Why did ORGN's operating expenses surge in Q4 2024?

Origin Materials Inc (ORGN) experienced a significant increase in operating expenses in Q4 2024, which can be attributed to several factors: 1. **Capitalization of New Production Facilities**: ORGN announced the production of PET caps with new features in December 2024, which required the capitalization of new facilities and equipment. This investment is a key factor in the surge of operating expenses. 2. **Strategic Shifts and Investments**: The company is focusing on strategic shifts, such as the reallocation of resources and the potential delay in the timeline for Origin 2. These shifts indicate a strategic move towards optimizing production and market positioning, which often involve significant upfront investments. In conclusion, the surge in operating expenses in Q4 2024 is primarily due to the capitalization of new production facilities and strategic shifts, which are essential for the company's long-term growth and market expansion.