Achieved technical BioFactory™ and AIML
milestones to support customer demand-driven molecule development
at scale
Progressed relationships with an expanding
network of potential new customers across the cosmeceutical and
flavor and fragrance end markets
Continued investment in key hires to
strategically position Company for future growth and scale
Management to host conference call and webcast
today at 4:30 p.m. ET
ROSEVILLE, Minn., May 5, 2022
/PRNewswire/ -- Calyxt, Inc. (Nasdaq: CLXT), a plant-based
synthetic biology company, today announced financial results for
its first quarter ended March 31,
2022.
"The first quarter of 2022 marked a period of instrumental
advancement across several critical areas for Calyxt. As a result
of our expanded customer engagement, the breadth and depth of our
business development discussions have grown, demonstrated by the 28
molecules identified by potential customers that we have evaluated
for development with our PlantSpring platform for production in our
BioFactory. That amount does not include another 58 such molecules
that did not meet our criteria and were not evaluated further.
Impressively, some of these 28 molecules were identified by the
potential customers as having been unsuccessfully attempted by
others in the industry. Simultaneously, we have made significant
technical advancements for our PlantSpring and BioFactory
platforms. These include the incorporation of AIML into our
bioreactor's lab scale production process and the completion of the
development of a compound identified by a potential customer for
evaluation. As this compound's production scales in the BioFactory,
it is expected to lead to future development and manufacturing
contracts from customers. We have also aggressively pursued the
expansion of our intellectual property portfolio with multiple
patents issued and new patent applications filed during the
quarter. This enables us to carve out space for Calyxt's
proprietary technology including our Plant Cell
Matrix™ (PCM™) and multi-cellular
approach that is foundational for the success of our Company.
Finally, in the first quarter we completed an underwritten offering
of common stock and warrants that generated approximately
$10 million in net proceeds. This
strengthened our balance sheet and provides us with the runway to
continuing scaling our technology to potentially secure new
business arrangements," said Michael A.
Carr, President and Chief Executive Officer at Calyxt.
Mr. Carr added: "We have strengthened our position to harness
the incredible diversity of plants and the world's demand for
sustainable products. By leveraging our proprietary PlantSpring
technology platform with our BioFactory production system to
develop and sell high value plant-based chemistries to potential
customers in our large and innovative target end markets, including
cosmeceuticals, nutraceuticals, and pharmaceuticals, we continue
our focused drive to realize value for our stakeholders."
Key accomplishments in the first quarter of 2022, and through
the date of this press release, include the following:
Achievement of Technical PlantSpring™ and BioFactory™
Milestones
- In January 2022, Calyxt announced
that its initial pilot BioFactory™ production system became
operational at its headquarters in Minnesota. This development occurred on
schedule and marked an important first step toward achieving
at-scale commercial production. The Company has completed multiple
runs in its pilot BioFactory, focusing on ensuring the system is
operating as planned, its PCM structures perform as expected, and
that data is being captured properly as it is a driver of future
artificial intelligence and machine learning capability (AIML)
capability. The pilot facility is modular and designed to be able
to continuously produce plant-based chemistries while also
producing multiple compounds at once. These capabilities are
expected to provide the Company with flexibility when producing
chemistries for multiple customers at the same time. The Company
intends to scale this pilot production to enable full production
runs of compounds similar to those demanded for commercial
production.
- Calyxt has also begun to deploy additional AIML capabilities to
both PlantSpring and the pilot Biofactory. Calyxt currently uses
AIML to assist in the identification of gene targets in the
PlantSpring development process. During the past quarter it
integrated AIML capabilities into its lab-scale reactors, enabling
the continual capture and analysis of data, leading to optimization
of performance. The Company intends to advance these lab-scale AIML
capabilities into its pilot-scale reactor later this year. This
deployment drives future decisions and improves test cycles with
the goal of shortening development timelines.
- Late last year, Calyxt reported considerable progress in
discovery and development of sustainable 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.
These signatures are chemical compounds involved in chemical
reactions that produce other compounds. The chemical signatures
that have been identified form a baseline library that
enables Calyxt to quickly identify and assess customers'
targets with the potential to drive accelerated development
timelines. From this library, Calyxt has, based on interest
expressed by potential customers, produced rosemarinic acid, a
compound with antioxidant, anti-inflammatory, and antimicrobial
properties and that is used broadly in cosmeceuticals and
nutraceuticals. Calyxt has also used this baseline library to
identify six additional compounds of interest for prospective
customers. Calyxt intends to move the PCM producing rosemarinic
acid into the pilot BioFactory to further advance the BioFactory's
capabilities and scale.
- Using data it has accumulated from its land-based activities
and its lab scale bioreactors, Calyxt has demonstrated at least a
35-fold increase in yield from land-based production to a lab scale
bioreactor. Calyxt projects a further yield increase as it moves
production to pilot scale. Taken together with the land-based to
lab results, the further advancement to lab scale could drive an
aggregate increase in yield of as much as 130-fold over land-based
production yields based on the current scale of the pilot
BioFactory. These results underpin the Company's scalability and
sustainability benefits of the BioFactory production system.
- As part of Calyxt's ongoing validation of its platform
technology, it is on track to realize certain upcoming technical
milestone targets:
-
- Within PlantSpring, and building on Calyxt's current gene
targeting capability, to establish AIML capabilities for the
identification of pathways in the Design phase of development by
mid-year 2022.
- Building on our lab-scale reactor AIML rollout, to have AIML
capabilities fully functioning within the pilot BioFactory by
mid-year 2022.
- By the end of 2022, to design additional PCM structures capable
of providing the foundational precursors to developing chemistries
and molecules that are of interest to a broad range of customers
within our target end-markets.
- To advance current engagement with potential infrastructure
partners in order to have one engaged by the end of 2022.
Steadfast Focus on Customer Relationships
- Calyxt's business model for its proprietary PlantSpring
technology and the BioFactory is customer demand-driven. During the
quarter the Company continued to advance its discussions with
potential customers within its target end markets including the
cosmeceutical, including personal care and flavors and fragrances,
nutraceutical, and pharmaceutical industries. These are three key
large end markets with customers that have current business needs
to source finite plant-based chemistries. They are also markets
known to be fast adopters of innovation that are actively seeking
to reduce carbon footprints. For example, based on research from
MarketsandMarkets1, Calyxt estimates that the
cosmeceutical ingredients market, which also includes personal care
and flavors and fragrances, was a spend of more than $60 billion in 2020 and growing at a mid-single
digit compound annual growth rate. This market includes large
multinational cosmetics brands, regional and specialty brands, and
flavor and fragrance houses who manufacture products or provide
ingredients for those brands.
|
|
|
|
|
|
|
1 Source:
(i) MarketsandMarkets, Personal Care Ingredients Market – Global
Forecast to 2025, (ii) MarketsandMarkets, Global Color Cosmetics
Market – Forecast Till 2020, (iii) MarketsandMarkets, Fragrance
Ingredients Market – Global Trends & Forecast to 2019,
and (iv) MarketsandMarkets, Flavors and Fragrance Market – Global
Forecast to 2026
|
- The breadth and depth of Calyxt's business development
discussions have grown. Calyxt has evaluated 28 molecules
identified by potential customers for development with PlantSpring
for production in our BioFactory. That amount does not include
another 58 such molecules that did not meet Calyxt's target product
profile, or TPP, criteria and were not evaluated further. The group
of 28 molecules includes several that were identified by the
potential customers as having been unsuccessfully attempted by
others in the industry. As part of the customer acquisition
process, Calyxt is expecting to produce small quantities of product
for evaluation by the customer and as a result, Calyxt believes the
development cycle from contract signing to commercialization may
likely be shorter than 36 months.
- 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. The Company uses the term
"compounds" to describe compounds, molecules, and plant-based
chemistries interchangeably.
"In our conversations with customers, it's exciting to see their
recognition of the advantages in our approach," said Michael A. Carr. "They understand that our
innovative technology platform and cutting-edge production system
can provide sustainable biomanufacturing solutions to meet their
product and ingredient needs."
Calyxt's business model for PlantSpring and BioFactory has two
customer demand-driven revenue streams, one focused on development
activity and the other on product sales. Most important is the
product revenue expected to be generated once commercialization is
achieved. Calyxt anticipates a rapid revenue ramp following the
customers' commercial launch of a compound, and is targeting
customers' compounds with large demand pools, potential
multi-million-dollar annual revenue opportunities per compound, and
a target gross profit margin in the mid-double digits at scale.
Calyxt also believes its prospective customers will pay for
development in some instances.
Licensing of Technology and Traits
- In the first quarter of 2022, Calyxt finalized its strategy for
optimizing potential revenue from the licensing of its technology
and plant traits. The strategy is two-pronged and reflects (1) a
broad outreach to companies in the plant gene-editing and
biotechnology space for their licensing of the Company's
intellectual property assets and (2) the monetization of the
Company's historically developed agricultural traits through their
license to counterparties including seed companies, processors, and
others. Calyxt is offering licenses for the many gene editing and
breeding technologies in its patent portfolio, including its TALEN
patent estate. As it relates to the licensing of agricultural
traits strategy, active discussions are occurring on multiple
traits, including Calyxt's soybean and wheat offerings. Calyxt is
targeting the execution of licenses in both the technology and
trait licensing categories during 2022.
- In the fourth quarter of 2021, Calyxt contracted with a large
food ingredient manufacturer to develop a soybean intended to
produce an oil that could serve as a replacement for palm oil. The
project remains on track for a first quarter of 2024 completion.
The food ingredient manufacturer is funding Calyxt's development
costs over the term of the agreement and holds an option for future
development and commercialization.
Investments in Key Hires
- 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 April 2022, the Company
announced the hires of Ms. Suellen
Boot as Business Development Director and Ms. Elizabeth Teigland as Manufacturing Director.
Ms. Boot brings over 20 years of valuable business development
experience to Calyxt where she will be responsible for a number of
functions, including potential partnerships, deal structures,
valuation models, and subsequent transaction execution and alliance
management. Ms. Teigland brings over 15 years of chemistry and
purification expertise to Calyxt and will be responsible for pilot
to commercial scale production of the Company's customer
demand-driven compounds, and along with an R&D leader, the
Verify stage of product development.
Other Business Updates
- In February 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 approximately $10.0
million in net proceeds from the offering for enhancing the
capabilities of its BioFactory production system and increasing its
capacity to produce at larger scales, continuing to build out the
Company's PlantSpring technology platform and AIML capabilities,
furthering customer relationships, and for working capital and
general corporate purposes. The pre-funded warrants were exercised
in full on May 4, 2022.
Financial Results for the Three Months Ended March 31, 2022
- Cash, cash equivalents, and restricted cash totaled
$17.9 million as of March 31, 2022, including net proceeds of
$10.0 million that was raised in
mid-February from the SEC-registered offering.
- Revenue was nominal in the first quarter of 2022 compared to
$4.4 million in the first quarter of
2021. The decrease in revenue was driven by the late 2021
completion of the wind-down of the Company's soybean product line.
All revenue in the first quarter of 2022 was associated with the
Company's agreement with a food ingredient manufacturer to develop
a palm oil alternative.
- Total operating expenses were $6.1
million in the first quarter of 2022 compared to
$7.3 million in the first quarter of
2021. The decrease was primarily driven by the recapture of
non-cash stock compensation expense from the forfeiture of unvested
stock awards in the first quarter of 2022 and lower operating
expenses.
- Net loss was $5.6 million in the
first quarter of 2022 compared to $10.0
million in the first quarter of 2021. The improvement in net
loss was driven by the completion of the wind-down of the soybean
product line which drove an improvement in gross margin and lower
operating expenses. Net loss per share was $0.13 in the first quarter of 2022 compared to
$0.27 in the first quarter of 2021.
The improvement in net loss per share was driven by the improvement
in net loss and a year-over-year increase in weighted average
shares outstanding.
- Adjusted net loss was $6.0
million in the first quarter of 2022 compared to
$8.8 million in the first quarter of
2021. The improvement in adjusted net loss was driven by the
completion of the wind-down of the soybean product line which drove
an improvement in gross margin and lower operating expenses.
Adjusted net loss per share was $0.14
in the first quarter of 2022 compared to $0.24 in the first quarter of 2021. The
improvement in adjusted net loss per share was driven by the
improvement in adjusted net loss and a year-over-year increase in
weighted average shares outstanding.
"The continued expansion of our AIML capabilities has already
contributed to expediting the development process, and we believe
we can now complete the Design, Engineer, and Verify phases of our
development cycle in some cases in as little as nine months' time
and we look forward to reporting progress against the 24-month
pilot cycle in the future. In addition, we have now secured key
hires that represent our revenue streams: business development,
chemistry/purification, and licensing," said Bill Koschak, Chief Financial Officer at Calyxt.
"Further, the approximate $10.0
million in net proceeds from the capital raise we recently
completed in February, in spite of volatile market conditions,
allows us to scale our BioFactory production and AIML capabilities.
Our plans to utilize PlantSpring and the BioFactory to target
customers in large and innovative end markets like cosmeceuticals,
nutraceuticals, and pharmaceuticals are resonating in conversations
across industries, and we look forward to providing updates in the
coming months. Thanks to the successful offering of our common
stock and warrants and assessing our discretionary spending, we now
expect Calyxt's cash runway to extend into early 2023."
First Quarter 2022 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 first quarter of 2022,
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, May 5,
2022
|
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:
|
2452642
|
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:
|
9265408
|
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 both a greater breadth and
level of complexity and 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, which grows over time, 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 the Company's
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 2021 non-GAAP financial measures reflect
adjustments for certain commodity derivatives entered into in
connection with its soybean product line. As a result of the
completed wind-down of this product line, the Company held no
commodity derivative contracts as of March
31, 2022.
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, the
recapture of non-cash stock compensation associated with the
departure of Section 16 officers, and non-operating expenses.
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
March 31,
|
|
In Thousands
|
2022
|
|
|
2021
|
|
Net loss (GAAP
measure)
|
$
|
(5,619)
|
|
|
$
|
(10,028)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Commodity derivative impact, net
|
|
—
|
|
|
|
211
|
|
Net
realizable value adjustment to inventories
|
|
—
|
|
|
|
787
|
|
Section 16 officer transition expenses
|
|
116
|
|
|
|
2,721
|
|
Recapture of non-cash stock compensation
|
|
—
|
|
|
|
(2,540)
|
|
Non-operating expenses
|
|
(487)
|
|
|
|
1
|
|
Adjusted net loss
|
$
|
(5,990)
|
|
|
$
|
(8,848)
|
|
|
|
|
|
|
|
|
|
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, the recapture of non-cash stock compensation
associated with the departure of Section 16 officers, and
non-operating expenses.
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
March 31,
|
|
|
2022
|
|
|
2021
|
|
Net loss per share
(GAAP measure)
|
$
|
(0.13)
|
|
|
$
|
(0.27)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Commodity derivative impact, net
|
|
—
|
|
|
|
0.01
|
|
Net
realizable value adjustment to inventories
|
|
—
|
|
|
|
0.02
|
|
Section 16 officer transition expenses
|
|
—
|
|
|
|
0.07
|
|
Recapture of non-cash stock compensation
|
|
—
|
|
|
|
(0.07)
|
|
Non-operating expenses
|
|
(0.01)
|
|
|
|
—
|
|
Adjusted net loss per share
|
$
|
(0.14)
|
|
|
$
|
(0.24)
|
|
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
report 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 in Part I, Item 1A, "Risk Factors" in the
Company's filings with the SEC, included in Part I, Item 1A of its
Annual Report on Form 10-K for the year ended December 31,
2021, which was filed with the SEC on March 3, 2022 (its
Annual Report) and its subsequent reports on Forms 10-Q and 8-K
filed with the SEC. 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.
CALYXT,
INC.
CONSOLIDATED BALANCE
SHEETS
(In Thousands,
Except Par Value and Share Amounts)
|
|
|
March 31,
2022
(unaudited)
|
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
17,285
|
|
|
$
|
13,823
|
|
Restricted cash
|
|
499
|
|
|
|
499
|
|
Prepaid expenses and other current assets
|
|
1,189
|
|
|
|
859
|
|
Total current
assets
|
|
18,973
|
|
|
|
15,181
|
|
Non-current restricted
cash
|
|
99
|
|
|
|
99
|
|
Land, buildings, and
equipment
|
|
5,125
|
|
|
|
21,731
|
|
Operating lease
right-of-use assets
|
|
13,973
|
|
|
|
—
|
|
Other non-current
assets
|
|
175
|
|
|
|
183
|
|
Total assets
|
$
|
38,345
|
|
|
$
|
37,194
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
$
|
1,167
|
|
|
$
|
1,260
|
|
Accrued expenses
|
|
379
|
|
|
|
339
|
|
Accrued compensation
|
|
2,209
|
|
|
|
2,522
|
|
Due
to related parties
|
|
64
|
|
|
|
172
|
|
Current portion of financing lease obligations
|
|
290
|
|
|
|
370
|
|
Common stock warrants
|
|
4,976
|
|
|
|
—
|
|
Other current liabilities
|
|
435
|
|
|
|
191
|
|
Total current
liabilities
|
|
9,520
|
|
|
|
4,854
|
|
Financing lease
obligations
|
|
89
|
|
|
|
17,506
|
|
Operating lease
obligations
|
|
13,742
|
|
|
|
—
|
|
Other non-current
liabilities
|
|
73
|
|
|
|
702
|
|
Total liabilities
|
|
23,424
|
|
|
|
23,062
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value; 275,000,000 shares authorized; 42,841,915
shares issued and 42,741,763 shares outstanding as of March 31,
2022, and
38,874,146 shares issued and 38,773,994 shares outstanding as of
December 31,
2021
|
|
5
|
|
|
|
4
|
|
Additional paid-in
capital
|
|
216,838
|
|
|
|
211,263
|
|
Common stock in
treasury, at cost; 100,152 shares as of March 31, 2022, and
December 31, 2021
|
|
(1,043)
|
|
|
|
(1,043)
|
|
Accumulated
deficit
|
|
(200,879)
|
|
|
|
(196,092)
|
|
Total stockholders' equity
|
|
14,921
|
|
|
|
14,132
|
|
Total liabilities and stockholders'
equity
|
$
|
38,345
|
|
|
$
|
37,194
|
|
CALYXT,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands Except
Shares and Per Share Amounts)
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
|
2021
|
|
Revenue
|
$
|
32
|
|
|
$
|
4,402
|
|
Cost of goods
sold
|
|
—
|
|
|
|
6,745
|
|
Gross profit
|
|
32
|
|
|
|
(2,343)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and development
|
|
2,941
|
|
|
|
3,050
|
|
Selling, general, and administrative
|
|
3,180
|
|
|
|
4,258
|
|
Management fees
|
|
—
|
|
|
|
30
|
|
Total operating
expenses
|
|
6,121
|
|
|
|
7,338
|
|
Loss from operations
|
|
(6,089)
|
|
|
|
(9,681)
|
|
Interest,
net
|
|
(17)
|
|
|
|
(346)
|
|
Non-operating
expenses
|
|
487
|
|
|
|
(1)
|
|
Loss before income
taxes
|
|
(5,619)
|
|
|
|
(10,028)
|
|
Income taxes
|
|
—
|
|
|
|
—
|
|
Net loss
|
$
|
(5,619)
|
|
|
$
|
(10,028)
|
|
Basic and diluted net loss per
share
|
$
|
(0.13)
|
|
|
$
|
(0.27)
|
|
Weighted average shares outstanding - basic and
diluted
|
|
42,020,090
|
|
|
|
37,136,338
|
|
Anti-dilutive stock options, restricted stock units,
and performance stock
units
|
|
16,276,362
|
|
|
|
5,013,780
|
|
CALYXT,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(in
Thousands)
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
|
2021
|
|
Operating activities
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(5,619)
|
|
|
$
|
(10,028)
|
|
Adjustments to reconcile net loss to net cash used by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
370
|
|
|
|
585
|
|
Stock-based compensation
|
|
531
|
|
|
|
(1,450)
|
|
Unrealized (gain) loss on mark-to-market of common stock
warrants
|
|
(435)
|
|
|
|
—
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
—
|
|
|
|
3,533
|
|
Due to/from related
parties
|
|
(108)
|
|
|
|
(652)
|
|
Inventory
|
|
—
|
|
|
|
(3,149)
|
|
Prepaid expenses and other
current assets
|
|
(110)
|
|
|
|
583
|
|
Accounts payable
|
|
(145)
|
|
|
|
30
|
|
Accrued expenses
|
|
37
|
|
|
|
167
|
|
Accrued compensation
|
|
(313)
|
|
|
|
(186)
|
|
Other
|
|
(612)
|
|
|
|
1,150
|
|
Net cash used by operating
activities
|
|
(6,404)
|
|
|
|
(9,417)
|
|
Investing activities
|
|
|
|
|
|
|
|
Sales and (purchases) of short-term investments,
net
|
|
—
|
|
|
|
8,653
|
|
Purchases of land, buildings, and equipment
|
|
(545)
|
|
|
|
(269)
|
|
Net cash (used by) provided by
investing activities
|
|
(545)
|
|
|
|
8,384
|
|
Financing activities
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
|
11,209
|
|
|
|
—
|
|
Costs incurred related to the issuance of common
stock
|
|
(704)
|
|
|
|
—
|
|
Repayments of financing lease obligations
|
|
(94)
|
|
|
|
(88)
|
|
Proceeds from the exercise of stock options
|
|
—
|
|
|
|
208
|
|
Net cash provided by financing
activities
|
|
10,411
|
|
|
|
120
|
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash
|
|
3,462
|
|
|
|
(913)
|
|
Cash, cash equivalents,
and restricted cash - beginning of period
|
|
14,421
|
|
|
|
18,289
|
|
Cash, cash equivalents, and restricted cash –
end of period
|
$
|
17,883
|
|
|
$
|
17,376
|
|
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SOURCE Calyxt, Inc.