Yield10 Bioscience, Inc. (NASDAQ:YTEN), an agricultural bioscience
company which uses its “Trait Factory” to develop high value seed
traits for the agriculture and food industries, today reported
financial results for the three months ended March 31, 2019.
"2019 is off to a strong start for Yield10 and holds the
potential to be a pivotal year for the Company,” said Oliver
Peoples, Ph.D., president and chief executive officer of Yield10
Bioscience. “With more than 10 crop yield traits advancing in our
pipeline, we continue to execute against our strategy to generate
proof points in key commercial crops throughout 2019. We are also
leveraging our 'Trait Factory' to drive collaborative opportunities
with the objective of forming revenue generating partnerships to
create a path to commercialization for our yield traits.”
“During the first quarter we completed the steps required to
initiate planting for our 2019 Field Tests of C3003 and C3004,
which we anticipate occurring in second quarter, pending suitable
weather conditions. We also continued to make important progress
deploying our novel yield traits for evaluation in canola, soybean,
corn, wheat and rice, where in many cases we are leveraging third
party capabilities and resources. We expect that many of these
programs will produce agronomic and/or yield data during 2019,
which should position Yield10 for future commercial opportunities,”
Dr. Peoples concluded.
Recent Accomplishments
Completed Start-up Activities for 2019 Field
Tests. Yield10 completed seed bulk up, permitting and
contracting associated with the Company's 2019 Field Tests planned
for the evaluation of seed yield traits in oilseed crops. Key
studies include the evaluation of second generation C3003 in canola
and the evaluation of C3004 in first-time field tests in
Camelina.
Advanced deployment of two key traits in
canola. Yield10 progressed the characterization of C3007
deployed in canola lines using CRISPR genome-editing as a key step
toward enabling the submission of an "Am I Regulated?" letter in
advance of U.S. field tests. Yield10 also produced its first
canola lines containing the C3004 seed yield trait, one that is
based on inserting a gene from Camelina to improve seed yield.
Initiated an early development program in corn to
evaluate novel seed yield and drought tolerance traits.
Corn is the highest value commercial row crop grown in the United
States. Under Yield10’s corn program, six novel traits discovered
by Yield10 are currently being deployed in corn by a third-party
agriculture company with proven expertise introducing new traits
into corn. This aspect of the development activity is expected to
be completed in early 2020. Additional traits may be added to
the program in 2019. Yield10 plans to engage an additional
third-party to conduct field testing of the novel traits in corn to
evaluate the impact on seed yield.
Broadened its intellectual property portfolio.
Yield10 recently received a Notice of Allowance from the US PTO for
claims relating to C3003. The patent is expected to issue in
2019. In addition, Yield10 signed an exclusive global license
with the University of Missouri to additional advanced technology
based on the ACCase complex, designated C3012, to boost oil content
in crops.
FIRST QUARTER 2019 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 first quarter of 2019 with $6.1 million in
unrestricted cash and cash equivalents. On March 18, 2019, Yield10
closed on a registered direct offering of its common stock, raising
$2.6 million, net of offering costs of $0.3 million. The Company
anticipates total net cash usage in a range of approximately $9.0
million to $9.5 million during 2019.
The Company's present capital resources, including funds
received from its March 2019 offering, will not be sufficient to
fund its planned operations for a twelve-month period and,
therefore, raise substantial doubt about the Company's ability to
continue as a going concern. The Company's ability to continue
operations after its current cash resources are exhausted depends
on its ability to obtain additional financing, including public or
private equity financing, secured or unsecured debt financing, and
receipt of additional government research grants, as well as
licensing or other collaborative arrangements.
Operations
The Company’s net cash used by operating activities during the
first quarter of 2019 was $2.3 million, a decrease of $0.7 million
from the $3.0 million used in operating activities during first
quarter 2018.
For the first quarter ending March 31, 2019, the Company
reported a net operating loss of $2.3 million, or $0.22 per share
which is consistent to a net operating loss of $2.3 million, or
$0.24 per share, for 2018.
Total research grant revenue for the first quarter 2019 was $0.1
million, consistent with $0.1 million recorded in the previous
year. Research and development expenses were $1.2 million in
the first quarter of 2019, compared to $1.1 million for the similar
period in 2018. General and administrative expenses were $1.2
million and $1.3 million for the first quarters ended March 31,
2019 and 2018, respectively.
The Company's 2018 condensed consolidated financial statements
included in this press release have been adjusted to reflect the
Company's adoption of Accounting Standards Update No. 2016-02
("Topic 842"), Leases, on January 1, 2019. The effect of the
new standard is material to the Company's financial
statements. As permitted by Topic 842, the Company elected to
modify its 2018 comparative financial statements to incorporate the
new lease accounting guidance in order to ensure comparability
between the two periods being presented.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 5:00 p.m. (ET) to discuss the first quarter 2019 results. The
Company also will provide an update on the business and answer
questions from the investor community. A live webcast of the call
with accompanying 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 13689779. The replay will be available until May 23,
2019. 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
which uses its “Trait Factory” to develop high value seed traits
for the agriculture and food industries 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. The “Trait Factory” has two
components: the “GRAIN” computational modeling platform, which is
used to identify specific gene changes designed to improve crop
performance, and the deployment of those changes into crops using
genome-editing or traditional agricultural biotechnology
approaches. The purpose of the “Trait Factory” is to engineer
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 canola, soybean, rice, wheat and corn.
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 cash position,
cash forecasts and runway, ability to obtain sufficient financing
to continue operating, 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
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
124 |
|
|
$ |
60 |
|
Total revenue |
124 |
|
|
60 |
|
|
|
|
|
Expenses: |
|
|
|
Research and development |
1,223 |
|
|
1,101 |
|
General and administrative |
1,186 |
|
|
1,276 |
|
Total expenses |
2,409 |
|
|
2,377 |
|
Loss from operations |
(2,285 |
) |
|
(2,317 |
) |
|
|
|
|
Other income (expense),
net |
25 |
|
|
25 |
|
Net loss |
$ |
(2,260 |
) |
|
$ |
(2,292 |
) |
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.22 |
) |
|
$ |
(0.24 |
) |
|
|
|
|
Number of shares used in per
share calculations: |
|
|
|
Basic & Diluted |
10,503,291 |
|
|
9,698,726 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
March 31, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
6,065 |
|
|
$ |
3,023 |
|
Short-term investments |
— |
|
|
2,746 |
|
Accounts receivable |
45 |
|
|
94 |
|
Unbilled receivables |
79 |
|
|
66 |
|
Prepaid expenses and other current assets |
549 |
|
|
448 |
|
Total current assets |
6,738 |
|
|
6,377 |
|
Restricted cash |
332 |
|
|
332 |
|
Property and equipment,
net |
1,335 |
|
|
1,385 |
|
Right-of-use assets |
4,619 |
|
|
4,766 |
|
Other assets |
71 |
|
|
100 |
|
Total assets |
$ |
13,095 |
|
|
$ |
12,960 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
12 |
|
|
$ |
117 |
|
Accrued expenses |
621 |
|
|
680 |
|
Lease liabilities |
869 |
|
|
844 |
|
Total current liabilities |
1,502 |
|
|
1,641 |
|
Lease liabilities, net of
current portion |
5,398 |
|
|
5,621 |
|
Total liabilities |
6,900 |
|
|
7,262 |
|
|
|
|
|
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 March 31, 2019 and December 31, 2018; 12,468,219 and
10,025,811 shares issued and outstanding at March 31, 2019 and
December 31, 2018, respectively |
125 |
|
|
100 |
|
Additional paid-in
capital |
360,383 |
|
|
357,646 |
|
Accumulated other
comprehensive loss |
(115 |
) |
|
(110 |
) |
Accumulated deficit |
(354,198 |
) |
|
(351,938 |
) |
Total stockholders’ equity |
6,195 |
|
|
5,698 |
|
Total liabilities and stockholders’ equity |
$ |
13,095 |
|
|
$ |
12,960 |
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
Three Months EndedMarch 31, |
|
2019 |
|
2018 |
Cash flows from operating activities |
|
|
|
|
|
|
|
Net loss |
$ |
(2,260 |
) |
|
$ |
(2,292 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
Depreciation |
50 |
|
|
47 |
|
Charge for 401(k) company
common stock match |
24 |
|
|
46 |
|
Stock-based compensation |
162 |
|
|
281 |
|
Noncash lease expense |
147 |
|
|
60 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivables |
49 |
|
|
12 |
|
Unbilled receivables |
(13 |
) |
|
29 |
|
Prepaid expenses and other assets |
(60 |
) |
|
(125 |
) |
Accounts payable |
(105 |
) |
|
(27 |
) |
Accrued expenses |
(92 |
) |
|
(993 |
) |
Lease liabilities |
(198 |
) |
|
(68 |
) |
Net cash used for operating activities |
(2,296 |
) |
|
(3,030 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property and
equipment |
— |
|
|
(3 |
) |
Purchase of short-term
investments |
— |
|
|
(4,002 |
) |
Proceeds from the sale and
maturity of short-term investments |
2,746 |
|
|
11 |
|
Net cash provided by (used for) investing activities |
2,746 |
|
|
(3,994 |
) |
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
— |
|
|
124 |
|
Proceeds from registered
direct offering, net of issuance costs |
2,597 |
|
|
— |
|
Net cash provided by financing activities |
2,597 |
|
|
124 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
(5 |
) |
|
(4 |
) |
|
|
|
|
Net increase (decrease) in
cash, cash equivalents and restricted cash |
3,042 |
|
|
(6,904 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
3,355 |
|
|
14,804 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
6,397 |
|
|
$ |
7,900 |
|
|
|
|
|
Supplemental
disclosure of non-cash information: |
|
|
|
Purchase of property and
equipment included in accounts payable and accrued expenses |
$ |
12 |
|
|
$ |
31 |
|
Offering costs remaining in
accrued expenses |
$ |
14 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
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