PureCycle Technologies, Inc.
For the period ended Mar 31, 2026. Filed May 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
PCT$1.67-11.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001193125-25-269651
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001830033-26-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 114 previous paragraphs and 100 current paragraphs.
30 unchanged; 48 reworded; 21 added; 30 removed; 6 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
The ability to negotiate multi-year offtake agreements at appropriate margins to fund ongoing operations;
Current report
The development of direct competitors in the recycled polypropylene segment that could impact the demand for our products;
Current report
Operational risks associated with the ability to operate the Ironton Facility and the Planned Facilities, as and when operative, at nameplate capacity.
Current report
On February 25, 2026 and April 16, 2026, we entered into a supplemental warrant agreements as described in further detail below in "Liquidity and Capital Resources", which extended the original expiration dates of our public, private, and Series A Warrants (as described in Note 13 -Warrantsto the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q) to March 17, 2026 and reduced the redemption price from $18.00 to $14.38 per share.
Current report
Construction of a 130 million pound per year polypropylene recycling facility in Antwerp, Belgium. We are currently drafting the permit application in Belgium and plan to submit our permit application with the relevant authorities (Province of Antwerp) in 2026. The Belgium Facility is projected to become operational in mid to late 2028. In March 2026, we signed a €40 million grant agreement from the Innovation Fund with the European Climate, Infrastructure and Environment Executive Agency ("CINEA") to fund our "ASTRA PP" project in the NextGen District at the Port of Antwerp-Bruges.
Current report
Operating Costs
Current report
Research and development expenses remained relatively consistent for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.
Current report
Selling, general and administrative expenses decreased approximately $0.8 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. This decrease was primarily driven by approximately $3.6 million of lower legal costs mostly as a result of the current year reduction in amounts owed in connection with the DB arbitration matter as well as higher legal costs incurred during the prior year in order to prepare for the DB arbitration, and $0.8 million lower equity-based compensation primarily driven by current year forfeitures, partially offset by $3.7 million of higher professional services and contract labor driven by preliminary planning and design work for our Thailand, Belgium and Augusta facilities.
Current report
Other Expense/(Income), Net
Current report
On April 28, 2026, PureCycle (Thailand) Company Limited became a Guarantor under the Revolving Credit Agreement and the Company pledged its shares of PureCycle (Thailand) Company Limited as collateral security for its obligations thereunder. Refer to Note 16 -Subsequent Events to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.
Current report
As an early commercial-stage company with minimal revenues and negative operating cash flow, we have been dependent on raising capital to fund operations.
Current report
On February 25, 2026, we entered into a supplemental agreement (the “PCT Warrants Supplemental Warrant Agreement”) to the original outstanding public and private warrant agreements as described in Note 13 - Warrantsto the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, which had an original expiration date of March 17, 2026, unless a date was fixed for the redemption of the public and private warrants, if earlier. Pursuant to the terms of the original public and private warrants agreements, and upon the approval of the Board, the Company entered into the PCT Warrants Supplemental Warrant Agreement in order to extend the expiration date of the PCT Warrants to 5:00 p.m. (New York City time) on the earlier of (a) June 17, 2026, or (b) the date fixed for the redemption of the PCT Warrants. Such amendments were effective as of March 17, 2026.
Current report
On April 16, 2026, we entered into the Second Supplemental Warrant Agreement, pursuant to which (i) the redemption trigger price for the public and private warrants was reduced from $18.00 to $14.38 per share, and (ii) the expiration date of the public and private warrants was extended to 5:00 p.m. (New York City time) on the earlier of (a) March 17, 2027, or (b) the date fixed for redemption of the PCT Warrants. These amendments are effective as of June 17, 2026.
Current report
In connection with the amendment of the public and private warrants described above, the Board also approved certain amendments to the terms of our outstanding Series A Warrants as described in Note 13 - Warrantsto the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, which had an original expiration date of March 17, 2026, subject to the consent of a requisite number of holders under the terms of the Series A Warrants and conditioned upon entry into a supplemental agreement with the Series A Warrants Agent. On February 20, 2026, we received the written consent of the holders of a requisite number of Series A Warrants to extend the expiration date of the Series A Warrants to 5:00 p.m. (New York City time) on the earlier of (a) March 17, 2027, or (b) the date fixed for the redemption of the Series A Warrants. Additionally, pursuant to the terms of the Series A Warrants, the Company and the consenting Series A Warrant holders agreed to amend the terms of the Series A Warrants held by such consenting Series A Warrant holders, which constitutes all of the Series
Current report
A Warrants, to reduce the trading price required for us to redeem such Series A Warrants, subject to the other terms and conditions contained in the Series A Warrants, from $18.00 to $14.38 per share of our Common Stock for any 20 trading days in a 30 trading day period. On February 25, 2026, the Company and the Warrant Agent entered into a supplemental agreement to memorialize the foregoing amendments, which was effective as of March 17, 2026.
Current report
During March of 2026, we signed a €40 million grant agreement from the Innovation Fund with the European Climate, Infrastructure and Environment Executive Agency ("CINEA") to fund our "ASTRA PP" project in the NextGen District at the Port of Antwerp-Bruges. As part of Project ASTRA PP, we will install a polypropylene dissolution recycling facility in the Port of Antwerp-Bruges, designed for an annual production capacity of approximately 130 million pounds of PureFive® resin. Receipt of these funds are contingent upon the Company achieving various milestones and deliverables through 2034.
Current report
Future expansion is dependent, in part, on successful completion of additional capital raise and/or project financing.
Current report
In connection with the Denham-Blythe ("DB") arbitration matter as discussed in Note 10 -Commitments and Contingenciesin the notes to the condensed consolidated financial statements contained elsewhere in this Quarterly Report on Form 10-Q, on March 18, 2026, the AAA arbitration panel issued its final order requiring the Company to pay DB $20.3 million, which the Company paid during April 2026. In connection therewith, DB dismissed with prejudice its lawsuit filed in Lawrence County, Ohio, and the matter has been resolved.
Current report
Our future capital requirements will depend on many factors, including the funding and construction schedule of the Thailand, Belgium and Augusta Facilities, build-out of additional Feed PreP facilities, funding needs to support other business opportunities, funding for general corporate purposes, debt service, and other challenges or unforeseen circumstances.
Current report
See Note 8 - Long-Term Debt and Bonds Payableto our condensed consolidated financial statements for further discussion of debt obligations.
Current report
Cash provided by financing activities for the three months ended March 31, 2025 is mainly comprised of $33.2 million of proceeds from the issuance of common stock, $16.4 million of proceeds from the sale of Revenue Bonds, and $5.4 million in proceeds from the exercise of the RTI warrants, partially offset by $1.7 million of payments to repurchase shares and $3.4 million of other payments for financing activities.
Removed paragraphs (30)
Previous report
the success or profitability of PCT’s offtake arrangements;
Previous report
PCT’s future capital requirements and sources and uses of cash;
Previous report
developments and projections relating to PCT’s competitors and industry;
Previous report
the potential impact of climate change on PCT, including physical and transition risks, higher regulatory and compliance costs, reputational risks, and availability of capital on attractive terms; and
Previous report
operational risk.
Previous report
In June 2025, we entered into binding subscription agreements with certain investors, including related parties, to which we agreed to sell to the investors, in a private placement transaction, an aggregate of 300,000 shares of the Company’s Series B Convertible Perpetual Preferred Stock, par value $0.001 per share (the “Series B Convertible Perpetual Preferred Stock”), at an initial issue price of $1,000 per share. The gross proceeds from the offering were approximately $300.0 million before deducting fees and expenses.
Previous report
We also plan to construct a 130.0 million pound polypropylene recycling facility at our Antwerp, Belgium site. We are currently advancing the permitting process in Belgium and expect to submit all permits by the end of 2025. The facility in Antwerp is projected to be operational in 2028.
Previous report
Letter of No Objection Submission ("LNO") and the Granting of Food and Drug Administration ("FDA") Food Packaging Clearances for Certain Feedstocks
Previous report
Our FDA food contact grade resins are, subject to certain conditions, capable of being used for all food types per the conditions of use listed and per all applicable authorizations in the food contact regulations listed in the 21 CFR (Code of Federal Regulations, Title 21).
Previous report
During 2025, we received additional FDA LNOs, which expand upon previous LNOs and allows our PureFive™ resin to be produced under a broader range of process conditions. These broader conditions allow for greater flexibility and reduced energy usage in the purification process. Subject to operating under these process conditions, our resin can be used in articles in contact with all types of food under FDA’s Conditions of Use ("COU") "A" (“high temperature heat-sterilized”) through "H" (“frozen or refrigerated storage: ready-prepared foods intended to be reheated in containers at time of use”), provided the feedstock comes from food contact articles and complies with all applicable authorizations.
Previous report
We are conducting additional testing and plan to make further LNO submissions for additional post-consumer recycled feedstock sources and expanded COUs.
Previous report
Cost of Operations
Previous report
Cost of operations increased approximately $22.5 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. Cost of operations for the nine months ended September 30, 2025 included approximately $7.5 million higher production-related costs due to the ramp-up in production that occurred during the current year, $5.0 million of higher professional services and contract labor driven by preliminary planning and design work for our Thailand and Augusta facilities, $3.7 million in loss on disposal of fixed assets, $3.4 million higher employee-related expenses to support the expanded needs of the organization, $2.3 million of higher supplies and materials, and $1.3 million of higher facilities costs attributable to the opening of our PreP facility in Denver, Pennsylvania in September of 2024, and the expansion of offsite storage and processing space, partially offset by $1.7 million lower depreciation expense.
Previous report
We intend to construct new polypropylene recycling facilities in Thailand and Belgium, and build a multi-line purification facility at our Augusta, Georgia location. Certain equipment that has been purchased for the Augusta Facility (and recorded as construction in progress) is currently being evaluated for use in the construction of the Thailand or Belgium facilities. If we determine that any of the Augusta equipment cannot be used in either Thailand, Belgium, in the redesigned Augusta facility, or re-purposed for other uses, we could incur a non-cash charge for the loss on disposition of such equipment. Currently, we are in the early stages of the planning and design of our Thailand, Belgium and Augusta facilities, so we are not yet able to determine the loss, if any, for equipment that may not be placed into operation.
Previous report
Research and development expenses decreased approximately $0.1 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This decrease was mainly driven by lower employee costs.
Previous report
Research and development expenses decreased approximately $0.6 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This decrease was primarily driven by $0.6 million of lower employee costs and $0.1 million of lower operational site costs, partially offset by $0.2 million of higher research and development activities.
Previous report
Selling, general and administrative expenses decreased approximately $2.4 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. This decrease was primarily driven by approximately $1.5 million of lower legal costs mostly as a result of settlement of outstanding cases in the prior year.
Previous report
Selling, general and administrative expenses decreased approximately $4.2 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. This decrease was primarily driven by approximately $7.5 million of lower legal costs mostly as a result of settlement of outstanding cases in the prior year, partially offset by $3.5 million of higher equity-based compensation from new awards issued since the prior year, including a special grant valued at $2.3 million to the Chief Executive Officer that immediately vested upon grant, and $0.4 million higher employee-related expenses.
Previous report
Interest expense increased by $7.3 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase in interest expense was primarily attributed to interest on the Series A Preferred Stock issued during the third quarter of 2024 and higher interest on our Revenue Bonds as a result of current year sales of our Revenue Bonds. The increase in interest expense was partially offset by a decrease in interest expense on equipment financing and interest on the Pure Plastic Term Loan Facility paid off during the second quarter of 2024.
Previous report
The interest income decrease of $0.7 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 was primarily attributable to the liquidation of our available-for-sale investment portfolio earlier during 2024, offset by the increase in the cash balance as a result of the proceeds from the issuance of the Series B Convertible Perpetual Preferred Stock during the second quarter of 2025.
Previous report
During the nine months ended September 30, 2025, the fair value of our liability-classified warrants increased by $1.9 million, as compared to an increase in the fair value of $54.5 million during the nine months ended September 30, 2024. The current year increase is mainly driven by an increase in the underlying value of our Common Stock, partially offset by fewer warrants outstanding as a result of current year warrant exercises combined with a decrease in the remaining term. The prior year increase was chiefly driven by an increase in the underlying price of the Company's Common Stock, combined with an increase in the number of warrants during 2024.
Previous report
Loss on Debt Extinguishment
Previous report
The Company recorded a loss associated with the repurchase of the Revenue Bonds in the first quarter of 2024. There have been no similar transactions during 2025.
Previous report
Other (Income)/Expense
Previous report
Cash provided by financing activities for the nine months ended September 30, 2025 is primarily comprised of $300.0 million of proceeds from the issuance of the Series B Convertible Perpetual Preferred Stock during the second quarter of 2025, $33.5 million of proceeds from the issuance of the Company's Common Stock, $26.9 million of proceeds from the sale of Revenue Bonds, $14.9 million in proceeds on draws on our Revolving Credit Facility and a short-term borrowing from a related party, $6.6 million in proceeds from the exercise of the RTI Global Warrants, Series A Warrants and private warrants during 2025, and $0.7 million in proceeds for other financing activities. These cash inflows were partially offset by $14.9 million in payments on our Revolving Credit Facility and a short-term borrowing from a related party, $7.7 million in payments on equipment financing, $7.6 million in debt and preferred stock issuance costs paid, and $4.5 million in payments to repurchase shares.
Previous report
Bonds, $38.1 million of proceeds from the issuance of the Company's Common Stock, $30.1 million of proceeds from the issuance of warrants, $21.8 million in proceeds from the issuance of our Series A Preferred Stock, $9.5 million of proceeds from equipment lease financing, and $0.6 million of other net proceeds from financing activities.
Previous report
Revenue Bonds
Previous report
Revenue Bonds Issued to Related Party
Previous report
Revolving Credit Facility with Sylebra
Previous report
Financial Assurance
Reworded paragraphs (48)
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements about the financial condition, results of operations, earnings outlook and prospects of PureCycle Technologies, Inc. (“PCT”). Forward-looking statements generally relate to future events or PCT’s future financial or operating performance and may refer to projections and forecasts. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements about the financial condition, results of operations, earnings outlook and prospects of PureCycle Technologies, Inc. (“PCT”). Forward-looking statements generally relate to future events or future financial or operating performance and may refer to projections and forecasts. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” "aim," “anticipate,” "drive," “intend,” “outlook,” “estimate,” "expect," “forecast,” "future," "goal," "guidance," “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking. When used in this report, the terms “we,” “us,” “our,” “PCT” and the “Company” mean PureCycle Technologies, Inc. and its consolidated subsidiaries, collectively.
Previous wording
PCT's ability to obtain funding for its operations and future growth and to continue as a going concern;
Current wording
Our ability to obtain funding for our operations, future capital requirements and future growth, and to continue as a going concern;
Previous wording
PCT's ability to comply on an ongoing basis with the numerous regulatory requirements applicable to the PureFive™ resin and PCT’s facilities (including in the United States, Europe, Asia and other future international locations);
Current wording
Our ability to meet, continue to meet, and comply on an ongoing basis with the numerous regulatory requirements applicable to our PureFive® resin (as defined below) both generally and in food-grade applications and, more broadly, the operations of our facilities (including in the United States, Europe, Asia and other future international locations);
Previous wording
expectations and changes regarding PCT’s strategies and future financial performance, including its future business plans, expansion plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and PCT’s ability to invest in growth initiatives, which could be impacted by significant changes to tariffs on foreign imports;
Current wording
Expectations and changes regarding our strategies and future financial performance, including future business plans, expansion plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and our ability to invest in growth initiatives, which could be impacted by significant changes to tariffs on foreign imports;
Previous wording
the ability of PCT’s first commercial-scale recycling facility in Lawrence County, Ohio (the "Ironton Facility") to be appropriately certified by Leidos, following certain performance and other tests, and commence full-scale commercial operations in a timely and cost-effective manner, or at all;
Current wording
The ability of our first commercial-scale recycling facility in Lawrence County, Ohio (the "Ironton Facility") to be appropriately certified by Leidos, (as defined below), following certain performance and other tests, and commence full-scale commercial operations in a timely and cost-effective manner, or at all;
Previous wording
PCT’s ability to meet, and to continue to meet, the requirements imposed upon it and its subsidiaries by the funding for its operations, including the funding for the Ironton Facility;
Current wording
Our ability to meet, and to continue to meet, the requirements imposed upon us and our subsidiaries by the funding for our operations, including the funding for the Ironton Facility, and the Planned Facilities (as defined below);
Previous wording
PCT’s ability to minimize or eliminate the many hazards and operational risks at its manufacturing facilities that can result in potential injury to individuals, disrupt its business (including interruptions or disruptions in operations at its facilities), and subject PCT to liability and increased costs;
Current wording
Our ability to minimize or eliminate the many hazards and operational risks at our manufacturing facilities that can result in potential injury to individuals, disrupt our business, including interruptions or disruptions in operations at our facilities, and subject us to liability and increased costs;
Previous wording
PCT’s ability to complete the necessary funding with respect to, and complete the construction of its new polypropylene recycling facility in Thailand, its first commercial-scale European plant located in Antwerp, Belgium, and the multi-line purification facility to be built in Augusta, Georgia (the "Augusta Facility") in a timely and cost-effective manner;
Current wording
Our ability to complete the necessary funding with respect to, and complete the construction of the new polypropylene recycling facility in Thailand (the "Thailand Facility"), our first commercial-scale European plant located in Antwerp, Belgium (the "Belgium Facility"), and the Purification facility to be built in Augusta, Georgia (the "Augusta Facility" and, together with the Thailand Facility and the Belgium Facility, the “Planned Facilities”) in a timely and cost-effective manner;
Previous wording
PCT’s ability to procure, sort and process polypropylene plastic waste at its planned plastic waste prep (“Feed PreP”) facilities;
Current wording
Our ability to procure, sort and process polypropylene plastic waste at our planned plastic waste Feed PreP facilities (as defined below);
Previous wording
PCT’s ability to maintain exclusivity under The Procter & Gamble Company (“P&G”) license (as described below);
Current wording
Our ability to maintain exclusivity under The Procter & Gamble Company (“P&G”) license (as described below);
Previous wording
PCT's ability to execute its growth plan to bring an additional one billion pounds of installed polypropylene recycling capability online before 2030, including its ability to meet related construction, regulatory, and financing requirements;
Current wording
The implementation, market acceptance and success of our business model and growth strategy, which includes our ability to bring a total of one billion pounds of installed polypropylene recycling capability online by 2030, and our ability to meet related construction, regulatory, and financing requirements;
Previous wording
the possibility that PCT may be adversely affected by other economic, business, and/or competitive factors, including interest rates, availability of capital, economic cycles, and other macro-economic impacts;
Current wording
The possibility that we may be adversely affected or potentially impacted by economic, business, and/or competitive factors, including interest rates, availability of capital, economic cycles, and other macro-economic impacts (such as tariffs);
Previous wording
changes in the prices and availability of materials (such as steel and other materials needed for the construction of future PreP and purification facilities), including those changes caused by inflation, tariffs and supply chain conditions, such as increased transportation costs, and our ability to obtain such materials in a timely and cost-effective manner;
Current wording
Changes in the prices and availability of materials (such as steel and other materials needed for the construction of future Feed PreP and Purification facilities, as defined below), including those changes caused by inflation, tariffs and supply chain conditions, such as increased transportation costs and global conflicts, and our ability to obtain such materials in a timely and cost-effective manner;
Previous wording
the ability to source feedstock with a high polypropylene content at a reasonable cost;
Current wording
The ability to source feedstock with a high polypropylene content at a reasonable cost, and the temporary spike in prices due to global conflicts such as the current conflict in the Middle East;
Previous wording
the outcome of any legal or regulatory proceedings to which PCT is, or may become, a party;
Current wording
The outcome of any legal or regulatory proceedings to which we are, or may become, a party;
Previous wording
changes in the prices and availability of labor (including labor shortages);
Current wording
Changes in the prices and availability of labor (including labor shortages), turnover in employees, and increases in employee-related costs;
Previous wording
any business disruptions due to political or economic instability, pandemics, or armed hostilities (including the ongoing conflict between Russia and Ukraine and the conflict in the Middle East);
Current wording
Any business disruptions due to political or economic instability, pandemics, or armed hostilities (including the ongoing conflict between Russia and Ukraine and active military conflicts in the Middle East); and
Previous wording
PCT undertakes no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.
Current wording
We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.
Previous wording
The following discussion and analysis provides information that PCT’s management believes is relevant to an assessment and understanding of PCT’s interim condensed consolidated results of operations and financial condition. The discussion should be read together with the audited consolidated financial statements and the accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our most recent Annual Report on Form 10-K, as well as the unaudited interim condensed consolidated financial statements, together with related notes thereto, included elsewhere in this Quarterly Report on Form 10-Q. Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” and “our,” are intended to mean the business and operations of PCT and its consolidated subsidiaries.
Current wording
The following discussion and analysis provides information that our management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion should be read together with the unaudited condensed consolidated financial statements, together with related notes thereto, included elsewhere in this Quarterly Report on Form 10-Q. Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” “our,” "PCT", and "the Company" are intended to mean the business and operations of PCT and its consolidated subsidiaries.
Previous wording
We are a Florida-based corporation focused on commercializing a patented dissolution recycling technology to physically separate the polymer from other plastics, color, and contaminants (the “Technology”), originally developed by P&G, for restoring waste polypropylene into resin, called PureFive™ resin, which has similar properties and applicability for reuse as virgin polypropylene. PCT has a global license for the Technology from P&G, which was amended during 2025 to permanently waive the possible clawback of our exclusivity for plants located in North America and extend the time in which our plants must begin construction and commence sales in other regions to avoid a clawback of exclusivity under the license agreement. In April 2023, we certified the Ironton Facility as mechanically complete. We expect to have capacity of approximately 107 million pounds per year when fully operational. Commissioning activities are ongoing, but the plant is not yet operating at the expected full capacity. Our goal is to create an important new segment of the global polypropylene market that will assist multinational entities in meeting their sustainability goals, providing consumers with polypropylene-based products that are sustainable, and reducing overall polypropylene waste in the world’s landfills and oceans.
Current wording
We are a Florida-based corporation focused on commercializing a patented dissolution recycling technology to physically separate the polymer from other plastics, color, odors, and impurities (the “Technology”), originally developed by P&G, for restoring waste polypropylene into resin, called PureFive® resin, which has similar properties and applicability for reuse as virgin polypropylene. We have a global license for the Technology from P&G, which was amended during 2025 to permanently waive the possible clawback of our exclusivity for plants located in North America and extend the time in which our plants must begin construction and commence sales in other regions to avoid a clawback of exclusivity under the license agreement. We have introduced an important new segment to the global polypropylene market that will assist multinational corporations in meeting their sustainability goals as well as federal and state regulations and mandates, providing consumers with polypropylene-based products that are sustainable, and reducing overall polypropylene waste in the world’s landfills and oceans.
Previous wording
PCT’s process includes the following steps:
Current wording
Our process includes the following steps:
Previous wording
Feed PreP collects, sorts, and prepares polypropylene waste (“feedstock”) for purification.
Current wording
Feed Pre-Processing (“Feed PreP”) collects, sorts, and prepares polypropylene waste (“feedstock”) for the dissolution recycling process ("Purification").
Previous wording
Compounding, which involves blending our resin with either virgin resin or additives, is a step that can be used on a case-by-case basis. Compounding allows for the modification of the resin to meet the end-user’s qualifications with melt flow, flexibility, clarity and strength being some of the properties that can be tailored through compounding.
Current wording
Compounding, which involves blending our resin with either virgin resin or additives, is a step that can be used on a case-by-case basis. Compounding allows for the modification of the resin to meet the end-user’s qualifications with melt flow, flexibility, clarity, color and strength being some of the properties that can be tailored through compounding.
Previous wording
In conjunction with the $300.0 million capital raise, we outlined our future growth plans to increase our installed capacity, which includes the following:
Current wording
During 2025, we outlined our future growth plans to increase our installed capacity, which includes the following:
Previous wording
We announced that we will begin construction of a 130.0 million pound polypropylene recycling facility in Thailand. We will be working with IRPC Public Company Limited ("IRPC") at IRPC’s eco-industrial zone in Rayong, Thailand. IRPC is an integrated petrochemical operator in Southeast Asia. Its production structure comprises petroleum and petrochemical complexes, complete with utilities and infrastructure supporting the operations, including a deep-sea port, oil depots and power plants. We intend to leverage this existing site infrastructure to reduce the costs of certain construction activities. The permitting process has begun for this site, and the facility is expected to become operational in 2027.
Current wording
Construction of a 130 million pound per year polypropylene recycling facility in Thailand. We will be working with IRPC Public Company Limited ("IRPC") at IRPC’s eco-industrial zone in Rayong, Thailand. IRPC is an integrated petrochemical operator in Southeast Asia. Its production structure comprises petroleum and petrochemical complexes, complete with utilities and infrastructure supporting the operations, including a deep-sea port, oil depots and power plants. We intend to leverage this existing site infrastructure to reduce the costs of certain construction activities. The permitting process has begun and the site is expected to become operational in late 2027.
Previous wording
We also plan to build a 300.0 million pound multi-line purification facility at our Augusta, Georgia location. The design of the larger purification facility will incorporate learnings from our Ironton Facility. This line is planned to be integrated with pre-processing ("PreP") and compounding assets. We expect to have the first purification line at the Augusta Facility operational in 2029.
Current wording
Construction of an enhanced Purification facility in Augusta, Georgia (the "Augusta Facility") to build a single-line Purification facility, designed to produce 300 million pounds per year of recycled polypropylene. The design of the Augusta Facility is in process and will incorporate learnings from our Ironton Facility. The Augusta Facility is planned to be integrated with Feed PreP and compounding assets. We expect to have the expanded Purification line at the Augusta Facility operational by 2030. It is possible that additional, scaled-up lines could be added to the Augusta Facility at a later date.
Previous wording
Our revenue is primarily generated from the sale of finished products or byproducts to customers. Those sales predominantly contain a single performance obligation and revenue is recognized at the point in time when control of the product is transferred to customers, along with the title, risk of loss and rewards of ownership. Depending on the arrangement with the customer, these criteria are met either at the time the product is shipped or when the product is made available or delivered to the destination specified in the agreement with the customer. Net sales revenue is recognized on the net amount expected to be received by the Company from the customer.
Current wording
Our revenue is primarily generated from the sale of recycled and compounded polypropylene resin pellets and co-products to customers. Those sales predominantly contain a single performance obligation and revenue is recognized at the point in time when control of the product is transferred to customers, along with the title, risk of loss and rewards of ownership. Depending on the arrangement with the customer, these criteria are met either at the time the product is shipped or when the product is made available or delivered to the destination specified in the agreement with the customer. Net sales revenue is recognized on the net amount expected to be received by the Company from the customer.
Previous wording
Operating expenses to date have consisted mainly of personnel costs (including wages, salaries and benefits) and other costs directly related to operations at our operating facilities, including feedstock, rent, depreciation, repairs and maintenance, utilities and supplies. Costs attributable to the design and development of Feed PreP and purification facilities are capitalized and, when placed in service, depreciated over the expected useful life of the asset. We expect our operating costs to increase as we continue to scale operations and increase headcount.
Current wording
Operating expenses to date have consisted mainly of personnel costs (including wages, salaries and benefits) and other costs directly related to operations at our operating facilities, including feedstock, rent, depreciation, repairs and maintenance, utilities, offsite storage fees, and supplies. We expect our operating costs to increase as we continue to scale operations and increase headcount.
Previous wording
Research and development expenses consist primarily of costs related to the development of the Technology, the facilities and equipment that will use the Technology to purify recycled polypropylene, and the processes needed to collect, sort, and prepare feedstock for purification. These include mainly personnel costs, depreciation for long-lived assets, third-party consulting costs, and the cost of various recycled waste. Research and development expenses include evaluation of new front-end feedstock mechanical separators to improve feedstock purity and increase the range of feedstocks PCT can process economically. In addition, we are increasing our in-house feedstock analytical capabilities, which will include additional supporting equipment and personnel.
Current wording
Research and development expense consists primarily of costs related to the development of the Technology, the facilities and equipment that will use the Technology to purify recycled polypropylene, and the processes needed to collect, sort, and prepare feedstock for Purification. These include mainly personnel costs, depreciation for long-lived assets, third-party consulting costs, and the cost of various recycled waste. Research and development expenses include evaluation of new front-end feedstock mechanical separators to improve feedstock purity and increase the range of feedstocks we can process economically. In addition, we are increasing our in-house feedstock analytical capabilities, which will include additional supporting equipment and personnel.
Previous wording
Selling, general and administrative expenses consist primarily of personnel-related expenses for our corporate, executive, finance and other administrative functions and professional services, including legal, audit and accounting services. We expect our selling, general, and administrative expenses to increase for the foreseeable future as we scale headcount with the growth of our business.
Current wording
Selling, general and administrative expense consists primarily of personnel-related expenses for our corporate, executive, finance and other administrative functions and professional services, including legal, audit and accounting services. Costs attributable to the design and development of the Feed PreP and Purification facilities are capitalized and, when placed in service, depreciated over the expected useful life of the asset through selling, general and administrative expense. We expect our selling, general, and administrative expenses to increase for the foreseeable future as we scale headcount with the growth of our businessand build future Purification-related facilities.
Previous wording
Comparison of Three and Nine Months ended September 30, 2025 and 2024
Current wording
Comparison of Three Months ended March 31, 2026 and 2025
Previous wording
The following table summarizes our operating results for the three and nine months ended September 30, 2025 and 2024:
Current wording
The following table summarizes our operating results for the three months ended March 31, 2026 and 2025:
Previous wording
The Company reported approximately $2.4 million and $5.7 million in revenues during the three and nine months ended September 30, 2025, respectively. Fiscal year 2025 is the first year of meaningful operations. The Company is currently in various stages of customer application trials, which is anticipated to generate revenue growth in future periods.
Current wording
The Company reported $4.1 million and $1.6 million in revenues during the three months ended March 31, 2026 and 2025, respectively. This increase is reflective of growth in market acceptance of our product offerings. The Company continues to advance customer application trials, which is anticipated to generate revenue growth in future periods.
Previous wording
Cost of operations increased approximately $12.6 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. Cost of operations for the three months ended September 30, 2025 included $4.9 million of higher professional services and contract labor driven by preliminary planning and design work for our Thailand and Augusta facilities, $3.2 million of higher production-related costs due to the ramp-up in production that has occurred during the current year as compared to the prior year, $2.6 million higher facilities costs attributable to the opening of our PreP facility in Denver, Pennsylvania in September of 2024, and the expansion of offsite storage and processing space, and $1.0 million of higher supplies and materials costs.
Current wording
Cost of operations increased approximately $7.4 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. Our PureFive®production increased from 4.3 million pounds during the first quarter of 2025 to 8.4 million pounds during the first quarter of 2026. Cost of operations for the three months ended March 31, 2026 included $3.2 million of higher production-related costs due to the continued ramp-up in production that has occurred during the current year as compared to the prior year, $2.4 million higher facilities costs attributable to the expansion of offsite storage and processing space and higher utilities costs associated with higher production volumes, $1.1 million of higher labor costs and professional services and $0.8 million of higher supplies and materials costs.
Previous wording
Interest expense increased by $1.7 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase in interest expense was primarily attributed to interest on the Company's Series A Preferred Stock issued during the third quarter of 2024 and higher interest on our Revenue Bonds as a result of current year sales of Revenue Bonds. The increase in interest expense was partially offset by a decrease in interest expense on equipment financing due to paydown of outstanding balances.
Current wording
Interest expense increased by $0.3 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The increase in interest expense was primarily attributed to interest on the Company's Series A Preferred Stock issued during the third quarter of 2024, reflecting higher discount amortization as the carrying value accretes toward its redemption value over time, offset by a decrease in interest expense on equipment financing due to the paydown of outstanding balances in October of 2025.
Previous wording
Interest income for the three months ended September 30, 2025 increased $2.4 million from three months ended September 30, 2024 due to higher cash balances as a result of the proceeds from the issuance of the Series B Convertible Perpetual Preferred Stock during the second quarter of 2025.
Current wording
Interest income for the three months ended March 31, 2026 increased $1.0 million from three months ended March 31, 2025 due to higher cash balances as a result of the proceeds from the issuance of the Series B Convertible Perpetual Preferred Stock during the second quarter of 2025.
Previous wording
During the three months ended September 30, 2025, the fair value of our liability-classified warrants decreased approximately $23.7 million, as compared to an increase in fair value of $44.9 million during the three months ended September 30, 2024. The decrease during the three months ended September 30, 2025 was primarily attributable to a decrease in the Company's Common Stock price during the quarter, combined with a decrease in the remaining term and implied volatility assumption as well as a decrease in the number of warrants during 2025 due to exercises during 2025. The increase during the three months ended September 30, 2024 was chiefly driven by an increase in the underlying price of the Company's Common Stock, combined with an increase in the number of warrants during 2024.
Current wording
During the three months ended March 31, 2026, the fair value of our liability-classified warrants decreased approximately $23.0 million, as compared to a decrease in fair value of $56.7 million during the three months ended March 31, 2025. The decrease during the three months ended March 31, 2026 was primarily attributable to a decrease in the Company's Common Stock price during the quarter. The decrease during the three months ended March 31, 2025 was primarily driven by a decrease in the underlying value of our common stock, combined with fewer warrants outstanding as a result of the exercise of the RTI warrants during the first quarter of 2025.
Previous wording
During the nine months ended September 30, 2025, the $5.4 million in other income was primarily comprised of a $3.4 million decrease in the fair value of the Series A Preferred Stock put option, resulting in a gain recorded in other income, and a net gain from insurance proceeds of approximately $1.3 million related to settlement of the shareholder derivative lawsuit. During the nine months ended September 30, 2024, the $1.4 million of other expense was primarily attributed to a $0.8 million impairment charge related to an operating right-of-use asset during the second quarter of 2024 plus a $0.4 million change in the fair value of the put option during the third quarter of 2024.
Current wording
During the three months ended March 31, 2026, the $0.6 million of other expense was primarily comprised of $1.6 million increase in the fair value of the Series A Preferred Stock put option, partially offset by $0.8 million reduction of interest costs attributed to the DB legal settlement and $0.1 million of sublease income. During the three months ended March 31, 2025, the $4.6 million of other income was primarily comprised of a $3.1 million decrease in the fair value of the Series A Preferred Stock put option and a $1.3 million net gain from insurance proceeds related to the settlement of the shareholder derivative lawsuit.
Previous wording
Our ongoing operations have primarily been funded to date by a combination of equity financing through the issuance of Common Stock and preferred stock, as well as the issuance of various debt instruments. The Company's current financial projections support the Company's ability to meet its obligations as they become due for at least the twelve-month period from the date that these financial statements were issued. The Company’s ability to meet its requirements longer term is dependent on continued improvement in operations at our Ironton Facility, the commercialization of our PureFive TM resin product, and the successful construction and sale of product from our Thailand facility. Management continues to evaluate different strategies and may pursue additional actions to further increase its liquidity position.
Current wording
Our ongoing operations have primarily been funded to date by a combination of equity financing through the issuance of Common Stock and preferred stock, as well as the issuance of various debt instruments. Our current financial projections support our ability to meet our obligations as they become due for at least the 12-month period from the date that these financial statements were issued. Our ability to meet our funding requirements longer term is dependent on continued improvement in operations at our Ironton Facility, the commercialization of our PureFive® resin product, and the successful construction and sale of product from our Planned Facilities. Management continues to evaluate different strategies and may pursue additional actions to further increase our liquidity position.
Previous wording
The following is a summary of the components of our current liquidity. As of September 30, 2025, restricted cash consisted primarily of certain amounts required to support outstanding letters of credit and other collateral, initial construction commitments for the Augusta Facility, and bond reserves for the Ironton Facility.
Current wording
The following is a summary of the components of our current liquidity. As of March 31, 2026, restricted cash consisted primarily of certain amounts required to support outstanding letters of credit and other collateral, construction commitments for the Augusta Facility, and bond reserves for the Ironton Facility.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Our long-term operational and financial performance depends on continued improvement in operations at the Ironton Facility, which is the first commercial-scale recycling facility, the commercialization of our PureFive®resin product, and the successful construction and sale of product from our planned future Thailand, Belgium, and Augusta Facilities. We continue to evaluate different strategies and may pursue additional actions to further increase our liquidity position.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
PCT's ability to meet, and to continue to meet, applicable regulatory requirements for the use of PCT’s PureFive™ resin in food grade applications (including in the United States, Europe, Asia and other future international locations);
Previous report — wording carried elsewhere
the implementation, market acceptance and success of PCT’s business model and growth strategy;
Previous report — wording carried elsewhere
the potential impact of economic, business, and/or competitive factors, including interest rates, availability of capital, economic cycles, and other macro-economic impacts (such as tariffs);
Previous report — wording carried elsewhere
turnover in employees and increases in employee-related costs;
Previous report — wording carried elsewhere
During the three months ended September 30, 2025, the $0.2 million of other income was primarily comprised of sublease income. During the three months ended September 30, 2024, the $0.3 million of other expense was primarily comprised of a $0.4 million increase in the fair value of the Series A Preferred Stock put option.
Previous report — wording carried elsewhere
The Company sold $30.5 million par value in Revenue Bonds during the nine months ended September 30, 2025. See Note 8- Long-Term Debt and Bonds Payable to our unaudited condensed consolidated financial statements included in Part I, Item 1. "Financial Statements."