Yield10 Bioscience, Inc. (Nasdaq:YTEN), a Company developing new
technologies to achieve step-change improvements in crop yield to
enhance global food security, today reported financial results for
the three and six months ended June 30, 2018.
“A key highlight of the second quarter is the completion of
planting for our 2018 field tests of C3003,” said Oliver P.
Peoples, Ph.D., President and Chief Executive Officer of Yield10
Bioscience. “The results of these field tests will allow us to set
the direction and priorities for the next steps in the evaluation
and development of C3003 as a potentially valuable new trait to
increase seed yield in oilseed crops.”
“In the second quarter, we also made significant progress
advancing and expanding our portfolio of novel yield traits in
development for boosting oil content in Camelina, canola and
specialty soybean crops. We recently began our first field
test of CRISPR-Cas9 genome-edited Camelina containing our C3008a
trait at a site in the U.S. In addition, we obtained a global
research license to CRISPR-Cas9 technology and we executed a
worldwide license with University of Missouri for exclusive rights
to traits C3007 and C3010, both accessible through CRISPR editing.
Our approach is to test new traits alone and in combinations to
enable the development of novel CRISPR edited oilseed crops with
yields significantly increased over the seed available to
commercial growers today.”
“In recent publications and industry conferences, the Yield10
team described our extensive capabilities in the development of new
yield traits. Our capabilities are distinguished by our Camelina
platform as well as our metabolic engineering models for crops
which we are using together in our “GRAIN” technology platform to
identify, rapidly screen, and test novel yield traits with
application to a broad range of crops.”
“Our focus in the second half of 2018 is to generate key proof
points on our yield traits in development, continue to expand our
intellectual property portfolio, and to execute on opportunities
for licensing and collaboration,” said Dr. Peoples.
Recent Accomplishments
2018 Field Test Program in Progress. In
second quarter, Yield10 announced the completion of planting at
field test sites in Canada for the evaluation of the novel yield
trait gene C3003. Yield10 is testing versions of C3003 in Camelina
and canola, and will grow C3003 soybean lines primarily to bulk up
seed for field tests planned for 2019. Yield10 is also conducting a
study in the U.S. of Camelina lines that have been genome-edited to
inactivate the C3008 gene as part of a new multi-gene trait
approach to increase seed oil content and to potentially improve
oil stability. Yield10 expects to harvest seed in third quarter,
and to report results of the field tests beginning in the fourth
quarter of 2018.
Signed Non-exclusive Research License to CRISPR-Cas9
Technology. Yield10 signed a non-exclusive research
license agreement jointly with the Broad Institute and Pioneer,
part of Corteva AgriscienceTM Agriculture Division of
DowDuPont, for the use of CRISPR-Cas9 genome-editing technology for
crops. The license covers intellectual property consisting of
approximately 48 patents and patent applications on CRISPR-Cas9
technology.
Signed Exclusive Global License to C3007 and
C3010. In second quarter, Yield10 exercised its
option with University of Missouri (MU) to obtain an exclusive
worldwide license to C3007 and C3010, two novel gene technologies
to boost oil content in commercial oilseed crops. The technologies
were developed by Professor of Biochemistry Jay Thelen, Ph.D. and
his team at MU. In July, Yield10 appointed Dr. Thelen to its
Scientific Advisory Board.
Submitted “Am I regulated?” Letter to USDA-APHIS
Covering Genome-edited Camelina. Yield10 recently
submitted an “Am I Regulated?” letter to USDA-APHIS describing a
triple combination trait stack consisting of the traits C3008a,
C3008b and C3009 in Camelina. This multi-trait approach to improve
carbon flow in oil biosynthesis pathways is intended to result in
increased seed oil content and potentially improved oil stability.
If the trait stack is deemed non-regulated by the agency, field
testing of the trait stack could begin in the U.S. in 2019.
Published and Presented Research Highlighting Technology
Platform and Yield Traits. Yield10 published
research describing the development of the Company’s Camelina
Platform as a model crop for novel yield trait discovery and
presented research at the Plant Biology 2018 conference
highlighting two case studies describing the use of modeling carbon
metabolism in crops to project crop yield gene targets and
outcomes.
SECOND QUARTER 2018 FINANCIAL OVERVIEW
Yield10 Bioscience is managed with an emphasis on cash flow and
deploys its financial resources in a disciplined manner to achieve
its key strategic objectives. The Company ended the second quarter
of 2018 with $9.7 million in unrestricted cash, cash equivalents
and short-term investments. The Company’s net cash used in
operating activities during both the second quarter of 2018 and the
second quarter of 2017 was $1.9 million.
The Company anticipates net cash usage of approximately $9.0
million to $9.5 million during its fiscal year ending December 31,
2018, including final payments of $0.5 million made during the
first half of 2018 related to its restructuring that was undertaken
during 2016.
For the second quarter ending June 30, 2018, the Company
reported a net loss of $2.4 million, or $0.24 per share. The
Company reported a net loss of $2.7 million or $0.96 per share, for
the second quarter of 2017.
Total government grant revenue for both the second quarter of
2018 and the second quarter of 2017 was $0.3 million. Grant
revenue for the second quarter of 2018 was derived primarily from
the Company's subcontract with Michigan State University.
Approximately $0.1 million of the grant revenue was earned from the
Company's grant with the U.S. Department of Energy that is in the
process of winding down. Research and development expenses
for the three months ending June 30, 2018 and June 30, 2017 were
$1.3 million and $1.1 million, respectively. The variance is
primarily the result of increased employee compensation and
benefits expense, including the hiring of additional research
personnel during 2018. General and administrative expenses
for the three months ending June 30, 2018 and June 30, 2017 were
$1.5 million and $1.9 million, respectively. The $0.4 million
decrease is primarily the result of a one-time charge to recognize
deferred equity offering costs of $0.6 million during the second
quarter of 2017.
For the six months ending June 30, 2018, the Company reported a
net loss of $4.7 million, or $0.48 per share, as compared to a net
loss of $4.8 million, or $1.69 per share, for the six months ending
June 30, 2017.
Total research grant revenue for the six months ending June 30,
2018 was $0.3 million, compared to $0.6 million for the six months
ending June 30, 2017. Research and development expenses and
general and administrative expenses were $2.3 million and $2.7
million, respectively, for the six months ending June 30, 2018
compared to $2.2 million and $3.1 million, respectively, for the
six months ending June 30, 2017.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 4:30 p.m. (ET) to discuss the results for the second quarter of
2018. The Company also will provide an update on the business and
answer questions from the investor community. A live webcast of the
call with slides can be accessed through the Company's website at
www.yield10bio.com in the investor relations section. To
participate in the call, dial toll-free 877-709-8150 or
201-689-8354 (international).
To listen to a telephonic replay of the conference call, dial
toll-free 877-660-6853 or 201-612-7415 (international) and enter
pass code 13680926. The replay will be available for 14 days. In
addition, the webcast will be archived on the Company's website in
the investor relations section.
About Yield10 Bioscience
Yield10 Bioscience, Inc. is focused on developing new
technologies to achieve step-change improvements in crop yield to
enhance global food security. Yield10 has an extensive track record
of innovation based around optimizing the flow of carbon in living
systems. Yield10 is leveraging its technology platforms and
unique knowledge base to design precise alterations to gene
activity and the flow of carbon in plants to produce higher yields
with lower inputs of land, water or fertilizer. Yield10 is
advancing several yield traits it has developed in crops such as
Camelina, canola, soybean and rice. Yield10 is headquartered in
Woburn, MA and has an Oilseeds Center of Excellence in Saskatoon,
Canada.
For more information visit www.yield10bio.com
(YTEN-E)
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which are
made pursuant to the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The forward-looking
statements in this release do not constitute guarantees of future
performance. Investors are cautioned that statements in this press
release which are not strictly historical statements, including,
without limitation, expectations regarding Yield10’s research and
development, collaborations, intellectual property, the
reproducibility of data from field tests, the translation of yield
improvements from Camelina to other crops, the potential to produce
improvements in seed yield and oil content, the timing of
completion of additional greenhouse and field test studies, the
signing of research licenses and collaborations, and value creation
as well as the Company’s cash position, cash forecasts, and
progress of Yield10 Bioscience, Inc., constitute forward-looking
statements. Such forward-looking statements are subject to a number
of risks and uncertainties that could cause actual results to
differ materially from those anticipated, including the risks and
uncertainties detailed in Yield10 Bioscience’s filings with the
Securities and Exchange Commission. Yield10 Bioscience assumes no
obligation to update any forward-looking information contained in
this press release or with respect to the announcements described
herein.
Yield10 Inquiries:
Lynne H. Brum, (617) 682-4693, LBrum@yield10bio.com
Investor Relations Contact:Amato and Partners,
LLCadmin@amatoandpartners.com
Media Inquiries:Eric Fischgrund, FischTank
Marketing and PReric@fischtankpr.com
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
|
|
Grant
revenue |
$ |
285 |
|
|
$ |
293 |
|
|
$ |
345 |
|
|
$ |
617 |
|
Total
revenue |
285 |
|
|
293 |
|
|
345 |
|
|
617 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Research
and development |
1,253 |
|
|
1,138 |
|
|
2,347 |
|
|
2,247 |
|
General
and administrative |
1,452 |
|
|
1,866 |
|
|
2,725 |
|
|
3,142 |
|
Total
expenses |
2,705 |
|
|
3,004 |
|
|
5,072 |
|
|
5,389 |
|
Loss from
operations |
(2,420 |
) |
|
(2,711 |
) |
|
(4,727 |
) |
|
(4,772 |
) |
|
|
|
|
|
|
|
|
Other income
(net): |
|
|
|
|
|
|
|
Interest
income, net |
45 |
|
|
2 |
|
|
80 |
|
|
3 |
|
Other
expense, net |
(15 |
) |
|
(18 |
) |
|
(33 |
) |
|
(50 |
) |
Total
other income (expense), net |
30 |
|
|
(16 |
) |
|
47 |
|
|
(47 |
) |
Net
loss |
$ |
(2,390 |
) |
|
$ |
(2,727 |
) |
|
$ |
(4,680 |
) |
|
$ |
(4,819 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share |
$ |
(0.24 |
) |
|
$ |
(0.96 |
) |
|
$ |
(0.48 |
) |
|
$ |
(1.69 |
) |
|
|
|
|
|
|
|
|
Number of shares used
in per share calculations: |
|
|
|
|
|
|
|
Basic & Diluted |
9,991,460 |
|
|
2,849,069 |
|
|
9,845,902 |
|
|
2,844,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
|
June 30, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
3,168 |
|
|
$ |
14,487 |
|
Short-term investments |
|
6,486 |
|
|
— |
|
Accounts
receivable |
|
29 |
|
|
54 |
|
Unbilled
receivables |
|
43 |
|
|
65 |
|
Prepaid
expenses and other current assets |
|
378 |
|
|
311 |
|
Total
current assets |
|
10,104 |
|
|
14,917 |
|
Restricted cash |
|
332 |
|
|
317 |
|
Property and equipment,
net |
|
1,477 |
|
|
1,539 |
|
Other assets |
|
98 |
|
|
109 |
|
Total
assets |
|
$ |
12,011 |
|
|
$ |
16,882 |
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
34 |
|
|
$ |
76 |
|
Accrued
expenses |
|
1,455 |
|
|
2,299 |
|
Total
current liabilities |
|
1,489 |
|
|
2,375 |
|
Lease
incentive obligation, net of current portion |
|
941 |
|
|
1,005 |
|
Total
liabilities |
|
2,430 |
|
|
3,380 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’
Equity: |
|
|
|
|
Series A
Convertible Preferred Stock ($0.01 par value per share); 5,000,000
sharesauthorized at June 30, 2018 and December 31, 2017; 0 and
1,826 shares issued andoutstanding at June 30, 2018 and
December 31, 2017, respectively |
|
— |
|
|
818 |
|
Common
stock ($0.01 par value per share); 60,000,000 shares and 40,000,000
sharesauthorized at June 30, 2018 and December 31, 2017,
respectively; 9,991,977 and9,089,159 shares issued and
outstanding at June 30, 2018 and December 31,
2017,respectively |
|
100 |
|
|
91 |
|
Additional paid-in
capital |
|
357,013 |
|
|
355,431 |
|
Accumulated other
comprehensive loss |
|
(99 |
) |
|
(85 |
) |
Accumulated
deficit |
|
(347,433 |
) |
|
(342,753 |
) |
Total
stockholders’ equity |
|
9,581 |
|
|
13,502 |
|
Total
liabilities and stockholders’ equity |
|
$ |
12,011 |
|
|
$ |
16,882 |
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(4,680 |
) |
|
$ |
(4,819 |
) |
Adjustments to
reconcile net loss to cash used in operating activities: |
|
|
|
Depreciation |
96 |
|
|
106 |
|
Charge for
401(k) company common stock match |
70 |
|
|
46 |
|
Stock-based
compensation |
596 |
|
|
663 |
|
Changes in operating
assets and liabilities: |
|
|
|
Accounts
receivables |
54 |
|
|
(147 |
) |
Due from
related party |
— |
|
|
1 |
|
Unbilled
receivables |
22 |
|
|
26 |
|
Prepaid
expenses and other assets |
(56 |
) |
|
542 |
|
Accounts
payable |
(42 |
) |
|
14 |
|
Accrued
expenses |
(884 |
) |
|
(165 |
) |
Contract
termination obligation and other long-term liabilities |
(64 |
) |
|
(553 |
) |
Net cash
used for operating activities |
(4,888 |
) |
|
(4,286 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property
and equipment |
(34 |
) |
|
— |
|
Purchase of short-term
investments |
(7,986 |
) |
|
— |
|
Proceeds from the sale
and maturity of short-term investments |
1,500 |
|
|
— |
|
Net cash
used for investing activities |
(6,520 |
) |
|
— |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
124 |
|
|
— |
|
Taxes paid related to
net share settlement upon vesting of stock awards |
(6 |
) |
|
(12 |
) |
Net cash
provided by (used for) financing activities |
118 |
|
|
(12 |
) |
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
(14 |
) |
|
— |
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash |
(11,304 |
) |
|
(4,298 |
) |
Cash, cash equivalents
and restricted cash at beginning of period |
14,804 |
|
|
7,741 |
|
Cash, cash equivalents
and restricted cash at end of period |
$ |
3,500 |
|
|
$ |
3,443 |
|
|
|
|
|
Supplemental
disclosure of non-cash information: |
|
|
|
Offering costs
remaining in accrued expenses |
$ |
— |
|
|
$ |
146 |
|
Reversal of deferred
financing costs related to Aspire stock purchase agreement |
$ |
— |
|
|
$ |
450 |
|
|
|
|
|
|
|
|
|
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