Yield10 Bioscience, Inc. (Nasdaq:YTEN) ("Yield10" or the
"Company"), an agricultural bioscience company, today reported
financial results for the three months ended March 31, 2022.
“The development of Camelina as a commercial oilseed crop
addresses three fundamental challenges facing not just our
generation but future generations as well: climate change, global
food security and plastic waste,” said Oliver Peoples, Ph.D., Chief
Executive Officer of Yield10 Bioscience. “We are operationalizing
our commercial plan to launch Camelina as a platform crop to supply
low-carbon feedstock oil for the biofuel market and to produce
omega-3 nutritional oil and PHA bioplastic longer term. In the
first quarter, we hired Darren Greenfield to lead seed operations
and we recently named Dr. Willie Loh, a former Cargill executive,
as a commercial and technical advisor who will provide important
insights and guidance as we execute our commercial plans for
Camelina oil.
"We are poised to begin engaging growers for seed production
under contract in the U.S. and Canada as well as securing supply
chain partners for offtake of seed for crushing. This activity has
been initiated in 2022 and will continue to ramp up in 2023. In
support of this plan, we have identified spring and winter Camelina
varieties for initial commercialization in the North American
biofuels market.
“Harvest of our 2021/2022 winter field trials is currently
underway and will enable us to evaluate the performance of various
spring and winter varieties across a range of geographies and
provide seed for scale up. Designed to generate proof points on a
broad range of Camelina varieties and traits, our 2022 spring field
program will be our most extensive to date. Permitting is now
complete and planting has begun for this program that is designed
to evaluate herbicide tolerance, pest resistance, seed yield, oil
content and other key aspects of Camelina performance. In addition,
we also expect to plant PHA Camelina at acre-scale during the
second quarter of 2022 and continue to support Rothamsted Research
in the development of Camelina omega-3 (DHA+EPA) nutritional
oil.
“As 2022 progresses, we expect to continue building our
commercial capabilities and to continue protecting our crop
discoveries with intellectual property and plant variety
registrations in our target markets. As global trends drive
interest in Camelina and in new crop yield traits discovered by our
team using GRAIN, we remain encouraged by ongoing discussions
around collaborative opportunities for Yield10,” said
Peoples.
Recent Accomplishments
- Establishing commercial capabilities: In the
first quarter, Yield10 appointed Darren Greenfield as senior
director of seed operations. Mr. Greenfield brings more than 25
years of experience with major agricultural companies managing the
development and commercial production of proprietary canola plant
varieties. Yield10 recently named Willie Loh, Ph.D. as a special
commercial advisor to the Company. Dr. Loh most recently served as
Vice President, Market Development, Global Edible Oils division at
Cargill and brings more than 25 years of experience in the area of
commodity and specialty oils, including
omega-3.
- 2022 seed scale up and field test program
underway: Yield10 plans to evaluate candidate
Camelina lines for herbicide tolerance to identify lead and back up
lines for commercial development and regulatory approval. In
addition, a prototype Camelina PHA line will be grown at acre-scale
to produce PHA for process development and business development
purposes. Further objectives for the field test program include the
ongoing evaluation of traits C3007 and C3020 as well as identifying
candidate Camelina lines resistant to downy mildew, a fungal
pathogen.
- 2021/2022 winter season field testing and seed scale up
on track: Yield10's winter season Camelina program remains
on track. The objective of the program is to scale up seed of
Camelina line E3902 and two winter Camelina lines, as well as to
determine if winter planting in certain U.S. geographies could be
viable for spring Camelina lines. The harvest of seed from sites in
the U.S. and Canada is ongoing and is expected to be completed by
the end of the second quarter of 2022.
- New patents granted: A new patent was granted
in Australia covering trait C3007 for boosting seed oil content in
oilseed crops. Yield10 is the exclusive licensee of this
intellectual property from the University of Missouri. A new patent
was also granted in Canada covering advanced technology to produce
omega-3 oil in Camelina. Yield10 has an exclusive option to secure
a commercial license to this technology.
Geopolitical Uncertainty and COVID-19 Impact on
Operations
The Company has implemented business continuity plans to address
the COVID-19 pandemic and minimize disruptions to ongoing
operations. In addition, the conflict in Ukraine has resulted in
significant uncertainty in the agriculture and commodities markets,
and may have a significant impact on the Company’s business and
operations. To date, despite the pandemic, Yield10 has been able to
move forward with the operational steps required to execute its
2021-2022 winter field trials and start up its 2022 spring field
trials in Canada and the United States. However, it is possible
that any potential future closures of research facilities, should
they continue for an extended time, or delays in receiving supplies
and materials needed to conduct field trials and research, or
economic repercussions of the pandemic or other geopolitical
uncertainty, such as the ongoing conflict between Ukraine and
Russia, could adversely impact the Company's anticipated time
frames for evaluating and/or reporting data from our field trials
and other work we plan to accomplish during 2022 and beyond.
FIRST QUARTER 2022 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 first quarter of 2022 with $12.7 million in
unrestricted cash and investments; a net decrease of $3.3 million
from unrestricted cash and investments of $16.0 million reported as
of December 31, 2021. The Company used $3.1 million in cash
for its operating activities during the three months ended
March 31, 2022, in comparison to $2.6 million used for
operating activities during the three months ended March 31,
2021. The greater use of cash for operating activities was
primarily the result of Yield10's greater net loss of $3.3 million
during the first quarter of 2022 in comparison to a net loss of
$2.6 million reported for the same quarter of last year. The
greater loss is due to the Company's increased operating expenses
related to staffing, expanded Camelina spring and winter field
trials, increased regulatory-related expenditures as well as due to
seed scale up and other early stage seed commercialization
activities.
The Company continues to estimate total net cash usage for the
full year ended December 31, 2022 in a range of $12.0 to $12.5
million as it continues its controlled growth to develop
proprietary Camelina plant varieties and to support the launch of
its Camelina products. Yield10's present capital resources are
expected to fund its planned operations into the first quarter of
2023. The Company's ability to continue operations after its
current cash resources are exhausted is dependent upon 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
Research grant revenue for the three months ended March 31,
2022 was $0.1 million in comparison to grant revenue of $0.2
million recorded during the three months ended March 31, 2021.
Research and development expenses were $1.8 million during the
first three months of 2022 compared to $1.3 million recorded during
the first three months of 2021. General and administrative expenses
were $1.7 million and $1.4 million for the three months ended
March 31, 2022 and 2021, respectively.
Yield10 reported a net loss of $3.3 million for the quarter
ended March 31, 2022, or $0.68 per share, as compared to a net
loss of $2.6 million, or $0.60 per share, for the quarter ended
March 31, 2021.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 4:30 p.m. (ET) to discuss the first quarter 2022 results. The
Company also will provide a corporate update 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 13728757. The replay will be available until May 25,
2022. In addition, the webcast will be archived on the Company's
website in the investor relations events section.
About Yield10 BioscienceYield10 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 for renewable diesel, PHA bioplastics and omega-3
(DHA+EPA) oils, 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 2021-2022 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, the
geopolitical uncertainty caused by the conflict between Ukraine and
Russia, 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
Marketing and PR
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months EndedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
Revenue: |
|
|
|
Grant revenue |
$ |
149 |
|
|
$ |
196 |
|
Total revenue |
|
149 |
|
|
|
196 |
|
|
|
|
|
Expenses: |
|
|
|
Research and development |
|
1,763 |
|
|
|
1,316 |
|
General and administrative |
|
1,707 |
|
|
|
1,432 |
|
Total expenses |
|
3,470 |
|
|
|
2,748 |
|
Loss from operations |
|
(3,321 |
) |
|
|
(2,552 |
) |
|
|
|
|
Other income (expense): |
|
|
|
Other income (expense), net |
|
(1 |
) |
|
|
(1 |
) |
Total other income
(expense) |
|
(1 |
) |
|
|
(1 |
) |
Loss from operations before
income taxes |
|
(3,322 |
) |
|
|
(2,553 |
) |
Income tax provision |
|
(9 |
) |
|
|
(8 |
) |
Net loss |
$ |
(3,331 |
) |
|
$ |
(2,561 |
) |
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.68 |
) |
|
$ |
(0.60 |
) |
Number of shares used in per
share calculations: |
|
|
|
Basic and diluted |
|
4,888,915 |
|
|
|
4,296,129 |
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
March 31,2022 |
|
December 31,2021 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
2,128 |
|
|
$ |
5,329 |
|
Short-term investments |
|
10,614 |
|
|
|
10,661 |
|
Accounts receivable |
|
124 |
|
|
|
164 |
|
Unbilled receivables |
|
58 |
|
|
|
34 |
|
Prepaid expenses and other current assets |
|
451 |
|
|
|
436 |
|
Total current assets |
|
13,375 |
|
|
|
16,624 |
|
Restricted cash |
|
264 |
|
|
|
264 |
|
Property and equipment,
net |
|
945 |
|
|
|
890 |
|
Right-of-use assets |
|
2,259 |
|
|
|
2,354 |
|
Other assets |
|
261 |
|
|
|
283 |
|
Total assets |
$ |
17,104 |
|
|
$ |
20,415 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
24 |
|
|
$ |
83 |
|
Accrued expenses |
|
823 |
|
|
|
1,136 |
|
Current portion of lease liabilities |
|
529 |
|
|
|
514 |
|
Total current liabilities |
|
1,376 |
|
|
|
1,733 |
|
Lease liabilities, net of
current portion |
|
2,512 |
|
|
|
2,649 |
|
Other long-term
liabilities |
|
5 |
|
|
|
7 |
|
Total liabilities |
|
3,893 |
|
|
|
4,389 |
|
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 March 31, 2022 and December 31, 2021; 4,893,403 and
4,881,851 shares issued and outstanding at March 31, 2022 and
December 31, 2021, respectively |
|
49 |
|
|
|
49 |
|
Additional paid-in
capital |
|
402,817 |
|
|
|
402,283 |
|
Accumulated other
comprehensive loss |
|
(193 |
) |
|
|
(175 |
) |
Accumulated deficit |
|
(389,462 |
) |
|
|
(386,131 |
) |
Total stockholders’ equity |
|
13,211 |
|
|
|
16,026 |
|
Total liabilities and stockholders’ equity |
$ |
17,104 |
|
|
$ |
20,415 |
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
Three Months Ended March
31, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(3,331 |
) |
|
$ |
(2,561 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
Depreciation and
amortization |
|
59 |
|
|
|
54 |
|
Charge for 401(k) company
common stock match |
|
45 |
|
|
|
44 |
|
Stock-based compensation |
|
523 |
|
|
|
324 |
|
Non-cash lease expense |
|
95 |
|
|
|
87 |
|
Deferred income tax
provision |
|
6 |
|
|
|
6 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable |
|
40 |
|
|
|
47 |
|
Unbilled receivables |
|
(24 |
) |
|
|
(93 |
) |
Prepaid expenses and other assets |
|
(2 |
) |
|
|
(6 |
) |
Accounts payable |
|
(59 |
) |
|
|
51 |
|
Accrued expenses |
|
(330 |
) |
|
|
(480 |
) |
Lease liabilities |
|
(122 |
) |
|
|
(109 |
) |
Other liabilities |
|
(2 |
) |
|
|
(1 |
) |
Net cash used in operating activities |
|
(3,102 |
) |
|
|
(2,637 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property and
equipment |
|
(114 |
) |
|
|
(101 |
) |
Purchase of investments |
|
— |
|
|
|
(869 |
) |
Proceeds from the maturity of
short-term investments |
|
26 |
|
|
|
3,000 |
|
Net cash (used in) provided by investing activities |
|
(88 |
) |
|
|
2,030 |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
|
— |
|
|
|
3,856 |
|
Proceeds from public offering,
net of issuance costs |
|
— |
|
|
|
11,993 |
|
Taxes paid on employees'
behalf related to vesting of stock awards |
|
(14 |
) |
|
|
(83 |
) |
Net cash (used in) provided by financing activities |
|
(14 |
) |
|
|
15,766 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
3 |
|
|
|
— |
|
|
|
|
|
Net (decrease) increase in
cash, cash equivalents and restricted cash |
|
(3,201 |
) |
|
|
15,159 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
5,593 |
|
|
|
3,687 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
2,392 |
|
|
$ |
18,846 |
|
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