Yield10 Bioscience, Inc. (Nasdaq:YTEN) ("Yield10" or the
"Company"), an agricultural bioscience company, today reported
financial results for the three and six months ended June 30,
2022.
“We are making solid progress operationalizing our
commercial plan to launch Camelina as a platform crop to supply
low-carbon feedstock oil for the biofuel market and to produce
omega-3 nutritional oil and PHA bioplastic longer term,” said
Oliver Peoples, Ph.D., Chief Executive Officer of Yield10
Bioscience. “Our market development efforts focused on the biofuel
feedstock opportunity have positioned us to contract more than
1,000 acres of winter Camelina with growers in the U.S. and Canada.
We expect planting to be completed by early October 2022 and
harvest of Camelina grain for processing into oil and protein meal
is anticipated in second quarter 2023. In addition, our ongoing and
planned winter and contra-season Camelina seed production
activities are ramping up with the goal of enabling the expansion
of grower contracts in 2023 for oil production and off-take to the
biofuel market. In the second half of 2022, we will continue our
market development efforts building relationships with contract
growers and biofuel supply chain participants.
"We have a significant effort underway to deploy
novel performance traits as well as established herbicide tolerance
and pest resistance traits into our Elite Camelina germplasm. Our
spring 2022 field test program includes evaluating herbicide
tolerance in more than 30 candidate Camelina lines. In
these ongoing field tests, these plants have displayed excellent
herbicide tolerance throughout the growing season. Following
harvest, we will be evaluating a range of agronomic parameters as
well as seed yield obtained in these lines. Based on positive
preliminary results, we are planning contra-season seed scale up to
accelerate the pace of development and commercialization of the
best herbicide tolerant Camelina lines. We believe herbicide
tolerant Camelina will be very attractive to growers and enable
planting of the crop on large acreage.”
“As 2022 progresses, we continue to focus on market
development and seed production activities to enable a significant
ramp-up in contracted acres in 2023 and beyond. We will also
continue to generate proof points supporting the agronomics and
seed yield of our Elite Camelina varieties. We are currently
completing the evaluation of seed yield data obtained across
several geographies in our recent winter planting. Further, we
expect to harvest our 2022 spring field test planting and in the
months ahead conduct an evaluation of seed yield and oil content as
well as herbicide tolerance and pest resistance to inform future
trials and the selection of new Camelina lines for development,”
said Peoples.
Recent Accomplishments
- Ongoing market development
activities: In the second quarter, Yield10 continued
market development activities to build visibility for Camelina as a
new annual crop targeting the biofuels market and to identify
farmers interested in growing Camelina in the winter or spring
season.
- 2022 seed scale up and field
test program underway: Yield10 is evaluating
candidate Camelina lines for herbicide tolerance to identify lead
and back up lines for commercial development and regulatory
approval. To date, these Camelina plants have displayed excellent
tolerance to over-the-top application of a broadleaf herbicide in
the field. Yield10 will be collecting a range of agronomic and seed
yield data on these lines and selecting lines for seed
multiplication. In addition, a prototype Camelina PHA line is being
grown at acre-scale to produce PHA for process development and
business development purposes. Yield10 is also evaluating traits
C3007 and C3020 as well as identifying candidate Camelina lines
resistant to downy mildew, a fungal pathogen.
- 2021/2022 winter season field
testing and seed scale up complete: The harvest of seed
from sites in the U.S. and Canada will soon be complete. Yield10 is
analyzing seed yield data from the winter field tests.
- Omega-3 patent
published: Recently, a patent application was
published describing significant improvements to the technology for
using Camelina as a production platform to make the omega-3 fatty
acid EPA for human use as a nutraceutical, pharmaceutical or food
additive as well as for making the combination of EPA and DHA for
animal feed. This patent application filed by Rothamsted Research
in 2021 is expected to extend the patent protection for this
technology through 2040. Yield10 is collaborating with Rothamsted
on the development of Camelina to sustainably produce omega-3 oils
and has an exclusive option to this technology.
Geopolitical Uncertainty and COVID-19
Impact on Operations
The Company has implemented business continuity
plans to address the COVID-19 pandemic and minimize disruptions to
ongoing operations. In addition, the conflict in Ukraine has
resulted in significant uncertainty in the agriculture and
commodities markets, and may have a significant impact on the
Company’s business and operations. To date, despite the pandemic,
Yield10 has been able to move forward with the operational steps
required to execute its 2022 spring field trials in Canada and the
United States. However, it is possible that any potential future
closures of research facilities, should they continue for an
extended time, or delays in receiving supplies and materials needed
to conduct field trials and research, or economic repercussions of
the pandemic or other geopolitical uncertainty, such as the ongoing
conflict between Ukraine and Russia, could adversely impact the
Company's anticipated time frames for evaluating and/or reporting
data from our field trials and other work we plan to accomplish
during 2022 and beyond.
SECOND QUARTER 2022 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.
Yield10 ended the second quarter of 2022 with $10.2
million in unrestricted cash and investments; a net decrease of
$2.5 million from unrestricted cash and investments of $12.7
million reported as of March 31, 2022. Net cash used by
operating activities during the second quarter of 2022 was $2.5
million compared to $2.1 million used in the second quarter of
2021. The Company continues to estimate total net cash usage for
the full year ended December 31, 2022 in a range of $12.0 -
$12.5 million as it continues its controlled growth to develop
proprietary Camelina plant varieties and to support the commercial
launch of its Camelina grain products.
Yield10's present capital resources are expected to
fund its planned operations into the first quarter of 2023. The
Company's ability to continue operations after its current cash
resources are exhausted is dependent upon its ability to obtain
additional financing, including public or private equity financing,
secured or unsecured debt financing, receipt of additional
government research grants, as well as licensing or other
collaborative arrangements.
Operating Results
Grant revenue for the second quarter of 2022 and
the second quarter of 2021 were $0.1 million and $0.2 million,
respectively. Research and development expenses increased by $0.4
million from $1.7 million during the second quarter of 2021 to $2.0
million in the second quarter of 2022. General and administrative
expenses were $1.5 million and $1.6 million for the quarter ended
June 30, 2022 and June 30, 2021, respectively, reflecting
a decrease of $0.1 million.
Yield10 reported a net loss of $3.4 million for the
quarter ended June 30, 2022, or $0.70 per share, as compared
to a net loss of $3.1 million, or $0.64 per share, for the quarter
ended June 30, 2021. The greater net loss is primarily due to
the decrease in grant revenue and the Company's increased operating
expenses resulting primarily from the addition of new staff and
costs related to pre-commercial seed production.
For the six months ended June 30, 2022, the
Company reported a net loss of $6.8 million, or $1.38 per share,
compared to a net loss of $5.7 million, or $1.23 per share, during
the six months ended June 30, 2021. Year to date grant revenue
earned through June 30, 2022 and June 30, 2021 were $0.3
million and $0.4 million, respectively. Research and development
expenses were $3.8 million and $3.0 million during the six months
ended June 30, 2022 and June 30, 2021, respectively.
During those same periods, general and administrative expenses were
$3.2 million and $3.0 million.
Yield10 Bioscience management will host a
conference call today at 4:30 p.m. (ET) to discuss the second
quarter 2022 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 13730466. The replay will be available until
August 24, 2022. In addition, the webcast will be archived on the
Company's website in the investor relations events section.
About Yield10 BioscienceYield10
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 value 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 for renewable diesel, PHA bioplastics and omega-3
(DHA+EPA) oils, 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, 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 outcomes of 2021-2022 winter
field tests, 2022 spring field tests, and seed scale-up activities,
the signing of research licenses and collaborations, including
whether the objectives of those collaborations will be met, whether
the Company will be able to generate proof points for traits in
development and advance business discussions around its Camelina
business plan, the potential impact on operations of the COVID-19
pandemic, the geopolitical uncertainty caused by the conflict
between Ukraine and Russia, 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.com Managing Director, CORE IR
Media Inquiries:Eric Fischgrund,
eric@fischtankpr.com FischTank Marketing and PR
(FINANCIAL TABLES FOLLOW)
|
YIELD10 BIOSCIENCE, INC.CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONSUNAUDITED(In thousands, except
share and per share amounts) |
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
103 |
|
|
$ |
174 |
|
|
$ |
252 |
|
|
$ |
370 |
|
Total revenue |
|
103 |
|
|
|
174 |
|
|
|
252 |
|
|
|
370 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Research and development |
|
2,016 |
|
|
|
1,651 |
|
|
|
3,779 |
|
|
|
2,967 |
|
General and administrative |
|
1,523 |
|
|
|
1,604 |
|
|
|
3,230 |
|
|
|
3,036 |
|
Total expenses |
|
3,539 |
|
|
|
3,255 |
|
|
|
7,009 |
|
|
|
6,003 |
|
Loss from operations |
|
(3,436 |
) |
|
|
(3,081 |
) |
|
|
(6,757 |
) |
|
|
(5,633 |
) |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
Other income (expense), net |
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
Total other income (expense) |
|
2 |
|
|
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
Loss from operations before income taxes |
|
(3,434 |
) |
|
|
(3,081 |
) |
|
|
(6,756 |
) |
|
|
(5,634 |
) |
Income tax provision |
|
(9 |
) |
|
|
(11 |
) |
|
|
(18 |
) |
|
|
(19 |
) |
Net loss |
$ |
(3,443 |
) |
|
$ |
(3,092 |
) |
|
$ |
(6,774 |
) |
|
$ |
(5,653 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$ |
(0.70 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.38 |
) |
|
$ |
(1.23 |
) |
Number of shares used in per share calculations: |
|
|
|
|
|
|
|
Basic and diluted |
|
4,900,298 |
|
|
|
4,868,156 |
|
|
|
4,894,638 |
|
|
|
4,583,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10 BIOSCIENCE, INC.CONDENSED
CONSOLIDATED BALANCE
SHEETSUNAUDITED(In thousands,
except share and per share amounts) |
|
|
June 30,2022 |
|
December 31,2021 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
3,180 |
|
|
$ |
5,329 |
|
Short-term investments |
|
6,978 |
|
|
|
10,661 |
|
Accounts receivable |
|
35 |
|
|
|
164 |
|
Unbilled receivables |
|
28 |
|
|
|
34 |
|
Prepaid expenses and other current assets |
|
483 |
|
|
|
436 |
|
Total current assets |
|
10,704 |
|
|
|
16,624 |
|
Restricted cash |
|
264 |
|
|
|
264 |
|
Property and equipment, net |
|
895 |
|
|
|
890 |
|
Right-of-use assets |
|
2,162 |
|
|
|
2,354 |
|
Other assets |
|
248 |
|
|
|
283 |
|
Total assets |
$ |
14,273 |
|
|
$ |
20,415 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
24 |
|
|
$ |
83 |
|
Accrued expenses |
|
1,059 |
|
|
|
1,136 |
|
Current portion of lease liabilities |
|
544 |
|
|
|
514 |
|
Total current liabilities |
|
1,627 |
|
|
|
1,733 |
|
Lease liabilities, net of current portion |
|
2,375 |
|
|
|
2,656 |
|
Total liabilities |
|
4,002 |
|
|
|
4,389 |
|
Commitments and contingencies |
|
|
|
Stockholders’ Equity: |
|
|
|
Preferred stock ($0.01 par value per share); 5,000,000 shares
authorized; no shares issued or outstanding |
|
— |
|
|
|
— |
|
Common stock ($0.01 par value per share); 60,000,000 shares
authorized at June 30, 2022 and December 31, 2021; 4,901,246 and
4,881,851 shares issued and outstanding at June 30, 2022 and
December 31, 2021, respectively |
|
49 |
|
|
|
49 |
|
Additional paid-in capital |
|
403,347 |
|
|
|
402,283 |
|
Accumulated other comprehensive loss |
|
(220 |
) |
|
|
(175 |
) |
Accumulated deficit |
|
(392,905 |
) |
|
|
(386,131 |
) |
Total stockholders’ equity |
|
10,271 |
|
|
|
16,026 |
|
Total liabilities and stockholders’ equity |
$ |
14,273 |
|
|
$ |
20,415 |
|
YIELD10 BIOSCIENCE, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands) |
|
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
Net loss |
$ |
(6,774 |
) |
|
$ |
(5,653 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
128 |
|
|
|
108 |
|
Charge for 401(k) company common stock match |
|
76 |
|
|
|
69 |
|
Stock-based compensation |
|
1,011 |
|
|
|
739 |
|
Non-cash lease expense |
|
192 |
|
|
|
175 |
|
Deferred income tax provision |
|
19 |
|
|
|
14 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
129 |
|
|
|
10 |
|
Unbilled receivables |
|
6 |
|
|
|
(11 |
) |
Prepaid expenses and other assets |
|
(37 |
) |
|
|
24 |
|
Accounts payable |
|
(59 |
) |
|
|
41 |
|
Accrued expenses |
|
(80 |
) |
|
|
(69 |
) |
Lease liabilities |
|
(251 |
) |
|
|
(223 |
) |
Net cash used in operating activities |
|
(5,640 |
) |
|
|
(4,776 |
) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property and equipment |
|
(133 |
) |
|
|
(136 |
) |
Purchase of investments |
|
(710 |
) |
|
|
(3,891 |
) |
Proceeds from the maturity of short-term investments |
|
4,371 |
|
|
|
5,250 |
|
Net cash provided by investing activities |
|
3,528 |
|
|
|
1,223 |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
Proceeds from warrants exercised |
|
— |
|
|
|
3,856 |
|
Proceeds from public offering, net of issuance costs |
|
— |
|
|
|
11,993 |
|
Taxes paid on employees' behalf related to vesting of stock
awards |
|
(14 |
) |
|
|
(83 |
) |
Net cash (used in) provided by financing activities |
|
(14 |
) |
|
|
15,766 |
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
(23 |
) |
|
|
5 |
|
|
|
|
|
Net (decrease) increase in cash, cash equivalents and restricted
cash |
|
(2,149 |
) |
|
|
12,218 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
5,593 |
|
|
|
3,687 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
3,444 |
|
|
$ |
15,905 |
|
|
|
|
|
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