Danimer Scientific (DNMR) 9 Nov 222022 Q3 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Danimer Scientific, Inc.

Third Quarter 2022 Earnings Conference Call.

As a reminder, all participants are in a listen-only mode and the conference is being recorded. will opportunity there ask presentation the be to an questions. After to I ICR. conference would Instructions] turn now [ph] [Operator Grey, like the Brad over to go Please ahead.

you, Mike the call joining are Danimer’s everyone third Thank Croskrey; XXXX today thank and Steve for CFO, quarter Hosting today Danimer’s for call. earnings CEO, and operator, Hajost. us you,

please Today’s in section from earnings a required any financial note On available Litigation provisions or and within production Act forward-looking except on the Safe is During statements future most the today, measures. to will earnings These the date presentation implied we meaning statements. things, to in over I be statements include, can which discuss will capacity, operations, hereof, danimerscientific.com. demand XXXX. Reconciliations of may our certain levels of results we at Harbor be in Investor the among of assume other or presentation. that found that call circumstances to presentation Private the of Securities Relations expressed update no non-GAAP to GAAP reflect measures law. the events now could comparable of forward-looking obligation discussion Steve. slide forward-looking website the forward-looking X, material referring to turn to includes references our our We the statements Reform those after by way also the as differ

Thank you, everyone. Brad. joining. Good for afternoon, Thanks

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

through ahead competencies been long in believe us we commercial significantly our have core application We scale of puts and competitors any of a of development that journey terms production.

supply to COVID, projects Even the able of and have maintain and customers. we strong our been over with and impacted years, capacity inflation existing past the as of expand issues couple chain customer R&D relationships timing launches have

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

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

X. slide to Turning

now growth XX% of our quarter strategy execute during to third PHA revenues up continued representing We year-over-year, the with revenue. our XX%

facility still Following cost have up at raw we Kentucky savings we as June, have ramp Kentucky our material future for the of believe to better facility. the production production. operations in utilization both expansion at successful we continued that increase other the our capabilities may We in opportunities that and

to the In our that to to on the familiarity with team from legal hire Legal affairs provide and broad by journey. greenfield experience managing Officer Chief Martin Corporate companies our continue learnings our vital skill new industries enhance to growth future CapEx Georgia Secretary. can of pleased His publicly-traded our Stephen as capabilities following with one-third up were of our our costs us reduce will now support plans set, we be construction Additionally, we the facility and facility. Kentucky efforts growth, we confidence as construction numerous

industry a summit announce biomanufacturing as a of the getting thrilled products and national issue leader the here on development honored science makes Secretaries President Overall, in I the and our the that which discuss technology. was bioeconomy. the I that detail Biden’s and level recently biotechnology industry. and ensure visit the we of research formerly this you pressing landmark invented business with recently plastic of initiative we September and federal to manufactured well. Formerra, conjunction Executive our are also biopolymer trip biotechnology only Avient, to biopolymer biomanufacturing formulations historic speak taking globe. Science manufacturing, behalf for a held White recent White summit the development investments sure in on September. industry included highly high solve and seriously. agreement recent at distribution States American United development, and to which as leaders, to signed with the Order, The with academic panel The encouraged research On Danimer waste distribution biotechnology agreement other the invited be I’m to Act, I will is across government in in that well the was to was is in as members specialty of CHIPS Cabinet a behind House can and Danimer and signed strengthen XXth on the left side, Congress, American really challenges roundtable President the event, are polymer and many shortly. across more company aware a to House launching my

provides U.S. the of just XVII introduction additional the authority Reduction to also executive guarantee Congress’s for I Act an recent Inflation billion loan loan orders Department addition title of Energy $XX discussed, In of program. the

sale. plastic to to a single of petroleum updates vegetables of new with the by was this Danimer for checkout program. with loan in this bags important work California’s X discontinue DOE and for as grocery item, secure pre checkout use These the plastic regulatory be grocery based be This And store process part point ban In into bags to reminder, can Danimer’s XXXX. near recently provided store in pre state side, the guarantee often are the regards the a stores. replaced amendment the As California amendment the at to biodegradable currently continue on fruits Part year announced grocery bags section is application passed this of funding. first we calls seen ban closely the previously other will common solutions. on which

of in and business updates. I’ll X, slide to our to development customer Moving speak more recent some detail

are ahead. brands multinational make all biodegradable have customers long-term our reminder, major recyclable, primarily the years made their a packaging chip blue in or As plastic reusable, that to commitments

Mars their for Whole America. compostable we world’s the in is be Off progress North of successful provide a PepsiCo details candy Path to Our their The coming Foods been for their and first Wrigley months. launch currently multinational more brand which based chip still partner our bags has stores track chips, Eaten packaging with bag compostable the in sold Nodax their time Skittles across on are expect Definitely which partner believe to we on brand, to

recently Avient, polymer in we the signed a As distribution across specialty and I formulations earlier, leader a globe. agreement Formerra, mentioned with distribution formerly

blue and and critical specialized market with end offers customers mobility market healthcare, technical consumer, highly support and expertise, industrial the leading They Formerra support applications processing, capabilities. of in regulatory combination and industry-leading chip value markets. technical for logistics design commercial the suppliers global and and knowledge service

Nodax from centers Nodax courts Beverage. products cities to based Danimer’s of the U.S. XXX by are now also Eagle product. Danimer distribution customer partner WinCup’s straw made XXX knowledge, are report Costco currently in excited phade the in growing store for we’re converter extensive are now is reach now our that applications. base across Nodax straws. in and array happy future broader produced the their U.S. fastest and sold With regards straws straws brand and our to food WinCup’s Separately, all based distributed of our approximately partners, offer These we’re to through phade customers Nodax In a partner that

performing straws we pleased Starbucks based Nodax locations at our the with well this Additionally, business. are growth of are and

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

customer expect shipment of represent products. meet launches as variable these our of customers years, the is significant goals. to it the our We to prospective business Danimer relates coming most help as for the factor we timing their The sustainability to in customers continue

and inflation orders potential dealing increasingly customers I solutions with strong, deliveries. interest the with timing last quarter, As you overall of existing impact hand, while economic our many in still are and chain is supply concerns that on bottlenecks, the other and discussed

these these our of launches based factors and lineup from eventually service of may will pounds customer the packaging, these Kentucky array is customer That quick bulk product food well as by fully we specific consist ranging to diverse We timelines restaurant to films a million products volume next wide an applications commercialized, to impact first PHA several industrial XXX PHA in half applications. require CPGs once a of These To again, over XXXX. just continue occur new amount year. will that specific the launches finished in and of early a of combined XXXX. launches protective from more the the of product precise, of of expect materials, starting said, significant excess specific packaging, project this that based over product months as volume require we annually expect several launches capacity. be in volume we these While have near-term,

benefit global we products is in important our in typical stages. that gradually, launches of the expect customers case remember our these it to Now, large to is results step launch with that new

as in on strong scale of sight linear, a While to schedules. have see initial up support the based XX on step These planned line XXXX of to an we up months. to pronounced benefit dramatically we volume followed volumes expectation not increase XX launches months we the current is shipments more a by the expect through beyond first that customer our move our launch, first in our demand

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

a year-over-year resin resin by partially $X.X $XX.X was increase sales I’ll that million which This million, down resin based third $X.X based sales. represents now XX% year Steve. million, slide total was reduction speak primarily sales. prior now million, X. quarter. closed PHA with you, decrease the sales or Thank compared the by The out sales PLA were at million $X.X XX% to to $XX.X offset of sales. third $X.X million product With or XX% driven in in PHA quarter of We in

to operations customer of by As Ukraine We million reminder, impacted quarter gross in a year portion was of compared gross PLA sales On third approximately the loss volumes, an gross prior which to loss $XXX,XXX a profit million and loss a margin of adjusted $X.X period. a prior The Russia. basis, negatively reported profit year in was to a approximately lower was $XXX,XXX by primarily PLA compared gross in than decrease driven of the adjusted in gross higher PHA. gross adjusted quarter. continued have $X.X

change. Although product another volumes the each base. PLA that margins increased and differential lower is improved of as margin expensed our fixed across volume diminishing as product as decreased costs way, PHA were the our of volumes a Said

we cost improve as unit previously, at mentioned have production scales. we facilities our to our average PHA existing per As expect

headcount in base, rent excluding SG&A compensation, depreciation the such a mainly increase $X.X as million one-time as For million and as having well year plans and items and the in an efforts amortization, quarter, were support larger prior XXXX, future liability property quarter expenses, our in and R&D stock-based third to attributable and insurance. increases to salaries $XX.X costs asset and compared to associated with expansion R&D

related to R&D million expenses profit, that year the addition, gross $X.X the backs add this EBITDA in charge Danimer SG&A as in to we a primarily comp, which to and factors other Technologies, R&D third acquired third briefly the excludes mention appendix. Catalytic to prior I of results. want quarter. quarter discussed months was loss Adjusted August impairment $XX.X includes XXXX. in of other a million, income loss the I quarter the and due In our took we the reconciled three quarter, EBITDA non-cash and compared for in in stock Adjusted of operating goodwill

our of book decline the quarter was value market we in our our determined that below a during the capitalization to impaired. goodwill value, Given well level the equity

a our view entire strategic of Our Danimer the impairment originated change August and Novomer goodwill profitability not in with Technologies in ability against on the is the Catalytic note our it XXXX, business from prudent important does management. acquisition a cash We business. objectives but reflect to considers in the and that Danimer value determination focus of execute to confident remain our the

Beyond program forward. the have and expansion potential to we look the funding run from multiple the avenues we projects, to our as DOE existing support fund loan business

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

end position million inflow credit the additional the new This by $XX.X forgivable quarter. net was tax Our $X.X of market the of was million. quarter cash augmented loans at of cash during

Additionally, in implementing that making disciplined the and the time, Since the at liquidity at we neutral. to modest issued program, that launch be shares emphasize amount or our initiated I’d quarter, will program cover we that have cost cash a very to the opportunities carefully at third ATM the in market we to issue a of look new we of like enhance shares. which program. will levels

million. year our outlook, visibility our million $XX Based be sharpening for slide in expectation $XX through our end, full XXXX our updated X. on and year full of Looking adjusted year-to-date are at results year XXXX range we EBITDA for the to on the to negative negative

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

expect of inclusive in expenditures $XXX interest Regarding million, range to in to flow, cash now labor. we capitalized XXXX, the million and be of capital internal $XXX

As speed the end mentioned in with remain we our expect million. construction. that up or facility with capital cash between slow With we down we on to can XXXX the flexible million calls, and our flexibility prior $XX will Greenfield spending so year this $XX spending,

PHA XXXX, over PLA in poised Looking a increase beyond we continue to already believe our is R&D, our remain revenue revenues overall profitability. that in grow. can significant investments time and revenues likely SG&A that to We’ve we leverage made our significant will drive challenged. as

Catalytic in the confident our remain we Technologies. in future contribution Denver profit Additionally, for investments

back to I closing Now, call the slide turn Steve X. will on some for remarks

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

line the open now up for will We questions.

question ahead. [Operator CJS session. Jon question-and-answer with the from The begin now Please first Securities. comes Instructions] will go Tanwanteng We

that to kind kind one how new over in visibility and have little there? of specificity next for was you could and my these be of then Thanks with two into do volumes, expecting just taking Steve, specific just from maybe the wondering, on ramp quarters? you’re they maybe much to What what a ramped the questions. initial volumes timing more more and initial launches, afternoon, Good these of I everyone. the

the what question? Jon, was follow-on

think quickly there? how you they’ve just ramped And do from

facility actual dictated scale-up But by It’ll launches growth and of won’t Well, been significant take and that we’ve linear. the we be the the in the compared it will the the But be volume improvement run expect end utilization the rate. year. the low would timing complete Kentucky forecasting. volume dramatic obviously years next full be next several a on as of to year product our at

grow As I said to quickly not These going into it’s smaller and will then start linear. XXXX. be things

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

just great areas spend. question. of slow we’ve our looked No, just spend. Yes, down CapEx Jon, just where very can to kind being we at CapEx And with we’ve identified frugal

to been will the just up rate the kind cash pressure volumes of facility So, think ramp be move cash And the kind we’ve slowdowns the able the that’s of spend into as in to some, some waiting impactful but we’re out. to we’re burn direction. to for I out that And flows. years, immediate off Kentucky of committed those and lessen of taken

estimate of significant other of majority that we’ve CapEx before. had the Greenfield project. really cash that had -- But our we So, there’s nothing a the stopped than that’s in

this majority to related So greenfield. of the

ahead. from with Laurence Please Alexander Jefferies. question next comes go The

your at of unpack rate at utilization sort you you hit I utilization unpack take how what XX% scenario free guess where Are years, to the year to year? years you rate years framework you can the around a can And that And little you’re several flow high-end book we’re X that. you ramp? next end, XX% will in next be the relates you X rates? low to think just utilization a Kentucky hit comment some to production cash bit, that needs sketching it or X%, Can the follow-up just secondly, on upto get very the of give and or order breakeven?

first take of part that, I’ll Steve. the

for below little in of and have as cash most strong think very be -- don’t they the we certainly Kentucky, a for think are levels And Kentucky, and well SG&A generator capacity. should of I any R&D. its that terms part, us

of going be got everything the going representative at going kind So it’s is be point. pretty of to EBITDA gross that profit, through, really to just that

So, of probably range make in this we’re estimating an consistent a levels EBITDA basis, are the that of utilization even capacity from facility that or XX% so able would be standpoint. on breakeven to

of And cover it at level. capacity nameplate we its of probably quarters roughly then so to point in million using to -- can it’s so, two $XX got corporate to maybe that actual to that have kind don’t and the range the reach or in to think thirds start we And R&D, has the three of grow it’s where the that. where, the SG&A

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

question. try answer Steve here, Laurence, your And I’ll to second

and expecting of XXXX, shipments several in launches that we’re hit in XXX with rate, we’re do of rest run which product we it’s pounds of have the that saying pipeline, at months, product the So, implies ‘XX. the in but we sometime will that next not the are that launches in just over looking us to just these million front

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

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

plotted go going certainly $XX this the in ebbs year we are ending of that we comfortable moderate various reducing to kind to believe like have of said forward feel with have the go. that it Yes, we we $XX burn have getting kind And I levers a place, stay managing million and continuing through and love we balances in facility, guided make million are with past, as Sure. can importantly, costs rate, we have we just on for through improving And towards. the we above to greenfield like have, we in where feel time. out range certainly $XX flows, we volume Kentucky to basis. most on the we’d carefully million or actually quite believe we think the so some cash until And that the the our funding spend

next Please comes Boyes question from Cowen Thomas with go ahead. Company. The &

there now Maybe anymore. just with follow-up -- better time XQ. are circle to we kind once Thanks in then, I or is $XXX spending Great. deck and is have you wasn’t date of in that like XXXX decelerating production originally questions. I million volumes at of expectation on start this for it later could taking because in I in that think want the to is the my And we’re as just a facility still up maybe that Was we going there, know that that that there the Kentucky? greenfield was XQ? any

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

the spent answer Thomas, tick we a for $XX greenfield over your on CapEx in QX. to just million question, first

facility, that do work just does we from over cruise you CapEx the moved that small how Got are it. go Should Kentucky about had kind time on just there of of to the or do going or over to think kind you load? -- kind spending be green going amounts continuing nominal home are how of to some they of as do

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

And our so, have considerably. reduced there footprint we

Yes.

Just to add couple for that, buckets is to so there major out greenfield. spend the a we of different

One part will of those is believe activity XXXX, going the that be engineering end is most on is We the and for at The construction much we completed. spend slowdown really occurring of have there. really don’t where there. the

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

XX is it million to there say, Kentucky Is in then, right exiting pounds year. sure sometime And or EBITDA would facility? be just of kind variability -- customer of the number, could was breakeven the you it. based that too make thinking to I I that XX% next just facility It lunches? utilization Is for at originally, didn’t the were miss it kind the of early just maybe is so the is the that on want of we see first easily year, it half or something on

still I that. would Kentucky certainly, in that’s And that fourth basis at year. rate on we facility certainly breakeven this quarter view be point that’s some on have believe stated we the would a run say that of our Yes. that

And expectation, breakeven as are that be kind again, would as of the launches certainly occur. that into don’t so, move it things enter these we be of lumpy. we we would timing our But XXXX, And exact when will facility into XXXX. know

comes Jon with next CJS The go question Please Securities. ahead. from Tanwanteng

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

So four think we, to we this take be months so position a I was our going that. believe we’re that with of probably before it submit we to year. application it’s assuming end stated, X And in Part plus the or we’ll to work them

I So, be there’ll don’t any believe in really still we -- QX. think opportunities funding

best a QX are have this to knowledge we’ll have at funding starting the that and able And hopeful point. We draw be of in of XXXX. that’s we kind really

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

for thanks question, Jon. Well, the

in checking -- -- and customers volumes with as obviously they plan commitments, us we launches. their are on Our

understand -- those they commitments kind But have looking up. a we making also of a facility customers off yet product queue hand we customers launches but at offtake are to to these we now individually a to support are have the into support need that and can that growth. there’s are here that plan. that’s agreement of longer we enough material the coming ways that to new on signing going volume, are So make support will And each But greenfield limited their we sure clearly customer future, that

your we QX With launches it. designs been got the but are might I Okay, about. new macroeconomic know have if trough What I probably that for as them, -- the we’re pressure forward? customers, go pressures? expecting them there’s of given you’re out existing PHA don’t nothing talking was more a think just

existing Yes. in saw case macro conservative are customers was the what things. No, economy, question, and we planning own the there’s a good those that the ahead of Kind looking of recession, of kind business and in at Yes. their situation in in prudent at kinds Jon. being QX

reductions, see -- see QX with like of inventory would things in we into QX. a volume customers certainly from QX. so, to we higher activity And expect have lot existing than where And that we easing

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

going Yes. is No remain an are continue we also there partner, very Jon, opportunity offtake that and co-location negotiation, our to -- very we going about partner, except is well, and with also so work the with which discussion update and to say and in both continues which potential reaffirm. our optimistic internal specific to deep upbeat well, also

I a ability to on that our up in of formulations the think we Rinnovo, when of we call, mentioned versus shown had replace to XX% I with XX% estimated several significant Nodax is we last which the made acquisition. quarter’s the that the change

the move to excited direction. it So, right very continues in And that. we’re about

with go The Laurence next question comes Jefferies. ahead. Please from Alexander

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

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

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

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

certain to capacity problem, at -- you -- reserve decide a Now, amount of for Kemira they it reflects be available to class high you proceed, have would keep capacity obviously do for them? to in a case Kentucky but and

Well, a we kind mutually quantities, like of have holding some are contract. minimum into plan a pounds not of built millions built customer we’re which or our agreed without

So, would it’s issue an affect not us. that

with ahead. Thomas question The next Boyes & go Cowen from comes Please Company.

Thanks.

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

And Thomas. that, the ameliorated things my familiar been with, everybody those all question, in now personally in Yes. issues is was that situations settled good understanding shape. I Good and have out have

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

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

Yes.

price in So in our just QX we per terms I first and $X.XX our used what of guess the pound product. is background, average in about

have for XXXX. locked on $X.XX per We pound of average in the first about half

little We have go to the ability further. a

that. off too in far to we context, more think probably I the conversations still on. future prices based expectation that think I as an have decline is industry comes capacity with aren’t our Prices Again, some there on degree. of

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

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

concludes today’s This conference call.

Thank a lines. for your disconnect may you and participating day. have You pleasant