UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of
1934
May 6, 2015
Date of report (Date of earliest event reported)
SOLAZYME,
INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-35189 |
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33-1077078 |
(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification Number) |
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225 Gateway Boulevard
South San Francisco, CA 94080 |
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94080 |
(Address of Principal Executive Offices) |
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(Zip Code) |
(650) 780-4777
(Registrants Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2 below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. |
Results of Operations and Financial Condition. |
On May 6, 2015, Solazyme, Inc. (the Company) issued a press release announcing the Companys financial results for the quarter ended March 31, 2015 and certain corporate
highlights. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01. |
Financial Statements and Exhibits. |
The following
exhibit is furnished herewith:
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Exhibit Number |
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Description |
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99.1 |
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Press release, dated May 6, 2015, entitled Solazyme Reports First Quarter 2015 Results. |
The information contained herein and in the accompanying exhibit shall not be incorporated by reference
into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report,
including the exhibit hereto, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SOLAZYME, INC. |
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Date: May 6, 2015 |
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By: |
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/s/ Tyler W. Painter |
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Tyler W. Painter |
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Chief Operating Officer and Chief Financial Officer |
EXHIBIT INDEX
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Exhibit Number |
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Description |
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99.1 |
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Press release, dated May 6, 2015, entitled Solazyme Reports First Quarter 2015 Results |
Exhibit 99.1
Solazyme Reports First Quarter 2015 Results
South San Francisco, CA May 6, 2015 Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company, announced today results
for the first quarter ended March 31, 2015.
We are executing against our operating plan for 2015 and are pleased with the progress we are
seeing across the company and in our manufacturing and commercialization efforts, said Jonathan Wolfson, CEO of Solazyme. Advances are being made at the Moema JV production facility in Brazil including substantial improvements in
downstream processing efficiency and oil production as well as in overall up-time and integrated operations. On the commercial side, we are moving forward as well. Recent progress includes the announced Flotek strategic partnership for Encapso
and Flocapso, new AlgaVia food ingredient customers and the expansion of our relationship with Bunge to cover a next generation food ingredient.
Financial Results
Total revenue for the first quarter
ended March 31, 2015 was $12.6 million compared with $12.4 million in the first quarter of 2014, while product revenue of $8.8 million was up 20% versus the comparable quarter. GAAP net loss was $34.7 million for the first quarter of 2015,
unchanged from the first quarter of the prior year. On a non-GAAP basis, the net loss was $29.5 million for the first quarter of 2015, compared with net loss of $30.5 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is
included below.
During the first quarter, we continued to build the market for our AlgaVia food ingredients business, which had its best
quarter yet, and our Algenist® personal care brand turned in 26% year-on-year growth, said Tyler Painter, COO and CFO of Solazyme. We are focused on sales as well as overall
financial performance and continue to believe that we are well positioned to profitably commercialize our products globally.
Business Review
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Moema: During the first quarter of 2015, we experienced improved downstream recovery rates from production and were able to run greater volumes through the facility. Although we continue to experience some power
and steam intermittency, fixes implemented to date have led to improved reliability, and we have experienced multi-week periods where the facility has run on a continuous, fully integrated basis. Key steam and power redundancy projects remain on
track to be completed by the end of the second quarter. |
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Encapso: We reached a strategic alliance agreement with Flotek under which Flotek will market Solazymes Encapso, the first commercially available, biodegradable encapsulated lubricant for drilling
fluids, in certain Middle Eastern markets. The companies also reached a joint product development and marketing agreement to globally commercialize Flocapso, an innovative, advanced drilling fluid. During the quarter, we also secured our first
customer in South America, further expanding Encapsos geographic reach. |
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Algenist®: We had another quarter of double digit year-on-year revenue growth as we continue to grow and expand our Algenist brand, which is now
distributed in 22 countries with 36 SKUs. We currently have two new launches in process including a Genius Bi-Phase Peel at Sephora and QVC and Sublime Defense Anti-Aging Moisturizer with SPF 30, launching at QVC, Sephora, Ulta and select Nordstrom
locations. |
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AlgaVia: First quarter revenues were the highest to date for our AlgaVia food ingredient product line. We continue to add new projects with food and beverage manufacturers, as well as three new customers
for lipid powders and protein ingredients. |
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Partner Developments: We expanded our relationship with Bunge and entered into a new joint development agreement for a next generation food ingredient. |
Conference Call
Solazyme will hold a conference call for
investors on May 6, 2015 at 1:30 p.m. PT (4:30 p.m. ET). Investors may access the call by dialing 973-409-9250. A live webcast of the call will be available from the Investor Relations section of www.solazyme.com. A recording of the call
will also be available by calling 404-537-3406; access code 26374695 beginning approximately two hours after the call, and will be available for one week. A webcast replay from todays call will also be available from the Investor Relations
section of www.solazyme.com approximately two hours after the call and will be available for up to thirty days.
About Solazyme, Inc.
Solazyme, Inc. develops and sells high-performance oils and ingredients that are better for people and better for the planet. Starting with microalgae, the
worlds original oil producer, Solazyme creates innovative, sustainable, high-performance products. These include renewable oils and ingredients that serve as the foundation for healthier foods; high-performance industrial products; unique home
and personal care solutions; and more sustainable fuels. Headquartered in South San Francisco, Solazymes mission is to solve some of the worlds biggest problems with one of the worlds smallest and earliest life forms: microalgae.
For additional information, please visit Solazymes website at www.solazyme.com.
Solazyme®, Algenist®, AlgaVia,
Encapso, the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as a non-GAAP financial measure by the Securities and Exchange Commission: non-GAAP net-loss and net-loss per share. These
measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered
in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. For a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP measure, see
Reconciliation of GAAP to Non-GAAP Net-Loss and Net-Loss Per Share included in the tables to this press release.
These non-GAAP
measures are provided to enhance investors overall understanding of Solazymes current financial performance and Solazymes prospects for the future. Specifically, Solazyme believes the non-GAAP measures provide useful information to
both management and investors by excluding certain expenses that may not be indicative of its core operating results and business outlook.
For its internal budgeting process, Solazymes management uses financial measures that do not include stock-based compensation expense or special
expenses such as non-cash gains or losses related to derivative liabilities and warrant revaluations. In addition to the corresponding GAAP measures, Solazymes management also uses the foregoing non-GAAP measures in reviewing the financial
results of Solazyme. Solazyme excludes stock-based compensation expenses and special non-cash charges from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating
results.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Solazyme, including statements that involve risks and
uncertainties concerning: its commercialization and production plans; the commissioning of equipment and the ramping up of facilities; meeting commercialization and technology targets; successful product trials and market acceptance of its products;
and Solazymes ability to maintain its relationships with its partners. When used in this press release, the words will, expects, intends and other similar expressions and any other statements that are not
historical facts are intended to identify those assertions as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statement may be influenced by a variety of factors, many of which are
beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and
uncertainties include, among others: Solazymes limited operating history; its limited history in commercializing products; implementation risk in deploying new technologies; its limited experience in constructing, ramping up and operating
commercial manufacturing facilities; its ability to sell its products at a profit; delays related to construction, start-up and ramp-up of production facilities; its ability to manage operational costs at production facilities; its ability to enter
into and maintain strategic collaborations; successful
product trials by its customers and market acceptance of its products by end-users; its ability to obtain requisite regulatory approvals; and its access, on favorable terms, to any required
financing. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition
of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its
Annual Report on Form 10-K, as updated from time to time, for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not
under any duty to update any of the information in this press release.
Contacts
Solazyme, Inc.
Corporate Communications:
Genet Garamendi
press@solazyme.com
Or
Mike Smargiassi
Brad Edwards
Brainerd Communicators, Inc.
212-986-6667
smarg@braincomm.com
edwards@braincomm.com
SOLAZYME, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per
share amounts
(UNAUDITED)
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Three Months Ended March 31, |
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2015 |
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2014 |
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Revenues |
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Product revenues |
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$ |
8,821 |
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$ |
7,348 |
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Research and development programs |
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3,784 |
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5,043 |
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Total revenues |
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12,605 |
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12,391 |
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Costs and operating expenses (1) |
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Cost of product revenue |
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4,670 |
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3,390 |
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Research and development |
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12,554 |
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20,835 |
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Sales, general and administrative |
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21,268 |
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20,607 |
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Restructuring charges |
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424 |
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Total costs and operating expenses |
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38,916 |
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44,832 |
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Loss from operations |
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(26,311 |
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(32,441 |
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Other income (expense) (2) |
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Interest and other income (expense), net |
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(3,273 |
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(1,112 |
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Loss from equity method investments |
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(5,066 |
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(3,834 |
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Gain from change in fair value of warrant liability |
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688 |
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(Loss) gain from change in fair value of derivative liabilities |
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(15 |
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2,018 |
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Total other income (expense) |
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(8,354 |
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(2,240 |
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Net loss |
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$ |
(34,665 |
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$ |
(34,681 |
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Net loss per share - basic and diluted |
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$ |
(0.44 |
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$ |
(0.50 |
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Weighted average number of common shares used in net loss per share computation - basic and diluted |
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79,650 |
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69,213 |
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SOLAZYME, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET LOSS AND NET LOSS PER SHARE
In
thousands, except per share amounts
(UNAUDITED)
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Three Months Ended March 31, |
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2015 |
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2014 |
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Net loss |
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$ |
(34,665 |
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$ |
(34,681 |
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Gain from change in fair value of warrant liability |
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(688 |
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Loss (gain) from change in fair value of derivative liabilities |
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15 |
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(2,018 |
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(1) Operating expenses includes costs as follows: |
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Research and development |
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1,112 |
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1,820 |
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Sales, general and administrative |
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2,958 |
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4,789 |
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Total stock-based compensation expense |
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4,070 |
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6,609 |
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Restructuring charges |
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424 |
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(2) Other income (expense) includes costs as follows: |
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Amortization of debt discount and issuance costs |
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623 |
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250 |
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Net loss (non-GAAP) |
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$ |
(29,533 |
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$ |
(30,528 |
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Net loss per share (GAAP) - basic and diluted |
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$ |
(0.44 |
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$ |
(0.50 |
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Gain from change in fair value of warrant liability |
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(0.01 |
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Loss (gain) from change in fair value of derivative liabilities |
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(0.03 |
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Stock-based compensation expense |
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0.05 |
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0.10 |
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Restructuring charges |
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0.01 |
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Amortization of debt discount and issuance costs |
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0.01 |
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Net loss per share (non-GAAP) - basic and diluted |
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$ |
(0.37 |
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$ |
(0.44 |
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SOLAZYME, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(UNAUDITED)
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March 31, |
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December 31, |
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2015 |
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2014 |
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Assets |
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Current assets |
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Cash, cash equivalents and marketable securities |
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$ |
173,579 |
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$ |
207,308 |
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Other current assets |
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24,513 |
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26,619 |
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Total current assets |
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198,092 |
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233,927 |
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Property, plant and equipment - net |
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34,311 |
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36,080 |
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Other assets |
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41,192 |
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42,582 |
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Total assets |
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$ |
273,595 |
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$ |
312,589 |
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Liabilities and stockholders equity |
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Current liabilities |
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Current portion of long-term debt |
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$ |
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$ |
6 |
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Other current liabilities |
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18,597 |
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23,448 |
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Total current liabilities |
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18,597 |
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23,454 |
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Other liabilities |
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4,025 |
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2,668 |
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Long-term debt |
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200,686 |
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200,091 |
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Total liabilities |
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223,308 |
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226,213 |
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Total stockholders equity |
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50,287 |
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86,376 |
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Total liabilities and stockholders equity |
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$ |
273,595 |
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$ |
312,589 |
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