PCT 10-K & 10-Q changes, risk factors and insider trading

You should carefully review this section in addition to the other information appearing in this Annual Report on Form 10-K, including ourthe Company's consolidated financial statements and related notes, for important information regarding risks and uncertainties that affect us.the Company. The risks and uncertainties described below are not the only ones wethe face.Company faces. Additional risks and uncertainties that wethe areCompany is unaware of, or that weare not currently believebelieved areto notbe material, may also become important factors that adversely affect ourthe Company's business. If any of the following risks actually occur, ourthe Company's business, financial condition, results of operations, and future prospects could be materially and adversely affected.

Risks Related to PCT’s Status as a Low RevenueLow-Revenue Early Commercial StageCommercial-Stage Company

PCT’sPCT abilityis toa below-revenue profitableearly incommercial-stage company, and may never achieve or sustain profitability, which depends on the futuresuccessful willcommercialization dependand onscale-up PCT’s ability to successfully commercializeof PureFive™® resin products, and any other products PCT may develop in the future, to scale in the United States,U.S., Europe and beyond.

PCT’sPCT abilityrelies toprincipally be profitable inon the futurecommercialization willof depend on PCT’s ability to commercially scaleits PureFive™® resin productsresin, and any other products PCT may develop in the future, includingto generate revenue growth. This includes establishing sales, marketing and distribution capabilities to effectively market and sell PureFive™® resin products in the UnitedU.S., States,Europe, EuropeAsia, and in other territories; expanding the number of Purification plants and achievingFeed marketPreP acceptancefacilities; ofand PureFive™maintaining resinand products.growing relationships with offtake partners, feedstock suppliers, customers, and other strategic partners. Achieving these objectives also requires procuring and maintaining all required regulatory approvals.

The License Agreement sets forth certain construction and sales deadlinesdeadlines, which, if missed, could result in a termination or conversion of the license granted under the License Agreement.

Pursuant to the License Agreement, P&G has granted PCT a license to utilize certain P&G intellectual property. The License Agreement sets forth certain construction and sales deadlines for future facilities outside North AmericaAmerica, which, if missed, could result in (i) a termination of the license granted under the License Agreement (if PCT is unable to make PureFive™® resin at certain production volumes and at certain prices within a certain time frame). Theor license agreement also sets forth certain construction and sales deadlines for future facilities outside of North America which, if missed, could result in(ii) conversion of the license to a non-exclusive license (if PCT is unable or unwilling to provide P&G with PureFive™® resin at certain prices from the first plant). In the event the LicenserLicense Agreement is terminated or converted to a non-exclusive license, this could have a material adverse effect on PCT's business, financial condition, results of operations, and prospects.

PCT’s outstandingsubstantial securedindebtedness, restrictive covenants, and unsecuredpotential indebtedness, abilityinability to incurobtain additional debtfinancing could materially and theadversely provisionsaffect in the agreements governing PCT’s debt, and certain other agreements, could have a material adverse effect on PCT’sits business, financial condition, results of operations and prospects.

PCT is required to maintain compliance with certain financial and other covenants under its debt agreements. There are and will be operating and financial restrictions and covenants in certain of PCT’s debt agreements, including the Loan Agreement (as defined below), as well asand certain other agreements to which PCT is or may become a party.party, Thesecontain limit,operating, financial covenants and other restrictions that, among other things, PCT’slimit orPCT and its subsidiaries’ ability to incur certain additional debt, create certain liens or other encumbrances, sell assets, and transfer ownership interestsinterests, pay dividends, and enter into transactions with affiliates of PCT.affiliates. These covenantslimitations could also limit PCT’s ability to engage inrestrict activities that may be in PCT’s best long-term interests.interests PCT’sand failure,reduce orits perceivedfinancial failure,and operational flexibility. A failure to comply with certain covenants in these agreements could result in an Eventevent of Default (as defined therein)default under theone variousor debtmore agreements, allowingpermitting lenders to accelerate the maturity for the debt under these agreements and tomaturity, foreclose upon anyon collateral securing the debt. An Event of Default would also adversely affect PCT’s ability to access its borrowing capacity and pay debt service on its outstanding debt, likelyterminate resulting in acceleration of such debtcommitments, or in a default underexercise other agreementsremedies. containingCross-default cross-defaultprovisions provisions.could Undercompound suchthese circumstances,effects, and PCT might not have sufficient funds or other resources to satisfy all of its obligations. In addition, the limitations imposed by PCT’s financing agreements on its ability to pay dividends, incur additional debt and to take other actions might significantly impair PCT’s ability to obtain other financing, generate sufficient cash flow from operations to enable PCT to pay its debtobligations or to fundrefinance otheror liquidityrestructure needs.such Suchindebtedness consequenceson wouldfavorable adverselyterms affector PCT’sat business, financial condition, results of operations and prospects.all.

From time to time, PCT may be involved in legal proceedings and investigations arising in the ordinary course of business, including those relating to employment matters, relationships with our feedstock suppliers and offtake partners as well as strategic partners, intellectual property disputes, additional volatility in the market price of our securities,securities and other business matters. Any such claims or investigations may be time-consuming, costly, divert management resources, or otherwise have a material adverse effect on PCT’s business, financial condition, results of operations and prospects.

The results of litigation and other legal proceedings are inherently uncertain and adverse judgments or settlements may result in materially adverse monetary damages or injunctive relief against PCT. Any claims or litigation, even if fully indemnified or insured, could damage PCT’s reputation and make it more difficult to compete effectively or obtain adequate insurance in the future. The litigation and other legal and regulatory proceedings described under Legal Proceedings in Note 15,13 - Commitments and Contingencies, to the audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K are subject to future developments and management’s view of these matters may change in the future.

PCT may not be able to achieve full commissioning and the certification of operational performance required by an independent engineer of the Ironton Facility in the expected timeframe or at all due to a variety of factors,factors including, achievingbut not limited to, the rates at which other plastics and additives can currently be removed from the Purification process, as well as challenges with sustaining continuous operations of the Ironton Facility and producing recycled pellets pursuant to certain specifications at nameplatefull capacity forover fivea number of consecutive days. Failure to achieve full commissioning, obtain the certification or sustain continuous operations at the Ironton Facility could severely impact PCT’s business, financial condition, results of operations and prospects, and impact PCT’s ability to comply with certain covenants under its debt agreements.

Initially, PCT willcurrently relyrelies on a single facility for all of its operations, and its business is not diversified.

Initially, PCT willcurrently relyrelies solely on the operations at the Ironton Facility.Facility, and there is no guarantee that the Planned Facilities will be constructed on the expected timeline, or at all. Adverse changes or developments affecting the Ironton Facility could impair PCT’s ability to produce PureFive™® resin and impact its business, prospects, financial condition and results of operations. Any shutdown or period of reduced production at the Ironton Facility, which may be caused by regulatory noncompliance or other issues, as well as other factors beyond its control, such as severe weather conditions, natural disaster, fire, power interruption or outages, work stoppage, disease outbreaks or pandemics, equipment failure, delay in supply delivery, or shortages of material, equipment, or labor, would significantly disrupt PCT’s ability to grow and produce PureFive™® resin products in a timely manner, or at all, meet its contractual obligations and operate its business. PCT’s equipment is costly to repair, and PCT’s equipment supply chains may be disrupted in connection with pandemics, trade wars or other factors. If any material amount of PCT’s machinery were damaged, it would be unable to predict when, if at all, it could replace or repair such machinery or find co-manufacturers with suitable alternative machinery, which could adversely affect PCT’s business, financial condition, results of operations and prospects. Performance guarantees may not be sufficient to cover damages or losses, or the guarantors under such guarantees may not have the ability to pay. Any insurance coverage PCT has may not be sufficient to cover all of its potential losses and may not continue to be available to PCT on acceptable terms, or at all.

PCT is subject to an increasing number of information technology vulnerabilities, threats and targeted computer crimes whichthat pose a risk to the security of its systems and networks and the confidentiality, availability and integrity of data. Disruptions or failures in the physical infrastructure or operating systems that support PCT’s businesses, offtake partners, feedstock suppliers and customers, or cyber-attacks or security breaches of PCT’s networks or systems or of third party suppliers and service providers, could result in the loss of customers and business opportunities, lawsuits, regulatory fines, penalties or intervention, reputational damage, loss of stakeholder confidence, reimbursement or other compensatory costs, and additional compliance costs, any of which could materially adversely affect PCT’s business, financial condition, results of operations and prospects. In addition, recently enhanced cybersecurity disclosure requirements increase the risk of regulatory scrutiny enforcement actions and securities litigation in the wake of a material cyber incident. Emerging artificial intelligence technologies may intensify these cybersecurity risks and introduce new governance and compliance obligations under evolving AI-related laws and guidance in the U.S. and abroad. In addition, PCT relies on third party software-as-a service and cloud providers for critical business functions, and any disruptions, misconfiguration or breach in these services could materially impact the Company's business. Increasing costs associated with cybersecurity protections may be costly and may also adversely affect the financial condition of PCT. While PCT attempts to mitigate these risks, PCT’s systems, data, networks, products, solutions and services remain potentially vulnerable to advanced and persistent cybersecurity threats.

PCT also maintains and has access to sensitive, confidential or personal data or information in its business that is subject to privacy and security laws, regulations and customer controls. Despite PCT’s efforts to protect such personal data or information, PCT’s facilities and systems and those of its customers, offtake partners, feedstock suppliers and third-party service providers may be vulnerable to cybersecurity incidents, theft, misplaced or loss of data, insider threats, supply chain risks, natural disasters, zero-day vulnerabilities, programming and/or human errors that could lead to the compromise of sensitive, confidential or personal data or information or unauthorized use or disruption of PCT’s systems and software.

PCT relies on its proprietary intellectual property, including registered trademarks and certain licensed intellectual property under the License Agreement and other documents to market, promote and sell PureFive™® resin products. PCT monitors and protects against activities that might infringe, dilute, or otherwise harm its trademarks and other intellectual property and relies on the relevant patent, trademark and other laws of the U.S. and other countries. However, PCT may be unable to prevent third parties from using its intellectual property without authorization. In addition, the laws of some non-U.S. jurisdictions, particularly those of certain emerging markets, provide less protection for PCT’s proprietary rights than the laws of the U.S. and present greater risks of counterfeiting and other infringement. To the extent PCT cannot protect its intellectual property, unauthorized use and misuse of PCT’s intellectual property could harm its competitive position and have a material adverse effect on PCT’s business, financial condition, results of operations and prospects.

Despite PCT’s efforts to protect these rights, unauthorized third parties may attempt to duplicate or copy the proprietary aspects of its technology and processes. PCT’s competitors and other third parties independently may design around or develop similar technology or otherwise duplicate PCT’s services or products such that PCT could not assert its intellectual property rights against them. In addition, PCT’s contractual arrangements may not effectively prevent disclosure of its intellectual property and confidential and proprietary information or provide an adequate remedy in the event of an unauthorized disclosure. Measures in place may not prevent misappropriation or infringement of PCT’s intellectual property or proprietary information and the resulting loss of competitive advantage, and PCT may be required to litigate to protect its intellectual property and proprietary information from misappropriation or infringement by others, which is time consuming, expensive, could cause a diversion of resources and may not be successful.

Climate change, or legal, regulatory or market measures to address climate change may materially adversely affect ourthe Company's financial condition and business operations.

Climate change resulting from increased concentrations of carbon dioxide and other greenhouse gases in the atmosphere could present risks to PCT’s future operations from natural disasters and extreme weather conditions, such as hurricanes, tornadoes, earthquakes, wildfires or flooding. Such extreme weather conditions could pose physical risks to PCT’s facilities and disrupt operation of PCT’s supply chain and may impact operational costs. The impacts of climate change on global resources may result in scarcity, which could in the future impact PCT’s ability to access sufficient equipment and materials in certain locations and result in increased costs.

Additionally, concern over climate change could result in new legal or regulatory requirements designed to mitigate the effects of climate change on the environment. If such laws or regulations are more stringent than current legal or regulatory requirements, PCT may experience increased compliance burdens and costs to meet the regulatory obligations and may adversely affect raw material sourcing, manufacturing operations and the distribution of PCT’s products. Likewise, a failure to comply with any current or future sustainability-related reporting requirements, as established by regulators in the United States,U.S., Europe, and beyond, may result in loss of business, regulatory penalties, litigation, and/or reputational damage.

Trade, monetary and fiscal policies, and political and economic conditions may substantially change, and credit markets may experience periods of constriction and variability. These conditions may impact PCT’s business. Further, rising or prolonged high inflation may negatively impact PCT’s business and raise its costs, specifically with respect to the construction of the AugustaPlanned FacilityFacilities and other future purificationPurification and Feed PreP facilities. In the case of sustained inflation, it could become increasingly difficult to effectively mitigate the increases to PCT’s costs. If PCT is unable to take actions to effectively mitigate the effect of the resulting higher costs, PCT’s business, financial condition, results of operations and prospects could be adversely impacted.

Although the Federal Reserve began to reduce interest rates in late 2024,2024 through 2025, they continue to remain higher than pre-pandemic levels. The Federal Reserve may continue to hold them at their currently high rates longer than expected. Higher interest rates, coupled with reduced government spending and volatility in financial marketsmarkets, may increase economic uncertainty and affect PCT’s offtake partners, feedstock suppliers and potential customers. Similarly, the ongoing military conflict between Russia and Ukraine and the conflictcurrent instability in the Middle East has created extreme volatility in the global capitalvarious markets and could have further global economic consequences, including disruptions of the global supply chainchain, increased costs and energy markets. Furthermore, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity concerns. Any such volatility, disruptions or market-wide liquidity concerns may adversely affect PCT’s business or the third parties on whom it relies. If the equity and credit markets deteriorate, including as a result of political or economic unrest or war, it may make necessary debt or equity financing, such as the financing necessary to fully fund the construction of the AugustaPlanned Facility,Facilities, future purificationPurification facilities and currently contemplated and future Feed PreP facilities and otherwise finance PCT’s expansion, more difficult to obtain in a timely manner or on favorable terms, more costly or more dilutive. Increased or sustained inflation can adversely affect PCT by increasing its costs, including labor and employee benefit costs. In addition, higher or sustained inflation, macro turmoil, uncertainty and market-wide liquidity concerns could also adversely affect PCT’s offtake partners, feedstock suppliers and potential customers, which could have an adverse impact on PCT’s business, financial condition, results of operations and prospects.

Risks Related to PCT’s Production of PureFive™® Resin

The Technology is based upon generally availablegenerally-available commercial equipment to process contaminated polypropylene into clean recycled polypropylene product. While PCT has constructed the FEU to demonstrate the process using the same or similar equipment (except at a smaller scale) as the Ironton Facility, and, for the most part, the Planned Facilities, the FEU does not operate at a commercial scale. The collectiveFEU test data was used to design the Ironton Facility equipment for commercial scale and testing under the intended operating conditions and configuration for the commercial-scale operation to verify reproducibility of results including color, melt flow index, moldability (tensile modulus and other measures) and the odor of the final PCT-produced polypropylene product. While that testing indicated that the FEU can generate recycled polypropylene product thatthat, on averageaverage, meets all of its key parameter targets, PCT cannot guarantee these results will be achieved if or when the Ironton FacilityFacility, isor any of the Planned Facilities, are operating at full capacity. PCT's ability to achieve commercial-scale profitability relies on its ability to commercially scale its operations. Further, of the four quality parameters for PureFive™® resin, odor is the most difficult to characterize and measure. PCT’s goal is to generate product that will significantly reduce the odor of the offtake and be comparable or nearly comparable to virgin polypropylene with respect to level of odor, but PCT cannot guarantee that the Ironton FacilityFacility, or any of the Planned Facilities, will be capable of achieving the quality parameters of PureFive™® resin on a consistent basis to achieve profitability on a commercial scale. The Ironton Facility’sFacility’s, or any of the Planned Facilities', failure to consistently achieve the quality parameters for PureFive™® resin at higher rates could impact PCT’s business, financial condition, results of operations and prospects if the possible shortfalls versus specification are not effectively remedied per contract.

Furthermore, each of the Thailand Facility and Belgium Facility are expected to be larger 130 million-pound per year Purification facilities and the Augusta Facility is planned to be PCT’s first scaled up multi-linescaled-up facility model.model, with an expected capacity of 300 million pounds per year. PCT is currently working on engineering for the Thailand Facility and Belgium Facility, and pre-engineering for the design and installation of multiplethe commercialscaled-up linesPurification facility at the Augusta FacilityFacility, and there is no guarantee that these efforts will be successful. If the Thailand Facility and Belgium Facility are not completed and operational, and the Augusta Facility fails to achieve the expected efficiencies, including across the construction and permitting processes, as well as fails to reduce average capital expenditures per plant and reduce overall operating costs, PCT’s business, financial condition, results of operations and prospects could be materially adversely impacted.

PCT may not be successful in consummating strategic endeavors for the sale of PureFive™® resin products.

PCT may not be successful in efforts to establish or consummate existing strategic endeavors, or establish such strategic partnerships and other alternative arrangements for the sale of PureFive™® resin products because PCT’s products may be deemed to be at too early of a stage of development for collaborative effort or third parties may not view PCT’s product as having the requisite potential to demonstrate commercial success.

If PCT is unable to reach agreements with existing or future collaboratorscustomers on a timely basis, on acceptable terms or at all, PCT may have to curtail the development of PureFive™® resin products, reduce or delay the development program, delay potential commercialization, reduce the scope of any sales or marketing activities or increase expenditures and undertake development or commercialization activities at PCT’s own expense. If PCT elects to fund development or commercialization activities on its own, PCT may need to obtain additional expertise and additional capital, which may not be available on acceptable terms or at all. If PCT fails to enter into collaborations and does not have sufficient funds or expertise to undertake the necessary development and commercialization activities, PCT may not be able to further develop product candidates and PCT’s business, financial condition, results of operations and prospects may be materially and adversely affected.

PCT’s failure to secure sufficient quantities of waste polypropylene could have a negative impact on PCT’s business, financial condition, results of operations and prospects.

PCT’s ability to procure a sufficient quantity and quality of post-industrial and post-consumer waste that contains high levels of polypropylene as feedstock is dependent upon certain factors outside of PCT’s controlcontrol, including, but not limited to, changes to pricing levels for waste polypropylene, recycled polypropylene and non-recycled polypropylene, shortages in supply, interruptions affecting suppliers (including those due to operational restraints, industrial relations, transportation difficulties, accidents or natural disasters), or the introduction of new laws or regulations that make access to waste polypropylene more difficult or expensive. Additionally, while PCT believes it has sourced sufficient feedstock of desirable quality and with high levels of polypropylene, and that it has the ability to increase polypropylene content at its pre-processing facilities, it cannot guarantee that feedstock suppliers will have sufficient quantities available and at the appropriate specifications in accordance with their respective agreements with PCT. If feedstock is not available to PCT in sufficient quantity and of requisite quality and with high levels of polypropylene, PCT’s business, financial condition, results of operations and prospects could be materially adversely impacted.

Because PCT’s global expansion requires sourcing feedstock and supplies and shipping product around the world (including Asia and Europe), changes to international trade agreements, tariffs, import and excise duties, taxes or other governmental rules and regulations could adversely affect PCT’s business, financial condition, results of operations and prospects.

PCT’s global expansion modelmodel, which includes the construction of the Planned Facilities, will require sourcing additional feedstock in the U.S. and from suppliers around the world. The U.S. federal government, the Belgian government, the Thai government orand other governmental bodies may propose changes to international trade agreements, tariffs, taxes and other government rules and regulations.regulations that would affect PCT’s global expansion model. For example, the new U.S. presidential administrationgovernment has announcedimposed substantialand expanded tariffs and other trade measures on certain foreign imports into the United States,U.S., particularly from China, Canada, and Mexico. If any restrictions or significant increases in costs or tariffs are imposed related to feedstock sourced from Asia, Europe, or elsewhere, as a result of amendments to existing trade agreements, and PCT’s supply costs consequently increase, PCT may be required to raise PureFive™® resin product prices, which may result in decreased margins, the loss of customers, and a material adverse effect on PCT’s financial results. The extent to which PCT’s margins could decrease in response to any future tariffs is uncertain. PCT continues to evaluate the impact of effective trade agreements, as well as other recent changes in foreign trade policy on its supply chain, costs, sales and profitability, which could negatively impact PCT’s business, financial condition, results of operations and prospects. Any such impact could be material.

In conjunction with the Augusta Facility and other future purificationPurification facilities, PCT willexpects alsoto build and operate Feed PreP facilities in locations geographically near the feed sources in an effort to optimize PCT’s supply chain economics. These Feed PreP facilities are expected to employ feedstock processing systems with advanced sorting capabilities that can handle various types of plastics in addition to polypropylene (designated as no. 5 plastic), such as plastic bales between #1 and #7. There is no guarantee that the Feed PreP facilities will be successful. If the feedstock processing systems don’t operate as expected, or in a commercially viable manner or are constrained from receiving permits necessary to operate the facilities by city, country or state regulations; the Feed PreP facilities fail to achieve the expected efficiencies, including due to increased shipping costs; as well as fail to reduce average expenditures on feedstock and reduce overall operating costs, PCT’s business, financial condition, results of operations, and prospects could be materially adversely impacted.

PCT’s Feedstock+ pricing model for offtake agreements uses a formula based on: (i) a secondary materials per pound pricing index for curbside bales divided by a fixed polypropylene yield loss modifiermodifier, plus (ii) a fixed base price per pound covering PCT’s operating and conversion costs. The Feedstock+ pricing model is designed to mitigate the impact on PCT’s operating margins by incorporating the feedstock market price fluctuations, upside and downside, into the PureFive™® price. There is no guarantee that the “Feedstock+” pricing model will be successful and that most of or all of the counterparties will enter into offtake agreements with PCT using this pricing model in sufficient numbersnumbers, or at all. Additionally, counterparties may attempt to reduce or eliminate the fixed base priceprice, which would reduce and potentially eliminate the effort to de-risk PCT’s operating margins. If PCT is unable to incorporate its “Feedstock+” pricing model into its future offtake agreements, in part or at all, or unable to negotiate a sufficiently high fixed base price or procure feedstock above the secondary materials markets pricing index, PCT’s business, financial condition, and results of operations and prospects could be materially adversely impacted.

PCT’s processes involve the controlled use of chemicals, including flammable and combustible materials that are potentially hazardous. As a result, PCT’s operations are subject to various industrial risks, including discharges or releases of flammable or hazardous materials, dangers resulting from confined operating spaces, fires, explosions,or and mechanical failures.explosions. These risks can result in personal injury, loss of life, catastrophic damage to or destruction of property and equipment or environmental damage, and related legal proceedings, including those commenced by regulators, neighbors, or others. Additionally, PCT may not be able to timely source and install replacement parts for damaged or broken equipment, which could result in an unanticipated interruption or suspension of ouroperations operationshaving both financial and customer supply impacts, along with reputational damage and the imposition of liability. Notwithstanding PCT’s extensive safety procedures and training, relief and depressurization systems, emergency shutdown systems, safety instrumented systems and interlocks, fire and gas detection, and fire suppression systems, the risk of injury or property damage cannot be completely eliminated. While PCT believes that it maintains adequate insurance coverage, PCT cannot guarantee that it will be able to maintain adequate insurance at reasonable rates or that its insurance coverage will be adequate to cover future claims that may arise. In the event of an incident or accident, PCT’s business could be disrupted and PCT could be liable for damages, and any such liability could exceed PCT’s resources, and have a negative impact on its financial condition and results of operations. The loss or shutdown over an extended period of operations at any of PCT’s facilities or any losses relating to these risks could also have a material adverse impact on its business, financial condition, results of operations and prospects.

Risks Related to the Market for PureFive™® Resin

The market for PureFive™® resin is still in the development phase and the acceptance of PureFive™® resin by manufacturers and potential customers is not guaranteed.

PCT has agreed to one or more strategic partnership term sheets to enter into offtake agreements with a term of 20 years, whereby PCT guarantees the PureFive™® resin products to meet specific criteria for color and opacity. There is no odor specification in the offtake agreements. Any such changes to the strategic partnership term sheetsheets may require modifications to PCT’s executed offtake agreements for both the Ironton Facility and the AugustaPlanned Facility.Facilities. Pursuant to the strategic partnership term sheetsheets and PCT’s executed offtake agreements, PCT must provide samples of the product to each customer so that the customer may determine if the product meets specifications, regulatory and legal requirements, the customer’s internal policies, and technical, safety, and other qualifications for PureFive™® resin use in the customer’s products. The inability of PCT to provide product of sufficient quantity and quality for sale pursuant to the offtake agreements is likely to materially adversely affect PCT’s business, financial condition, results of operations and prospects. The premium pricing depicted in recent offtake agreements may also adversely affect the acquisition of new customers. Furthermore, future market trends for recycled product, changes in brand owner strategies and changes in consumer preferences for circular or low carbon footprint products could reduce PCT’s customer’s demand for PureFive™® resin, which would be likely to materially adversely affect PCT’s business, financial condition, results of operations and prospects.

PCT expects the price of its PureFive™® resin to continue towill command a premium over the price of virgin resin and generally not be subject to fluctuations in the price of virgin polypropylene, but there is no guarantee of this result. While most offtake agreements have been executed using the Feedstock + pricing model, certain of PCT’s legacy strategic partnership agreements’ pricing formulas for PureFive™® resin use a pricing formula based on fixed and index pricing using historical and forecast pricing for virgin resin produced from fossil fuels. If PCT is unable to modify the legacy terms to a Feedstock+ pricingpricing, or should the modeled index price for virgin resin be materially lower than the cost to produce PureFive™® resin from waste polypropylene feedstock, PCT would have to absorb the cost difference between virgin resin and PureFive™® resin production for those customers, and PCT’s business, financial condition, results of operations and prospects may be materially adversely impacted.

PCT operates in a competitive global market for polypropylene sources — both virgin and recycled polypropylene. Competitors or new entrants might develop new products or technologies whichthat compete with PCT and its proprietary Technology. PCT cannot predict changes that might affect its competitiveness or whether existing competitors or new entrants might develop products that reduce demand for PCT’s PureFive™® resin products. The development of new products or technologies whichthat compete with PCT’s PureFive™® resin products may have a material adverse effect on PCT’s business, financial condition, results of operations and prospects.

In addition, PCT has granted a sublicense of P&G intellectual property back to P&G under the terms of the License Agreement, with a limited right to sublicense by P&G (the “Grant Back”). Under the Grant Back, for five years after theJuly effective28, date of the License Agreement,2020, the aggregate tonnage that may bewas produced under the Grant Back will bewas capped at a certain level per year worldwide. BeyondSince yearJuly 5,28, that2025, the aggregate annual tonnage will bewas expanded for each of the six regions worldwide. P&G has agreed that territory under the Grant Back will excludeexcluded the start of construction of a plant within a certain radius of the Ironton Facility foruntil fiveJuly years28, from the effective date of the License Agreement2025, and that P&G will not be bound by the tonnage limitations if certain construction and sales deadlines are not met for future facilities in other regions. If P&G is able to establish production, either on its own or through a sublicense agreement with another partner, in any territory, P&G production will remainnow be capped within that territory beyond the 5 years.territory. If P&G sublicenses the P&G intellectual property under the Grant Back to other manufacturers, the aggregate production of recycled polypropylene resin and supply to markets could increase, adversely impacting PCT’s business, financial condition, results of operations and prospects.

In addition to sales through distributors, PCT’s current business model is reliant on sales directly to companies that value sustainability. The process for obtaining customer acceptance of PureFive™® resin as a substitute and/or replacement for traditional virgin or mechanically recycled polypropylene, and the ability to sell into a customer’s supply chain, is typically dependent upon the successful trials from one or more samples of PCT’s PureFive™® resin. These trials could take an extended period of timetime, depending upon the application into which the PCT’s PureFive™® resin will be used. The ability for PCT to fund its operations and service its debt requirements is highly dependent upon PCT’s ability to develop meaningful commercial sales directly to customers. The failure to obtain timely customer approval and extended delays in customers’ adoption of PCT’s PureFive™® resin as a substitute for a customer’s existing polypropylene supplies may have a material adverse effect on PCT’s business, financial condition, results of operations and prospects.

PCT may not be able to meet applicable regulatory requirements for the use of PCT’s PureFive™® resin in food gradefood-grade applications, and, even if the requirements are met, complying on an ongoing basis with the numerous regulatory requirements applicable to the PureFive™® resin and PCT’s facilities will be time-consuming and costly.

The use of PureFive™® resin in food gradefood-grade applications is subject to regulation by the FDA. The FDA has established certain guidelines for the use of recycled plastics in food packaging, as set forth in the “Guidance for Industry - Use of Recycled Plastics in Food Packaging: Chemistry Considerations (August 2006).” In order for the PureFive™® resin to be used in food gradefood-grade applications, PCT willmay request one or more LNOs from the FDA, as described in Government Regulation - FDA Requirements in Item 1.

The following discussion and analysis provides information whichthat PCT’sour management believes is relevant to an assessment and understanding of PCT’sour consolidated results of operations and financial condition. The discussion should be read together with the audited consolidated financial statements, together with related notes thereto, included elsewhere in this Annual Report on Form 10-K. 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.

PureCycleWe Technologies, Inc. (“PCT” or “Company”) isare a Florida-based corporation focused on commercializing a patented dissolution recycling technology to physically separate the polymer from other plastics, color, odors and contaminantsimpurities (the “Technology”), originally developed by The Procter & Gamble Company (“P&G”), for restoring waste polypropylene into resin, called PureFive™® resin, which has similar properties and applicability for reuse as virgin polypropylene. PCTWe hashave a global license for the Technology from P&G.G, Inwhich Aprilwas 2023,amended weduring certified2025 to permanently waive the Irontonpossible Facilityclawback asof mechanicallyour complete.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 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. PCT’s goal is to createintroduced an important new segment ofto the global polypropylene market that will assist multinational entitiescorporations in meeting their sustainability goals,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.

PCT’sOur process includes the following steps:

Purification is a dissolution recycling process that uses a combination of solvent, temperature, and pressure to return the feedstock to near-virgin condition through a novel configuration of commercially availablecommercially-available equipment and unit operations. The purificationPurification process puts the plastic through a physical extraction process using supercritical fluids that both extract and filter out other plastics and additives to purify the color, opacity,opacity and odor of the plastic without changing the bonds of the polymer. By not altering the chemical makeup of the polymer, thewe Company isare able to use significantly less energy and reduce production costs as compared to virgin resin.

CompoundingCompounding, which involves blending our resin with either virgin resin or additives, is a step whichthat 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, clarityclarity, color and strength being some of the properties that can be tailored through compounding.

The Company’sOur FDA foodfood-contact contactgrade gradesresins areare, subject to certain conditions, capable of being used for all food types per the conditions of useCOUs listed and per all applicable authorizations in the food contact regulations listed in the 21 CFR (Code of Federal Regulations, Title 21).regulations.

TheWe Company isare conducting additional testing and plansplan to make further LNO submissions for additional post-consumer recycled feedstock sources and expanded Conditions of Use.COUs.

Operating expenses to date have consisted mainly of personnel costs (including wages, salaries and benefits) and other costs directly related to operations at PCT’sour operating facilities, including feedstock, rent, depreciation, repairs and maintenance, utilities and supplies. Costs attributable to the design and development of the Ironton Facility, Augusta Facility, and Feed PreP facilities in Central Florida and Denver, Pennsylvania, are capitalized and, when placed in service, will be 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.

Research and development expensesexpense consistconsists 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.Purification. These include mainly personnel costs, depreciation for long-lived assets, third-party consulting costs, and the cost of various recycled waste. We expect our researchResearch and development expenses toinclude increaseevaluation for the foreseeable future as we increase investment in feedstock evaluation, including investment inof new front-end feedstock mechanical separators to improve feedstock purity and increase the range of feedstocks PCTwe can process economically. In addition, we are increasing our in-house feedstock analytical capabilities, which will include additional supporting equipment and personnel.

Selling, general and administrative expensesexpense consistconsists primarily of personnel-related expenses for our corporate, executive, finance and other administrative functions and professional services, including legal, audit and accounting services. AsCosts ourattributable businessto grows,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 may increase, and they may alsoto increase asfor athe resultforeseeable of operatingfuture as awe publicscale company, including complianceheadcount with the rulesgrowth of our business and regulationsbuild offuture thePurification-related SEC, legal, audit, additional insurance expenses, investor relations activities, and other administrative and professional services.facilities.

OperatingCost Costsof Operations

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);

The ability of our first commercial-scale recycling facility in Lawrence County, Ohio (the "Ironton Facility") to be appropriately certified by Leidos,Leidos (asEngineering, defined below),LLC, following certain performance and other tests, and commence full-scale commercial operations in a timely and cost-effective manner, or at all;

We are a Florida-based corporation focused on commercializing a patented dissolution recycling technology to physically separate thepolypropylene 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.

During 2025, we outlined ourOur future growth plans are anticipated to increase our installed capacity, which includes the following Planned Facilities:

Construction of a 130 million pound per year polypropylene recycling facility in Rayong, Thailand. We will beare working with IRPC Public Company Limited ("IRPC") at IRPC’s eco-industrial zone in Rayong, Thailand.zone. 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 thecapital costsand ofoperating certainexpenditure constructionrequirements activities.for this project. The permitting process has begunbegun, and the site is expected to become operational induring late2028. 2027.During May 2026, we announced that we had been admitted to the Thailand FastPass Investment Acceleration Program by the Office of the Board of Investment of Thailand, which provides facilitated access to the approval and permitting processes required to commence business operations. During July 2026, we accepted investment incentives granted by the Thailand Board of Investment for this project, including income tax relief and a waiver of import tariffs on equipment to be utilized at this location.

Construction of a 130 million pound per year polypropylene recycling facility in Antwerp, Belgium. We are currently drafting the permit application in Belgium with the assistance of consultants and plan to submit our permit application with the relevant authorities (Province of Antwerp) during the latter part of 2026. The permit application requires an environmental impact assessment and external safety report, which are currently in 2026.the advanced stage of drafting. The Belgium Facility is projected to become operational induring mid to late 2028.2029. 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 partially fund ourthis "ASTRA PP" project in the NextGen District at the Port of Antwerp-Bruges.project.

Construction of an enhancedenhanced, single-line Purification facility in Augusta, Georgia (the "Augusta Facility") to build a single-line Purification facility,Georgia, designed to produce approximately 300 million pounds per year of recycled polypropylene.polypropylene, with final capacity subject to completion of the facility design. 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 operationalto achieve mechanical completion by 2030. It is possible that additional, scaled-up lines could be added to the Augusta Facility at a later date.

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 revenueRevenue is recognized on the net amount expected to be received by the Company from the customer.

ResearchItem 2. Management's Discussion and development expense consists primarilyAnalysis of costsFinancial relatedCondition toand the developmentResults of theOperations, Technology, the facilities and equipment that will use the Technology to purifyCONTINUED recycled polypropylene, and the advancement of 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.

Comparison of Three and Six Months ended MarchJune 31,30, 2026 and 2025

The following table summarizes our operating results for the three and six months ended MarchJune 31,30, 2026 and 2025:

The Company reported $4.1$4.5 million and $1.6$1.7 million in revenues during the three months ended MarchJune 31,30, 2026 and 2025, respectively, and $8.6 million and $3.2 million during the six months ended June 30, 2026 and 2025, respectively. This increase is attributed to the continued development of customer relationships and 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.

Cost of operations increased approximately $7.4$4.8 million for the three months ended MarchJune 31,30, 2026 as compared to the three months ended MarchJune 31,30, 2025. Our PureFive® production increased from 4.33.4 million pounds during the firstsecond quarter of 2025 to 8.44.5 million pounds during the firstsecond quarter of 2026. Cost of operations for the three months ended MarchJune 31,30, 2026 included $3.2$3.0 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$2.6 million of higher labor costs and professional services primarily driven by the annual planned plant shutdown for maintenance of our Ironton Facility (the "Ironton Turnaround"), $0.8 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$0.3 million of higher supplies and materials costs.costs, partially offset by a $3.3 million lower loss on the disposal of fixed assets.

Research and development expenses remained relatively consistent for the three and six months ended MarchJune 31,30, 2026 as compared to the three and six months ended MarchJune 31,30, 2025.2025, respectively.

ItemSelling, 2. Management's Discussiongeneral and Analysisadministrative expenses decreased approximately $7.0 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. This decrease was primarily driven by $5.2 million lower equity-based compensation, mainly due to a special equity-based compensation grant valued at $2.3 million to the Chief Executive Officer that immediately vested upon grant during the second quarter of Financial Condition2025, and Results of Operations, CONTINUED approximately $3.6$5.1 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$4.0 million of higher professional services and contract labor driven by preliminary planning and design work for our Thailand,Planned Belgium and Augusta facilities.Facilities.

Interest expense increased by $0.3 milliondecreased for both the three and six months ended MarchJune 31,30, 2026 as compared to the three and six months ended MarchJune 31,30, 2025. The increasedecrease in interest expense was primarily attributed to lower interest expense on equipment financing due to the paydown of outstanding balances in October of 2025, partially offset by an increase in 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.time.

Interest income for the three and six months ended MarchJune 31,30, 2026 increased $1.0$0.4 million fromand $1.4 million, respectively, as compared to the three and six months ended MarchJune 31,30, 2025 due to higher average cash and investment balances asin a2026 resultcompared of the proceeds from the issuance of the Series B Convertible Perpetual Preferred Stock during the second quarter ofto 2025.

During the three months ended MarchJune 31,30, 2026, the fair value of our liability-classified warrants decreasedincreased approximately $23.0$52.5 million, as compared to aan decreaseincrease in fair value of $56.7$82.3 million during the three months ended MarchJune 31,30, 2025. The decreaseincrease during the three months ended MarchJune 31,30, 2026 was primarily attributable to aan decreaseincrease in the Company's Common Stock price during the quarter.quarter, an increase in the fair value of our public warrants, and an increase in the volatility during the period. The decreaseincrease during the three months ended MarchJune 31,30, 2025 was primarily driven by aan decreaseincrease in the underlying value of our commonCommon stock,Stock, combinedpartially withoffset by fewer warrants outstanding as a result of the exercise of the warrants issued to RTI warrantsGlobal (the "RTI Warrants") during the first quarter of 2025.

Other Expense/(Income),/Expense, Net

During the threesix months ended MarchJune 31,30, 2026, the $0.6$0.1 million of other expense was primarily comprised of $1.6a $0.9 million increase in the fair value of the SeriesPut A Preferred Stock put option,Option, partially offset by a $0.8 million reduction of interest costs attributed to the DB legal settlement and $0.1 million of sublease income.settlement. During the threesix months ended MarchJune 31,30, 2025, the $4.6$5.2 million of other income was primarily comprised of a $3.1$3.4 million decrease in the fair value of the SeriesPut AOption, Preferredresulting Stockin puta optiongain recorded in other income, and a $1.3 million net gain from insurance proceeds of approximately $1.3 million related to the settlement of the shareholder derivative lawsuit.

The following is a summary of the components of our current liquidity. As of MarchJune 31,30, 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.

As of MarchJune 31,30, 2026, we had approximately $131.0$236.9 million of cash and cash equivalents, restricted cash, and marketable securities, which are readily convertible to cash. Cash and cash equivalents are comprised of investments in money markets, U.S. treasuriesTreasuries and commercial paper with original maturities of three months or less. Available-for-sale investments are comprised of corporate entity debt securities and U.S. Treasury securities due within one year. We also have a $200.0 million revolving credit facility (“Revolving Credit Facility”) with Sylebra Capital Management ("Sylebra") that is undrawn and expires on September 30, 2027. We have paid approximately $13.7$34.6 million of total project spend related to our Ironton Facility, which included $15.0 million of cash paid to settle the DB arbitration as described above, as well as the planned construction of our Thailand,Planned Belgium and Augusta facilitiesFacilities during 2026.

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.

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 - Warrants to 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 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.

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 areis contingent upon the Company achieving various milestones and deliverables through 2034.

In connection with the previously disclosed Denham-Blythe ("DB") arbitration matter as discussed in Note 10 - Commitments and Contingencies in the notes to the condensed consolidated financial statements contained elsewhere in this Quarterly Report on Form 10-Q,matter, 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.

See Note 8 - Long-Term Debt and Bonds Payable to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further discussion of our debt obligations.

A summary of our cash flows for the threesix months ended MarchJune 31,30, 2026 and 2025 is as follows:

Net cash used in operating activities for the threesix months ended MarchJune 31,30, 2026 increased by $3.8$17.1 million as compared to the threesix months ended MarchJune 31,30, 2025. This increase is mainly attributed to 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.year, cash paid for interest on the repurchased Green Convertible Notes during 2026, payments for legal and other costs associated with the DB arbitration matter as described above, and the Ironton Turnaround costs.

During the threesix months ended MarchJune 31,30, 2026, we reported cash used in investing activities of approximately $20.7$81.0 million, which was comprised of net cash purchases of investment in debt securities of $17.2$88.0 million and cash paid for capital expenditures of $3.4$35.2 million, partially offset by sale of debt securities of $42.2 million. During the three months ended March 31, 2025, we reportedThe cash usedoutflow infor investingcapital activitiesexpenditures ofincludes approximately $15.0 million, which was entirely comprisedmillion of cash paid to settle the DB arbitration as described above, which was capitalized to property, plant and equipment. The cash outflows for capital expenditures duringalso thatincludes period.$2.1 million associated with the Ironton Turnaround, as described above.

We reported net cash usedprovided inby financing activities of approximately $4.6$183.0 million during the threesix months ended MarchJune 31,30, 2026 as compared to net cash provided by financing activities of approximately $49.8$355.6 million during the threesix months ended MarchJune 31,30, 2025.

Cash provided by financing activities for the threesix months ended MarchJune 31,30, 20252026 is mainlyprimarily comprised of $33.2$287.5 million of proceeds from the issuance of commonthe stock,Convertible $16.4Senior Notes, $163.0 million proceeds from the 2026 Common Stock Offering, $0.3 million from the exercise of stock options, and $0.2 million of proceeds from the sale of Revenue Bonds, and $5.4 million in proceeds from the exercise of the RTIpublic warrants, partially offset by $1.7$241.1 million for the repurchase of the Green Convertible Notes, $16.9 million in issuance costs associated with the Convertible Senior Notes and 2026 Common Stock Offering, $3.7 million in payments on related party revenue bonds, $2.9 million of payments on equipment financing, $2.5 million to repurchase shares of Common Stock, and $3.4$0.9 million of other payments for financing activities.

ThereOther than the issuance of the Convertible Senior Notes and the repurchase of a significant portion of the outstanding Green Convertible Notes during June 2026 as described in Note 8 - Long-Term Debt and Bonds Payable, there have been no material changes regarding our indebtedness from the information we provided in our most recent Annual Report on Form 10-K. Refer to Note 8 - Long-Term Debt and Bonds Payable to our unaudited condensed consolidated financial statements included in Part I, Item 1. "Financial Statements."