Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience
company, today reported financial results for the three and twelve
months ended December 31, 2020.
"In 2020 we continued to execute our business plan, and
successfully achieved key milestones required to utilize Camelina
as a platform crop to produce fuel, food and PHA bioplastic," said
Oliver Peoples, Ph.D., president and chief executive officer of
Yield10 Bioscience. “Among our key accomplishments in 2020 was
securing the collaboration with Rothamsted Research for the
exclusive option to commercialize advanced omega-3 (DHA+EPA)
technology developed as a sustainable solution for the aquaculture
market. This technology has high product revenue potential and
fills a critical gap in our portfolio between current Camelina seed
products and new products from our PHA bioplastic variety currently
in development. In 2020, we also advanced E3902, a CRISPR
genome-edited high oil content trait, through two cycles of scale
up and demonstrated proof of concept for producing PHA bioplastic
in the seed of field grown Camelina.
"Permitting for our 2021 field tests is underway for sites in
the U.S. and Canada. We plan to scale up our two best PHA Camelina
lines for pilot seed processing and product prototyping activities,
designed for use in water treatment and bioplastics. In addition,
we plan to further scale up seed production of E3902 to enable
larger scale planting as early as 2022.
“Having secured an option on the omega-3 technology and achieved
proof of concept for PHA production in 2020, Yield10 now controls
two high value Camelina product technologies providing us with
strong market differentiation. The plan going forward is to launch
these products sequentially. For this reason, in 2021, we have
placed increased emphasis on the development of elite Camelina
winter and spring varieties incorporating key agronomic or input
traits including herbicide tolerance and disease resistance. These
traits will have priority resourcing going forward as they will be
critical for enabling large acreage adoption of the crop. We
believe that this elite germplasm will provide a robust commercial
foundation for our omega- 3 and PHA bioplastic traits.
“To create option value for our performance traits, we are
providing access to our novel trait discoveries through research
license agreements to leading seed companies, enabling them to
evaluate our traits in the major commercial crops. Our GRAIN
platform continues to produce new insights into plant metabolism
and identifying new targets for improving crop content and
performance. We will continue to engage our research licensees and
support their efforts evaluating traits identified using the GRAIN
platform. In 2021, we will also support activities at Rothamsted
Research directed towards the ongoing development and evaluation of
omega-3 (DHA+EPA) Camelina lines. Achieving our goal of making
omega-3 oils through a sustainable, land-based method could drive
demand in the aquaculture feed market."
"Our rigorous financial discipline and strategic deployment of
cash investment in our business in 2020, coupled with the addition
of new capital in early 2021, significantly strengthens our balance
sheet to drive forward and build value in our Camelina business
over the next two years," said Peoples.
Recent Accomplishments
- Signed collaboration with Rothamsted Research for advanced
omega-3 oil technology
- Signed research license with GDM for testing traits in
soybean
- Strengthened the balance sheet to extend cash runway to achieve
value building milestones
- Raised $12.0 million in net proceeds in a public offering of
common stock and received cash proceeds of $3.9 million from
warrant exercises in early 2021
- Achieved proof-of-concept milestone for producing PHA in field
grown Camelina plants
- Conducted two cycles of seed scale up for CRISPR E3902 Camelina
(US mid-west, California)
- Defined the target trait stack for our core, elite Camelina
germplasm collection
- Collected agronomic and other performance data on C3004 and
C3007 events in Camelina in 2020 field tests
- Recently granted U.S. patents on C3003 and C3007 traits
COVID-19 Impact on Operations. The Company has
implemented business continuity plans to address the COVID-19
pandemic and minimize disruptions to ongoing operations. To date,
despite the pandemic, we have been able to move forward with the
operational steps required to execute our 2021 field trials in
Canada and the United States. It is possible, however, that any
potential future closures of our research facilities, should they
continue for an extended time period, could adversely impact our
anticipated time frames for evaluating and/or reporting data from
our field trials and other work we have planned to accomplish
during 2021 and beyond.
FULL YEAR AND FOURTH QUARTER 2020 FINANCIAL
OVERVIEW
Cash Position
Yield10 Bioscience is managed with an emphasis on cash flow and
deploys its financial resources in a disciplined manner to achieve
its key strategic objectives.
Cash used by operating activities during the years ended
December 31, 2020 and 2019 remained consistent at $8.7
million. During 2020, Yield10 completed concurrent public and
private securities offerings, raising a total of $5.3 million, net
of offering costs, and received cash proceeds from warrants
exercised during the year of $1.7 million. As a result, the Company
ended 2020 with $9.7 million in unrestricted cash, cash equivalents
and short-term investments. The Company anticipates net cash usage
during 2021 in a range of approximately $10.0 - $11.0 million.
Subsequent to the Company's December 31, 2020 year-end, it
raised another $12.0 million in cash from the sale of common stock,
net of offering costs, and received cash proceeds of $3.9 million
from further warrant exercises. The Company's present capital
resources, including funds received in early 2021, are expected to
fund its planned operations into the first quarter of 2023.
Operating Results
Research grant revenue for the year ended December 31, 2020
was $0.8 million, consistent with the $0.8 million recorded in the
previous year. Research and development expense was $5.4 million
during the year ended December 31, 2020 compared to $4.8
million recorded for the year ended December 31, 2019. General
and administrative expenses were $5.0 million and $4.6 million for
the years ended December 31, 2020 and 2019, respectively.
Yield10 reported a loss from operations of $9.6 million for the
full year 2020 as compared to a loss from operations of $8.6
million in 2019. For the year ended December 31, 2020, the
Company reported a net loss after taxes of $10.2 million, or $4.30
per share, in comparison to a net loss after taxes of $13.0
million, or $35.50 per share, during the year ended
December 31, 2019. The greater after tax loss in 2019 was the
result of non-cash and other charges related to the Company's
securities offering completed in November 2019 and reported under
other income (expense) as described below.
Total research grant revenues were $0.2 million and $0.1 million
during the fourth quarters of 2020 and 2019, respectively. Research
and development expense increased by $0.2 million from $1.2 million
in the fourth quarter of 2019 to $1.4 million in the fourth quarter
of 2020. General and administrative expenses remained consistent at
$1.4 million during both the fourth quarters ended
December 31, 2020 and December 31, 2019.
Yield10 reported a loss from operations of $2.6 million for the
fourth quarter of 2020, compared to $2.4 million in the fourth
quarter of 2019. The Company also reported a net loss after taxes
of $2.6 million, or $0.79 per share, for the fourth quarter of
2020, compared to a net loss after taxes of $6.8 million, or $12.02
per share, for the fourth quarter of 2019. The reduction in net
loss of $4.2 million during the quarter ended December 31,
2020 is the result of non-cash and other charges related to the
Company's securities offering completed during the fourth quarter
of the previous year.
Other Income (Expense)
During the year ended December 31, 2020, a non-cash charge
of $1.0 million was recorded within other income (expense) related
to a change in fair value of the Company's warrant liability that
was initially recorded in connection with the Company's November
2019 securities offerings. During the year ended December 31,
2020, the Company also recognized $0.3 million in loan forgiveness
income within other income (expense) in connection with a Paycheck
Protection Act Loan issued under the Coronavirus Aid, Relief and
Economic Security Act. During the year ended December 31,
2019, the loss on issuance of securities of $13.0 million, offering
costs of $1.3 million, and the reported gain of $9.5 million
resulting from the change in fair value of the Company's warrant
liability, relate to the Company's accounting for its November 2019
securities offerings.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 4:30 p.m. (ET) to discuss the fourth quarter and full year 2020
results. The Company also will provide a corporate update and
answer questions from the investor community. A live webcast of the
call with slides can be accessed through the Company's website at
www.yield10bio.com in the investor relations events section.
To participate in the call, dial toll-free 877-709-8150 or
201-689-8354 (international).
To listen to a telephonic replay of the conference call, dial
toll-free 877-660-6853 or 201-612-7415 (international) and enter
pass code 13717038. The replay will be available until March 30,
2021. In addition, the webcast will be archived on the Company's
website in the investor relations events section.
About Yield10 Bioscience
Yield10 Bioscience, Inc. is an agricultural bioscience company
that is using its differentiated trait gene discovery platform, the
“Trait Factory”, to develop improved Camelina varieties for the
production of proprietary seed products, and to discover high
valuable genetic traits for the agriculture and food industries.
Our goals are to efficiently establish a high value seed products
business based on developing superior varieties of Camelina for the
production of feedstock oils, nutritional oils, and PHA
bioplastics, and to license our yield traits to major seed
companies for commercialization in major row crops, including corn,
soybean and canola. Yield10 is headquartered in Woburn, MA and has
an Oilseeds Center of Excellence in Saskatoon, Canada.
For more information about the company, please visit
www.yield10bio.com, or follow the Company on Twitter,
Facebook and LinkedIn. (YTEN-E)
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which are
made pursuant to the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The forward-looking
statements in this release do not constitute guarantees of future
performance. Investors are cautioned that statements in this press
release which are not strictly historical statements, including,
without limitation, expectations regarding Yield10’s cash position,
cash forecasts and runway, expectations related to research and
development activities, collaborations, intellectual property, the
expected regulatory path for traits, reproducibility of data from
field tests, the timing of completion of additional greenhouse and
field test studies, the signing of research licenses and
collaborations, and value creation as well as the overall progress
of Yield10 Bioscience, Inc., constitute forward-looking statements.
Such forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to differ
materially from those anticipated, including the risks and
uncertainties detailed in Yield10 Bioscience’s filings with the
Securities and Exchange Commission. Yield10 Bioscience assumes no
obligation to update any forward-looking information contained in
this press release or with respect to the announcements described
herein.
Contacts:
Yield10 Bioscience:Lynne H. Brum, (617) 682-4693,
LBrum@yield10bio.com
Investor Relations: Bret Shapiro, (561) 479-8566,
brets@coreir.comManaging Director, CORE IR
Media Inquiries: Eric Fischgrund, eric@fischtankpr.comFischTank
Marketing and PR
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months Ended December 31, |
|
Twelve Months Ended December
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
195 |
|
|
$ |
140 |
|
|
$ |
799 |
|
|
$ |
806 |
|
Total revenue |
195 |
|
|
140 |
|
|
799 |
|
|
806 |
|
Expenses: |
|
|
|
|
|
|
|
Research and development |
1,422 |
|
|
1,202 |
|
|
5,361 |
|
|
4,848 |
|
General and administrative |
1,383 |
|
|
1,353 |
|
|
5,047 |
|
|
4,554 |
|
Total expenses |
2,805 |
|
|
2,555 |
|
|
10,408 |
|
|
9,402 |
|
Loss from operations |
(2,610 |
) |
|
(2,415 |
) |
|
(9,609 |
) |
|
(8,596 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Loss on issuance of securities |
— |
|
|
(13,018 |
) |
|
— |
|
|
(13,018 |
) |
Offering costs |
— |
|
|
(1,254 |
) |
|
— |
|
|
(1,254 |
) |
Change in fair value of warrants |
— |
|
|
9,541 |
|
|
(957 |
) |
|
9,541 |
|
Loan forgiveness income |
— |
|
|
— |
|
|
333 |
|
|
— |
|
Other income (expense), net |
(2 |
) |
|
49 |
|
|
83 |
|
|
117 |
|
Total other income (expense) |
(2 |
) |
|
(4,682 |
) |
|
(541 |
) |
|
(4,614 |
) |
Net loss from operations
before income taxes |
(2,612 |
) |
|
(7,097 |
) |
|
(10,150 |
) |
|
(13,210 |
) |
Income tax (provision) benefit |
(30 |
) |
|
254 |
|
|
(56 |
) |
|
254 |
|
Net loss |
$ |
(2,642 |
) |
|
$ |
(6,843 |
) |
|
$ |
(10,206 |
) |
|
$ |
(12,956 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.79 |
) |
|
$ |
(12.02 |
) |
|
$ |
(4.30 |
) |
|
$ |
(35.50 |
) |
Number of shares used in per
share calculations: |
|
|
|
|
|
|
|
Basic & diluted |
3,333,870 |
|
|
569,207 |
|
|
2,373,265 |
|
|
364,967 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
December 31,2020 |
|
December 31,2019 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
3,423 |
|
|
$ |
5,417 |
|
Short-term investments |
6,279 |
|
|
5,700 |
|
Accounts receivable |
86 |
|
|
72 |
|
Unbilled receivables |
27 |
|
|
20 |
|
Prepaid expenses and other current assets |
527 |
|
|
475 |
|
Total current assets |
10,342 |
|
|
11,684 |
|
Restricted cash |
264 |
|
|
332 |
|
Property and equipment,
net |
921 |
|
|
1,243 |
|
Right-of-use assets |
2,712 |
|
|
3,141 |
|
Other assets |
283 |
|
|
318 |
|
Total assets |
$ |
14,522 |
|
|
$ |
16,718 |
|
|
|
|
|
Liabilities,
Convertible Preferred Stock and Stockholders' Equity
(Deficit) |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
60 |
|
|
$ |
279 |
|
Accrued expenses |
1,297 |
|
|
1,326 |
|
Lease liabilities |
457 |
|
|
602 |
|
Total current liabilities |
1,814 |
|
|
2,207 |
|
Lease liabilities, net of current portion |
3,163 |
|
|
3,619 |
|
Warrant liability |
— |
|
|
14,977 |
|
Other liabilities |
13 |
|
|
— |
|
Total liabilities |
4,990 |
|
|
20,803 |
|
Commitments and
contingencies |
|
|
|
Series B Convertible Preferred
Stock ($0.01 par value per share); 0 and 5,750 shares issued and
outstanding at December 31, 2020 and December 31, 2019,
respectively (Note 9) |
— |
|
|
— |
|
Stockholders' Equity
(Deficit): |
|
|
|
Series A Convertible Preferred Stock ($0.01 par value per share); 0
and 796 shares issued and outstanding at December 31, 2020 and
December 31, 2019, respectively |
— |
|
|
— |
|
Common stock ($0.01 par value per share); 60,000,000 shares
authorized at December 31, 2020 and 2019; and 3,334,048 and
933,423 shares issued and outstanding at December 31, 2020 and
2019, respectively |
33 |
|
|
9 |
|
Additional paid-in
capital |
384,758 |
|
|
360,926 |
|
Accumulated other
comprehensive loss |
(159 |
) |
|
(126 |
) |
Accumulated deficit |
(375,100 |
) |
|
(364,894 |
) |
Total stockholders' equity (deficit) |
9,532 |
|
|
(4,085 |
) |
Total liabilities, convertible preferred stock and stockholders'
equity (deficit) |
$ |
14,522 |
|
|
$ |
16,718 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
|
Years Ended December 31, |
|
|
2020 |
|
2019 |
Cash flows from
operating activities |
|
|
|
|
Net loss |
|
$ |
(10,206 |
) |
|
$ |
(12,956 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
|
Depreciation |
|
182 |
|
|
203 |
|
Loss on issuance of
securities |
|
— |
|
|
13,018 |
|
Change in fair value of
warrants |
|
957 |
|
|
(9,541 |
) |
Loan forgiveness income |
|
(333 |
) |
|
— |
|
Loss on disposal of fixed
assets |
|
206 |
|
|
— |
|
Expense for 401(k) company
common stock match |
|
109 |
|
|
98 |
|
Stock-based compensation |
|
739 |
|
|
656 |
|
Noncash lease expense |
|
429 |
|
|
1,625 |
|
Deferred tax asset |
|
56 |
|
|
(254 |
) |
Changes in operating assets
and liabilities: |
|
|
|
|
Accounts receivable |
|
(14 |
) |
|
22 |
|
Unbilled receivables |
|
(7 |
) |
|
46 |
|
Prepaid expenses and other assets |
|
(69 |
) |
|
9 |
|
Accounts payable |
|
(219 |
) |
|
162 |
|
Accrued expenses |
|
99 |
|
|
502 |
|
Other liabilities |
|
13 |
|
|
— |
|
Lease liabilities |
|
(601 |
) |
|
(2,244 |
) |
Net cash used in operating activities |
|
(8,659 |
) |
|
(8,654 |
) |
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
Purchase of property and
equipment |
|
(76 |
) |
|
(61 |
) |
Proceeds from sale of property
and equipment |
|
10 |
|
|
— |
|
Purchase of investments |
|
(9,279 |
) |
|
(5,704 |
) |
Proceeds from sale and
maturity of short-term investments |
|
8,700 |
|
|
2,750 |
|
Net cash used by investing activities |
|
(645 |
) |
|
(3,015 |
) |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
Proceeds from warrants
exercised |
|
1,658 |
|
|
— |
|
Proceeds from PPP loan |
|
333 |
|
|
— |
|
Proceeds from securities
offerings, net of issuance costs |
|
5,305 |
|
|
14,083 |
|
Taxes paid on employees'
behalf related to vesting of stock awards |
|
(17 |
) |
|
(4 |
) |
Net cash provided by financing activities |
|
7,279 |
|
|
14,079 |
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(37 |
) |
|
(16 |
) |
Net (decrease) increase in
cash, cash equivalents and restricted cash |
|
(2,062 |
) |
|
2,394 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
5,749 |
|
|
3,355 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
3,687 |
|
|
$ |
5,749 |
|
|
|
|
|
|
Supplemental Cash Flow
Disclosure: |
|
|
|
|
Interest paid |
|
$ |
8 |
|
|
$ |
7 |
|
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