Cyclezyme (CYCLE) Q3 2024 earnings summary

Executive summary

• Achieved breakthrough in enzymatic PET recycling, enabling breakdown of colored PET without pre-treatment, opening new high-quality recycling opportunities.

• Entered feasibility agreement with Circular Venture AS to explore PET breakdown for improved pyrolysis recycling.

• Filed new patent for a modified enzyme three times more efficient than commercial alternatives, including scalable production method.

• Technology is attracting growing industry interest, supporting future partnerships.

Financial highlights

• Net sales were 0 KSEK for both Q3 and Jan–Sep 2024 (unchanged year-over-year).

• Operating loss for Q3 was -434 KSEK (improved from -536 KSEK YoY); Jan–Sep operating loss was -1,464 KSEK (worse than -947 KSEK YoY).

• Net loss for Q3 was -449 KSEK (vs. -545 KSEK YoY); Jan–Sep net loss was -1,510 KSEK (vs. -956 KSEK YoY).

• Cash flow for Jan–Sep was -2,744 KSEK (vs. -1,144 KSEK YoY); cash and equivalents at period end were 3,059 KSEK.

• Equity per share at period end was 2.51 SEK; equity ratio 85.3%.

Outlook and guidance

• Sufficient liquidity secured after November 2023 rights issue, expected to cover operations for at least 12 months.

• Focus remains on scaling technology, validating with partners, and preparing for commercial production.