Danimer Scientific, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a decline in total revenue, which amounted to $8.63 million for the three months ended September 30, 2024, down 21% from $10.95 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $26.48 million, a decrease of 26% compared to $35.74 million in the prior year. The decline in revenue was primarily attributed to reduced demand for PLA-based products and the completion of several R&D contracts.
Despite the revenue drop, Danimer reported a decrease in total operating expenses, which fell to $11.51 million in Q3 2024 from $23.50 million in Q3 2023. This reduction contributed to an improved loss from operations of $(18.82 million) for the quarter, compared to $(31.24 million) in the prior year. The net loss for Q3 2024 was $(21.84 million), a significant improvement from $(40.16 million) in Q3 2023. For the nine-month period, the net loss was $(71.76 million), down from $(116.04 million) in the same period of 2023.
The company’s total current assets decreased to $69.87 million as of September 30, 2024, from $108.04 million at the end of 2023. Total assets also declined to $643.77 million from $698.13 million. Conversely, total liabilities increased to $432.18 million from $420.11 million, leading to a decrease in total stockholders’ equity to $211.59 million from $278.02 million.
Strategically, Danimer has faced challenges, including the temporary suspension of its Danimer Catalytic Technologies business in July 2024 for capital conservation. The company has also incurred expenses related to CEO retirement and strategic reorganization, totaling $0.5 million for the nine months ended September 30, 2024. The company is actively seeking to preserve cash through cost-cutting measures, including reducing discretionary spending and labor costs.
Danimer's liquidity position remains a concern, with $22.2 million in unrestricted cash and cash equivalents as of September 30, 2024. The company has substantial debt obligations, including $381.87 million in long-term debt, and faces significant monthly interest payments. The company is exploring additional funding sources to enhance liquidity, as it anticipates potential revenue growth from new customer contracts in 2025. However, substantial doubt exists regarding its ability to continue operations over the next year due to negative cash flows and limited financial resources.
About Danimer Scientific, Inc.
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