to date. We're focusing on our core business and delivering upon the key strategic priorities I laid out for this year.

明白了。然後，我們密切關注這項規則制定，並透過擁有明智的業務、實際的監管環境、公司和製藥認證（一條獲利之路）看到巨大的上行潛力。我們專注於開發高品質的收入流，這將繼續擴大我們的毛利率，同時保持嚴格的眼光和營運成本。最近的業務重組表明了我們對實現持續長期盈利目標的承諾，我們加強了對高品質收入機會的關注、優先排序和執行，領導團隊仍然致力於智慧成長和調整業務規模，以實現無論我們面臨什麼挑戰，都能取得成功。我們的工作的重要性和迄今為止所取得的重大進展激勵著我們。我們專注於我們的核心業務，並實現我為今年制定的關鍵策略優先事項。

With that, I'll turn the call over to Geoff to provide details on our financial performance. And Jeff, 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, and good morning and thank you to everyone for joining us on the call. As seen on slide 15, total revenue for the fourth quarter of 2023 of $20.5 million grew by 77% year over year, bringing 2023 annual revenue to $62.6 million, a 68% improvement over 2022. While we were disappointed by the performance of our carbon smart business during the quarter, revenue from our core Biorefining carbon capture and utilization business grew 103% year on year in the fourth quarter to $14.2 million, driven mainly by ongoing and recently initiated engineering services work across several projects.

謝謝你，詹妮弗，早安，謝謝大家加入我們的電話會議。如投影片 15 所示，2023 年第四季的總收入為 2,050 萬美元，年增 77%，使 2023 年的年收入達到 6,260 萬美元，比 2022 年增長 68%。雖然我們對本季度碳智慧業務的表現感到失望，但我們核心生物煉製碳捕獲和利用業務的收入在第四季度同比增長103% 至1,420 萬美元，這主要是由正在進行和最近啟動的工程服務工作推動的跨多個項目。

The Biorefining business saw 101% growth year on year in 2023, reaching $42.6 million in contract research, revenue grew 21% year on year in 2023, reaching $14.6 billion. This performance was supported by several customers and government grants, which are typically multi-year in duration from the carbon SmartSide. While this part of the business significantly underperformed our expectations for the reasons we have discussed, especially in the fourth quarter. For the full year, our carbon Spark business achieved 33% growth year on year, reaching $5.3 million. Our focus on revenue quality continued in the fourth quarter as we saw gross profit improvement of 62% quarter-on-quarter to $8.5 million, bringing full year gross profit to $17.7 million, approximately doubling our gross profit from the prior year. This Q4 improvement was driven by high margin engineering services for continuing contracts resulting in quarter gross margins of 41% and full year 2023 gross margin of 28%, up approximately 400 basis points over 2022.

生物精煉業務2023年年增101%，合約研究達4,260萬美元，2023年營收年增21%，達146億美元。這項績效得到了許多客戶和政府資助的支持，這些資助通常會持續多年。儘管由於我們已經討論過的原因，這部分業務的表現明顯低於我們的預期，尤其是在第四季度。全年來看，我們的 Carbon Spark 業務年增 33%，達到 530 萬美元。第四季我們繼續關注收入質量，毛利環比增長 62% 至 850 萬美元，使全年毛利達到 1,770 萬美元，約為上年毛利的兩倍。第四季的改善是由持續合約的高利潤工程服務推動的，導致季度毛利率為 41%，2023 年全年毛利率為 28%，比 2022 年增長約 400 個基點。

So Lucas engineering services work in the fourth quarter benefited from extraordinary pricing terms. We do expect gross margin to be in the mid to high 20s for 2024 based on our anticipated revenue mix and significant amount of lower margin equipment revenue in this particular year. We remain focused on improving gross margins while accelerating revenue growth in 2024. Operating expenses continued to decline quarter-on-quarter in the fourth quarter coming in at $27.1 million. This decline came as a result of lower quarterly research and development and SG&A expenses and greater billable utilization of our teams operating expense for 2023 was $124 million. And as a result of the executive reorganization, headcount reductions and other cost cutting initiatives, Jennifer laid out earlier we expect 2024 and operating expenses will be flat or lower as compared to 2023.

因此盧卡斯工程服務公司第四季的工作受益於非凡的定價條款。根據我們預期的收入組合以及該特定年份大量較低利潤率的設備收入，我們預計 2024 年毛利率將在 20 多歲左右。我們仍專注於提高毛利率，同時加快 2024 年營收成長。第四季營運費用持續下降，為 2,710 萬美元。這一下降是由於季度研發和銷售、一般行政費用 (SG&A) 費用減少以及我們團隊的計費利用率提高所致，2023 年營運費用為 1.24 億美元。由於高階主管重組、裁員和其他成本削減舉措，Jennifer 早些時候表示，我們預計 2024 年營運費用將與 2023 年持平或更低。

To recap, we expect that the earlier discussed reorganization initiatives will reduce annualized operating expenses by approximately $5.3 million. Although, of course, not all of that will be realized in 2024 and that there are other inefficiencies and cash burn reduction opportunities that we are actively pursuing.

回顧一下，我們預計先前討論的重組措施將減少約 530 萬美元的年化營運費用。當然，並非所有這些都將在 2024 年實現，我們正在積極尋求其他低效率和減少現金消耗的機會。

CapEx spend during 2023 totaled $8.6 million, 20% lower compared to 2022. Turning to adjusted EBITDA and cash, we reduced our adjusted EBITDA loss quarter over quarter by 28%, the $13.7 million for the quarter, resulting in a full year adjusted EBITDA loss of $80.1 million in 2020. Free cash burn also declined by approximately 36% to $15.4 million for the quarter as we continue to focus on our path to profitability and getting cash flow positive. We ended the year with $121.4 million in cash on hand, including cash, restricted cash and investments today, as seen on slide 16, we're introducing our full year 2024 guidance, which includes total revenue of approximately $90 million to $105 million at the high end.

2023 年的資本支出總額為 860 萬美元，比 2022 年下降 20%。談到調整後 EBITDA 和現金，我們調整後 EBITDA 損失環比減少了 28%，即本季 1,370 萬美元，導致 2020 年全年調整後 EBITDA 損失為 8,010 萬美元。隨著我們繼續專注於獲利之路和實現正現金流，本季自由現金消耗也下降了約 36% 至 1,540 萬美元。截至年底，我們手頭現金為 1.214 億美元，包括現金、限制性現金和今天的投資，如幻燈片 16 所示，我們將介紹 2024 年全年指導，其中包括約 9,000 萬至 1.05 億美元的總收入高端。

This reflects growth of approximately 68% in line with the annual growth we experienced last year. We anticipate the bio-refinery revenue growth will come from ongoing and new engineering services revenue as existing projects, continue engineering work in advance of the subsequent phases of the development cycle as well as from the sale of equipment from several projects that we expect to proceed to the construction phase in 2024, some of which were delayed from starting construction in 2023. We also expect incremental ongoing growth in recurring revenue with the additions of our supplemental and Indian oil facilities for the operating fleet in 2019, we have experienced some timing delays for a subset of projects in the middle of the funnel that we attribute to certain macroeconomic factors and elongated decision making processes at some of our licensee customers.

這反映了約 68% 的成長，與我們去年經歷的年度成長一致。我們預計生物煉製廠收入的增長將來自現有項目的持續和新的工程服務收入、在開發週期後續階段之前繼續進行的工程工作以及我們預計將進行的幾個項目的設備銷售到2024年建設階段，其中一些項目比2023年開工延後。我們也預計，隨著2019 年為營運船隊增加補充設施和印度石油設施，經常性收入將持續成長，我們將漏斗中間的部分專案經歷了一些時間延遲，我們將其歸因於某些宏觀經濟因素我們的一些被許可客戶的決策過程被延長。

As a result, we have modified our forecasting to take into account these projects taking longer to move from early-stage engineering, new advanced engineering and from advanced engineering to FID and construction start in 2023. Such timing delays with projects anticipated to enter construction, push those construction starts and associated equipment revenues into 2024 and beyond. Important to reiterate that projects are not dropping out of the pipeline, rather, the tougher macroeconomic and higher inflationary environment leading to changes in steel prices and availability of equipment combined with a lack of uniform regulatory protocols that elongated the recent project development cycles, which were closely months. We anticipate JDA and contract research revenue to continue its modest growth. We'll selectively deploy our resources on high-margin opportunities and work that we believe will lead to future bio-refining licensing opportunities on the carbon smart side of the business, we anticipate moderate growth this year. I believe there is substantial upside potential for the business as we negotiate committed offtake supply with our partners in China and Europe into this current certification are underway, including a timely and favorable manner, unlocking additional access to supply from customers.

因此，我們修改了預測，考慮到這些項目從早期工程、新的高級工程以及從高級工程到最終投資決定以及 2023 年開工所需的時間更長。預計進入建設的項目的時間延遲，將這些建設開工和相關設備收入推遲到 2024 年及以後。需要重申的是，專案並未退出計劃，相反，更嚴峻的宏觀經濟和更高的通膨環境導致鋼材價格和設備供應發生變化，加上缺乏統一的監管協議，延長了近期專案開發週期，密切月。我們預計 JDA 和合約研究收入將繼續溫和成長。我們將有選擇地將資源部署在高利潤機會和工作上，我們相信這些機會和工作將在業務的碳智慧方面帶來未來的生物精煉許可機會，我們預計今年將出現適度增長。我相信，隨著我們與中國和歐洲的合作夥伴就承諾的承購供應進行談判，目前的認證正在進行中，該業務具有巨大的上升潛力，包括及時和有利的方式，為客戶提供額外的供應渠道。

Looking for product, given the timing of the development cycles of our bio-refining business. We again anticipate our revenue will be back half weighted and the Q1 2020 for revenue for very much like Q1 2014. This suggests that we expect to see strong quarter-over-quarter growth throughout 2024. To reach our guidance range are highly confident in achieving our forecast like to highlight a couple of key drivers that can influence outcomes between the lower and upper end of our revenue guidance May first, as mentioned, significant upside potential and the carbon smart business certifications materialize quickly, second, more favorable timing on FID and construction starting for some projects in the pipeline would further benefit our performance in 2024. We believe this top line performance, coupled with the efficiency and cost focused actions we are taking will further benefit our margins and profitability over the near and long term.

鑑於我們生物精煉業務的開發週期的時間安排，正在尋找產品。我們再次預計我們的收入將恢復一半加權，2020 年第一季的營收與 2014 年第一季非常相似。這表明我們預計 2024 年將出現強勁的季度環比增長。為了達到我們的指導範圍，我們對實現我們的預測充滿信心，例如強調一些可以影響我們收入指導下限和上限之間結果的關鍵驅動因素。首先，如上所述，顯著的上行潛力和碳智慧業務認證得以實現其次，一些正在籌備中的項目的 FID 和開工時機將更加有利，這將進一步有利於我們 2024 年的業績。我們相信，這種頂線業績，加上我們正在採取的以效率和成本為重點的行動，將進一步有利於我們近期和長期的利潤和盈利能力。

Adjusted EBITDA loss for full year 2024 is expected to be $65 million to $55 million, reflecting the expected top line growth range, combined with our ongoing focus on high-quality margin opportunities and cost controls, importantly, resetting the timing expectation for when we will achieve positive adjusted EBITDA. We previously expected to occur in late 2024 with positive full year adjusted EBITDA in 2025. While we are encouraged by the strong growth, we continue to see across the business in 2024 the delay of our expected turn to profitability simply reflects our shift in view of specific project development timelines and not an erosion of our project plan.

2024 年全年調整後 EBITDA 損失預計為 6500 萬至 5500 萬美元，反映了預期的收入增長範圍，再加上我們持續關注高品質利潤機會和成本控制，重要的是，重新設定了我們何時實現正調整EBITDA。我們先前預期該情況會在 2024 年末出現，並在 2025 年全年調整後 EBITDA 為正值。儘管我們對強勁的成長感到鼓舞，但我們仍然看到整個業務在 2024 年實現盈利的預期延遲，這只是反映了我們對具體專案開發時間表的轉變，而不是對我們專案計劃的侵蝕。

We are keenly focused on execution to achieve and accelerate our planned path to profitability and remain excited for the future of Winstek ending last year. With more than $120 million in cash, restricted cash, cash equivalents and investments. We have significant financial flexibility and remain focused on maintaining this flexibility, ensure we're best positioned to achieve our growth objectives already believe we have sufficient liquidity to execute on our near-term objectives. We will remain opportunistic around potential ways to supplement our flexibility, especially if it can accelerate our path to profitability and our growth over the long term.

我們非常注重執行力，以實現和加速我們計劃的盈利之路，並對去年結束的 Winstek 的未來保持興奮。擁有超過 1.2 億美元的現金、限制性現金、現金等價物和投資。我們擁有顯著的財務靈活性，並將繼續致力於保持這種靈活性，確保我們能夠最好地實現我們的成長目標，我們已經相信我們有足夠的流動性來執行我們的近期目標。我們將繼續對補充靈活性的潛在方法保持機會主義，特別是如果它可以加速我們的獲利和長期成長之路。

With that, I'll turn the call back over to Jennifer for some closing remarks.

接下來，我會將電話轉回給詹妮弗，讓她做一些結束語。

Before we open the call for Q&A. Jennifer?

在我們開始問答之前。詹妮弗？

Thank you, Geoff. 2023, like a milestone year with much tower. As we look ahead to 2024 and beyond, we appreciate that we must deliver relative to our financial targets. We have created a business model that we can scale in every region across the globe because we use distributed waste base feedstocks. Second use rates and are specific to each country. Working globally comes with challenges, not least from a regulatory perspective, especially if you are the first and a challenging the status quo and how goods are currently produced rather than give up. We persevere and my team and I continue to be excited about upcoming projects and our ability to deliver and new carbon materials and energy panels. By executing our business plan, we expect to reward our shareholders while we start solving our patent problem today, would you expect I will need to do. Thank you again, for joining us and to some many of you for your continued support as we realize our vision of circular carbon economy.

謝謝你，傑夫。 2023年，是里程碑式的一年，高塔林立。展望 2024 年及以後，我們認識到我們必須實現我們的財務目標。我們創建了一種可以在全球每個地區擴展的商業模式，因為我們使用分散式廢棄物基礎原料。第二使用率因每個國家而異。在全球範圍內開展工作會帶來挑戰，尤其是從監管角度來看，尤其是如果您是第一個挑戰現狀以及當前商品生產方式而不是放棄的人。我們堅持不懈，我和我的團隊繼續對即將到來的項目以及我們提供新型碳材料和能源面板的能力感到興奮。透過執行我們的業務計劃，我們希望在今天開始解決我們的專利問題的同時獎勵我們的股東，您認為​​我需要這樣做嗎？再次感謝您加入我們，並感謝你們中的一些人在我們實現循環碳經濟願景的過程中給予我們的持續支持。

Operator, we can now open the lines for Q&A.

接線員，我們現在可以開通問答線了。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Leo Mariani, Roth MKM.

裡奧·馬裡亞尼，羅斯·MKM。

Hi, guys. I was hoping you could provide a little bit more color on the revenue ramp here. I guess you're saying first quarter '24 is going to be around $10 million, which is about half of what you know, fourth quarter of '23 revenues are certainly kind of coming down in the near term. Can you maybe just talk about some of the specific kind of operational milestones that sort of drive that, Amit, sounds like you're not expecting much growth in carbon smart. So is it generally just kind of milestones around some of these engineering service packages that kind of drive things, you know here in 2024 and you kind of also referred to maybe changing the forecast methodology a little bit as well. So hopefully you guys you know missed numbers here in 2023. So maybe just talk a bit more about have you changed methodology to come up with the forecast you guys think is maybe a little more realistic here in '24.

嗨，大家好。我希望你能為這裡的收入成長提供更多的色彩。我猜你是說 24 年第一季的收入將約為 1000 萬美元，這大約是你所知道的一半，23 年第四季的收入在短期內肯定會下降。您能否談談一些特定類型的營運里程碑，這些里程碑在某種程度上推動了這一點，阿米特，聽起來您並不期望碳智慧方面有太大成長。那麼，這通常只是圍繞著一些工程服務包的里程碑，推動事情發展，你知道 2024 年，你也提到可能會稍微改變預測方法。希望你們知道錯過 2023 年的數字。所以也許只是多談談你們是否改變了方法來提出你們認為 24 年可能更現實的預測。

Hey, Leo, it's Geoff. I could have serious here from you and happy to trying to address each of those. If I miss one, as I answer circle back to me on it. So first and foremost, I think the first question was around Q1 2024.

嘿，利奧，我是傑夫。我可以認真地聽取你的意見，並很樂意嘗試解決每一個問題。如果我錯過了一個，請在我回答時圈回給我。首先，我認為第一個問題是在 2024 年第一季左右。

Yes, that is exactly what we were saying. It's really just a function of the timeline and progression of projects during in the course of the year. And so we happen to see a similarly aggressive ramp quarter over quarter through 2024. And it just so happens that Q1 of this year, we expect to be consistent with Q1 of the prior year. But yes, below Q4 of last year. Just based on the timing of those projects.

是的，這正是我們所說的。這實際上只是一年中專案的時間表和進展的函數。因此，到 2024 年，我們碰巧會看到季度與季度之間同樣積極的成長。恰巧今年第一季度，我們預計與去年第一季保持一致。但是，是的，低於去年第四季。僅基於這些項目的時間安排。

Yes, comments weren't. We do expect to only have a modest growth in there. As referring back to some of Jennifer's comments. We think that there's a lot of upside potential around carbon smart in the year, but we're taking a more conservative approach until there's more clarity on certifications and access to supply and then I guess finally, with regards to methodology on the forecast, yes, we are looking at, I mean, reflecting on 2023. And historically, we've been very good at tracking to the projects that are going to say, yes, and that are going to progress. But in 2023, we certainly saw some elongated timelines, and we've taken those into account and adopted a more kind of conservative method forecasting methodology around timelines of projects in 2024 and beyond.

是的，評論沒有。我們確實預計那裡只會有適度的成長。回顧珍妮佛的一些評論。我們認為今年碳智慧有很大的上行潛力，但我們正在採取更保守的方法，直到認證和供應管道更加明確，然後我想最後，關於預測的方法，是的，我的意思是，我們正在審視2023 年。從歷史上看，我們一直非常擅長追蹤那些會說是的並且將會取得進展的項目。但在 2023 年，我們確實看到了一些拉長的時間表，我們已經考慮到這些因素，並圍繞 2024 年及以後的專案時間表採用了一種更為保守的方法預測方法。

Okay.

好的。

And obviously, you've got your cost cutting initiatives under way. If I'm looking at your kind of main cost to really, I guess, R&D and then sort of your cash G&A piece.

顯然，您已經開始實施成本削減計劃。如果我看一下你們的主要成本，我想，研發，然後是你們的現金管理費用。

Certainly, both those numbers came down a little bit in Q4 versus Q3. How do you expect kind of R&D to progress in 2024? And are you through cash G&A, you know, progressing you mentioned those numbers kind of be similar to what Q4 '23 levels. We'd expect those numbers to kind of drop as a result of their cost-cutting initiatives as the year progresses.

當然，與第三季相比，這兩個數字在第四季都有所下降。您預計 2024 年研發會會取得怎樣的進展？您是否完成了現金管理費用，您知道，您提到的這些數字與 23 年第四季的水平類似。我們預計，隨著時間的推移，由於他們的成本削減舉措，這些數字將會下降。

And then could you also address this potential plan to cut another $10 million in cash burn. And it sounds like it's not that's only been implemented yet, but maybe is kind of on the drawing board is something you guys are giving strong consideration to.

然後您是否也可以談談這個潛在的計劃，以減少另外 1000 萬美元的現金消耗。聽起來這並不是剛剛實施的，但也許是你們正在認真考慮的事情。

Yes, I appreciate that. So I'll hit on the last first and then kind of circle back to your other question. So at least with regards to the plan that we're putting in place here over the next quarter, we're not really in a position to share additional details about the plan at this time, but we'll certainly provide them as they as they occur.

是的，我很欣賞這一點。所以我會先討論最後一個問題，然後再回到你的另一個問題。因此，至少對於我們在下個季度製定的計劃，我們目前確實無法分享有關該計劃的更多細節，但我們肯定會按原樣提供它們它們發生了。

On your question about our OpEx, R&D SG&A., relative to where we ended the year, I think is your Jennifer mentioned on earlier in the call, we're very focused on cost controls this year. We think we have all of the resources that we need in R&D for at least the breadth of capabilities there for 2024, we don't expect to be growing SG&A during the course of the year. Our expectation is that we have the team in place. We have the size of the team in place that we need to get to achieve our goals. And so we expect to end the year either it's flat or down both on a headcount basis and on a cost basis relative to where we ended 2023.

關於您關於我們的營運支出、研發、SG&A 的問題，相對於我們今年結束的情況，我想您的 Jennifer 在電話會議早些時候提到過，今年我們非常關注成本控制。我們認為，我們擁有研發所需的所有資源，至少能夠滿足 2024 年的廣泛能力，我們預計這一年中的銷售、管理和管理 (SG&A) 不會成長。我們的期望是我們的團隊已經就位。我們擁有實現目標所需的團隊規模。因此，我們預計今年年底的人數和成本將相對於 2023 年底持平或下降。

Okay. Those numbers are clearly coming down. That's a that's nice to hear. All right, thanks.

好的。這些數字顯然正在下降。這是一個很高興聽到的。好的，謝謝。

Thank you.

謝謝。

Our next question comes from Pavel Molchanov from Raymond James.

我們的下一個問題來自雷蒙德·詹姆斯的帕維爾·莫爾恰諾夫。

Thanks for for taking the question. Given the recent opening of Vantage at Freedom Pines, I guess it's not producing.

感謝您提出問題。鑑於最近在 Freedom Pines 開業的 Vantage，我猜它不會生產。

Yes.

是的。

Can you talk about have the role of Freedom Pines in your guidance for 2024, if any, essentially the question further on.

您能否談談自由松樹在 2024 年指導中的作用（如果有的話），本質上是進一步的問題。

We don't have revenues in inside our guidance for 2024 based on land suggests, however, they will start producing later this year and we are progressing joint projects. That's really the key as I mentioned that that first commercial plant anchors all of the feasibility work of the joint projects that I mentioned during the call. We've got projects that we are with them on in New Zealand and multiple others that are based on integrated LED chip tech land project technologies that actually take some type of waste residue or CO2 and converted all the way through SAP. So that's where you'll see our revenues in 2024. That will be based on feasibility and engineering work to develop that portfolio of joint waste stuff.

根據土地建議，我們的 2024 年指導中沒有收入，但他們將於今年稍後開始生產，我們正在推進聯合項目。這確實是關鍵，正如我所提到的，第一個商業工廠錨定了我在電話會議中提到的聯合專案的所有可行性工作。我們在新西蘭和其他多個項目中與他們合作，這些項目都基於整合 LED 晶片技術土地項目技術，這些技術實際上採用了某種類型的廢渣或二氧化碳，並透過 SAP 進行了全程轉化。這就是我們 2024 年的收入。這將基於開發聯合廢棄物組合的可行性和工程工作。

Okay.

好的。

Okay. Can we get an update on U.S. Steel and all just the kind of an operational status? And also same question I asked earlier, what is the role of steel and all in the guidance?

好的。我們能否獲得有關美國鋼鐵公司以及所有營運狀況的最新資訊？還有我之前問過的同樣的問題，鋼鐵及其在指導中的作用是什麼？

Yes. So that's a great question. And let me ask Rand that we started the plan in December, but they needed to shut down one of the blast furnaces surely couldn't supply gas to restart the operation sector showing that everything was working well, and we've just restarted it just now should be an alternator starting up in 2024 you will see two types of revenue from Celunol. One is some licensing revenues, microbe revenues, engineering support revenues, but what you also see is off peak revenues. We will start to also provide ethanol to carbon smart partners and out of steam. And now we will have actually, unlike China, we will have secured supplies, dedicated land attack to be sold into the carbon smart market. So you will see both types of revenues.

是的。這是一個很好的問題。讓我問蘭德，我們在 12 月就開始了這個計劃，但是他們需要關閉其中一座高爐，肯定無法供應天然氣來重新啟動運營部門，這表明一切都運轉良好，而我們剛剛重新啟動了它現在應該是2024 年啟動的交流發電機，您將看到Celunol 的兩種類型的收入。一是一些授權收入、微生物收入、工程支援收入，但你也看到的是非高峰收入。我們也將開始向碳智能合作夥伴提供乙醇，並全力以赴。現在，與中國不同，我們實際上將擁有供應，專門的土地攻擊，並將其出售給碳智慧市場。所以你會看到兩種類型的收入。

Okay, very clear. And then lastly, Section 45 on tax for biofuels will be now kicking in in 2025, right, SaaS being part of that. As you think about your business development in the US, will any projects would be direct beneficiaries of the new as Section 45 credits in 25 or 26.

好的，非常清楚。最後，關於生質燃料稅的第 45 條將於 2025 年生效，對吧，SaaS 就是其中的一部分。當您考慮在美國的業務發展時，是否有任何項目將成為新法案第 45 條 25 或 26 學分的直接受益者。

That is equivalent to we expect, first of all on the Georgia facility to be a beneficiary because they will be able to leverage bang on and there will also with we won't have a second plant running by 2025 in the US, but we do have a planned one that includes the potential credit we will also see us benefit from other non-cash 45 credits. We are developing projects where the hydrogen on for the 5G comes into play. So where we're actually leveraging the 45 family, shall we say, to enable us to do more practice here in the US and you'll be hearing more about that in the next few months. The projects that we are now on taking through our feasibility stage here.

這相當於我們的預期，首先佐治亞州工廠將成為受益者，因為他們將能夠發揮巨大作用，而且到 2025 年我們不會在美國運營第二家工廠，但我們確實如果有一個包含潛在信用的計劃，我們還將看到我們從其他非現金45 信用中受益。我們正在開發 5G 氫能發揮作用的專案。因此，我們實際上正在利用 45 系列，讓我們能夠在美國進行更多實踐，您將在接下來的幾個月中聽到更多相關資訊。我們現在正在這裡進行可行性階段的專案。

And then lastly, just kind of a quick housekeeping question. What do you expect in-house CapEx to be in 2024?

最後，我想問一個簡單的內務問題。您預計 2024 年內部資本支出是多少？

I'm going to turn that over to Jeff, this will to us good start of we expected our internal CapEx to be fairly consistent with 2023. We're not looking at any significant changes to CapEx, and we'll continue to keep a close eye on it to see if we can actually reduce it for that matter.

我將把這個問題交給 Jeff，這對我們來說是一個好的開端，我們預計我們的內部資本支出將與 2023 年相當一致。我們沒有考慮資本支出的任何重大變化，我們將繼續密切關注它，看看我們是否真的可以減少它。

Thanks very much.

非常感謝。

Yes.

是的。

Your next question comes from Ryan things do with B. Riley.

你的下一個問題來自 Ryan，與 B. Riley 的關係如何。

We are and good morning.

我們是，早安。

So with 24 revenue weighted to the second half, could you just talk about how strong your visibility is and if you see potential risk to some of that slipping into 2025.

因此，考慮到下半年的 24 項收入，您能否談談您的可見度有多強，以及您是否認為其中一些收入會滑向 2025 年的潛在風險。

Hey, Ryan, to talk to you, as we look at the forecasting and just thinking through our forecasting methodology. Certainly we had time we had slippage in 2023. So I can't tell you that we certainly won't have any, but we do have good visibility into all the projects we've taken, you injected some additional conservative and timing into the pipeline at this point in time in our forecasting, in order to train take into account any of that all of our projects are identified projects named projects in the current forecast. So these are specific opportunities that we've been working through our pipeline through that funnel.

嘿，瑞安，和你談談，我們正在研究預測並思考我們的預測方法。當然，2023 年我們也曾經出現過下滑。所以我不能告訴你我們肯定不會有任何項目，但我們確實對我們已經採取的所有項目有很好的了解，你在我們的預測中的這個時間點注入了一些額外的保守和時機，為了訓練，考慮到我們所有的項目都是在目前預測中命名的項目。因此，這些是我們一直在通過該漏斗的管道中工作的特定機會。

I'm over the last few years. So we've got strong relationships with these companies. We are close to them and we're tracking them on a on a daily and weekly basis. So yes, we feel confident about them. And we do feel that there's additional upside opportunities that could come into the pipeline and come into the funnel.

我已經過去幾年了。因此，我們與這些公司建立了牢固的關係。我們與他們很接近，並且每天和每週都在追蹤他們。所以，是的，我們對他們充滿信心。我們確實認為還有更多的上行機會可能會進入頻道並進入漏斗。

During the course of the year, we had a pretty good track record of that over the last couple of years as well.

在這一年中，我們在過去幾年中也取得了很好的記錄。

But those aren't factored into the forecast.

但這些並未納入預測。

Again, those would be upsides. But in terms of the forecast that we do have and the timing associated with it, it is still back half weighted or would you expect a strong quarter-over-quarter growth throughout the year, but we do have good insight and good visibility into all the opportunities there.

再說一遍，這些都是有利的。但就我們所做的預測以及與之相關的時間安排而言，它仍然是後半權重，或者您預計全年會出現強勁的季度環比增長，但我們確實對所有方面都有良好的洞察力和良好的可見性那裡的機會。

Got it.

知道了。

That's helpful.

這很有幫助。

And then how are you thinking about potentially raising are tight capital ahead of reaching EBITDA and cash flow positive likely next year?

那麼，在明年可能達到 EBITDA 和現金流為正值之前，您如何考慮可能籌集資金緊張的情況？

Yes.

是的。

No, thanks for the question on that on that, too, as I noted in my prepared remarks, we believe we've got sufficient liquidity to execute on our near-term objectives. And to reiterate that we ended the year with more than 120 million in cash and equivalents and even at our burn rate from last quarter that takes us well into 2025. And beyond that, we've got various levers in terms of both CapEx and OpEx that we can utilize in quick fashion. We want to extend that runway, including the cost reduction actions that we've taken over the last couple of months. So again, I think we have sufficient liquidity to execute our near-term objectives. But as always, we're going to remain opportunistic and flexible as we drive to accelerate growth and and reduce our time to profitability.

不，也感謝您提出這個問題，正如我在準備好的發言中指出的那樣，我們相信我們有足夠的流動性來執行我們的近期目標。並重申，我們在今年年底擁有超過 1.2 億美元的現金和等價物，即使按照上季度的燒錢速度，我們也能順利進入 2025 年。除此之外，我們在資本支出和營運支出方面都有各種槓桿，我們可以快速利用它們。我們希望延長這條跑道，包括我們在過去幾個月採取的成本削減行動。再說一遍，我認為我們有足夠的流動性來執行我們的近期目標。但與往常一樣，我們將保持機會主義和靈活性，努力加速成長並縮短獲利時間。

Makes sense.

說得通。

I'll turn it back.

我會把它轉回來。

Yes.

是的。

Our next question comes from Jeffrey Campbell with Seaboard partners.

我們的下一個問題來自 Jeffrey Campbell 和 Seaboard 合作夥伴。

Please proceed.

請繼續。

Good morning.

早安.

You've called out common smart as a specific Q4 23 shortfall line and what was the approximate $18 million guidance miss yes, the press release describes 2024 comments, my outlook as incremental growth for reasons that you've articulated in the call. How do we put these two ideas together as we think about 2024 that apparently was a big line item in Q4 23, but it's incremental to 22.

您已經將共同智慧稱為特定的23 年第四季度缺口線，以及大約1800 萬美元的指導未命中是多少，是的，新聞稿描述了2024 年的評論，我對增量增長的展覽望是您在電話會議中闡述的原因。當我們考慮 2024 年時，我們如何將這兩個想法結合在一起，這顯然是 23 年第四季的一個大項目，但它已增加到 22 個。

Yes. Yes.

是的。是的。

Let me on let me start by addressing that.

讓我先解決這個問題。

Thank you for the question. Jack, on we have become Wheaton, we took a very conservative approach, as Jeff mentioned, to our forecasting and what happened in the fourth quarter where certification misses. And we're still waiting for guidance from exempt from the European Commission, for example, on how to handle these fields. So we decided not to put that upside into our forecast because of the fact that the regulatory environment is such that we can't guarantee when they'll come through. And that's that's essentially what happened in the fourth quarter. And we just are not prepared to put it all in. We are working with our partners to help them with certification. We are working with our third-party partners also in ensuring that we have ethanol available to us should the certifications come through. But we have taken a very, very conservative view as to whether the governments will come through with all of the appropriate guidance because these recycled carbon fuels taking assume, oh, gosh, I'm putting into fuel pool is not something anybody has done before carbon capture and reuse is not something that anybody doing commercially So we just want to make sure the government commit on trying to get ahead of government legislation.

感謝你的提問。傑克，我們已經成為惠頓，正如傑夫所提到的那樣，我們對我們的預測以及第四季度發生的認證未通過的情況採取了非常保守的方法。我們仍在等待歐盟委員會的豁免指導，例如如何處理這些領域的指導。因此，我們決定不將這一優勢納入我們的預測，因為監管環境使我們無法保證它們何時能夠實現。這就是第四季發生的事情。我們還沒準備好全力以赴。我們正在與合作夥伴合作，幫助他們獲得認證。我們也與第三方合作夥伴合作，確保在認證通過後我們可以使用乙醇。但對於政府是否會提供所有適當的指導，我們採取了非常非常保守的觀點，因為這些回收的碳燃料假設，哦，天哪，我將其放入燃料池中是以前沒有人做過的事情碳捕獲和再利用不是任何人都可以進行商業化的事情，因此我們只是想確保政府致力於超越政府立法。

I'm going to thank you.

我要謝謝你。

And just further to that point when those favorable regulations come to pass on what the immediate effect is primarily the pricing or do you see it having some effect on demand as well?

更進一步說，當這些有利的法規出台時，直接影響主要是定價，或者您認為它也會對需求產生一些影響嗎？

It will be both because the gas fields will then be mandated. And that means that that will be required to be put into the pool and some countries. And so that will increase the price, but it will also increase demand on. And that is also why we're so focused on making sure we had reserved offtake from our various commercial plan by having reserved offtake. We will stay ahead of the demand and will be able to supply products.

兩者都是因為天然氣田將被授權使用。這意味著需要將其放入資金池和一些國家。因此，這會提高價格，但也會增加需求。這也是為什麼我們如此專注於透過保留承購來確保我們從各種商業計劃中保留承購。我們將保持領先於需求並能夠供應產品。

Okay.

好的。

The US is broken through with Freedom Pines, but otherwise, the states don't seem to be an important region for Land's attack at this time based on your description of the regions that are and do you see anything on the horizon to create project interest in the U.S.? And I'm kind of thinking about your nascent agreement with Technip that want to ask this question?

美國已被自由松樹突破，但除此之外，根據您對這些地區的描述，這些州目前似乎不是蘭德攻擊的重要地區，您是否看到任何即將出現的項目利益在美國。？我在想你們與 Technip 剛剛達成的協議是否想問這個問題？

Yes. No, that's a that's a great question. We have multiple projects in the pipeline in the U.S. And as I mentioned, the IRA really makes a big difference for us. And so it impacts both SaaS projects, integrated projects, Atlantica, it impacts hydrogen supply for a couple of projects that we're developing right now in the Gulf Coast, and I'm not at liberty to mention our partners' names, but I would say that over the next six months, you will see a number of projects working through the pipeline in the US on, and we look forward to discussing those with you, but they're great.

是的。不，這是一個很好的問題。我們在美國有多個計畫正在醞釀中，正如我所提到的，愛爾蘭共和軍確實對我們產生了很大的影響。因此，它影響了 SaaS 項目、綜合項目、Atlantica，它影響了我們目前在墨西哥灣沿岸開發的幾個項目的氫氣供應，我不能隨意提及我們合作夥伴的名字，但我會說在接下來的六個月裡，您將看到許多項目在美國透過管道進行，我們期待與您討論這些項目，但它們非常棒。

And for my final question, just kind of a higher level. At what extent do you think the project decision delays that you've talked about have been driven by current economics? And you mentioned interest rates still So 14 weeks versus some visible ESG fatigue that seems to be becoming more visible below cash?

對於我的最後一個問題，只是更高的水平。您認為您所說的專案決策延遲在多大程度上是由當前經濟狀況造成的？您提到利率仍然是 14 週，而一些明顯的 ESG 疲勞似乎在現金下方變得更加明顯？

Yes, we have had that trade. So I would say it's both, right, because it's key to take as you call it or what at what we call people leaning back and out of investing in new technologies, new approaches that are based on carbon reductions. We see a lot of weakening there and that does peak to make.

是的，我們有過這樣的交易。所以我想說，兩者都是，對的，因為關鍵是要採取你所說的或我們所說的人們向後傾斜並放棄對基於碳減排的新技術、新方法的投資。我們看到那裡有很多疲軟，而且確實會達到頂峰。

On the capital side, we talked about interest rates, but we also talk about the cost of steel. Cost of steel is still higher than it was pre-COVID rate. And even even though the prices are coming back down below 20% increase in the cost of steel was significant in a project like $100 million, right? So so I think that cost is actually an important driver and because we've got one of the things kind of tied together and both partnerships with suppliers. So that we can reduce the cost of our supply chain. But also we've worked very hard on on reducing the cost of some of our technology. So we devoted some time to that be sure, those are those are the things that have slowed down that we have are starting to see pickup. And there's a lot of interest in in in dealing with ETFs requirements in the future mandates around power to act here to price fix in Europe. So so as we're starting to see a little bit of a tailwind now coming out of it, but then yes, hopefully that addresses your question, Mario, that was very helpful color. I appreciate.

資金方面，我們談到了利率，但我們也談到了鋼鐵成本。鋼鐵成本仍高於新冠疫情前的水平。即使價格回落至 20% 以下，對於 1 億美元的項目來說，鋼材成本的增加還是很大，對吧？所以我認為成本實際上是一個重要的驅動因素，因為我們已經將其中一件事聯繫在一起，並且與供應商建立了合作關係。這樣我們就可以降低我們供應鏈的成本。但我們也非常努力地降低某些技術的成本。所以我們花了一些時間來確定，那些已經放緩的事情我們開始看到回升。在未來的授權中，人們對處理 ETF 的要求非常感興趣，圍繞著在歐洲採取行動定價的權力。因此，當我們開始看到一些順風順水而來時，但是，是的，希望這能解決你的問題，馬裡奧，這是非常有幫助的顏色。我很欣賞。

Thank you.

謝謝。

Once again, if you have a question, please press our why this concludes our question and answer session. I would like to turn the conference back over to Jenny for any closing remarks.

再次，如果您有疑問，請按我們的原因，我們的問答環節到此結束。我想將會議轉回給珍妮，讓她發表閉幕詞。

Thanks to everybody for joining us. It's been our first theater in the market, and we are very excited about the progress we've made. And clearly, there's a lot more work to be done, but we really appreciate all of your support. We think 2024 will be an important year for us, and we look forward to reporting on our progress at the next quarterly meeting. And thank you for your time.

感謝大家加入我們。這是我們在市場上的第一家劇院，我們對所取得的進展感到非常興奮。顯然，還有很多工作要做，但我們非常感謝你們的支持。我們認為 2024 年對我們來說將是重要的一年，我們期待在下一個季度會議上報告我們的進展。感謝您抽出時間。

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

會議現已結束。感謝您參加今天的演講。

You may now disconnect in the main. And Mike.

現在您可以在主程式中斷開連線。還有麥克。

Yes, yes, this is Mike. Why?

是的，是的，這是麥克。為什麼？

Yes, yes.

是的是的。