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
July 30, 2015
Date
of report (Date of earliest event reported)
SOLAZYME,
INC.
(Exact name of registrant as specified in its charter)
|
|
|
|
|
| Delaware |
|
001-35189 |
|
33-1077078 |
| (State or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(I.R.S. Employer
Identification Number) |
|
|
| 225 Gateway Boulevard
South San Francisco, CA 94080 |
|
94080 |
| (Address of Principal Executive Offices) |
|
(Zip Code) |
(650) 780-4777
(Registrant’s 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):
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
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 July 30, 2015, Solazyme, Inc.
(the “Company”) issued a press release announcing the Company’s financial results for the quarter ended June 30, 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:
|
|
|
Exhibit
Number |
|
Description |
|
|
| 99.1 |
|
Press release, dated July 30, 2015, entitled “Solazyme Reports Second 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.
|
|
|
|
|
|
|
|
|
|
|
SOLAZYME, INC. |
|
|
|
|
| Date: July 30, 2015 |
|
|
|
By: |
|
/s/ Tyler W. Painter |
|
|
|
|
|
|
Tyler W. Painter |
|
|
|
|
|
|
Chief Operating Officer and Chief Financial Officer |
EXHIBIT INDEX
|
|
|
Exhibit
Number |
|
Description |
|
|
| 99.1 |
|
Press release, dated July 30, 2015, entitled “Solazyme Reports Second Quarter 2015 Results” |
Exhibit 99.1
Solazyme Reports Second Quarter 2015 Results
South San Francisco, CA – July 30, 2015 – Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and specialty ingredients company, announced
today results for the second quarter ended June 30, 2015.
“We are making good progress against our core deliverables, the commercialization of
high value products across food, personal care and industrial markets, and the delivery of key milestones at the Moema JV production facility in Brazil,” said Jonathan Wolfson, CEO of Solazyme. “While there is a lot of work ahead, I am
proud of the Solazyme team, and what they have accomplished so far this year. I am excited about what is to come.”
“We are maintaining
financial discipline in our operations and focusing our sales efforts on strategic revenue streams,” said Tyler Painter, COO and CFO of Solazyme. “On the commercial side, our product portfolio is well aligned with trends across our
targeted end markets, and we are seeing a growing number of projects and customers today.”
Business Review
| |
• |
|
Foods - AlgaVia™ and AlgaWise™: We have a growing number of application projects in process with a variety of food and beverage manufacturers and are starting to see conversions from projects to
customers. Most recently, a division of a major multinational food company launched a series of baking mixes using the AlgaVia protein and an exciting new beverage company is launching a meal replacement drink made with an AlgaWise oil.
|
| |
• |
|
Personal Care - AlgaPūr™ and Algenist®: We transitioned Natura Cosméticos, one of Latin America’s largest cosmetics and personal care
product companies, from a development partner into a customer of AlgaPūr™ microalgae oil. We also partnered with BASF for the launch of the world’s first commercial microalgae-derived surfactant for use in home and personal care
applications, utilizing AlgaPūr™. We continue to grow and expand our Algenist brand, which is now distributed in more than 2,500 stores in 22 countries and has reached 37 SKUs. |
| |
• |
|
Industrials - Encapso™ and Soladiesel®: We continue to expand our Encapso™ work with Flotek in South America, including multiple successful wells
in Colombia. In North America, Encapso is experiencing longer than anticipated sales cycles due to lower petroleum prices and substantially reduced rig counts. In our renewable fuels business, we were named one of three suppliers of blended fuel to
UPS in support of its renewable fuels program, and we also successfully completed a two-year renewable diesel evaluation with Volkswagen of America. |
| |
• |
|
Moema: During the second quarter of 2015, key power and steam redundancy projects were successfully completed which, along with other ongoing work at the facility, has led to significant improvements in power and
steam reliability and allowed us to establish fully integrated operations on a more consistent basis. We are currently focused on optimizing and enhancing fully integrated operations from fermentation to oil production and improving overall
performance. |
Financial Results
Total revenue for the second quarter ended June 30, 2015 was $11.7 million compared with $15.9 million in the second quarter of 2014. The year over year
decline in revenues was due to expected decreases in funded program revenue as well as in product revenue due to the timing of certain Algenist sales activities and slower than anticipated adoption rates for Encapso. GAAP net loss was $37.2 million
for the second quarter of 2015, compared to net loss of $42.9 million in the prior year period. On a non-GAAP basis, the net loss was $31.7 million for the second quarter of 2015, compared with net loss of $32.9 million in the prior year quarter. A
reconciliation of GAAP to non-GAAP results is included below.
Conference Call
Solazyme will hold a conference call for investors on July 30, 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 85330573 beginning approximately two hours after the
call, and will be available for one week. A webcast replay from today’s 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 world’s 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, Solazyme’s
mission is to solve some of the world’s biggest problems with one of the world’s smallest and earliest life forms: microalgae. For additional information, please visit Solazyme’s website at www.solazyme.com.
Solazyme®, AlgaPūr™, AlgaVia™, AlgaWise™, Algenist®, Encapso™, Soladiesel®, 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 Solazyme’s current financial performance and Solazyme’s
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, Solazyme’s 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, Solazyme’s 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 Solazyme’s 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: Solazyme’s 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 Quarterly
Report on Form 10-Q, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Revenues |
|
|
|
|
|
|
|
|
| Product revenues |
|
$ |
8,307 |
|
|
$ |
9,022 |
|
|
$ |
17,128 |
|
|
$ |
16,370 |
|
| Research and development programs |
|
|
3,433 |
|
|
|
6,917 |
|
|
|
7,217 |
|
|
|
11,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
11,740 |
|
|
|
15,939 |
|
|
|
24,345 |
|
|
|
28,330 |
|
| Costs and operating expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of product revenue |
|
|
4,361 |
|
|
|
4,470 |
|
|
|
9,031 |
|
|
|
7,860 |
|
| Research and development |
|
|
12,747 |
|
|
|
22,064 |
|
|
|
25,301 |
|
|
|
42,899 |
|
| Sales, general and administrative |
|
|
20,981 |
|
|
|
21,637 |
|
|
|
42,249 |
|
|
|
42,244 |
|
| Restructuring charges |
|
|
(31 |
) |
|
|
— |
|
|
|
393 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total costs and operating expenses |
|
|
38,058 |
|
|
|
48,171 |
|
|
|
76,974 |
|
|
|
93,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from operations |
|
|
(26,318 |
) |
|
|
(32,232 |
) |
|
|
(52,629 |
) |
|
|
(64,673 |
) |
| Other income (expense) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest and other income (expense), net |
|
|
(3,410 |
) |
|
|
(4,662 |
) |
|
|
(6,683 |
) |
|
|
(5,774 |
) |
| Loss from equity method investment |
|
|
(7,309 |
) |
|
|
(4,278 |
) |
|
|
(12,375 |
) |
|
|
(8,112 |
) |
| Gain from change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
688 |
|
| (Loss) gain from change in fair value of derivative liabilities |
|
|
(134 |
) |
|
|
(1,745 |
) |
|
|
(149 |
) |
|
|
273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total other income (expense) |
|
|
(10,853 |
) |
|
|
(10,685 |
) |
|
|
(19,207 |
) |
|
|
(12,925 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(37,171 |
) |
|
$ |
(42,917 |
) |
|
$ |
(71,836 |
) |
|
$ |
(77,598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share - basic and diluted |
|
$ |
(0.46 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.90 |
) |
|
$ |
(1.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares used in net loss per share computation - basic and diluted |
|
|
80,098 |
|
|
|
75,963 |
|
|
|
79,875 |
|
|
|
72,607 |
|
SOLAZYME, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET LOSS AND NET LOSS PER SHARE
In thousands, except per share amounts
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Net loss |
|
$ |
(37,171 |
) |
|
$ |
(42,917 |
) |
|
$ |
(71,836 |
) |
|
$ |
(77,598 |
) |
| Gain from change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(688 |
) |
| Loss (gain) from change in fair value of derivative liabilities |
|
|
134 |
|
|
|
1,745 |
|
|
|
149 |
|
|
|
(273 |
) |
| (1) Operating expenses includes costs as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
1,472 |
|
|
|
1,910 |
|
|
|
2,584 |
|
|
|
3,730 |
|
| Sales, general and administrative |
|
|
3,246 |
|
|
|
3,886 |
|
|
|
6,204 |
|
|
|
8,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total stock-based compensation expense |
|
|
4,718 |
|
|
|
5,796 |
|
|
|
8,788 |
|
|
|
12,405 |
|
| Restructuring charges |
|
|
(31 |
) |
|
|
— |
|
|
|
393 |
|
|
|
— |
|
| (2) Other income (expense) includes costs as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of debt discount and issuance costs |
|
|
633 |
|
|
|
736 |
|
|
|
1,256 |
|
|
|
986 |
|
| Debt conversion expense |
|
|
— |
|
|
|
1,766 |
|
|
|
— |
|
|
|
1,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss (non-GAAP) |
|
$ |
(31,717 |
) |
|
$ |
(32,874 |
) |
|
$ |
(61,250 |
) |
|
$ |
(63,402 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share (GAAP) - basic and diluted |
|
$ |
(0.46 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.90 |
) |
|
$ |
(1.07 |
) |
| Gain from change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
| Loss (gain) from change in fair value of derivative liabilities |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
| Stock-based compensation expense |
|
|
0.05 |
|
|
|
0.08 |
|
|
|
0.11 |
|
|
|
0.17 |
|
| Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Amortization of debt discount and issuance costs |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.01 |
|
| Debt conversion expense |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share (non-GAAP) - basic and diluted |
|
$ |
(0.40 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.77 |
) |
|
$ |
(0.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOLAZYME, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(UNAUDITED)
|
|
|
|
|
|
|
|
|
| |
|
June 30,
2015 |
|
|
December 31,
2014 |
|
| Assets |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Cash, cash equivalents and marketable securities |
|
$ |
147,026 |
|
|
$ |
207,308 |
|
| Other current assets |
|
|
22,744 |
|
|
|
26,619 |
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
169,770 |
|
|
|
233,927 |
|
| Property, plant and equipment - net |
|
|
33,197 |
|
|
|
36,080 |
|
| Other assets |
|
|
40,730 |
|
|
|
42,582 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
243,697 |
|
|
$ |
312,589 |
|
|
|
|
|
|
|
|
|
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Current portion of long-term debt |
|
$ |
— |
|
|
$ |
6 |
|
| Other current liabilities |
|
|
16,610 |
|
|
|
23,448 |
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
16,610 |
|
|
|
23,454 |
|
| Other liabilities |
|
|
5,846 |
|
|
|
2,668 |
|
| Long-term debt |
|
|
201,408 |
|
|
|
200,091 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
223,864 |
|
|
|
226,213 |
|
|
|
|
|
|
|
|
|
|
| Total stockholders’ equity |
|
|
19,833 |
|
|
|
86,376 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and stockholders’ equity |
|
$ |
243,697 |
|
|
$ |
312,589 |
|
|
|
|
|
|
|
|
|
|