ReGen III (GIII) Q2 2024 earnings summary

Executive summary

• ReGen III is advancing its patented technology to recycle used motor oil into high-quality base oils, with a primary focus on developing a Texas facility and exploring global opportunities.

• The company has completed key engineering milestones (FEL-2) for the Texas project and is progressing toward FEL-3, while also pursuing offtake and feedstock agreements.

• No revenues have been generated to date; operations are funded through equity and debt financings, with a recent focus on convertible debenture placements.

Financial highlights

• Net loss for Q2 2024 was $998,568, and for the six months ended June 30, 2024, $2,530,778, compared to $1,265,431 and $2,704,543 for the same periods in 2023.

• Cash decreased to $429,113 as of June 30, 2024, from $2,149,346 at December 31, 2023.

• Working capital deficit stood at $1,206,849 as of June 30, 2024.

• Operating cash outflows for the six months were $2,428,406, partially offset by $767,145 net proceeds from convertible debenture placements.

• Accumulated deficit reached $121,114,789 as of June 30, 2024.

Outlook and guidance

• Management expects continued losses and negative cash flows as development progresses; current funds are insufficient for the next 12 months, and additional financing is required.

• The company is actively pursuing project-level financing, including government and private equity sources, and is advancing offtake and feedstock agreements to support the Texas facility.