Document


Delivery Requirement:			Submission Compliance
Interim Financial Statements (Guarantor)			See Form 10-Q for the period ended 3/31/2023 as filed with the SEC.
Interim Financial Statements (Company)			Included herein
Compliance Certificates			Included herein for Guarantor and Company
Operating Statements a) Budget to Actual for the period b) Total product sold c) Amount of Product sold under offtake contracts (in total) and amount of other products sold (with information about sale/purchaser) d) Production Yield and values by weight/value e) Supplied waste processed by weight / values f) IHS/Chemical Data indices used g) Terms/ extensions / replacements of Offtake or Feedstock contracts h) Additional production capacity under development i) hours of operation for the Project			a) Refer to budget to actual b) Not applicable for Q1. There has been no product sold. c) Not applicable for Q1. There has been no product sold under Offtake Contracts or of other Products which require disclosure. d) Not applicable until production begins. e) Not applicable for Q1. f) Not applicable for pricing for Q1 g) None other than those previously disclosed. h) Not applicable. There have been no changes to production capacity. i) Not applicable for Q1. The plant will be operational during Q2.
Reconciliation Statements (Operating Revenue Fund)			Not applicable for Q1 as there have been no inflows or outflows from to/from the Operating Revenue Fund.


			Page
Unaudited Consolidated Financial Statements			4
Balance Sheets as of March 31, 2023 (Unaudited) and December 31, 2022			4
Unaudited Statements of Operations for the Three months ended March 31, 2023 and 2022			5
Unaudited Statements of Member's Equity for the Three months ended March 31, 2023 and 2022			6
Unaudited Statements of Cash Flows for for the Three months ended March 31, 2023 and 2022			7
Comparison of Actual to Budgeted Results for the Three months ended March 31, 2023 and 2022			8
Covenant Compliance for the Three months ended March 31, 2023			9


ASSETS
	(Unaudited)
(in thousands)	March 31, 2023		December 31, 2022
CURRENT ASSETS
Cash	$	16,596	$	50,928
Restricted cash - current	53,786		29,389
Prepaid expenses and other current assets	3,216		1,612
Total current assets	73,598		81,929
Restricted cash - non-current	145,468		93,415
Prepaid expenses and other non-current assets	4,147		4,206
Operating lease right-of-use assets	5,277		5,042
Property, plant and equipment, net	422,465		373,848
TOTAL ASSETS	$	650,955	$	558,440

LIABILITIES AND MEMBER'S EQUITY

CURRENT LIABILITIES
Accounts payable	$	10,334	$	816
Accrued expenses	29,962		26,715
Accrued interest	6,127		1,532
Total current liabilities	46,423		29,063
NON-CURRENT LIABILITIES
Deferred revenue	5,000		5,000
Bonds payable - non-current	233,778		233,513
Operating lease right-of-use liabilities	4,157		3,956
Other non-current liabilities	1,068		1,117
Due to parent	270,412		188,989
TOTAL LIABILITIES	$	560,838	$	461,638

MEMBER'S EQUITY
LLC Member Interest	223,387		223,387
Accumulated deficit	(133,270)		(126,585)
TOTAL MEMBER'S EQUITY	90,117		96,802
TOTAL LIABILITIES AND MEMBER'S EQUITY	$	650,955	$	558,440


	Three months ended March 31,
	2023		2022
(in thousands)
Costs and expenses
Operating costs	$	4,524	$	2,916
Research and development	307		293
Selling, general and administrative	2,624		1,701
Total operating costs and expenses	7,455		4,910
Interest (income) expense	(819)		564
Other expense	49		6
Total other (income) expenses	(770)		570
Net loss	$	(6,685)	$	(5,480)


	For the three months ended March 31, 2023
(in thousands)	LLC Member Interest		Accumulated deficit		Total Member's Equity
Balance, December 31, 2022	$	223,387	$	(126,585)	$	96,802
Net Loss	—		(6,685)		(6,685)
Balance, March 31, 2023	$	223,387	$	(133,270)	$	90,117


	For the three months ended March 31, 2022
(in thousands)	LLC Member Interest		Accumulated deficit		Total Member's Equity
Balance, December 31, 2021	$	223,387	$	(104,276)	$	119,111
Net Loss	—		(5,480)		(5,480)
Balance, March 31, 2022	$	223,387	$	(109,756)	$	113,631


	Three months ended March 31,
(in thousands)	2023		2022
Cash flows from operating activities
Net loss	$	(6,685)	$	(5,480)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense	827		768
Accretion of debt instrument discounts	62		58
Amortization of debt issuance costs	202		187
Operating lease amortization expense	338		17
Changes in operating assets and liabilities
Prepaid expenses and other current assets	(1,603)		(683)
Prepaid expenses and other non-current assets	59		—
Accounts payable	967		611
Accrued expenses	206		375
Accrued interest	324		324
Operating lease right-of-use liabilities	(176)		(17)
Net cash used in operating activities	$	(5,479)	$	(3,840)
Cash flows from investing activities
Purchases of property, plant and equipment	(33,786)		(47,364)
Net cash used in investing activities	$	(33,786)	$	(47,364)
Cash flows from financing activities
Due to Parent	81,423		100,126
Other payments from financing activities	(40)		(10)
Net cash provided by financing activities	$	81,383	$	100,116
Net increase in cash and restricted cash	42,118		48,912
Cash and restricted cash, beginning of year	173,732		330,574
Cash and restricted cash, end of year	$	215,850	$	379,486
Supplemental disclosure of cash flow information
Non-cash investing activities:
Additions to property, plant, and equipment in accounts payable	$	9,066	$	224
Additions to property, plant, and equipment in accrued interest	$	4,271	$	4,271
Additions to property, plant, and equipment in accrued expenses	$	27,766	$	13,871


	For the Quarter Ended March 31, 2023
	Actual		Budget		$ Variance		% Variance	Explanations
(in thousands)					favorable / (unfavorable)
Costs and expenses
Operating costs	$	4,524	$	4,174	$	(350)	(8) %	~$240k in professional services incurred related to commissioning the plant and LLC stand alone audit fees not included in budget ~$215k related to maintenance tools and supplies (one time costs) Overage partially offset by ~ $165k favorable related to employee costs resulting from shifts in the hiring plan
Research and development	307		40		(267)		(666) %	Overage driven primarily by additional feedstock testing performed by third-parties (e.g. Phasex, GALAB, etc.)
Selling, general and administrative	2,624		417		(2,207)		(530) %	~$700k of legal fees paid to the Trustee's counsel ~$1.5M in corporate overhead allocation for shared services; allocation of some costs required under GAAP
Total operating costs and expenses	7,455		4,631		(2,824)		(61) %
Interest (income) expense	$	(819)	$	590	$	1,409	239 %	~$997k of interest income on bond and escrow accounts partially offset by interest expense of ~$327k ~$140k net debt related amortization not included in the budget
Other expense	49		—		(49)		100 %	immaterial for review
Total other (income) expense	$	(770)	$	590	$	1,360	230 %
Net loss	$	(6,685)	$	(5,221)	$	(1,464)	(28) %


Days Cash on Hand: >75	As of March 31, 2023
Cash on Hand1	$	66,597
Operating Expenses2	(6,628)
Debt Service for Period3	—
Total Operating Expenses + Debt Service	$	(6,628)
Daily Cash Required4	$	74
Days Cash on Hand	904		pass


Minimum Cash Required (at least $100M)	As of March 31, 2023
Cash & cash equivalents	$	16,596
Liquidity Escrow Reserve	50,796
PureCycle Trustee Account	50,000
Operating Revenue Escrow Fund	1
Total Cash	$	117,393	pass