Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience
company, today reported financial and operational results for the
three and nine months ended September 30, 2021.
“During the third quarter we continued to execute
against our strategic objectives for 2021," said Oliver Peoples,
Ph.D., Chief Executive Officer of Yield10 Bioscience. "We completed
the harvest of Camelina in our 2021 spring field tests and seed
scale up activities. We are pleased to report that following our
successful scale up of our two prototype PHA bioplastic Camelina
lines, we confirmed levels of PHA bioplastic in seed consistent
with results obtained in field tests last year. We plan to move
ahead with further scale up in 2022. The development of commercial
lines with higher PHA bioplastic seed content is ongoing, and we
are progressing outreach to partner prospects in the plastics
sector. Our observations across our broader field test program
suggest that our Camelina varieties displayed good heat tolerance
in a season in North America that was very challenging for many
commercial crops. This provides us with confidence that we will be
able to report our overall findings when analysis of seed and oil
samples are complete, which is anticipated in first quarter 2022.
We will use this data set to finalize the plans for our 2022 spring
field test and seed scale up program.
“We have obtained partial results to date from our
field tests of E3902, a CRISPR edited Camelina line, and they are
consistent with prior testing of this line. As a result, we will
soon begin contra season seed scale up of E3902 to enable the
production of additional seed inventory.
“Our elite winter Camelina varieties have the
potential to provide a source of oil for biodiesel production, a
rapidly growing market in the U.S. and Canada. Winter Camelina may
have important advantages in use as a rotation crop in geographies
which are more challenging for other oilseed crops or as a relay
crop with soybean or corn. In both cases processing the winter
Camelina seed would allow expansion of feedstock oil production to
meet growing demand for low carbon biofuels while increasing
protein production for feed. Our winter varieties performed well in
the 2020-2021 winter planting therefore we are moving forward with
the planting of our 2021-2022 winter field test and seed scale up
program in the U.S. and Canada. As part of this program, we will be
conducting field tests in various southern locations in the U.S. to
characterize the range of geography possible for achieving target
yields in our Camelina varieties.
“Our team is also making excellent progress
deploying herbicide tolerance traits into our elite Camelina
varieties and obtaining the data necessary to develop the
regulatory strategy and timelines for producing omega-3
(DHA+EPA).
“We remain focused on identifying opportunities for
expanded collaboration on the GRAIN platform and trait licenses, as
well as for Camelina seed products including feedstock oil for
biodiesel, omega-3 (DHA+EPA) oil and for PHA bioplastics. During
the third quarter, we worked with Forage Genetics to extend their
research license to traits for testing in forage sorghum. A top
priority for our team is to secure revenue generating
collaborations and non-dilutive funding as we continue to
demonstrate the significant potential of Camelina as a new crop,”
said Peoples.
COVID-19 Impact on Operations. The
Company has implemented business continuity plans to address the
COVID-19 pandemic and minimize disruptions to ongoing operations.
To date, despite the pandemic, we have been able to move forward
with the operational steps required to execute our 2021 field
trials in Canada and the United States. However, it is possible
that any potential future closures of our research facilities,
should they continue for an extended time, or delays in receiving
supplies and materials needed to conduct our field trials and
research could adversely impact our anticipated time frames for
evaluating and/or reporting data from our field trials and other
work we plan to accomplish during 2021 and beyond.
THIRD QUARTER 2021 FINANCIAL
OVERVIEW
Cash Position
Yield10 Bioscience is managed with an emphasis on
cash flow and deploys its financial resources in a disciplined
manner to achieve its key strategic objectives.
Yield10 ended the third quarter of 2021 with $18.5
million in unrestricted cash and investments; a net decrease of
$2.1 million from unrestricted cash and investments of $20.6
million reported as of June 30, 2021. Net cash used by operating
activities during the third quarter of 2021 was $2.0 million
compared to $2.1 million used in the third quarter of 2020. The
Company is revising its previous estimate of net cash usage for the
full year 2021 to a lower range of $10.0 - $10.5 million.
The Company's present capital resources are
expected to fund its planned operations into the second quarter of
2023. Yield10's ability to continue operations after its current
cash resources are exhausted is dependent on its ability to obtain
additional financing, including public or private equity financing,
secured or unsecured debt financing, receipt of additional
government research grants, as well as licensing or other
collaborative arrangements.
Operating Results
Grant revenues for the third quarters of 2021 and
2020 were $0.1 million and $0.2 million, respectively, and were
derived from the Company's Department of Energy sub-award with
Michigan State University. Research and development expenses
increased by $0.3 million from $1.3 million during the third
quarter of 2020 to $1.6 million in the third quarter of 2021. This
increase was primarily the result of higher employee compensation
costs, including higher stock-based compensation expense, the
Company's expanded 2021 crop field trials and related work at sites
in the U.S., Canada and Argentina, and from greater use of research
services provided by third parties. General and administrative
expenses increased by $0.4 million from $1.1 million during the
third quarter of 2020 to $1.5 million during the third quarter of
2021. This increase was primarily due to higher employee
compensation and benefit expenses, including stock-based
compensation expenses, and the greater use of consultants and other
third parties to assist with early stage business development
activities for the Company's Camelina plant varieties.
Yield10 reported a loss from operations of $3.1
million for the third quarter ended September 30, 2021,
compared to a loss from operations of $2.2 million for the same
quarter of 2020. The Company also reported a net loss after income
taxes of $2.4 million, or $0.49 per share, for the three months
ended September 30, 2021, in comparison to a net loss after
income taxes of $2.2 million, or $0.87 per share, for the three
months ended September 30, 2020. During the third quarter of
2021, Yield10 recognized a $0.7 million gain in other income
(expense) from its 2002 investment in Tepha, Inc. ("Tepha"), a
related party, as a result of Tepha's acquisition by Becton
Dickinson in July 2021.
For the nine months ended September 30, 2021,
the Company reported a loss from operations of $8.7 million in
comparison to a loss from operations of $7.0 million during the
same period of 2020. Net loss after taxes was $8.1 million and $7.6
million during the nine months ended September 30, 2021 and
2020, respectively. Year to date grant revenue earned through
September 30, 2021 and September 30, 2020 was $0.5
million and $0.6 million, respectively. Research and development
and general and administrative expenses were both $4.6 million
during the nine months ended September 30, 2021. In
comparison, research and development and general and administrative
expenses were $3.9 million and $3.7 million for the nine months
ended September 30, 2020. During the nine months ended
September 30, 2021, Yield10 recognized the $0.7 million gain
from its Tepha investment, as previously mentioned. During the
first nine months of 2020, Yield10 reported a loss of $1.0 million
within other income (expense) as a result of a change in the fair
value of its warrant liability. The Company also reported $0.3
million of income from its forgiven PPP loan during this nine-month
period.
Conference Call Information
Yield10 Bioscience management will host a
conference call at 4:30 p.m. (ET) today to discuss the third
quarter 2021 results. The Company also will provide an update on
the business and answer questions from the investor community. A
live webcast of the call with slides can be accessed through the
Company's website at www.yield10bio.com in the investor
relations events section. To participate in the call, dial
toll-free 877-709-8150 or 201-689-8354 (international).
To listen to a telephonic replay of the conference
call, dial toll-free 877-660-6853 or 201-612-7415 (international)
and enter pass code 13724014. The replay will be available until
November 24, 2021. In addition, the webcast will be archived on the
Company's website in the investor relations events section.
About Yield10 Bioscience
Yield10 Bioscience, Inc. is an agricultural
bioscience company that is using its differentiated trait gene
discovery platform, the “Trait Factory”, to develop improved
Camelina varieties for the production of proprietary seed products,
and to discover high value genetic traits for the agriculture and
food industries. Our goals are to efficiently establish a high
value seed products business based on developing superior varieties
of Camelina for the production of feedstock oils, nutritional oils,
and PHA bioplastics, and to license our yield traits to major seed
companies for commercialization in major row crops, including corn,
soybean and canola. Yield10 is headquartered in Woburn, MA and has
an Oilseeds Center of Excellence in Saskatoon, Canada.
For more information about the company, please
visit www.yield10bio.com, or follow the Company on Twitter,
Facebook and LinkedIn. (YTEN-E)
Safe Harbor for Forward-Looking
Statements
This press release contains forward-looking
statements which are made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The
forward-looking statements in this release do not constitute
guarantees of future performance. Investors are cautioned that
statements in this press release which are not strictly historical
statements, including, without limitation, expectations regarding
Yield10’s cash position, cash forecasts and runway, expectations
related to research and development activities, intellectual
property, the expected regulatory path for traits, reproducibility
of data from field tests, the timing of completion of additional
greenhouse and field test studies, the outcomes of 2021 spring and
2021-2022 winter field tests and seed scale-up activities, the
signing of research licenses and collaborations, including whether
the objectives of those collaborations will be met, whether the
Company will be able to generate proof points for traits in
development and advance business discussions around its Camelina
business plan, the potential impact on operations of the COVID-19
pandemic, and value creation as well as the overall progress of
Yield10 Bioscience, Inc., constitute forward-looking statements.
Such forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to differ
materially from those anticipated, including the risks and
uncertainties detailed in Yield10 Bioscience’s filings with the
Securities and Exchange Commission. Yield10 Bioscience assumes no
obligation to update any forward-looking information contained in
this press release or with respect to the announcements described
herein.
Contacts:
Yield10 Bioscience:Lynne H. Brum, (617) 682-4693,
LBrum@yield10bio.com
Investor Relations: Bret Shapiro, (561) 479-8566,
brets@coreir.comManaging Director, CORE IR
Media Inquiries: Eric Fischgrund,
eric@fischtankpr.comFischTank PR
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
92 |
|
|
$ |
204 |
|
|
$ |
462 |
|
|
$ |
604 |
|
Total revenue |
92 |
|
|
204 |
|
|
462 |
|
|
604 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Research and development |
1,636 |
|
|
1,300 |
|
|
4,603 |
|
|
3,939 |
|
General and administrative |
1,547 |
|
|
1,098 |
|
|
4,583 |
|
|
3,664 |
|
Total expenses |
3,183 |
|
|
2,398 |
|
|
9,186 |
|
|
7,603 |
|
Loss from operations |
(3,091 |
) |
|
(2,194 |
) |
|
(8,724 |
) |
|
(6,999 |
) |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
Change in fair value of warrants |
— |
|
|
— |
|
|
— |
|
|
(957 |
) |
Loan forgiveness income |
— |
|
|
— |
|
|
— |
|
|
333 |
|
Gain on investment in related party |
700 |
|
|
— |
|
|
700 |
|
|
— |
|
Other income (expense), net |
(1 |
) |
|
37 |
|
|
(2 |
) |
|
85 |
|
Total other income (expense) |
699 |
|
|
37 |
|
|
698 |
|
|
(539 |
) |
Net loss from operations before income taxes |
(2,392 |
) |
|
(2,157 |
) |
|
(8,026 |
) |
|
(7,538 |
) |
Income tax provision |
(6 |
) |
|
(11 |
) |
|
(25 |
) |
|
(26 |
) |
Net loss |
$ |
(2,398 |
) |
|
$ |
(2,168 |
) |
|
$ |
(8,051 |
) |
|
$ |
(7,564 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$ |
(0.49 |
) |
|
$ |
(0.87 |
) |
|
$ |
(1.72 |
) |
|
$ |
(3.69 |
) |
|
|
|
|
|
|
|
|
Number of shares used in per share calculations: |
|
|
|
|
|
|
|
Basic and diluted |
4,873,248 |
|
|
2,492,274 |
|
|
4,681,292 |
|
|
2,050,726 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
September 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
14,618 |
|
|
$ |
3,423 |
|
Short-term investments |
3,904 |
|
|
6,279 |
|
Accounts receivable |
24 |
|
|
86 |
|
Unbilled receivables |
46 |
|
|
27 |
|
Prepaid expenses and other current assets |
462 |
|
|
527 |
|
Total current assets |
19,054 |
|
|
10,342 |
|
Restricted cash |
264 |
|
|
264 |
|
Property and equipment, net |
903 |
|
|
921 |
|
Right-of-use assets |
2,447 |
|
|
2,712 |
|
Other assets |
278 |
|
|
283 |
|
Total assets |
$ |
22,946 |
|
|
$ |
14,522 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
45 |
|
|
$ |
60 |
|
Accrued expenses |
1,122 |
|
|
1,297 |
|
Current portion of lease liabilities |
499 |
|
|
457 |
|
Total current liabilities |
1,666 |
|
|
1,814 |
|
Lease liabilities, net of current portion |
2,783 |
|
|
3,163 |
|
Other long-term liabilities |
9 |
|
|
13 |
|
Total liabilities |
4,458 |
|
|
4,990 |
|
Commitments and contingencies |
|
|
|
Stockholders’ Equity: |
|
|
|
Preferred stock ($0.01 par value per share); 5,000,000 shares
authorized; no shares issued or outstanding |
— |
|
|
— |
|
Common stock ($0.01 par value per share); 60,000,000 shares
authorized at September 30, 2021 and December 31, 2020; 4,877,987
and 3,334,048 shares issued and outstanding at September 30,
2021 and December 31, 2020, respectively |
49 |
|
|
33 |
|
Additional paid-in capital |
401,760 |
|
|
384,758 |
|
Accumulated other comprehensive loss |
(170 |
) |
|
(159 |
) |
Accumulated deficit |
(383,151 |
) |
|
(375,100 |
) |
Total stockholders’ equity |
18,488 |
|
|
9,532 |
|
Total liabilities and stockholders’ equity |
$ |
22,946 |
|
|
$ |
14,522 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(in
thousands)
|
Nine Months Ended September
30, |
|
2021 |
|
2020 |
Cash flows from operating activities |
|
|
|
Net loss |
$ |
(8,051 |
) |
|
$ |
(7,564 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
Depreciation and amortization |
165 |
|
|
137 |
|
Change in fair value of warrants |
— |
|
|
957 |
|
Loan forgiveness income |
— |
|
|
(333 |
) |
Loss on disposal of fixed assets |
— |
|
|
206 |
|
Charge for 401(k) company common stock match |
100 |
|
|
95 |
|
Stock-based compensation |
1,175 |
|
|
506 |
|
Non-cash lease expense |
265 |
|
|
345 |
|
Deferred income tax provision |
24 |
|
|
33 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
62 |
|
|
(76 |
) |
Unbilled receivables |
(19 |
) |
|
(36 |
) |
Prepaid expenses and other assets |
60 |
|
|
92 |
|
Accounts payable |
(15 |
) |
|
(228 |
) |
Accrued expenses |
(192 |
) |
|
(324 |
) |
Lease liabilities |
(338 |
) |
|
(495 |
) |
Other liabilities |
(4 |
) |
|
15 |
|
Net cash used for operating activities |
(6,768 |
) |
|
(6,670 |
) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property and equipment |
(147 |
) |
|
(42 |
) |
Proceeds from sale of property and equipment |
— |
|
|
10 |
|
Purchase of investments |
(3,874 |
) |
|
(6,290 |
) |
Proceeds from the maturity of short-term investments |
6,250 |
|
|
3,197 |
|
Net cash provided by (used by) investing activities |
2,229 |
|
|
(3,125 |
) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Proceeds from warrants exercised |
3,856 |
|
|
1,658 |
|
Proceeds from PPP loan |
— |
|
|
333 |
|
Proceeds from public offering, net of issuance costs |
11,993 |
|
|
5,367 |
|
Taxes paid on employees' behalf related to vesting of stock
awards |
(103 |
) |
|
(17 |
) |
Net cash provided by financing activities |
15,746 |
|
|
7,341 |
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
(12 |
) |
|
(46 |
) |
|
|
|
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
11,195 |
|
|
(2,500 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
3,687 |
|
|
5,749 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
14,882 |
|
|
$ |
3,249 |
|
|
|
|
|
Supplemental disclosure of non-cash
information: |
|
|
|
Offering costs remaining in accrued expenses |
$ |
— |
|
|
$ |
63 |
|
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Sep 2023 to Sep 2024