ROSEVILLE, Minn., March 3, 2022 /PRNewswire/ -- Calyxt,
Inc. (Nasdaq: CLXT), a plant-based synthetic biology company,
today announced financial results for its fourth quarter and full
year ended December 31, 2021.
"Last year was transformational for Calyxt, as we evolved our
strategic direction to focus our innovations on plant-based
technology and production for new customers in an expanded group of
end markets, becoming a synthetic biology company in our own
right," said Michael A. Carr,
President and Chief Executive Officer at Calyxt. "Since the start
of the fourth quarter of 2021, we've accelerated our momentum by
achieving several milestones. These milestones include
operationalizing our pilot BioFactory; expanding our Scientific
Advisory Board to include renowned AIML expertise; securing key
hires in business development, AIML, and technology licensing;
advancing discussions with a widening breadth of potential new
customers; and strengthening our balance sheet."
Mr. Carr added: "Altogether, this momentum puts us in a strong
position for growth and scaling the business to capitalize on the
enormous opportunity for Calyxt by leveraging our proprietary
PlantSpring technology platform with our BioFactory production
system to develop and sell high value plant-based chemistries to
target customers in large and innovative end markets including
cosmeceuticals, nutraceuticals, and pharmaceuticals. I look forward
to continuing our focused drive to realize value for our
shareholders."
Key accomplishments in the fourth quarter and full year of 2021,
and through the date of this press release, include the
following:
Reported achievement of milestones in the operationalization
of its BioFactory™ Production System
- In January 2022, Calyxt announced
that its initial pilot BioFactory production system, installed in
late December 2021, became
operational at its headquarters in Minnesota. This development was on schedule
and marked an important first step toward achieving at-scale
commercial production. The Company continues to collect and analyze
data from its 200-liter pilot facility and has begun to deploy
additional artificial intelligence and machine learning (AIML)
capabilities to the pilot facility, which are expected to drive
future decisions and help improve test cycles and development
timelines.
- In December 2021, Calyxt reported
significant progress in sustainable discovery and development of
plant-based molecules in its BioFactory. Results from its
metabolomics analyses indicated more than 15,000 chemical
signatures, including both known and as-yet-uncharacterized
molecules and building block precursors, which are chemical
compounds involved in chemical reactions that produce other
compounds. These chemical signatures form a baseline library
available for Calyxt to produce valuable compounds within the plant
based BioFactory production system.
Continued expansion of AIML capabilities across PlantSpring™
technology platform and associated development process, and
furthered customer relationships
- The Company presently uses its AIML capabilities in the design
stage of its development process to aid in the identification of
targets for editing specific genetic pathways and is beginning to
implement AIML more broadly to assist in the identification of
pathways and targets, and in scaling production beyond the
laboratory. These additional capabilities are expected to come
on-line in 2022.
- Calyxt's business model for PlantSpring and the BioFactory is
customer demand-driven, and during the period it continued to
advance its discussions with potential customers within its
expanded group of target end markets including the cosmeceutical,
nutraceutical, and pharmaceutical industries. The Company is
targeting two to four customer demand-driven compounds for
development by year end, using its selection criteria to determine
the compounds to pursue.
- To further its licensing activities, throughout 2021 the
Company achieved additional PlantSpring-related innovations,
including gaining regulatory clearance in Canada for Calyxt's high oleic soybean,
completing the validation of Calyxt's next generation soybean
product, which has a fatty acid profile that the Company believes
is best-in-class in the premium oil segment; entering into a
research collaboration with a leading global food ingredient
manufacturer to develop an improved soybean capable of producing an
oil as a commercial alternative to palm oil; successfully
transforming the hemp genome, demonstrating the ability to engineer
this genome to selectively breed and deliver improvements in hemp
traits; and creating seedless hemp via its triploid breeding
technology.
Investment in Key Hires
- Calyxt appointed Michael A. Carr
as President, Chief Executive Officer, and member of its Board of
Directors effective July 27, 2021.
Mr. Carr brings more than 20 years of business, financial, and
operational leadership experience to Calyxt and will focus on
advancing and monetizing Calyxt's technologies. Most recently, he
served as Vice President of M&A, Strategy, and Innovation at
Darling Ingredients, Inc.
- In February 2022, Calyxt
announced that Gerry Nuovo joined
the Company as Senior Vice President of Business Development,
bringing more than 30 years of experience in the specialty
chemicals and biotechnology industries and diverse experience
building multimillion-dollar income streams in the cosmeceuticals
end market, including personal care and home care. Mr. Nuovo will
be responsible for business development activities in
cosmeceuticals, including potential partnerships, deal structures,
valuation models, and subsequent transaction execution and alliance
management.
- In December 2021, Calyxt
announced the hiring of senior roles in AIML and technology
licensing. Vijay Gullapalli, Ph.D.,
joined the Company as Vice President, AIML and Data Science, and
brings nearly 25 years of experience in developing solutions for
businesses across diverse industries utilizing his expertise in
data technology and AIML. Also in December
2021, Pete Ball joined as
Technology Licensing Leader and has nearly 35 years of legal and
technology licensing experience. Mr. Ball will focus on advancing
Calyxt's licensing activities in platform technologies, including
IP relating to gene-editing in plants, and the portfolio of crop
innovations.
Establishment and Expansion of Scientific Advisory Board
(SAB)
- Calyxt formalized its SAB in March
2021 to provide guidance for Calyxt to leverage and grow the
business in new directions and help realize the significant
potential value of the Company. The SAB is chaired by Dan Voytas, Ph.D., and includes several renowned
experts in plant-biochemistry and AIML.
- Seth Dobrin, Ph.D., was
appointed to Calyxt's SAB in October
2021. 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.
Other Business Updates
- On February 23, 2022, Calyxt
closed the placement to an institutional investor in an
SEC-registered underwritten offering of 3,880,000 shares of its
common stock, pre-funded warrants to purchase up to 3,880,000
shares of its common stock, and common warrants to purchase up to
7,760,000 shares of its common stock. The gross proceeds of the
offering were $10.9 million, before
deducting underwriting fees and estimated offering expenses. The
Company plans to use the net proceeds from the offering of
$10.0 million for enhancing the
capabilities of its BioFactory production system and increasing its
capacity to produce at larger scales, continuing to build out its
PlantSpring technology platform and AIML capabilities, furthering
customer relationships, and for working capital and general
corporate purposes.
- The Company completed the wind-down of its soybean product line
in the fourth quarter of 2021 with the final sale of the 2020 grain
crop.
Financial Results for the Three Months Ended December 31, 2021
- Revenue was $1.9 million in the
fourth quarter of 2021 compared to $13.9
million in the fourth quarter of 2020. The decrease was
driven by lower volumes of product sold in 2021 as the Company had
substantially completed the wind-down of its soybean product line
prior to the fourth quarter of 2021.
- Total operating expenses were $6.6
million in the fourth quarter of 2021 compared to
$8.1 million in the fourth quarter of
2020. The decrease was driven by lower professional fees and other
operating expenses in the fourth quarter of 2021 compared to the
same period in 2020, and restructuring costs recognized in the
fourth quarter of 2020.
- Net loss was $7.1 million in the
fourth quarter of 2021 compared to $13.4
million in the fourth quarter of 2020. The improvement in
net loss was driven by improved gross profits and reduced operating
expenses. Net loss per share was $0.18 in the fourth quarter of 2021 compared to
$0.37 in the fourth quarter of 2020.
The improvement in net loss per share was driven by the change in
net loss and a year-over-year increase in the weighted average
share count.
- Adjusted net loss was $7.4
million in the fourth quarter of 2021 compared to
$12.2 million in the fourth quarter
of 2020. The improvement in adjusted net loss was driven by strong
operating expense management and the benefits from the wind-down of
the soybean product line. Adjusted net loss per share was
$0.19 in the fourth quarter of 2021
compared to $0.33 in the fourth
quarter of 2020. The improvement in adjusted net loss per share was
driven by the change in adjusted net loss and a year-over-year
increase in the weighted average share count.
Financial Results for Fiscal Year 2021
- Revenue was $26.0 million in 2021
compared to $23.9 million in 2020.
The increase was driven by sales of the 2020 grain crop, which
included higher volumes and reflected higher commodity prices, in
each case, as compared to 2020.
- Total operating expenses were $26.8
million in 2021 compared to $32.6
million in 2020. The decrease was driven by lower
professional fees, lower personnel costs, and restructuring costs
recognized in the fourth quarter of 2020. Operating expenses
excluding $2.1 million of non-cash
stock compensation expense and $2.3
million of depreciation and amortization expenses were
$22.3 million in 2021.
- Net loss was $29.2 million in
2021 compared to $44.8 million in
2020. The improvement in net loss was driven by improved gross
profits, reduced operating expenses, and the gain upon the
extinguishment of the Company's Paycheck Protection Program loan.
Net loss per share was $0.78 in 2021
compared to $1.32 in 2020. The
improvement in net loss per share was driven by the change in net
loss and a year-over-year increase in the weighted average share
count.
- Adjusted net loss was $33.2
million in 2021 compared to $40.8
million in 2020. The improvement in adjusted net loss was
driven by the benefits resulting from the move to sell grain
compared to selling oil and meal and reductions in operating
expenses. Adjusted net loss per share was $0.89 in 2021 compared to $1.20 in 2020. The improvement in adjusted net
loss per share was driven by the change in adjusted net loss and a
year-over-year increase in the weighted average share count.
- Cash, cash equivalents, and restricted cash totaled
$14.4 million as of December 31, 2021, including net proceeds from
the sale of approximately 1.4 million shares of common stock under
our ATM share issuance program. The December
31, 2021, cash balance includes $3.9
million of net proceeds from those sales, and another
$0.2 million was received in early
January 2022 following the settlement
of those sales with the broker. The balance does not include gross
proceeds of $10.9 million that was
raised in mid-February from our SEC-registered offering.
"Our plans to utilize PlantSpring and the BioFactory to target
customers in large and innovative end markets like cosmeceuticals,
nutraceuticals, and pharmaceuticals are now further supported by a
balance sheet that has been enhanced by the $10.0 million in net proceeds from the
underwritten offering we completed in February," said Bill Koschak, Calyxt's Chief Financial
Officer. "We intend to continue to be disciplined in our uses
of cash and anticipate the proceeds from the offering will be used
to support the continued growth and scaling of our BioFactory
business model and selective hiring to support the progression and
expansion of our AIML capabilities. As a result of the successful
offering of our common stock and prefunded warrants, and based on
our current business plan which reflects the growth and scaling of
our BioFactory production system and AIML capabilities, we now
expect Calyxt's cash runway to extend to late 2022."
Fourth Quarter and Full Year 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 fourth quarter and full
year 2021, followed by a question-and-answer session. 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, March 3,
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:
|
8941717
|
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:
|
5539809
|
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 incorporates its scientific knowledge, its
proprietary systems, tools, and technologies; and an expanding set
of AIML capabilities. In PlantSpring, the Company identifies
metabolic pathways to produce plant-based chemistries, designs
strategies to reprogram host cells, engineers plant cell metabolism
to optimally produce targeted compounds, and produces those
targeted compounds at laboratory scale. The Company has implemented
AIML capabilities for the identification of targets for editing
specific genetic pathways and continues to develop AIML
capabilities across the PlantSpring platform, which will enable
learning and adaptation of knowledge gained from past activity and
are expected to be combined with predictive analytics to rapidly
prototype and provide feedback, accelerate the time to complete the
development cycle and help 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 BioFactory
production system.
The BioFactory is a bioreactor-based production system that is
designed to be capable of continuous production of plant-based
chemistries. The bioreactor can be of any size depending upon
factors including yield and titer necessary to reach the required
commercial scale. For production, multicellular Plant Cell
Matrix™ (PCM™) structures are placed inside the bioreactor,
and growth media bathes the PCM structures to provide them with
nutrition, which differentiates the Company's process from other
methods that require complete submersion of cells in growth media
and/or the application of hormones to facilitate growth. A PCM
structure is a living system of various cell types, which is
designed to emulate the intercellular metabolism of an entire
plant, that grows over time and produces and stores, or excretes,
the target chemistries. The growth media is the feedstock of the
BioFactory production system and contains the essential inputs to
support growth of the PCM structures and necessary chemistry
production. The growth media is expected to be reused throughout
the production cycle, which may run for an extended time period. To
scale production in the BioFactory productions system, the Company
expects to move the PCM structures from its current bioreactor into
larger capacity bioreactors or groups of bioreactors. Calyxt began
running lab-scale bioreactors in early 2021. The Company's first
pilot-scale bioreactor became operational in December 2021 and is scalable up to 200 liters.
The pilot stage of development takes a compound developed with the
PlantSpring platform through to commercial production. Depending on
the compound to be produced, there may be a range of vessel sizes
between the initial pilot facility and the commercial production
facility. The Company's current plan is to engage third parties,
referred to as infrastructure partners, for at-scale commercial
production. Infrastructure partners are likely to be companies with
processing assets that can be converted from current production to
the Company's bioreactor-based approach. If an infrastructure
partner is used for production, the Company expects to pay a fee
for that production. Because of the expected modular nature of the
BioFactory production system and the types of high value compounds
the Company expects to develop for customers, it is also possible
that commercial production could also occur in a customer's
in-house facility. The Company expects to expand the scope of its
pilot facilities based on customer demand, and the scope of
production could extend, subject to regulatory and other
considerations, outside the United
States. 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 biology
company. The Company leverages its proprietary PlantSpring™
technology platform to engineer plant metabolism to produce
innovative high value plant-based chemistries for use in customers'
materials and products. As plant-based solutions, the Company's
synthetic biology products can be used in helping customers meet
their sustainability targets and financial goals. Calyxt's
diversified offerings are primarily delivered through its
proprietary BioFactory™ production system. For more information,
visit www.calyxt.com.
PlantSpring, BioFactory, Plant Cell Matrix™, 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/ John
Garabo/ Michael Barron
Argot Partners
(212)
600-1902
media@calyxt.com
|
Kimberly Minarovich/
Cameron Willis
Argot Partners
(212)
600-1902
investors@calyxt.com
|
Calyxt Business
Development Contact:
|
Gerry
Nuovo
Senior Vice President
of Business Development
(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 the Company'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 as of December 31,
2021.
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 grain production agreements
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, 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
December 31,
|
|
|
Year
Ended
December 31,
|
|
In
Thousands
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss (GAAP
measure)
|
$
|
(7,057)
|
|
|
$
|
(13,395)
|
|
|
$
|
(29,199)
|
|
|
$
|
(44,836)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(281)
|
|
|
|
1,694
|
|
|
|
(2,801)
|
|
|
|
2,801
|
|
Net realizable value
adjustments to inventories
|
|
(186)
|
|
|
|
(678)
|
|
|
|
(346)
|
|
|
|
1,322
|
|
Section 16 officer
transition expenses
|
|
117
|
|
|
|
50
|
|
|
|
3,196
|
|
|
|
543
|
|
Restructuring
costs
|
|
—
|
|
|
|
249
|
|
|
|
—
|
|
|
|
685
|
|
Recapture of non-cash
stock compensation
|
|
—
|
|
|
|
(75)
|
|
|
|
(2,540)
|
|
|
|
(1,452)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
—
|
|
|
|
—
|
|
|
|
(1,528)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
(8)
|
|
|
|
5
|
|
|
|
(19)
|
|
|
|
126
|
|
Adjusted net
loss
|
$
|
(7,415)
|
|
|
$
|
(12,150)
|
|
|
$
|
(33,237)
|
|
|
$
|
(40,811)
|
|
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 grain
production agreements 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
December 31,
|
|
|
Year
Ended
December 31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss per share
(GAAP measure)
|
$
|
(0.18)
|
|
|
$
|
(0.37)
|
|
|
$
|
(0.78)
|
|
|
$
|
(1.32)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(0.01)
|
|
|
|
0.05
|
|
|
|
(0.07)
|
|
|
|
0.08
|
|
Net realizable value
adjustments to inventories
|
|
—
|
|
|
|
(0.02)
|
|
|
|
(0.01)
|
|
|
|
0.04
|
|
Section 16 officer
transition expenses
|
|
—
|
|
|
|
—
|
|
|
|
0.08
|
|
|
|
0.02
|
|
Restructuring
costs
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
|
0.02
|
|
Recapture of non-cash
stock compensation
|
|
—
|
|
|
|
—
|
|
|
|
(0.07)
|
|
|
|
(0.04)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
—
|
|
|
|
—
|
|
|
|
(0.04)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net loss
per share
|
$
|
(0.19)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.89)
|
|
|
$
|
(1.20)
|
|
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 the Company's future financial
performance, including its 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 its artificial intelligence and machine
learning (AIML) 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; the potential impact of
the COVID-19 pandemic on its business and operating results; 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 impact of increased
competition, including competition from a broader array of
synthetic biology companies; competition for customers, partners,
and licensees and the successful execution of development and
licensing agreements; disruptions at its key facilities, including
disruptions impacting its BioFactory production system; flaws in
AIML algorithms, insufficiency of data inputs required by such
algorithms, and human error in interacting with AIML; 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"; the impact of adverse
events during development, including unsuccessful pilot production
of plant-based chemistries 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 its
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; the
severity and duration of the evolving COVID-19 pandemic and the
resulting impact on macro-economic conditions; and other important
factors discussed under the caption entitled "Risk Factors" in the
Company's Annual Report on Form 10-K. Any forward-looking
statements made by management of the Company are based only on
currently available information and speak only as of the date of
this report. Except as otherwise required by securities and other
applicable laws, 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)
|
|
|
|
|
|
|
|
December 31,
2021
|
|
|
December 31,
2020
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
13,823
|
|
|
$
|
17,299
|
|
Short-term
investments
|
|
—
|
|
|
|
11,698
|
|
Restricted
cash
|
|
499
|
|
|
|
393
|
|
Accounts
receivable
|
|
—
|
|
|
|
4,887
|
|
Inventory
|
|
—
|
|
|
|
1,383
|
|
Prepaid expenses and
other current assets
|
|
859
|
|
|
|
3,930
|
|
Total current
assets
|
|
15,181
|
|
|
|
39,590
|
|
Non-current
restricted cash
|
|
99
|
|
|
|
597
|
|
Land, buildings, and
equipment
|
|
21,731
|
|
|
|
22,860
|
|
Other non-current
assets
|
|
183
|
|
|
|
280
|
|
Total
assets
|
$
|
37,194
|
|
|
$
|
63,327
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
1,260
|
|
|
$
|
929
|
|
Accrued
expenses
|
|
339
|
|
|
|
2,891
|
|
Accrued
compensation
|
|
2,522
|
|
|
|
1,950
|
|
Due to related
parties
|
|
172
|
|
|
|
766
|
|
Current portion of
financing lease obligations
|
|
370
|
|
|
|
364
|
|
Other current
liabilities
|
|
191
|
|
|
|
45
|
|
Total current
liabilities
|
|
4,854
|
|
|
|
6,945
|
|
Financing lease
obligations
|
|
17,506
|
|
|
|
17,876
|
|
Long-term
debt
|
|
—
|
|
|
|
1,518
|
|
Other non-current
liabilities
|
|
702
|
|
|
|
113
|
|
Total
liabilities
|
|
23,062
|
|
|
|
26,452
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, $0.0001
par value; 275,000,000 shares authorized;
38,874,146 shares issued and 38,773,994 shares outstanding as
of
December 31, 2021, and 37,165,196 shares issued and 37,065,044
shares
outstanding as of December 31, 2020
|
|
4
|
|
|
|
4
|
|
Additional paid-in
capital
|
|
211,263
|
|
|
|
204,807
|
|
Common stock in
treasury, at cost; 100,152 shares as of December 31, 2021,
and December 31, 2020
|
|
(1,043)
|
|
|
|
(1,043)
|
|
Accumulated
deficit
|
|
(196,092)
|
|
|
|
(166,893)
|
|
Total
stockholders' equity
|
|
14,132
|
|
|
|
36,875
|
|
Total liabilities
and stockholders' equity
|
$
|
37,194
|
|
|
$
|
63,327
|
|
CALYXT,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Three Months
Ended December 31 Unaudited)
|
(In Thousands
Except Shares and Per Share Amounts)
|
|
|
Three Months
Ended
December 31,
|
|
|
Year
Ended
December 31,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenue
|
$
|
1,943
|
|
|
$
|
13,926
|
|
|
$
|
25,987
|
|
|
$
|
23,851
|
|
Cost of goods
sold
|
|
2,004
|
|
|
|
18,862
|
|
|
|
28,557
|
|
|
|
35,127
|
|
Gross
profit
|
|
(61)
|
|
|
|
(4,936)
|
|
|
|
(2,570)
|
|
|
|
(11,276)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,862
|
|
|
|
3,266
|
|
|
|
11,335
|
|
|
|
11,082
|
|
Selling, general, and
administrative
|
|
3,787
|
|
|
|
4,549
|
|
|
|
15,382
|
|
|
|
20,537
|
|
Management
fees
|
|
—
|
|
|
|
80
|
|
|
|
45
|
|
|
|
252
|
|
Restructuring
costs
|
|
—
|
|
|
|
249
|
|
|
|
—
|
|
|
|
685
|
|
Total operating
expenses
|
|
6,649
|
|
|
|
8,144
|
|
|
|
26,762
|
|
|
|
32,556
|
|
Loss from
operations
|
|
(6,710)
|
|
|
|
(13,080)
|
|
|
|
(29,332)
|
|
|
|
(43,832)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
—
|
|
|
|
—
|
|
|
|
1,528
|
|
|
|
—
|
|
Interest,
net
|
|
(355)
|
|
|
|
(310)
|
|
|
|
(1,414)
|
|
|
|
(878)
|
|
Non-operating
expenses
|
|
8
|
|
|
|
(5)
|
|
|
|
19
|
|
|
|
(126)
|
|
Loss before income
taxes
|
|
(7,057)
|
|
|
|
(13,395)
|
|
|
|
(29,199)
|
|
|
|
(44,836)
|
|
Income
taxes
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net
loss
|
$
|
(7,057)
|
|
|
$
|
(13,395)
|
|
|
$
|
(29,199)
|
|
|
$
|
(44,836)
|
|
Basic and diluted
net loss per share
|
$
|
(0.18)
|
|
|
$
|
(0.37)
|
|
|
$
|
(0.78)
|
|
|
$
|
(1.32)
|
|
Weighted average
shares outstanding - basic and
diluted
|
|
38,277,279
|
|
|
|
36,282,974
|
|
|
|
37,475,763
|
|
|
|
33,882,406
|
|
Anti-dilutive
stock options, restricted stock units, and
performance stock units
|
|
6,001,405
|
|
|
|
5,522,418
|
|
|
|
6,001,405
|
|
|
|
5,522,418
|
|
CALYXT,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
Thousands)
|
|
|
Year Ended
December 31,
|
|
|
2021
|
|
|
2020
|
|
Operating
activities
|
|
|
|
|
|
Net loss
|
$
|
(29,199)
|
|
|
$
|
(44,836)
|
|
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
|
|
2,338
|
|
|
|
1,869
|
|
Stock-based
compensation
|
|
2,090
|
|
|
|
4,971
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
4,887
|
|
|
|
(3,765)
|
|
Due to/from related
parties
|
|
(594)
|
|
|
|
(211)
|
|
Inventory
|
|
1,383
|
|
|
|
1,211
|
|
Prepaid expenses and
other current assets
|
|
3,331
|
|
|
|
(3,122)
|
|
Accounts
payable
|
|
(360)
|
|
|
|
(148)
|
|
Accrued
expenses
|
|
(2,542)
|
|
|
|
347
|
|
Accrued
compensation
|
|
572
|
|
|
|
(231)
|
|
Other
|
|
811
|
|
|
|
243
|
|
Net cash used by
operating activities
|
|
(18,811)
|
|
|
|
(43,672)
|
|
Investing
activities
|
|
|
|
|
|
Sales and (purchases)
of short-term investments, net
|
|
11,698
|
|
|
|
(11,698)
|
|
Purchases of land,
buildings, and equipment
|
|
(497)
|
|
|
|
(1,786)
|
|
Net cash provided
(used) by investing activities
|
|
11,201
|
|
|
|
(13,484)
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from common
stock issuance
|
|
4,380
|
|
|
|
15,000
|
|
Costs incurred related
to the issuance of stock
|
|
(501)
|
|
|
|
(963)
|
|
Proceeds from Payroll
Protection Program loan
|
|
—
|
|
|
|
1,518
|
|
Repayments of
financing lease obligations
|
|
(364)
|
|
|
|
(360)
|
|
Proceeds from the
exercise of stock options
|
|
227
|
|
|
|
212
|
|
Costs incurred related
to shares withheld for net settlement
|
|
—
|
|
|
|
—
|
|
Proceeds from sale and
leaseback of land, buildings, and equipment
|
|
—
|
|
|
|
—
|
|
Net cash provided
by financing activities
|
|
3,742
|
|
|
|
15,407
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
|
(3,868)
|
|
|
|
(41,749)
|
|
Cash, cash
equivalents, and restricted cash - beginning of period
|
|
18,289
|
|
|
|
60,038
|
|
Cash, cash
equivalents, and restricted cash – end of
period
|
$
|
14,421
|
|
|
$
|
18,289
|
|
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SOURCE Calyxt, Inc.