PureCycle Technologies, Inc. has recently released its 10-Q report, providing a comprehensive overview of the company's financial condition and results of operations. PureCycle Technologies, Inc. is primarily engaged in the production of recycled polypropylene (PP) and holds a license for restoring waste PP into ultra-pure recycled polypropylene resin with various applications in consumer products, piping, cabling, and plastic parts for different industries. The company's recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. PureCycle Technologies, Inc. was founded in 2015 and is headquartered in Orlando, Florida.
In ITEM 2 of the 10-Q report, PureCycle Technologies, Inc. discussed its management's discussion and analysis of financial condition and results of operations. It mentioned that on March 1, 2024, the company increased the amount available under the Term Loan Credit Agreement's permitted indebtedness covenant basket for the Revolving Credit Facility from $150.0 million to $200.0 million and obtained a carve-out to permit the company to purchase the Revenue Bonds. Additionally, PureCycle Technologies Holdings Corp. and PCT LLC are subsidiaries of the company.
The report also touched on the company's financial assurance activities. On March 14, 2024, PureCycle Technologies, Inc. renewed a surety bond in the amount of $25.0 million to provide financial assurance related to its performance under a certain vendor contract. The amount was later increased to $45.9 million effective July 1, 2024, and then decreased to $8.1 million on October 3, 2024, as a result of funding a restricted escrow account. The report emphasized that these financial instruments are issued in the normal course of business and are not considered company indebtedness.
Furthermore, the 10-Q report stated that there have been no significant changes in the company's critical accounting policies and estimates from the information provided in its most recent Annual Report on Form 10-K. It also directed readers to Note 2 for more information about recent accounting pronouncements and their potential impact on PureCycle Technologies, Inc.'s financial condition and results of operations. The market has reacted to these announcements by moving the company's shares -0.9% to a price of $11.04. For more information, read the company's full 10-Q submission here.
