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Good afternoon, and welcome to the Origin Materials Fourth Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Matt Plavan, CFO and COO. Please go ahead.

Good afternoon, and thank you everyone for joining us. Speaking first today is Origin's CEO and Co-founder, John Bissell, followed by myself, Matt Plavan. We will open the call to questions from analysts and discuss questions submitted as part of this quarter's Ask Origin campaign. Ahead of this call, Origin has issued its 2025 fourth quarter and full year press release. It can be found on the investor relations section of our website at originmaterials.com. Please note that during our discussion today, we will be making forward-looking statements based upon current expectations and assumptions, which are subject to risks and uncertainties.

These statements reflect our views as of today, should not be relied upon as representative about views of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion on the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our annual report on Form 10-K. During today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Origin Materials' performance. These non-GAAP measures should be considered in addition to, and not as substitutes for, or in isolation from GAAP results.

You will find additional disclosures regarding the non-GAAP financial measures discussed on today's call in our press release issued this afternoon and our filings with the SEC, which will be posted to our website. The webcast of this call will also be available on the investor relations section of our company website. With that, I'll turn the call over to John.

Thank you, Matt. Good afternoon. Last year was a challenging one for Origin, but also brought meaningful progress. Our commercialization journey has taken longer than we initially anticipated, which has had a negative impact on our stock price. However, today we are sharing that this month we're delivering the latest iteration of Origin PET caps to multiple world-class beverage brands, with approximately 30 key prospects in our pipeline receiving and evaluating our latest design. The new cap design incorporates feedback from household name beverage brands. Origin's internal testing of these caps demonstrates marked improvement in seal performance and impact resistance in a single design, meeting industry benchmarks for pressurized water applications on key test metrics such as ball impact and heat stress testing.

Customer qualification processes for these new caps are now underway, and we anticipate related customer announcements pending the completion of successful qualifications, with timelines varying depending on customer requirements. For those new to Origin, our technology platform produces what we believe are the only commercially scalable PET bottle caps, as opposed to the HDPE and polypropylene caps, which today dominate the over $65 billion closures market. Our platform excels in seven areas, recyclability, oxygen and CO2 barrier, enabling shelf life extension, closure diameter, which enables more economic large format production, thickness, which enables light weighting, rigidity for a premium feel, use of recycled content, and optical clarity. Our innovation stands to be transformative for the packaging industry. Turning now to financing.

To strengthen our financial position, in November 2025, we announced a convertible debt facility with an initial tranche of $15 million in cash, with the option to raise additional capital for up to $90 million total. We also announced the execution of a non-binding term sheet for $20 million of equipment financing. To date, however, due to the significant decline in our stock price since securing the convertible debt facility, we have been able to make only limited use of the equity payment feature of this facility to service the outstanding debt at reasonable conversion values, which we had originally intended to do in order to preserve our cash for operations. Servicing the outstanding debt with cash has had, and will continue to have, an adverse impact on our liquidity.

At recent stock prices, we do not meet the minimum equity requirements for additional capital draws from this facility. Further, the aforementioned non-binding term sheet did not progress to a definitive agreement because the lender made material reductions to the valuation assumptions underlying the debt financing. As a result, absent near-term financing and reductions in operating expenses, including reductions in force to extend our planned operations, we currently estimate that our existing cash and cash equivalents will allow us to continue our planned operations into the third quarter of 2026. Therefore, we are intensifying our focus on potential strategic arrangements that we believe could help accelerate value creation from our technology for the benefit of our shareholders, including a potential business combination, equity and debt financing, divestiture of assets, technology licensing, and other arrangements.

Despite challenging business conditions and customer adoption timelines longer than we initially anticipated, our prospective customers remain interested and engaged. These companies consume billions of caps per year, and the latest cap designs, reflecting modifications with our customer, which our customers requested, are now in their hands undergoing testing. On the commercialization front, we are executing our water-first go-to-market strategy within the $65 billion global closures market. In August 2025, the first products with Origin PET caps went onto store shelves in California, a milestone for PET cap market acceptance. We've also made significant progress developing our distribution network for PET caps. In March 2026, Origin announced HP Embalagens as strategic distributor for sustainable PET bottle caps. HP Embalagens is a major Brazilian packaging company serving world-renowned brands such as Nestlé, Ferrero Rocher, Natura, and Johnson & Johnson.

The relationship complements Origin's strategic partnerships with Berlin Packaging and Matrix Bottling Group, announced in August 2025 and February 2026 respectively, and supports Origin's ability to access markets and distribute PET caps globally. Acquisition of premium water customers is expected to continue throughout 2026. Finally, for PET cap production capacity, Origin's CapFormer line build-out in 2026 entails six lines already fully procured and projected to be installed by end of year. With that, I'll hand it over to Matt, who will discuss the company's financial performance metrics.

Thanks, John. First, with respect to the changes in our expected financing sources outlined previously by John, it is the case because of the uncertainty in the duration of customer validation cycles, coupled with the impact of these changes to our expected financing sources, we are at higher risk of operational disruption if we are unsuccessful in replacing the prior funding arrangements in relatively short order. Therefore, we continue to actively source equipment financing and are currently engaged with multiple prospects. In addition, in connection with our strategic review process, we are in discussions with multiple parties, and capital infusions are within the scope of those discussions. Overall, we believe our path to maximizing shareholder value will be a combination of successful new capital sourcing, monetization of current assets, and continued cost containment measures. We look forward to sharing updates as we progress these initiatives.

Turning now to guidance, we are updating our projected timing for Adjusted EBITDA run rate breakeven. Because of the additional time we have spent and will spend on design iteration and customer qualification, reflective of customer feedback received in this past quarter, and because of our increased understanding of the bespoke design requirements of key market players, we no longer project achieving Adjusted EBITDA run rate breakeven prior to 2028 as compared to our previous projection of Adjusted EBITDA run rate breakeven in 2027. Further, this update reflects what we expect will be a more gradual commercialization process, likely characterized by multiple smaller product launches in series rather than a single launch consuming all or most of Origin's PET cap production. Turning now to our balance sheet, cash equivalents, and marketable securities were $53.5 million as of December 31st, 2025.

The net accounts receivable balance at year-end was $13 million and is comprised of receivables associated with the company's legacy supply chain activation program associated with the Origin 1 biomass conversion plant. Concurrent with the wind down of the supply chain activation program, we expect to collect all related net receivables in due course, resulting in a significant source of cash. Additionally, at year-end, the company had $9.1 million in land held for use in Geismar, Louisiana. We are actively seeking the sale of this land, which would also result in significant cash coming to the company. Also, at year-end, the company had $15 million in convertible debt outstanding.

In a press release issued February 12th, 2026, the company announced an organizational realignment and provided a business update, including the decision to cease all further investments into the Furanics platform on which the OM1 and OM2 technologies are based. A significant reduction in headcount, including OM1 and OM2-focused headcount, was also announced as the company continues to focus now solely on its caps and closures business. The decision to cease all further investment in the Furanics technology platform resulted in a reevaluation of the OM1 and OM2 asset fair values. Therefore, the company engaged a third-party consultant, a sustainable energy and chemicals advisor, to help assess the value of these assets based upon potential alternative applications for the plant and related assets and to estimate the liquidation value of each.

As part of their analysis, our consultants estimate the rebuild cost of OM1 today to be almost twice that of the original build cost. Despite that increased replacement cost, without continued investment into the Furanics platform, the most probable valuation of these assets is more closely aligned to a repurposing of OM1 and OM2 design engineering and related assets. This valuation includes the impact of fit-for-purpose reconfiguration costs and results in an adjusted fair value of $18 million. This resulted in the recognition of a $165.9 million impairment expense recorded in the fourth quarter.

With that, I will pass the call back to John for concluding remarks.

Thanks, Matt. I'll conclude with the following. Despite challenging business conditions and customer adoption timelines longer than we initially anticipated, Origin is the clear technology leader for PET caps. We have made significant progress with respect to our product development. Our customers remain engaged with approximately 30 customers receiving and evaluating our latest cap iteration. This is the first time in decades a truly new pressurized cap has been introduced into the beverage space. While Origin has already overcome substantial technical obstacles, we expect to continue customer-driven product qualification and optimization on the way to adoption. We look forward to sharing our milestones with you as we progress in our mission, centered on the future of packaging, sustainable materials, and true bottle-to-bottle recycling. With that, I'll open up the call for questions. Operator, may we have the first question, please?

We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Frank Mitsch with Fermium Research. Please go ahead.

Thank you and appreciate the candor. Perhaps not the way that we are looking to end our week, but it is what it is. Before we talk about bottle caps and so forth, on the Furanics side of things, it's, you know, obviously you're not investing in it, and you're looking to repurpose the assets and so forth. You know, as part of the strategic review process, I, you know, are you not getting any inbounds whatsoever in terms of another company looking to take up the flag on converting wood into chemicals?

I mean, quite frankly, the events of the past month, in terms of oil, et cetera, you know, would have made that a much more interesting business. Yeah, any updates that you can give us there in terms of interest level, et cetera?

Yeah. Hey, Frank, thanks for the question. Obviously, you're right that the current oil price environment shifts the picture for Furanics pretty meaningfully, or at least the conceptual picture. We do have some inbound interest. We think that, you know, we're optimistic that that will result in, as you say, the torch being picked up and carried on biomass to chemicals. We do think that that could result in long-term value for Origin and shareholders as a result of the sort of Furanics development. We don't think that it's going to have a significant impact on the amount of operating cash that we have available as a consequence of that.

Consequently, it's sort of something that's a little bit further down the road. We do see interest there. It's possible that the OM1 and even perhaps the engineering designs for OM2 could be used for that. Again, because we see that as something that wouldn't be seized upon immediately, the value for those are gonna be likely discounted just due to time. No, we do see some interest there.

Okay. Gotcha. Any sort of update that you can give us in terms of the overall strategic review, you know, where RBC stands and you know how that process is coming along?

Yeah. We have some parties that are interested. As you know, as we've said before, it's a pretty wide variety of different potential arrangements that could be put together. Our view on which of those arrangements are optimal for Origin has shifted over the course of the last couple of quarters. We continue to pursue that. As we said in our prepared comments, we think that there are some attractive opportunities there that we can move towards, but hard to predict exactly which one's gonna be the winner.

Gotcha. It sounds, you know, it sounds like a lot of the issues that you're faced pertains to the timeline working with your customers in terms of them, you know, testing and the iteration process to when things can be commercialized. You know, you did put products on the shelf back in August with Power Hydration. Can you give us an update as to, you know, how that product performed on the shelf? You know, where does it stand now? Is it continuing and so forth? Any update that you? 'Cause that's actually a project that is on store shelves, so, you know.

Mm-hmm.

Was possibly giving us some confidence that, you know, timeline from testing to commercialization, you know, might be narrowing, but it doesn't appear to be the case.

Yeah. The product performs essentially equivalently to the standard HDPE caps. You know, there can be some variance inside of even existing caps. We were easily inside of that variance. I would say performed well. We expect that there will be an expansion of our caps in that product line in you know the relatively near term. I would say generally that was a success.

That has not translated, as you were just commenting, into immediate market acceptance by other customers, not because they aren't interested, but just because the larger companies that we have tended to work more closely with also have extended and quite rigorous internal specification requirements that we've, you know, spent quarters previously talking about quite a bit. It's taking quite a few iterations to get that done. I think, you know, that was not our expectation. We thought that this would be faster, as we've said numerous times. We really still believe that this cap is going to get to market and that it will perform as well or better than existing HDPE caps.

As you know, it is obviously taking us more time than we were expecting to get it into market and at volume.

Mm-hmm. Okay. Got you. Lastly, I believe the last quarter you indicated that you expected 2026 sales to be between $20 million and $30 million, and then ramp to $100 million-$200 million in 2027. As you sit here today, you know, how would you characterize your expectations on sales in 2026 and in 2027? Assuming, you know, that the financing comes through.

Yeah. Frank.

Matt, do you want to take that one?

Thanks for the question. I do. Thanks for the question, Frank. Last quarter, we actually said we weren't gonna provide revenue guidance until we got a little further into the ramp, and production of the product. What we did was we provided updated guidance with respect to when we expected to be EBITDA positive breakeven, and that was in 2027. We updated that in this call to pushing that into 2028, just to give some cushion for what we expect to be a ramp that is going to probably be more customers at smaller sizes in addition to the large customers. Maybe a little more protracted in bringing everybody up to significant production levels. That's really the updated guidance from where we were before.

Okay, great. Lastly, are we through all the factory acceptance tests on all the lines? In terms of actual startups, obviously line one is up. Where do lines two, three and four stand?

Yeah. We're pretty much through the factory acceptance tests for all of the lines. We have not gone through and completed site acceptance testing for all of these lines, in large part because we've had our team focused on the iterative product development with our customers. There are a lot of customers that we've been working with. There are a variety of different designs that we've run through you know modifications to these designs, some small, some modest, a little bit larger than, let's say, a little larger than modest, but nothing with a major redesign. However, each time you do that, there is really sort of a requalification of the line in order to make sure you're getting consistent product.

Then, of course, you've got to retest that product and send to those customers. We've had a lot of our efforts focused on just a couple of lines to make sure that we can be making those changes quickly rather than spreading those efforts out across lots of different lines to increase our volume capacity when we don't have customers that are taking volume imminently, right? We could put our efforts into SAT those lines quite quickly if we wanted to. We expect to do so once we see customer uptake increase. Right now it's really all focused on iterating as quickly as we can.

All right. Understood. Thank you.

Thank you. Now I'll turn it over to Matt Plavan, CFO and COO, for a Q&A section answering Ask Origin questions submitted by investors prior to today's call.

Great. Thank you, operator. As you just mentioned, prior to the call, we've invited all investors to submit questions as part of our Ask Origin campaign, and want to thank everyone who submitted questions and participated. It's a good number of questions. Let me jump right into it, starting with a couple of questions for John on manufacturing capacity. The first question is, why haven't lines two and three started up yet?

Yeah, I think this is. You know, Frank, fortunately asked a similar question there. I think, the reality is that what's important to Origin right now is iterating on the product's development as quickly as we can so that we can get that to customers. Ramping capacity, production capacity isn't the important thing yet.

We've had our resources focused on iterating on that product, rather than bringing on the sort of last mile of bringing all these different lines on. We will be able to bring those lines on relatively quickly once we get customer uptake to increase, but not yet.

Yes. Okay. Thanks. Secondly, in terms of manufacturing capacity, how is the 100-up mold progressing? Any expectations on when that'll be installed, and does that require requalification of the CapFormer lines?

Yep. There's a sort of similar answer in terms of why we haven't or when we would install the 100-up mold on our existing lines. Increasing throughput is not the important thing right now. The important thing is that we iterate as quickly as we can on product. However, we had a really good and encouraging test on the 100-up mold when we did an inline test a little while ago. We had some pretty modest alterations that we wanted to make for that mold. Those alterations are in process. When it's appropriate, we will reinstall that mold on one of the lines, and that'll.

We think that, you know, that iteration is quite likely to be the final iteration before the 100-up mold is put in service. That said, we are not taking any resources off of the product iteration at this point in order to do that 100-up mold installation, even once that mold is ready. Additionally, I think when that 100-up mold does get installed in a line, it will require some level of line requalification, and then we'll need to ensure that the caps that are being produced by the line meet the specifications that our customers require. But that has not tended to be the gating item for us. We're pretty good at making the caps that we designed, so far anyway.

Great. Next question regarding bottling trials. When are you doing the next bottling trial with Matrix?

That's a pretty easy answer. We're doing one right now, so in process.

Great. Okay. Now shifting to partnerships and sales. A question here is Berlin Packaging, Matrix, and HP Embalagens's announcements are all related to distribution and cap supply chain. Is there a logic to these announcements preceding major end customer announcements?

No, it's mostly idiosyncratic. We announce customers and partners when we are able to announce them. It's turned out that our distribution partners, like the three that you mentioned, we made it to the point that we can announce those partnerships before some of the other customers did. That said, you know, there is, I suppose, a logic to the fact that we are working with those particular parties aside from the fact that they were announced before others, which is that it is important for us to access many of the sort of smaller and mid-sized brands by going through these kinds of distributors and reselling organizations.

We don't maintain a sales force that's large enough to go after many of the small and mid-sized brands, whereas these partners do. That's a path to a large part of the market that we really would not be staffed to access otherwise.

Okay. That's helpful. Thank you. Also under kinda sales, and I think we've addressed this indirectly in this call, but let's go ahead and ask this because I think a lot of people are asking the same question, and it probably bears you know hitting it head-on. Why has it taken longer than you expect to get meaningful sales volumes?

Yeah. It's very straightforward, which is that the customer qualification process has taken longer than we were expecting. We modeled our customer qualification processes and timing around the acceptance and qualification time for a modification to an HDPE or polypropylene cap design. Obviously we had some buffer in that in order to iterate more. What we found is that for a variety of reasons a PET cap design has required a lot more time than we were expecting. I think that has to do both with the fact that it's just a new cap, and so that makes customers a bit more wary in the way that they adopt it.

Also the design specifically that we have used to make a PET cap work is a bit of a different design, or it's actually visually apparent if you look at our PET caps versus the HDPE caps. Some of that's due to the material, some of it's due to the process that we use to make it. As a consequence, even when the cap is performing well in application, it took us time to figure out which tests were testing it appropriately and which tests weren't. What we found was that there were a number of tests that were actually not well designed to test a PET cap with our particular design.

That's just one example of the kinds of challenges that we've run into, none of which are insurmountable, none of which are actually particularly difficult, but all of which took time for us to discover and then fix. Many of them had to be done essentially in series. Instead of being able to identify every difference in the qualification and acceptance process all at once and then fix all of them in parallel, we've had to do it in series one by one. Which is frustrating, has been challenging, but has not changed our view of the ultimate performance and capability, market capabilities of our PET cap.

Thank you, John. I think that's it for the Ask Origin questions. As we close this out, what should we be excited about with respect to the future as investors?

Yeah. Look, I think looking forward, we will continue to share our milestones when we reach meaningful milestones. We are the clear technology leader for PET caps, and we believe that as we grow, we can dominate this new market category. We look forward to announcing the partnerships that we believe will help us take this cap to market appropriately. We appreciate the support that we've had from our investors and our customers all the way through here. We believe that we will still get customer qualifications that enable us to announce those customers in the very near term.

Obviously, due to the series reveal and discovery of qualification challenges, we don't really know until we get there exactly when we're gonna get there.

Great.

That's all.

Thanks, John. Okay. Thank you. Thanks to all of our investors on the line today. This concludes our call.

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

Thank you for standing by. This is the conference operator. Welcome to the Origin Materials Third Quarter 2025 Earnings Call. [Operator Instructions] And the conference is being recorded. [Operator Instructions] At this time, for opening remarks and introductions, I will turn the call over to Ryan Smith, Co-Founder and Chief Product Officer. Please go ahead.

Thank you. Good afternoon, and thank you for joining us, everyone. Speaking first today is Origin's CEO and Co-Founder, John Bissell; followed by CFO and CEO, Matt Plavan. Then we'll open the call to questions from analysts and discuss questions submitted as part of this quarter's "Ask Origin" campaign. Ahead of this call, Origin has issued its 2025 third quarter press release and presentation. These can be found on the Investor Relations section of our website at originmaterials.com. Please note that during our discussion today, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views as of today, should not be relied upon as representative about views of any subsequent date and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion on the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our quarterly report on Form 10-Q filed today. During today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Origin Materials performance. These non-GAAP measures should be considered in addition to and not a substitute for or in isolation from GAAP results. You will find additional disclosures regarding the non-GAAP financial measures discussed on today's call in our press release issued this afternoon and our filings with the SEC, which will be posted to our website. The webcast of this call will also be available in the Investor Relations section of our company website. And with that, I will turn the call over to John.

Thank you, Ryan. Good afternoon. Today, we are announcing financing that strengthens our balance sheet and provides access to additional capital that can be staged according to our manufacturing capacity build-out. This financing fuels the scale-up of PET cap production. Our financing is composed of debt financing, both equipment backed and corporate level debt with the flexibility to optimize cash management and cost of capital by optionally servicing the debt with equity. Following our evaluation of multiple corporate financing structures over the past couple of quarters, we have executed a secured convertible debt facility with an initial close of $15 million in cash by the end of the month, with the capacity for additional tranches up to a total of $90 million as needed to maintain a healthy cash flow and to fund growth. During the third quarter, we evaluated a number of term sheets for CapFormer equipment financing and from those in the fourth quarter added USD 20 million in equipment backed financing capacity, bringing our total equipment financing capacity to approximately $30 million. We believe the funding from these 2 sources will enable us to continue to keep pace with our manufacturing build-out and to serve the forthcoming volume orders pursuant to qualification. For those new to Origin, we are making a big difference with a small cap and the technology behind it. Our technology platform produces what we believe are the only commercial-ready PET caps as opposed to the HDPE and polypropylene caps, which today dominate the over $65 billion closures market. Our platform excels in 7 areas: recyclability; oxygen and CO2 barrier, enabling shelf life extension; closure diameter, which enables more economic large-format production; thickness, which enables lightweighting; rigidity for a premium fuel; use of recycled content; and optical clarity. Our innovation stands to be transformative for the packaging industry. In addition to achieving key financing milestones this year, we continue to execute our operating plan. Our CapFormer deployment schedule is on track, and we are maintaining our related guidance. As such, we continue to expand PET cap production capacity in accordance with our revenue growth strategy. We remain on track for completing factory acceptance testing through CapFormer Line 6 by the end of 2025. To optimize capital deployment Line 7 and Line 8 start up could extend into Q1 2027, updated from Q4 2026. On the commercialization front, we are executing our water first go-to-market strategy with line of sight to our revenue targets in 2026. Last quarter, in California, we put our closures on what we believe are the only beverage products on the market with PET caps. Since then, we've built sales momentum globally, marketing our products in North America, Europe, South America and Asia and bolstering our customer pipeline in accordance with our water first growth strategy. In recent months, our sales team displayed PET caps at key international conferences for the plastic parts and beverage industries and it is clear that Origin holds a strong lead in PET cap commercialization. Water customer demand is strong, growing and provides a path on the way to CSD sales. More than half of the water brands in Origin's customer qualification funnel are also potential CSD customers. This quarter, our customer Berlin Packaging placed its first order, which we are now in the process of fulfilling. Berlin Packaging is a respected market leader and represents a sales and distribution partner for Origin. Berlin's broad and deep distribution footprint not only extends our market reach for 1881, but opens the door for all our forthcoming formats across closure applications globally. You can find more about our Berlin packaging relationship in our August 2025 release. We extended our technology lead this quarter by making significant progress with 2 priority challenges: Impact resistance and multi-day heated horizontal stress testing. Amongst separate cap designs, we successfully exceeded performance requirements for both of these tests. In upcoming production trials, we expect to consolidate these features into a single cap design. With that, I'll hand it over to Matt, who will discuss the quarter's financing and strategic highlights and provide a review of our expected near-term financial performance.

Thanks, John, and good afternoon, everyone. First, while the details of the convertible debt financing will be published in the 8-K to be filed in the coming days, I would like to share a qualitative perspective on our financing strategy. We expect the next several quarters to be operationally dynamic at Origin with concurrent executions of a number of critical workflows, including key design iterations, multiple customer qualification processes and significant capital equipment acquisition and capacity build-out activities. At the moment, we believe the combination of our equipment financing and convertible debt instrument is the optimal funding strategy for the agility to best respond to the rapidly evolving working capital needs and to have ready access to future equipment funding at the optimal cost of capital for a given situation. We anticipate drawing additional tranches in 2026 as needed, although we are not obligated to do so. It is at our discretion, contingent upon meeting certain minimum equity and financial conditions. Similarly, it is the company's decision whether to service any outstanding debt with either cash or shares, contingent on meeting certain minimum liquidity requirements. Second, our revenue and run rate adjusted EBITDA guidance remains unchanged. Before consideration of potential strategic review outcomes, we continue to expect 2026 revenues of $20 million to $30 million, 2027 revenues of $100 million to $200 million, and we continue to expect to reach EBITDA adjusted run rate breakeven in 2027. Third, during this quarter, Origin settled securities litigation with no finding of liability or wrongdoing. Announced in October 2025, Origin entered into binding agreements to settle the shareholder class action lawsuit and the related derivative lawsuit initially filed in August 2023 and March 2025, respectively, pending in the United States Court for the East District of California. The proposed settlement, which will be fully covered by insurance, resolves all claims asserted against Origin and the other named defendants in the lawsuit. Even when a company has strong confidence in its position, which Origin does, the way the litigation process works, it can often cost more to fight through vindication than it does to settle and make the case go away. This settlement allows us to avoid distractions associated with the lawsuits and avoid uncertainty and focus on our core business. Lastly, Origin's strategic review engagement with RBC Capital Markets announced in our Q2 2025 earnings release is progressing well with productive engagement from potential counterparties. We look forward to sharing more on this topic as appropriate. With that, I'll pass it back to John for concluding remarks.

Thanks, Matt. I'll conclude with the following: We secured financing that strengthens our balance sheet and provides access to substantial additional capital. We are the clear technology leader for PET caps poised to grow and dominate a new market category. We are making strong progress with respect to our manufacturing capacity build-out and product development and demand is strong, both for water and CSD applications. We look forward to sharing our milestones with you as we progress in our mission centered on the future of packaging, sustainable materials and recycling that actually works. With that, I'll open up the call for questions. Operator, may we have the first question please?

[Operator Instructions] Our first question today comes from Frank Mitsch with Fermium Research.

And congrats on the financing. Can I -- I wanted to ask a couple of questions on the cash position and the convertible debt financing. Okay. So you're going to get $15 million by the end of this month. And it is at your option to get up to the $90 million, the additional $75 million. I believe, Matt, you mentioned that there were some milestones or some mileposts that were necessary for you to pass in order to get the future funding. Can you -- is that true? And can you just kind of describe that those mileposts?

Yes. Frank, thanks for the question. And at this point, the 8-K with the deal terms, it's going to be out by month end, probably sooner. And frankly, I think it's best to see all the terms together at one time in order to get a proper understanding of how the instrument works. And so I think I need to wait until we file that to really get into a level of detail beyond what we did in the prepared comments. So I think that's the approach we should take at the moment.

All right. Fine. I'll be on the lookout for that. The burn rate in the third quarter was $15 million. It's a little bit higher than perhaps I've been thinking. Can you offer your outlook in terms of the burn rate for the next couple of quarters?

Yes. So the burn rate is a combination of kind of at the moment, kind of what our operating expenses are cash operating expenses. And as we talked about in Q1 and Q2 together in the first 6 months, that was approximately $20 million, and then the rest was CapEx for CapFormers. In Q3, it was roughly $10 million on OpEx and $5 million on CapEx, so relatively consistent. And I think as we look into 2026, that's probably a good guide to use. Of course, as we begin generating gross profit, we're going to reduce the net burn. But as we've said before, this is a capacity build story to gather all the -- to be able to service all the demand. So we're going to keep building the CapFormers, and that's kind of why we have the financing lined up that we do to take care of that. But it's a relatively straightforward split, 50-50, 60-40, something like that, between OpEx and CapEx for the foreseeable future.

Terrific. And John, you indicated that Lines 2 and 4 are going to be starting up in the fourth quarter and in the first quarter. And I was wondering if you could give us an idea as to when you expect that that's going to be generating acceptable product quality for the customers because it's kind of important, I guess, given the NASDAQ delisting, I guess, is you're extended until April of 2026. So if these lines are up and running and you're qualified, et cetera, then I think there could be scope to see the stock get to $1 on its own. But yes, if you can give us a little more color on the start ups of Lines 2 and 4, please?

So we're making good progress on the start up of those lines already. And we're excited to get them up running and producing consistent product that we can test with our customers. As we said before, it can be a little bit tricky to predict exactly when we're going to get line time with customers to do that qualification on the customers' lines, right? So first, you've got to get our lines up and running, and then you've got to be take that product from those lines and specifically use it in the customer lines, check that off. And then you can figure out exactly what the timing is to start generating revenue off of that and making sales into that customer line. But we do think that we can make really significant progress across all of those items in the window that you were just referring to, which is really sort of through the end of Q1. We think we can do a lot across those. We're sort of not ready to commit on any single particular customer at this point, but we really think we can make a lot of progress across all of those. There's plenty of time for us to do that, and we're -- we like the way that the Lines 2 and 4 are starting up right now anyway.

All right. Very helpful. And then I guess, lastly, speaking of customers, you're getting your first order, you received your first order from Berlin Packaging. I assume that, that's for a water application. I'm curious -- and I assume that you're through qualifications, et cetera. But any color that you can give on that first order and what your prognosis is for future orders from Berlin Packaging.

Yes. So we're excited to ship it. We haven't heard feedback from Berlin's customers on it yet. So we're excited to see that. I think that's going to be part of what we talked about I suspect next quarter is learning everything that we learned from those -- from Berlin's customers. We have been busy setting up our customer support service. So a lot of the work that we've been doing is really product development-oriented engagement with customers where we're going from qualifying in a very prescribed fashion with Berlin. What's a little bit different is we don't necessarily control exactly which customers are going to be using our caps there. So we need to have the ability to responsively provide customer service instead of just sort of planning too far in advance. So we're excited to do that. We've got that capability pretty much set up. And I think that's going to give us a heck of a lot of information about how our cap is performing, how people are using it. And as with most applications in the world, as you as you start to use something for that application, you're going to learn things that you weren't expecting. And that's, frankly, as an engineer and scientist, that's really exciting.

Now I'll turn it over to Ryan Smith, Co-Founder and Chief Product Officer for a Q&A section answering Ask Origin questions submitted by investors prior to today's call.

Thank you, operator. Prior to our earnings call, we invited all investors to submit questions as part of our Ask Origin campaign. So thank you so much to everyone who participated. These questions were, of course, submitted before our call today, and we answered many of them thoroughly with our prepared remarks. We will generally be answering the most relevant questions today during the time that we have. So let's start with the first question. The investor asks, could you please provide more explanation about the various phases of qualification and their significance? And this is specifically in reference to qualification of the Lines, terms like FAT and SAT.

Yes. So first, I think your comment just now, Ryan, is a useful one to remind everybody of, which is, for better or for worse, we do talk about qualification in 2 different contexts. One of them is qualifying our product with customers on their bottling lines. And that's been a significant focus of ours over the last year or so. And that's a process where we send them caps. They run our caps on their bottling lines. And they see both how do those caps perform from a throughput and a quality perspective in their bottling lines, examples of things that could go wrong there, not specifically for our caps, but caps in general, could be misapplication of the caps or jamming of their bottling systems. And then the other thing that they're really looking for in the aggregate is how do those caps end up performing on those -- the products that they are making on the line. So there's sort of the performance of the cap running through the process and then there's the performance of the cap as part of the final package for the product. And there, you could have under application of the caps that might make it not feel properly or could be over application of the caps, which might cause a problem for, I don't know, tamper evidence or it might make it too hard to get off or something like that. These are sort of generic comments on what could go wrong with those sort of things. And so those are the 2 elements of customer qualification. And of course, with customer qualification, you're both looking for our particular cap design that's being qualified. It's also what do we maybe need to change, adjust settings on their lines in order to make our cap run properly on their lines. These are pretty typical things that you might manage your way through during a customer qualification process, whether it's a PET cap or any other cap. And so that process is what we often are referring to. And the key part of that process is we have to get on to our customers' operating lines. And they have to give us the time to do those runs, collect the data appropriately, make sure that our cap is working properly, and then they can incorporate our caps into their product and planning cycles going forward. But obviously, that's a long-winded way of saying, that's actually not what the question was about, although I think it was really worth walking through. The question is about our qualification of our own lines. So not the lines for using caps, but the lines for making caps. So this is what -- these are our cap forming lines. And what we do during factory acceptance testing which is FATs, which is something we talk a lot about, is that's us testing the performance of the equipment at the site that the equipment was fabricated and assembled. So hence, in the factory, not our factory, but the factory of the equipment suppliers. And that's verifying that before the equipment ever leaves the factory that it's operating the way it's supposed to, to all of its specs. With successful completion of the FAT, the factory acceptance test, it all gets boxed up. It gets shifted to wherever we're going to install and operate that equipment. So frequently, that means our Reed City manufacturing location in Michigan. We unbox all of the equipment. We reintegrate all of it, assemble it, start it up and then we run it again. And we see if it performs the same way now installed at a completely different location where we're going to be operating it for the foreseeable future, to see if it runs the way that it did during the factory acceptance testing. When we have checked that off and it is running the way that it was before, that is the completion largely of the site acceptance test or the SAT. So that's the FAT and the site acceptance test. Now we also go through a line start-up and qualification process for ourselves, which is where we're really -- we're not testing whether the equipment is working. We are dialing in the equipment so that it is operating exactly to the performance specifications that we're looking for as long-term operations of that equipment. And that's less of a test if this equipment work, that's do we have it honed in properly so that we're getting the level of precision that we want to see on those lines so that when we're shipping caps to customers, we are comfortable with those caps, statistically are meeting the specifications as frequently as they need to, to make sure that when we go on to customer qualifcations on their lines, that those caps are going to work the way that they're supposed to.

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

Yes. I think the first thing to say here is we see a real delamination between the sort of sustainability treatment and public opinion of something like a sustainable material or climate technology, low-carbon materials, those sorts of things. And end of life and recycling type sustainability. So those -- they're often sort of different working groups, if you're looking at the larger sort of meta organizations. They are frequently handled by suddenly different people, even if they might report up into the same broader sustainability group in inside of a company, and they're driven by different consumer factors. So while we have, I think, like everybody else, certainly seen somewhat of a change in tenor on the climate side of things. And notwithstanding that, that really hasn't changed our own view of the importance of climate, but I think that the broader view on climate has changed. We have not seen a reduction in intensity for end-of-life recycling type value propositions or sustainability efforts. And so we have seen a lot of push still in the U.S. just like we had before around resolving the issues for recycling and end of life, particularly for plastics. And I think -- and same in Europe, obviously, there's tethering in Europe that is leading a little bit sort of tethering activities or other kinds of end of life activities in the U.S. But I'd say, in both cases, we see really strong demand elements that are coming from this end-of-life and recycling sustainability desire. I think also, as the plastic and plastic microparticles are becoming more inherently linked to consumers. I think that's driving recycling more. And frankly, we think that, that favors PET quite significantly compared to other packaging materials. So we're really excited, frankly, about all of those demand elements. And I think it's all good right now for PET caps as far as you can tell.

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

Yes. So not things that we're ready to sort of communicate externally. A lot of these deals can take quite a long time. There's a lot of involvement especially if it's not just a straight up, I'm going to buy some caps from you that you're already making. And obviously, in our face of life, there are a lot of transactions or sort of commercial development activities that involve something that we could do or will do in the future or those kinds of things. And those take a little while to be able to communicate out. So lots of concrete things that happened there. not all things that we can talk about. But I will say our sales team and our business development team has been really busy with the outputs of not just those trade shows, but in general, and I think that our experience so far has been as people become aware of what we are doing, we get a lot of inbound interest as a result of that. And so that sort of qualitatively tells us that there's lots and lots of markets that we haven't touched, haven't tapped, isn't aware of us. It's going to be valuable for us to continue to push our message and show people our product and that there is a high percentage of the market that is very interested in PET caps across the board, both small companies and large covers.

Yes. That makes sense. All right. And then last question here, John, to close this out. What do we have to get excited about as we look into the future?

Look, we are excited about the capacity that we're bringing online. We think that, that's going to enable us to really drive caps to the larger customers. We're excited about new product features and continued product development, which left us -- access more parts of the market. And frequently with -- especially with large customers, while they want to start with a single product, they want to have a vision for how something like a PET cap can solve a lot of their -- solve the sort of cap and sustainability problem associated with caps of different non-PET materials, solve that for their whole portfolio. And so showing how we can do that to them is something that additional product types or product features can do, and we're really excited about that. We're excited about the financing that we just closed here. And we think we can show how that can drive the business the way that we all wanted to. And I think I think with all of that said, I think we're in a really good spot. And we've got the right products in the right market and we have the right resources to go execute on it. So there's going to be a lot to talk about. Thank you.

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

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

Thank you for standing by. This is the conference operator. Welcome to the Origin Materials Second Quarter 2025 Earnings Call. [Operator Instructions] The conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions] At this time, for opening remarks and introductions, I will turn the call over to Ryan Smith, Co-Founder and Chief Product Officer. Please go ahead.

Thank you. Good afternoon, and thank you for joining us, everyone. Speaking first today is Origin's CEO and Co-Founder, John Bissell; followed by CFO and COO, Matthew Plavan. Then we will open the call to questions from analysts and discuss questions submitted as part of this quarter's #askorigin campaign. Ahead of this call, Origin has issued its 2025 second quarter press release and presentation, these can be found on the Investor Relations section of our website at originmaterials.com. Please note that during our discussion today, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views as of today, should not be relied upon as representative about views of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion on the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC including our quarterly report on Form 10-Q filed today. During today's call, we will discuss non-GAAP financial measures which we believe are useful as supplemental measures of Origin Materials' performance. These non-GAAP measures should be considered in addition to and not a substitute for or in isolation from GAAP results. You will find additional disclosures regarding the non-GAAP financial measures discussed on today's call in our press release issued this afternoon and our filings with the SEC which will be posted to our website. The webcast of this call will also be available on the Investor Relations section of our company website. With that, I will turn the call over to John.

Thank you, Ryan. Good afternoon. In a separate press release issued today, we announced the first Origin PET bottle caps are now on store shelves, a world's first and a significant inflection point for the company and the packaging industry. We are now officially in market with our 1881 cap for noncarbonated water, a $7 billion segment of the caps market. Coupled with our recent customer announcements, including our first publicly named customer, Berlin Packaging and recent progress reports on our manufacturing capacity build-out we are closer than ever to bringing our transformative PET bottle cap technology to the entire $65 billion closures packaging market. Our technology platform produces what we believe to be the world's first and only commercially viable PET caps. The platform excels in 7 areas: recyclability; oxygen barrier, which enables longer shelf life; closure diameter, enabling more economic large formats; thickness, which enables lighter weight; rigidity, which gives a premium feel; use of recycled content; and optical clarity. Successful commercialization will be a step change for recycling and improved packaging performance while creating significant value for our shareholders in the process. During the quarter, we maintained laser focus on the priority build-out of our first 8 CapFormer lines, making solid progress advancing through the various stages of order placement, manufacturer testing and shipping of lines 2 through 8. Despite our progress, we experienced a number of OEM manufacturing delays, including slower subcomponent deliveries and procurement delays, often due to tariff considerations. As a result, we expect FAT completion for each of our lines to be 30 to 90 days beyond our prior expectations. These delays accentuate the gap between the indicated demand for Origin's PET caps and our production capacity, leaving money on the table. Separately, we have fielded a number of strategic collaboration inquiries reflecting the natural synergy between the robust manufacturing and distribution capabilities of legacy packaging companies and the high-value products and innovative technology development capabilities at Origin. The packaging industry is well-defined, highly commoditized and very competitive. Its core competencies are operational efficiency, consistently high productivity and reliable delivery. What we hear regularly from customers, however, is that innovation in the packaging industry is lacking. To pursue these emerging opportunities and help address the gap between the indicated demand and production capacity for Origin's PET caps, we've launched a strategic review with our financial adviser, RBC Capital Markets. To identify accretive strategies that can enhance the company's access to manufacturing capacity marketing and distribution capabilities and strategic capital. We believe this will enable value capture beyond what we can achieve organically, potentially enabling Origin to more effectively fulfill pent-up demand and accelerate our efforts to unlock shareholder value in the near term. One early result of our strategic review is an important refinement of our go-to-market strategy to more effectively prioritize and capture high-value opportunities within the over $65 billion caps and closures market which is comprised of a number of differentiated segments. Our current strategic prioritization targets 5 large functional segments, including water at $7 billion, carbonated soft drinks or CSD at $6 billion, other beverage applications, such as hot fill, ready-to-drink, beer, wine, milk and sports drinks at $18 billion, food and pharmaceutical at $20 billion and other nonbeverage at $17 billion. Each segment utilizes different cat formats to achieve unique performance characteristics required by the product. Previously, our approach had been to design a single 1881 cap to serve all of these markets. However, following the recent successful qualification of our 1881 cap for flat water, we can now begin immediately selling into the 1881 flat water market rather than waiting until completion of the final designs for the 1881 cap that will serve the broader CSD market later in 2026. Our PET cap works, caps qualification for a customer's water requirements succeeded on a commercial bottling system and went on store shelves. We continue to work side-by-side with CSD customers and anticipate success with CSD qualification with a focus on impact resistance and multi-day heated horizontal stress testing. Given the design freedom and material properties afforded by our proprietary method for producing PET caps, we believe CSD qualification is a matter of when, not if. Next, I will highlight a few of our recently announced strategic partnerships and customer relationships and then share the status of our manufacturing capacity build out. Earlier this month, we announced a new customer. Berlin Packaging. Berlin Packaging is a respected market leader and has agreed to purchase PET 1881 caps from Origin Materials for sale and distribution. Berlin's broad and deep distribution footprint not only immediately extends our market reach for 1881 but also opens the door for all our forthcoming formats across all closure applications globally. As a strategic customer, Berlin was exceptionally attractive because of their expertise in connecting closure products with brands to unlock the highest value opportunities. We look forward to working with Berlin and to revealing more about our other customers as well. On the supply side, we continue to grow our manufacturing capacity and execute our adaptive supply chain strategy actively responding to macroeconomic uncertainty and changing conditions. The status of our CapFormer build-out is as follows: our first CapFormer system is producing PET caps in Reed City, Michigan. Two additional CapFormers, including thermoformers and for 1 of the CapFormers all of its subsystems arrived in the United States from Europe in July and August of 2025. The equipment arrived at Reed City prior to or receive an exemption from the EU and Switzerland tariff increases to 15% and 39%, respectively, saving over $1 million. We continue to expect CapFormers 3 through 6 to complete factory acceptance testing on a rolling basis through Q4 of 2025, and primarily due to capital constraints accentuated by tariff exposure, we now plan to complete factory acceptance testing for CapFormer 7 and 8 in the second half of 2026, updated from Q1 2026. In July, we announced a new European mass production partner, Royal Hordijk, further diversifying Origin's manufacturing footprint in response to continued pressure from U.S. tariffs on European imports. European manufacturing capacity expands Origin's global footprint, enabling the production and sale of PET caps without equipment or caps crossing U.S. borders. Hordijk is a leading Dutch producer of sustainable plastic packaging solutions in operation for over 100 years. Hordijk will use its PET extruders to produce extruded sheet for use in CapFormer production lines owned by Origin and operated by Hordijk and Hordijk facilities in the EU. We expect Hordijk PET extruders and extrusion expertise can drive capital cost efficiency for CapFormer lines. We anticipate installing the first CapFormer in a Hordijk facility before the end of Q1 2026. Finally, our sales pipeline remained strong, and interest remains high for larger cap formats with attractive unit economics. We believe our thermal forming PET technology advances us disproportionately as format size increases which we believe will translate to higher margins than HDPE caps, the larger the format. A key objective of our strategic review process is to identify opportunities to accelerate our development and deployment of these new formats. And now I'll hand it over to Matt for a review of our expected near- term financial performance.

Thanks, John, and good afternoon, everyone. I'd like to begin with an update on our financing strategy. As we previously indicated, we endeavor to source the majority of funds for our capital equipment build-out on our way to sustain profitability from non-dilutive capital such as equipment and corporate debt. However, depending upon equipment operation target locations, tariffs may require us to deploy meaningfully more capital for our equipment going forward. The 15% tariff on EU imports up from 10% as of late July 2025, and the 39% tariff on Switzerland imports which went into effect on August 7, 2025, affect Origin because we source CapFormer System from Switzerland and Germany for deployment in the United States. Such tariff costs can significantly raise the cash outlay required for financing equipment as we do not expect the tariff cost to be financeable, thereby making debt financing in those instances more expensive and potentially suboptimal. As John mentioned, we believe our strategic review process will help us optimize our cost of capital under these circumstances and to maintain timely capacity build for demand capture and to preserve the path to our stated goal of nondilutive financing for the majority of our forthcoming capital expenses. Next, we're revising our revenue and run rate adjusted EBITDA guidance. We estimate an aggregate reduction in manufacturing output of approximately 50% and 15% for 2026 and 2027, respectively, compared to our prior estimates. This is due to the impact of the aforementioned delay in CapFormer FAT timing for Lines 2 through 8. on our backloaded 2026 production schedule as we described in May of 2025. Prior revenue guidance for 2026 and 2027 was a range of $50 million to $70 million and $150 million to $210 million, respectively, we are updating revenue guidance before consideration of potential strategic review outcomes to $20 million to $30 million and $100 million to $200 million for 2026 and 2027, respectively. In addition, we expect these same factors to push our adjusted EBITDA run rate breakeven from 2026 into 2027. Lastly, we ended the quarter with a strong balance sheet, including $69 million in cash, cash equivalents and marketable securities. In addition, the net accounts receivable balance of $17.9 million at June 30, 2025, is comprised of receivables associated with the company's legacy supply chain activation program, that is being wound down in 2025. Concurrent with the wind down of the supply chain activation program, we expect to collect all related net receivables in due course, resulting in a significant source of cash. Additionally, as of June 30, 2025, the company had $9 million in land held for sale in Geismar, Louisiana. We expect the sale of this land to also result in an additional significant source of cash. With that, I'll pass it back to John for concluding remarks.

Thanks, Matt. I will conclude by reiterating what I said at the beginning of this call. Today, Origin is closer than ever to bringing our product to the $65 billion caps and closures market. The first Origin PET bottle caps are now on store shelves. We are now officially in market with our 1881 cap for noncarbonated water. This quarter, we announced our first publicly named customer, Berlin Packaging. Despite tariffs as high as 39% directly impacting our business, we remain nimble by expanding the geographies into which we can deploy production. We are adapting and executing our plan, and we are evaluating promising path forward for our strategic review with RBC which we believe can both accelerate and derisk our business plan while simultaneously unlocking significant value for our shareholders. With that, I'll open up the call for questions. Operator, may we have the first question, please?

Showing no questions. I will now turn it over to Ryan Smith, Co-Founder and Chief Product Officer for a Q&A section answering #askorigin questions submitted by investors prior to today's call. Thank you.

Thank you, operator. Prior to our earnings call, we invited all investors to submit questions as part of our #askorigin campaign. Thank you so much to everyone who participated. These questions were, of course, submitted before our call today, and we answered many of them thoroughly with our prepared remarks. We will generally be answering most relevant questions today during the time that we have. So let's start with the first question for you, John. The investor asks, as soon as a customer becomes public, we'd like to know where to buy the product so we can support it and get the cap into our hands to show and tell the tangibility. How do we do that?

Well, as we announced earlier, we now have our product on shelves with a small brand Power Hydration located in California. We're excited to get those bottles -- those caps on bottles out there. We're excited to have them in market. Certainly, if people want to travel to California to go get 1 of those bottles, they're welcome to do so, but we certainly don't expect that. And we don't expect Power Hydration will be the last brand that we announced with these caps out there in the near term. So we're excited to have our caps qualified for water and we're excited to have our caps on store shelves already.

Great. The next question from the investor asks, have you been monitoring the competition? And could you provide some insight on who your closest competitors are? And how much further ahead you think Origin is in mastering this particular type of PET cap production?

Sure. Yes. So our technology platform is pretty differentiated from the other attempts at making PET caps, both historically and currently, as a reminder, what we do with our technology is thermoform PET sheet into caps. And then with a little bit of post- processing can convert those into caps that can be directly put on bottles. As you compare that to both existing caps technology for HDPE and polypropylene cap production and also the attempts, both historical and current to make PET caps, those technologies are using either injection molding, which is melting the PET down fully and then extruding it into a fully enclosed mold or compression molding which is taking a softened PET and essentially pressing it into a fully enclosed mold to make the shapes. There are some key elements of those technologies, which are challenged relative to thermoforming. The first is that you're really making that thin film of a PET cap is quite challenging with both of those technologies due to the material properties of PET. And in fact, when you make that cap, it isn't going to have the same kinds of properties that a PET -- that is forms using thermoforming well due to some of the orientation that occurs within PET when you stretch it and when you mold it over a part with some draw like you do with our technology. And we think those are some of the key elements that allow us to both get better unit economics and not just better unit economics for caps the size of 1881 but cap that are even larger than that. We think that's what allows us to get better material properties out of our PET. It allows us to get lighter weight caps, it allows us to get the optical clarity that our customers have found really quite striking and aesthetically pleasing and differentiating. And actually, it's also what allows us to use recycled content in our caps more easily. And so many of the differentiated properties that we think are key, not just our technology but to frankly, PET caps in general and making PET cap successful depends on the technology that we bring which is this thermoforming anchored technology. And we're really excited about that. We think that, that's going to be a step change, as we said earlier, in recyclability and really impact performance in the product. The PET caps just performed really well across a whole bunch of different dimensions. And so I think relative to our competitors, we're excited that we have, we think, the first commercially viable PET cap in market, we think that our cap performs better than other attempts at making PET caps out there. And we think that our cap has the ability to really change the way that the packaging industry innovate, frankly. So we're excited to be here.

Great. The next question asks, how should we view the Hordijk partnership in the context of prior partnerships and operating partners?

Yes. We expect, in general, to have multiple operating and manufacturing partners in all of the major geographies. And so we see Hordijk as an excellent addition to that, in particular, with more protectionist trade environment that we're, all companies are operating in these days. And so having another great partner in the EU, in particular, 1 that has a huge capacity for extrusion of PET sheet for thermoforming, PET and the capabilities and expertise that comes with that kind of large-scale sheet -- PET sheet extrusion and PET thermoforming operation is something that we think is hugely additive to our overall capability as a company and, of course, particularly our overall capability in Europe. So we're excited to have them. And we don't think they'll be the last of the manufacturing partners that we bring onboard in the near future, we think that there are going to be plenty more of those as we look across different geographies and expand into new geographies as well.

Great. Next question I want to address to Matt. The question asks, where do we stand with respect to our NASDAQ listing. We have been trading for under $1 for some time now.

Yes. Thanks, Ryan. So just as a reminder, there are minimum listing requirements that NASDAQ has for companies on the exchange. One of those is that your stock price stays above $1, generally speaking. The way they monitor that is if your stock falls below $1 for 30 consecutive days, you get a notification that you're not in compliance with that particular minimum listing requirement. And they give you initially 180 days to remedy that situation and they measure it as being remedied, the moment that your stock crosses over a closing price of $1 for 10 consecutive days. And so we are 129 days into our first 180-day price period. We continue to see many opportunities for us to perform, execute and have our stock and the value of our company increase and in doing so, be over $1 for 10 consecutive days in the near future. The -- so at this point, we've got another 51 days in our first grace period. At that point, you can apply and we would if we weren't over $1 and hadn't met that minimum listing requirements, we would apply for a second grace period of 180 days, which the NASDAQ evaluates to make sure that you remain -- that you meet all the other minimum requirements, and if the only requirement remaining is the minimum dollar stock price and you have a plan that is acceptable to the NASDAQ to earn that second grace period, which is generally, what -- it's generally approved as long as you're willing to perform a reverse stock split during that second period if your attempts through organic measures are unsuccessful in raising the stock price above $1. And generally, companies are willing to do that. And so we think we, as I said, have many more opportunities during that remaining period of time between what's left of our first period and should we have to request a second grace period that gives us another 7 months to become -- to regain compliance. And so we feel good about our opportunities to do that. And we'll keep all folks or investors posted through our public disclosures on our progress towards meeting those minimum requirements.

Great. Thanks for explaining that. John, to close this out, what do we have to get excited about as we look to the future.

Yes. I think there are a lot of things to get excited about. The first is that Origin PET bottle caps are now on shelves. And we think this is just the beginning. There's a lot a lot of growth, that water market is huge, and we're excited to grow sales while we work on our CSD qualifications. We're working on more customer announcements and naming our customers, especially following our Berlin Packaging press release. We have CapFormers 3 through 6, which will be completing their FAT on a rolling basis through the end of the year. So continuing to build capacity there. And we're evaluating promising paths forward for a strategic review with RBC which we believe can both accelerate and derisk our business plan while simultaneously unlocking value creation for our shareholders. And for some time now, we've been receiving inbound interest from well-established cap companies. That frankly, struggle with innovation. It's hard to find innovation in these established industries and we can provide that. So we're excited across all of these areas from organic to inorganic growth, and we're excited that our high performance highly sustainable and recyclable cap is finally in market in 1 of the largest caps and closures segments. So there's a lot to be excited about.

Great. Thank you. Back to you operator.

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