PureCycle Technologies, Inc. (PCT) reported significant financial challenges in its latest 10-Q filing for the nine months ended September 30, 2024. The company experienced a net loss of $224.5 million, a substantial increase from a loss of $72.7 million during the same period in 2023. This resulted in a basic loss per share of $(1.36), compared to $(0.44) in the prior year. The net loss for the third quarter alone was $(90.6 million), a stark contrast to a profit of $8.5 million in Q3 2023.

Total operating costs and expenses for the nine months reached $110.2 million, up 38% from $80.0 million in 2023. Operating costs for the third quarter were $31.3 million, slightly down from $31.6 million in the previous year. The increase in overall costs was attributed to higher interest expenses, which surged 158% to $41.7 million due to additional financing from a $250 million green convertible senior note issuance in August 2023 and the cessation of interest capitalization on Revenue Bonds.

PCT's cash and cash equivalents decreased significantly to $83.7 million as of September 30, 2024, down from $199.3 million a year earlier. The company reported a net cash used in operating activities of $113.0 million, compared to $61.3 million in 2023. This increase was primarily driven by higher interest payments and operational costs at the Ironton Facility, which has not yet achieved meaningful production volumes.

Strategically, PCT has initiated compounding operations to blend resin with recycled materials to enhance product consistency. However, the company has faced mechanical challenges during the commissioning of its purification process, impacting production quality and volume. PCT has also committed $35.9 million to a restricted escrow account for the Augusta purification facility project, with additional investments planned for 2025.

In terms of financing, PCT has a $200 million revolving credit facility that remains unused, expiring on March 31, 2026. The company is actively managing its liquidity and has raised concerns about its ability to continue as a going concern for at least one year from the issuance date of the financial statements. Future capital requirements will depend on various factors, including the construction schedule of the Augusta Facility and ongoing operational costs.

PCT's accumulated deficit has grown to $(568.7 million) as of September 30, 2024, compared to $(344.2 million) at the end of 2023. The company continues to focus on customer sampling and qualifications, with no significant operational volumes or revenue generation reported to date.