ROSEVILLE, Minn., Nov. 4, 2021 /PRNewswire/ -- Calyxt,
Inc. (NASDAQ: CLXT), a plant-based synthetic biotechnology
company, today announced financial results for its third quarter
ended September 30, 2021.
"Since I joined the Company as CEO in July, Calyxt has made
significant progress, aligning on a new strategic direction that
leverages our Company's strengths and key areas of differentiation,
and positions Calyxt as a synthetic biology company in its own
right," said Michael A Carr, President and Chief Executive Officer
at Calyxt. "The cornerstone of our strategy is to leverage our
proprietary PlantSpring technology platform with our BioFactory
production system, which together enable us to provide plant-based
synthetic biology solutions to important end markets and target
customers, and thus help these customers produce products that meet
their corporate sustainability goals. These target customers
provide an enormous opportunity for Calyxt, and include companies
within such industries as nutraceuticals, cosmeceuticals, personal
care, advanced materials and chemicals."
Mr. Carr added: "We recently welcomed Dr. Seth Dobrin, IBM's Global Chief Artificial
Intelligence Officer, to our Scientific Advisory Board. Seth's deep
experience bringing AI-based business solutions to major global
corporations will be valuable as we continue to develop and augment
our artificial intelligence and machine learning capabilities. We
believe we can develop engineered biomolecules in plants for
customers at faster speeds than our competitors in the synthetic
biology industry. With Seth's guidance, we aim to achieve further
efficiency in our processes. Concurrently, we continue to license
our technology and develop products for agricultural customers
based on their needs, including our recently announced research
collaboration with a leading global food ingredient manufacturer,
which marked an important validation of our technology platform and
for Calyxt's evolution to a partner-driven innovation model. I look
forward to driving continued progress across our business to
realize value for our shareholders."
Key accomplishments in the third quarter of 2021 and through the
date of this release include:
- In October, the Company announced the launch of a strategic
initiative that will focus Calyxt on engineering synthetic biology
solutions for a diversified base of customers across an expanded
group of end markets, including the nutraceutical, cosmeceutical,
pharmaceutical, advanced materials, and chemicals industries.
Central to the strategy is the integration of the Company's
proprietary technology platform, PlantSpring, with its BioFactory
production system, which together will enable Calyxt to rapidly
prototype and produce complex plant-derived compounds without the
need for outdoor cropping systems. The Company estimates that,
aided by artificial intelligence and machine learning (AIML), it
will be able to take a customer's plant-based chemistry need
through Calyxt's development cycle and pilot-level production
process within a 36-month period, with commercial scale production
to commence thereafter. The final output, based upon the
engineering of plant metabolism to efficiently produce plant-based
compounds, is designed to provide customers across industries a
safe and more sustainable supply of these compounds for use in a
myriad of products and manufacturing processes.
- The Company has commissioned its first pilot BioFactory
production system and it is expected to be online by the end of
2021.
- In October 2021, the Company
announced the appointment of Seth
Dobrin, Ph.D., to its SAB. Dr. Dobrin is the Global Chief
Artificial Intelligence (AI) Officer at IBM and brings extensive
leadership experience and a track record of transforming companies
through data and AI. Dr. Dobrin's deep experience bringing AI-based
business solutions to major global corporations will be valuable as
the Company continues to develop and augment the AIML capabilities
of its PlantSpring platform and BioFactory production
system.
- In September 2021, the Company
launched a $50.0 million ATM share
issuance program. As of the date of this report, Calyxt has issued
approximately 1.2 million shares of common stock under the ATM
program for proceeds of $3.7 million
net of commissions and payments for other share issuance
costs.
- Entered into a research collaboration with a leading global
food ingredient manufacturer based in Asia to develop an improved soybean capable of
producing an oil as a sustainable commercial alternative to palm
oil. As part of the research collaboration, the Company will
receive cash payments in each of the two years of its term. This
collaboration agreement also includes a commercial option for the
global food ingredient manufacturer.
- Completed the sale of nearly all the 2020 grain crop to ADM,
with the remaining grain projected to be sold by the end of the
calendar year. This series of transactions, which began in the
third quarter of 2020, has generated $35.7
million in total cash since sales commenced.
- Net cash used by operating activities improved by $16.2 million from the same period a year ago
driven primarily by an improvement in the Company's working capital
investment and operating expenses associated with the wind-down of
its soybean product line.
Financial Results for the Three Months Ended September 30, 2021
- Revenue was $7.8 million in the
third quarter of 2021, an increase of $2.5
million, or 48 percent, from the third quarter of 2020. The
increase was driven by the volume and mix of product sold in the
quarter, as the Company sold grain in the third quarter of 2021 as
compared to the third quarter of 2020, when the Company was
primarily selling soybean oil and meal. As of September 30, 2021, the Company had sold
substantially all of the 2020 grain crop.
- Cost of goods sold was $8.3
million in the third quarter of 2021, an increase of
$1.2 million, or 17 percent, from the
third quarter of 2020. The increase was driven by higher volumes of
product sold and higher average prices paid for grain due to
increases in commodity market prices for soybeans. These increases
were partially offset by the benefits resulting from the move to
sell grain compared to selling primarily soybean oil and meal, as
well as a $2.1 million year-over-year
benefit from unrealized commodity derivative gains from hedging
contracts entered into to convert fixed price grain inventories and
forward purchase contracts to floating prices, consistent with how
the grain was sold. As a result of the continued wind-down of the
Company's soybean product line, it held no commodity derivative
contracts at September 30,
2021.
- Gross profit was negative $0.5
million, or negative seven percent of revenue, in the third
quarter of 2021, compared to negative $1.8
million, or negative 35 percent of revenue, in the third
quarter of 2020. This increase of $1.3
million, or 71 percent, from the third quarter of 2020 was
largely driven by the benefits resulting from the move to sell
grain compared to selling primarily oil and meal, as well as a
$2.1 million year-over-year benefit
from unrealized commodity derivative gains, as described above.
Adjusted gross profit, a non-GAAP measure, was negative
$2.7 million, or negative 35 percent
of revenue, in the third quarter of 2021, compared to negative
$1.3 million, or negative 24 percent
of revenue, in the third quarter of 2020. The decrease in adjusted
gross profit percentage was driven by the net prices paid for grain
sold in the third quarter of 2021 compared to the mix of products
sold and related profit margins realized in the third quarter of
2020.
See below under the heading "Use of Non-GAAP Financial Information"
for a discussion of adjusted gross profit and adjusted gross profit
percentage and a reconciliation of gross profit and gross profit
percentage, the most comparable GAAP measure, to adjusted gross
profit and adjusted gross profit percentage, respectively.
- Total operating expenses were $6.4
million in the third quarter of 2021, a decrease of
$0.8 million, or 11 percent, from
$7.2 million in the third quarter of
2020. The decrease was driven by lower personnel expenses as a
result of cost reductions following the move to sell grain compared
to selling oil and meal, other reductions in operating expenses,
and restructuring costs recognized in the third quarter of
2020.
- Net loss was $7.3 million in the
third quarter of 2021, an improvement of $2.2 million, or 23 percent, from the third
quarter of 2020. The improvement in net loss was driven by improved
gross profits and reduced operating expenses. Net loss per share
was $0.20 in the third quarter of
2021, an improvement of $0.09 per
share, or 31 percent, from the third quarter of 2020. The
improvement in net loss per share was driven by the change in net
loss and the year-over-year increase in the weighted average share
count.
Adjusted net loss was $9.1 million in
the third quarter of 2021, essentially flat compared to the third
quarter of 2020. Adjusted net loss per share was $0.24 in the third quarter of 2021, an
improvement of $0.04 per share, or 14
percent, from the third quarter of 2020. The improvement in
adjusted net loss per share was driven by the year-over-year
increase in the weighted average share count.
See below under the heading "Use of Non-GAAP Financial Information"
for a discussion of adjusted net loss and adjusted net loss per
share, and reconciliations of net loss and net loss per share, the
most comparable GAAP measures, to adjusted net loss and adjusted
net loss per share.
- Adjusted EBITDA loss was $6.9
million in the third quarter of 2021, essentially flat
compared to the third quarter of 2020.
See below under the heading "Use of Non-GAAP Financial Information"
for a discussion of adjusted EBITDA and a reconciliation of net
loss, the most comparable GAAP measure, to adjusted EBITDA.
- Net cash used by operating activities was $3.4 million in the third quarter of 2021, an
improvement of $1.8 million from the
third quarter of 2020. This cash performance was driven by
collections from the sale of grain to ADM, continued declines in
the working capital investment associated with the wind down of
that grain sales activity, and strong operating expense
management.
- Cash, cash equivalents, and restricted cash totaled
$14.9 million as of September 30, 2021.
"Over the past nine months, we realized a $16.2 million year-over-year improvement in cash
flow from operations as a result of increased product sales,
improved gross profits, a reduction in our working capital
investment associated with our soybean product line, and strong
management of cash expenditures. We have raised $3.7 million since putting our ATM facility in
place and are on track to achieve our target for cash operating
expenses for the year of $25 million
or lower, an amount that at this time is also inclusive of any
BioFactory-related spending in the fourth quarter," said
Bill Koschak, Calyxt's Chief
Financial Officer.
Third Quarter 2021 Results Conference Call
Calyxt's President and Chief Executive Officer Michael A. Carr and Chief Financial Officer
Bill Koschak will host a conference
call discussing Calyxt's results for the third quarter of 2021,
followed by a question-and-answer session where they will be joined
by Dr. Travis Frey, the Company's
Chief Technology Officer. The conference call will be accompanied
by a presentation, which can be viewed during the webcast or
accessed via the investor relations section of Calyxt's website at
www.calyxt.com.
To access the call, please use the following information:
Date:
|
Thursday, November 4,
2021
|
Time:
|
4:30 p.m. EST, 1:30
p.m. PST
|
Toll Free dial-in
number:
|
+1-888-317-6003
|
Toll/International
dial-in number:
|
+1-412-317-6061
|
Conference
ID:
|
1329064
|
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. The conference call will also be broadcast live and
available for replay via the investor relations section of the
company's website at www.calyxt.com.
A replay of the webcast will be available for 30 days following
the event.
Toll Free Replay
Number:
|
+1-877-344-7529
|
International Replay
Number:
|
+1-412-317-0088
|
Replay ID:
|
10161186
|
About the PlantSpring™ Technology Platform and BioFactory™
Production System
Calyxt's technology platform, PlantSpring, is founded on the
Company's more than a decade of experience engineering plant
metabolism, and includes its scientific knowledge, its proprietary
systems, tools, and technologies; and an expanding set of AIML
capabilities. This licensable platform delivers innovation through
an efficient development process. The process includes
identification of breakthrough compounds based on customer needs,
design strategies to reprogram host cells, engineering of plant
cell metabolism to optimally produce targeted plant-based
chemistries, and production of those target chemistries at
laboratory scale. Calyxt has developed early-stage AIML
capabilities in PlantSpring, which enable learning and adaptation
of knowledge gained from past activity and can be combined with
predictive analytics to rapidly prototype and provide feedback,
accelerating the time to complete the design-engineer-verify
development cycle and helping mitigate the risk associated with
commercial scale-up. As a result, Calyxt believes it can develop
biomolecules in plants for customers at faster speeds than its
competitors in the synthetic biology industry. The output from the
PlantSpring platform integrates with the Company's newly
commissioned BioFactory production system.
The BioFactory production system is the culmination of the work
of Calyxt's researchers and will enable the Company to expand its
production methods from solely outdoor agriculture systems to also
include controlled environment, bioreactor-based production
systems. The BioFactory harnesses the potential of plant cells in a
multicellular matrixed structure and utilizes nutrient media for
its production. The BioFactory leverages multiple cell types, and
the multicellular matrix structures enable processing of
plant-based chemistries of increased complexity relative to those
possible using traditional fermentation systems or single cell
plant culture methods. In addition, the speed of the matrix growth
over time is expected to accelerate the production of the compound
at scale. As a result, Calyxt's production system is capable of
unlocking the power of plants to produce complex compounds that are
finite, difficult to source sustainably, and that may not be able
to be produced using other production methods. Calyxt has been
running lab-scale bioreactors for several months and its first
pilot-scale bioreactor has been commissioned and is expected to be
online by the end of 2021. There may be a range of vessel sizes
between the initial pilot facility and commercial production. For
transition from pilot to commercialization, the Company's current
plan is to use third parties, referred to as infrastructure
partners, for at-scale BioFactory production. Because of its
production methodology, Calyxt believes the BioFactory has the
potential to be one of the most sustainable production systems
across industries.
About Calyxt:
Calyxt (Nasdaq: CLXT) is a plant-based synthetic biotechnology
company. The Company leverages its proprietary PlantSpring™
technology platform to engineer innovative materials and products
for its customers to help them meet their sustainability goals.
Calyxt's diversified offerings are primarily delivered through its
proprietary BioFactory™ production system. For more information,
visit www.calyxt.com.
PlantSpring, BioFactory, and the Calyxt logo are trademarks of
Calyxt, Inc. Any other trademarks belong to their respective
owners.
Contacts:
Calyxt Media
Contact:
|
Calyxt Investor
Relations Contact:
|
David Rosen/Sarah
Sutton/John Garabo
Argot
Partners
(212)
600-1902
media@calyxt.com
|
Sherri
Spear
Argot
Partners
(212)
600-1902
investors@calyxt.com
|
|
|
Calyxt Business
Development Contact:
|
|
Sarah
Reiter
Calyxt,
Inc.
(612)
427-7881
contact@calyxt.com
|
|
USE OF NON-GAAP FINANCIAL INFORMATION
To supplement the Company's financial results prepared in
accordance with GAAP, it has prepared certain non-GAAP measures
that include or exclude special items. These non-GAAP measures are
not meant to be considered in isolation or as a substitute for
financial information presented in accordance with GAAP and should
be viewed as supplemental and in addition to financial information
presented in accordance with GAAP. Investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures. In addition, other companies may report
similarly titled measures, but calculate them differently, which
reduces their usefulness as a comparative measure. Management
utilizes these non-GAAP metrics as performance measures in
evaluating and making operational decisions regarding Calyxt's
business.
The Company's non-GAAP financial measures reflect adjustments
for certain commodity derivatives entered into in connection with
its soybean product line. As a result of the continued wind-down of
this product line, the Company held no commodity derivative
contracts at September 30, 2021.
The Company presents adjusted gross profit and adjusted gross
profit percentage, which are non-GAAP measures. Adjusted gross
profit reflects adjustments necessary to present the underlying
gross profit of its soybean product line, including (i) unrealized
gains and losses associated with commodity derivatives entered into
to hedge the change in value of fixed price grain inventories and
fixed price forward purchase contracts that should be recognized in
the future when the underlying inventory is sold, (ii) gains and
losses from commodity derivatives realized in prior periods but
associated with inventory sold in the current period, (iii) net
realizable value adjustments to inventories occurring in the period
which otherwise would have been recognized in the future when the
underlying inventory is sold, and (iv) net realizable value
adjustments recognized in prior periods but associated with
inventory sold in the current period. Adjusted gross profit
percentage is derived from adjusted gross profit, a non-GAAP
measure, and total revenue.
The Company provides in the table below a reconciliation of
gross profit and gross profit percentage, which are the most
directly comparable GAAP financial measures, to adjusted gross
profit and adjusted gross profit percentage. The Company provides
adjusted gross profit and adjusted gross profit percentage because
it believes that these non-GAAP financial metrics provide investors
with useful supplemental information as the amounts being adjusted
affect the period-to-period comparability of gross profit and
financial performance.
The table below presents a reconciliation of gross profit and
gross profit percentage to adjusted gross profit and adjusted gross
profit percentage:
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
In
Thousands
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Gross profit (GAAP
measure)
|
$
|
(519)
|
|
|
$
|
(1,819)
|
|
|
$
|
(2,509)
|
|
|
$
|
(6,340)
|
|
Gross profit
percentage
|
|
(7)
|
%
|
|
|
(35)
|
%
|
|
|
(10)
|
%
|
|
|
(64)
|
%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(2,073)
|
|
|
|
1,107
|
|
|
|
(2,520)
|
|
|
|
1,107
|
|
Net realizable value
adjustments to inventories
|
|
(88)
|
|
|
|
(555)
|
|
|
|
(160)
|
|
|
|
2,000
|
|
Adjusted gross
profit
|
$
|
(2,680)
|
|
|
$
|
(1,267)
|
|
|
$
|
(5,189)
|
|
|
$
|
(3,233)
|
|
Adjusted gross
profit percentage
|
|
(35)
|
%
|
|
|
(24)
|
%
|
|
|
(22)
|
%
|
|
|
(33)
|
%
|
The Company presents adjusted net loss, a non-GAAP measure, and
defines it as net loss including adjustments necessary to present
the underlying gross profit of its soybean product line, including
(i) unrealized gains and losses associated with commodity
derivatives entered into to hedge the change in value of fixed
price grain inventories and fixed price forward purchase contracts
that should be recognized in the future when the underlying
inventory is sold, (ii) gains and losses from commodity derivatives
realized in prior periods but associated with inventory sold in the
current period, (iii) net realizable value adjustments to
inventories occurring in the period which otherwise would have been
recognized in the future when the underlying inventory is sold, and
(iv) net realizable value adjustments recognized in prior periods
but associated with inventory sold in the current period, and
excluding cash-based Section 16 officer transition expenses,
restructuring costs, the recapture of non-cash stock compensation
associated with the departure of Section 16 officers and
restructuring-related staffing adjustments made in the third
quarter of 2020, the gain upon the extinguishment of the Payroll
Protection Plan (PPP) loan, and non-operating expenses, which are
primarily gains and losses on foreign exchange transactions and
losses on the disposals of land, buildings, and equipment.
The Company provides in the table below a reconciliation of net
loss, which is the most directly comparable GAAP financial measure,
to adjusted net loss. The Company provides adjusted net loss
because it believes that this non-GAAP financial metric provides
investors with useful supplemental information at this stage of
commercialization as the amounts being adjusted affect the
period-to-period comparability of net losses and financial
performance.
The table below presents a reconciliation of net loss to
adjusted net loss:
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
In
Thousands
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss (GAAP
measure)
|
$
|
(7,307)
|
|
|
$
|
(9,476)
|
|
|
$
|
(22,142)
|
|
|
$
|
(31,441)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(2,073)
|
|
|
|
1,107
|
|
|
|
(2,520)
|
|
|
|
1,107
|
|
Net realizable value
adjustments to inventories
|
|
(88)
|
|
|
|
(555)
|
|
|
|
(160)
|
|
|
|
2,000
|
|
Section 16 officer
transition expenses
|
|
345
|
|
|
|
56
|
|
|
|
3,079
|
|
|
|
493
|
|
Restructuring
costs
|
|
—
|
|
|
|
436
|
|
|
|
—
|
|
|
|
436
|
|
Recapture of non-cash
stock compensation
|
|
—
|
|
|
|
(906)
|
|
|
|
(2,540)
|
|
|
|
(1,377)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
—
|
|
|
|
—
|
|
|
|
(1,528)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
(6)
|
|
|
|
102
|
|
|
|
(11)
|
|
|
|
121
|
|
Adjusted net
loss
|
$
|
(9,129)
|
|
|
$
|
(9,236)
|
|
|
$
|
(25,822)
|
|
|
$
|
(28,661)
|
|
The Company presents adjusted net loss per share, a non-GAAP
measure, and defines it as net loss per share including adjustments
necessary to present the underlying gross profit of its soybean
product line, including (i) unrealized gains and losses associated
with commodity derivatives entered into to hedge the change in
value of fixed price grain inventories and fixed price forward
purchase contracts that should be recognized in the future when the
underlying inventory is sold, (ii) gains and losses from commodity
derivatives realized in prior periods but associated with inventory
sold in the current period, (iii) net realizable value adjustments
to inventories occurring in the period which otherwise would have
been recognized in the future when the underlying inventory is
sold, and (iv) net realizable value adjustments recognized in prior
periods but associated with inventory sold in the current period,
and excluding cash-based Section 16 officer transition expenses,
restructuring costs, the recapture of non-cash stock compensation
associated with the departure of Section 16 officers and
restructuring-related staffing adjustments made in the third
quarter of 2020, the gain upon the extinguishment of the PPP loan,
and non-operating expenses, which are primarily gains and losses on
foreign exchange transactions and losses on the disposals of land,
buildings, and equipment.
The Company provides in the table below a reconciliation of net
loss per share, which is the most directly comparable GAAP
financial measure, to adjusted net loss per share. The Company
provides adjusted net loss per share because it believes that this
non-GAAP financial metric provides investors with useful
supplemental information at this stage of commercialization as the
amounts being adjusted affect the period-to-period comparability of
net losses per share and financial performance.
The table below presents a reconciliation of net loss per share
to adjusted net loss per share:
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss per share
(GAAP measure)
|
$
|
(0.20)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.60)
|
|
|
$
|
(0.95)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(0.06)
|
|
|
|
0.03
|
|
|
|
(0.07)
|
|
|
|
0.03
|
|
Net realizable value
adjustments to inventories
|
|
—
|
|
|
|
(0.01)
|
|
|
|
—
|
|
|
|
0.06
|
|
Section 16 officer
transition expenses
|
|
0.02
|
|
|
|
0.01
|
|
|
|
0.09
|
|
|
|
0.02
|
|
Restructuring
costs
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
|
0.01
|
|
Recapture of non-cash
stock compensation
|
|
—
|
|
|
|
(0.03)
|
|
|
|
(0.07)
|
|
|
|
(0.04)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
—
|
|
|
|
—
|
|
|
|
(0.04)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net loss
per share
|
$
|
(0.24)
|
|
|
$
|
(0.28)
|
|
|
$
|
(0.69)
|
|
|
$
|
(0.87)
|
|
The Company presents adjusted EBITDA, a non-GAAP measure, and
defines it as net loss including adjustments necessary to
present the underlying gross profit of its soybean product line,
including (i) unrealized gains and losses associated with commodity
derivatives entered into to hedge the change in value of fixed
price grain inventories and fixed price forward purchase contracts
that should be recognized in the future when the underlying
inventory is sold, (ii) gains and losses from commodity derivatives
realized in prior periods but associated with inventory sold in the
current period, (iii) net realizable value adjustments to
inventories occurring in the period which otherwise would have been
recognized in the future when the underlying inventory is sold, and
(iv) net realizable value adjustments recognized in prior periods
but associated with inventory sold in the current period, and
excluding interest, net, depreciation and amortization expenses,
non-cash stock compensation expenses including the recapture of
non-cash stock compensation associated with the departure of
Section 16 officers and restructuring-related staffing adjustments
made in the third quarter of 2020, cash-based Section 16 officer
transition expenses, restructuring costs, the gain upon the
extinguishment of the PPP loan, and non-operating expenses, which
are primarily gains and losses on foreign exchange transactions and
losses on the disposals of land, buildings, and equipment.
The Company provides in the table below a reconciliation of net
loss, which is the most directly comparable GAAP financial measure,
to adjusted EBITDA. Because adjusted EBITDA excludes non-cash items
and discrete or infrequently occurring items, the Company believes
that adjusted EBITDA provides investors with useful supplemental
information about the operational performance of its business and
facilitates the period-to-period comparability of financial results
where certain items may vary significantly independent of business
performance.
The table below presents a reconciliation of net loss to
adjusted EBITDA:
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
In
Thousands
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss (GAAP
measure)
|
$
|
(7,307)
|
|
|
$
|
(9,476)
|
|
|
$
|
(22,142)
|
|
|
$
|
(31,441)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(2,073)
|
|
|
|
1,107
|
|
|
|
(2,520)
|
|
|
|
1,107
|
|
Net realizable value
adjustments to inventories
|
|
(88)
|
|
|
|
(555)
|
|
|
|
(160)
|
|
|
|
2,000
|
|
Interest,
net
|
|
356
|
|
|
|
324
|
|
|
|
1,059
|
|
|
|
568
|
|
Depreciation and
amortization expenses
|
|
596
|
|
|
|
468
|
|
|
|
1,776
|
|
|
|
1,372
|
|
Stock-based
compensation expenses
|
|
1,236
|
|
|
|
570
|
|
|
|
865
|
|
|
|
3,638
|
|
Section 16 officer
transition expenses
|
|
345
|
|
|
|
56
|
|
|
|
3,079
|
|
|
|
493
|
|
Restructuring
costs
|
|
—
|
|
|
|
436
|
|
|
|
—
|
|
|
|
436
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
—
|
|
|
|
—
|
|
|
|
(1,528)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
(6)
|
|
|
|
102
|
|
|
|
(11)
|
|
|
|
121
|
|
Adjusted
EBITDA
|
$
|
(6,941)
|
|
|
$
|
(6,968)
|
|
|
$
|
(19,582)
|
|
|
$
|
(21,706)
|
|
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify these statements by forward-looking words such as
"anticipates," "believes," "continue," "estimates," "expects,"
"intends," "may," "might," "plans," "predicts," "projects,"
"should," "targets," "will," or the negative of these terms and
other similar terminology. Forward-looking statements in this press
release include statements about our future financial performance,
including the Company's cash runway; its product pipeline and
development; its business model and strategies for the development,
commercialization, and sales of commercial products; commercial
demand for its synthetic biology solutions; the development and
deployment of its PlantSpring technology platform; its ability to
deploy and leverage AI and ML capabilities; the ability to scale
production capability for its BioFactory production system;
potential development agreements, partnerships, customer
relationships, and licensing arrangements and their contribution to
its financial results, cash usage, and growth strategies; and
anticipated trends in its business. These and other forward-looking
statements are predictions and projections about future events and
trends based on the Company's current expectations, objectives, and
intentions and are premised on current assumptions. The Company's
actual results, level of activity, performance, or achievements
could be materially different than those expressed, implied, or
anticipated by forward-looking statements due to a variety of
factors, including, but not limited to: the severity and duration
of the evolving COVID-19 pandemic and the resulting impact on
macro-economic conditions; the impact of increased competition,
including competition from a broader array of synthetic biology
companies; disruptions at the Company's key facilities, including
disruptions impacting its BioFactory production system; flaws in AI
and ML algorithms, insufficiency of data inputs required by such
algorithms, and human error in interacting with AI and ML; changes
in customer preferences and market acceptance of its products;
changes in market consensus as to what attributes are required for
a product to be considered "sustainable"; competition for
customers, partners, and licensees and the successful execution of
development and licensing agreements; the impact of adverse events
during development, including unsuccessful pilot production of
compounds or field trials; the impact of improper handling of its
product candidates during development; failures by third-party
contractors; inaccurate demand forecasting or milestone and royalty
payment projections; the effectiveness of commercialization efforts
by commercial partners or licensees; disruptions to supply chains,
including raw material inputs for our BioFactory; the impact of
changes or increases in oversight and regulation; disputes or
challenges regarding intellectual property; proliferation and
continuous evolution of new technologies; management changes;
dislocations in the capital markets; and other important factors
discussed under the caption entitled "Risk Factors" in the
Company's Annual Report on Form 10-K and subsequent filings on Form
10-Q or Form 8-K with the U.S. Securities and Exchange Commission.
Any forward-looking statements made by management of the Company
are based only on information currently available to it when, and
speak only as of the date, such statement is made. The Company does
not assume any obligation to publicly provide revisions or updates
to any forward-looking statements, whether as a result of new
information, future developments or otherwise, should circumstances
change, except as otherwise required by law.
CALYXT,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In Thousands,
Except Par Value and Share Amounts)
|
|
|
September 30, 2021
(unaudited)
|
|
|
December 31, 2020
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
13,922
|
|
|
$
|
17,299
|
|
Short-term
investments
|
|
—
|
|
|
|
11,698
|
|
Restricted
cash
|
|
393
|
|
|
|
393
|
|
Accounts
receivable
|
|
206
|
|
|
|
4,887
|
|
Inventory
|
|
1,674
|
|
|
|
1,383
|
|
Prepaid expenses and
other current assets
|
|
1,057
|
|
|
|
3,930
|
|
Total current
assets
|
|
17,252
|
|
|
|
39,590
|
|
Non-current
restricted cash
|
|
598
|
|
|
|
597
|
|
Land, buildings, and
equipment
|
|
21,476
|
|
|
|
22,860
|
|
Other non-current
assets
|
|
195
|
|
|
|
280
|
|
Total
assets
|
$
|
39,521
|
|
|
$
|
63,327
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
1,037
|
|
|
$
|
929
|
|
Accrued
expenses
|
|
1,139
|
|
|
|
2,891
|
|
Accrued
compensation
|
|
2,284
|
|
|
|
1,950
|
|
Due to related
parties
|
|
149
|
|
|
|
766
|
|
Current portion of
financing lease obligations
|
|
387
|
|
|
|
364
|
|
Other current
liabilities
|
|
147
|
|
|
|
45
|
|
Total current
liabilities
|
|
5,143
|
|
|
|
6,945
|
|
Financing lease
obligations
|
|
17,582
|
|
|
|
17,876
|
|
Long-term
debt
|
|
—
|
|
|
|
1,518
|
|
Other non-current
liabilities
|
|
971
|
|
|
|
113
|
|
Total
liabilities
|
|
23,696
|
|
|
|
26,452
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, $0.0001
par value; 275,000,000 shares authorized;
37,401,876 shares issued and 37,301,724 shares outstanding as
of
September 30, 2021, and 37,165,196 shares issued and
37,065,044 shares
outstanding as of December 31, 2020
|
|
4
|
|
|
|
4
|
|
Additional paid-in
capital
|
|
205,899
|
|
|
|
204,807
|
|
Common stock in
treasury, at cost; 100,152 shares as of September 30,
2021,
and December 31, 2020
|
|
(1,043)
|
|
|
|
(1,043)
|
|
Accumulated
deficit
|
|
(189,035)
|
|
|
|
(166,893)
|
|
Total
stockholders' equity
|
|
15,825
|
|
|
|
36,875
|
|
Total liabilities
and stockholders' equity
|
$
|
39,521
|
|
|
$
|
63,327
|
|
CALYXT,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited and in
Thousands Except Shares and Per Share Amounts)
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenue
|
$
|
7,762
|
|
|
$
|
5,241
|
|
|
$
|
24,044
|
|
|
$
|
9,925
|
|
Cost of goods
sold
|
|
8,281
|
|
|
|
7,060
|
|
|
|
26,553
|
|
|
|
16,265
|
|
Gross
profit
|
|
(519)
|
|
|
|
(1,819)
|
|
|
|
(2,509)
|
|
|
|
(6,340)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,579
|
|
|
|
2,204
|
|
|
|
8,473
|
|
|
|
7,816
|
|
Selling, general, and
administrative
|
|
3,859
|
|
|
|
4,523
|
|
|
|
11,595
|
|
|
|
15,988
|
|
Management
fees
|
|
—
|
|
|
|
68
|
|
|
|
45
|
|
|
|
172
|
|
Restructuring
costs
|
|
—
|
|
|
|
436
|
|
|
|
—
|
|
|
|
436
|
|
Total operating
expenses
|
|
6,438
|
|
|
|
7,231
|
|
|
|
20,113
|
|
|
|
24,412
|
|
Loss from
operations
|
|
(6,957)
|
|
|
|
(9,050)
|
|
|
|
(22,622)
|
|
|
|
(30,752)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
—
|
|
|
|
—
|
|
|
|
1,528
|
|
|
|
—
|
|
Interest,
net
|
|
(356)
|
|
|
|
(324)
|
|
|
|
(1,059)
|
|
|
|
(568)
|
|
Non-operating
expenses
|
|
6
|
|
|
|
(102)
|
|
|
|
11
|
|
|
|
(121)
|
|
Loss before income
taxes
|
|
(7,307)
|
|
|
|
(9,476)
|
|
|
|
(22,142)
|
|
|
|
(31,441)
|
|
Income
taxes
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net
loss
|
$
|
(7,307)
|
|
|
$
|
(9,476)
|
|
|
$
|
(22,142)
|
|
|
$
|
(31,441)
|
|
Basic and diluted
net loss per share
|
$
|
(0.20)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.60)
|
|
|
$
|
(0.95)
|
|
Weighted average
shares outstanding - basic and
diluted
|
|
37,279,703
|
|
|
|
33,200,289
|
|
|
|
37,205,655
|
|
|
|
33,076,376
|
|
Anti-dilutive
stock options, restricted stock units, and
performance stock units
|
|
5,966,488
|
|
|
|
5,581,307
|
|
|
|
5,966,488
|
|
|
|
5,581,307
|
|
CALYXT,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited and in
Thousands)
|
|
|
Nine Months
Ended
September 30,
|
|
|
2021
|
|
|
2020
|
|
Operating
activities
|
|
|
|
|
|
Net loss
|
$
|
(22,142)
|
|
|
$
|
(31,441)
|
|
Adjustments to
reconcile net loss to net cash used by operating
activities:
|
|
|
|
|
|
Gain upon
extinguishment of Payroll Protection Program loan
|
|
(1,528)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
1,776
|
|
|
|
1,372
|
|
Stock-based
compensation
|
|
865
|
|
|
|
3,638
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
4,681
|
|
|
|
(1,310)
|
|
Due to/from related
parties
|
|
(617)
|
|
|
|
(498)
|
|
Inventory
|
|
(291)
|
|
|
|
(3,359)
|
|
Prepaid expenses and
other current assets
|
|
2,873
|
|
|
|
(707)
|
|
Accounts
payable
|
|
108
|
|
|
|
86
|
|
Accrued
expenses
|
|
(1,742)
|
|
|
|
1,717
|
|
Accrued
compensation
|
|
334
|
|
|
|
(572)
|
|
Other
|
|
1,029
|
|
|
|
183
|
|
Net cash used by
operating activities
|
|
(14,654)
|
|
|
|
(30,891)
|
|
Investing
activities
|
|
|
|
|
|
Sales and (purchases)
of short-term investments, net
|
|
11,698
|
|
|
|
(20,802)
|
|
Purchases of land,
buildings, and equipment
|
|
(376)
|
|
|
|
(1,253)
|
|
Net cash provided
(used) by investing activities
|
|
11,322
|
|
|
|
(22,055)
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from Payroll
Protection Program loan
|
|
—
|
|
|
|
1,518
|
|
Repayments of
financing lease obligations
|
|
(271)
|
|
|
|
(217)
|
|
Proceeds from the
exercise of stock options
|
|
227
|
|
|
|
211
|
|
Net cash (used)
provided by financing activities
|
|
(44)
|
|
|
|
1,512
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
|
(3,376)
|
|
|
|
(51,434)
|
|
Cash, cash
equivalents, and restricted cash - beginning of period
|
|
18,289
|
|
|
|
60,038
|
|
Cash, cash
equivalents, and restricted cash – end of
period
|
$
|
14,913
|
|
|
$
|
8,604
|
|
View original
content:https://www.prnewswire.com/news-releases/calyxt-reports-third-quarter-2021-financial-results-301416959.html
SOURCE Calyxt, Inc.