ReGen III (GIII) Q3 2024 earnings summary

Executive summary

• Developing a Texas City facility to commercialize patented ReGen™ technology for recycling used motor oil into high-value Group II/III base oils; pilot testing and engineering milestones achieved, with offtake and feedstock LOIs in place and ongoing financing efforts.

• No revenues generated to date; operations funded by equity and debt placements, including $4.1M in convertible debentures and $0.89M in recent private placements.

• Net loss of $3.72M for the nine months ended September 30, 2024, with a working capital deficit of $1.9M and accumulated deficit of $122.3M.

Financial highlights

• Net loss for Q3 2024 was $1.19M, and $3.72M for the nine months, compared to $1.52M and $4.23M in the same periods last year.

• Cash decreased to $149K at September 30, 2024, from $2.15M at December 31, 2023, due to operating losses and lease payments.

• Total assets declined to $0.53M from $2.68M at year-end 2023; total liabilities increased to $6.0M, mainly from convertible debentures.

• Expenses decreased year-over-year, mainly from lower salaries, benefits, and professional fees; plant engineering costs rose due to pilot testing.

• No revenue recognized; all income is from interest and sublease rent.

Outlook and guidance

• Focused on securing project-level financing and offtake agreements to advance Texas facility to final investment decision and construction.

• Exploring monetization of GHG credits and additional licensing/acquisition opportunities in North America and globally.

• Current cash resources are insufficient for the next 12 months; further equity or debt financing required.