Zymergen Inc. (“Zymergen”), one of the world’s leading biofacturing companies, today reported preliminary financial results for the first quarter ended March 31, 2021.

“I am so proud of our team for their continued execution across our organization,” says Josh Hoffman, Zymergen CEO. “With biofacturing, we are committed to transforming what is possible by partnering with nature to make better products in a better way. I am confident that we are well positioned to execute on our strategy to develop and sell superior products across multiple markets, this year and beyond.”

Recent Highlights

  • Completed initial public offering in April 2021, raising $575 million in gross proceeds
  • Strengthened leadership by adding Aindrea Campbell as Chief Manufacturing Officer, a seasoned industry veteran who will be instrumental in the scaling of Zymergen’s production capabilities

First Quarter 2021 Financial Results

Total revenue was $3.7 million dollars for the three months ended March 31, 2021, all relating to R&D services agreements and Collaboration revenue. This represents a 26% increase over the same quarter in 2020, and was primarily driven by the impact of new and acquired contracts.

Total operating expenses for the first quarter of 2021 were $87.1 million dollars, a 32.8% increase from $65.6 million dollars in the first quarter of 2020. The increase was driven by an increase in R&D activities to develop Hyaline production processes, as well as the additional costs associated with becoming a public company.

Net loss in the first quarter of 2021 was $84.6 million dollars.

Cash and cash equivalents were $121.0 million as of March 31, 2021. Subsequent to quarter end, Zymergen completed its initial public offering in April 2021 raising approximately $530 million in net proceeds.

Webcast Information

Zymergen will host a conference call to discuss the first quarter 2021 financial results after market close on Monday, May 24, 2021 at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at https://investors.zymergen.com/. The webcast will be archived and available for replay for at least 90 days after the event.

About Zymergen

Zymergen is a biofacturing company using biology to reimagine the world. Zymergen partners with nature to design, develop and manufacture bio-based breakthrough products that deliver value to customers in a broad range of industries. A unique combination of biology, chemistry, software and automation enables the company to design and create new materials.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on the Company’s beliefs and assumptions and on information currently available to it on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements, including but not limited to statements regarding our timing and ability to execute on our strategy to develop and sell superior products across multiple markets, this year and beyond. These and other risks are described more fully in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s prospectus dated April 23, 2021 filed with the SEC pursuant to Rule 424 under the Securities Act of 1933, and other documents the Company subsequently files with the SEC from time to time, including the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Investor ContactNiraj Javeriinvestors@zymergen.com

Media ContactMike Dulinmdulin@zymergen.com502-777-2029

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share amounts)(unaudited)

    Three Months Ended March 31,
    2021   2020
Revenue   $ 3,735       $ 2,954    
Operating expenses:        
Cost of service revenue   21,130       24,576    
Research and development   39,811       21,802    
Sales and marketing   6,872       5,541    
General and administrative   19,331       13,693    
Total operating expenses   87,144       65,612    
Loss from operations   (83,409 )     (62,658 )  
Other income (expense):        
Interest income   43       377    
Interest and other expense   (1,211 )     (3,166 )  
Total other expense   (1,168 )     (2,789 )  
Loss before income taxes   (84,577 )     (65,447 )  
(Provision for) benefit from income taxes   (8 )     107    
Net loss   $ (84,585 )     $ (65,340 )  
Net loss per share attributable to common stockholders, basic   $ (6.51 )     $ (5.77 )  
Net loss per share attributable to common stockholders, diluted   $ (6.51 )     $ (5.77 )  
Weighted-average shares used in computing net loss per share to common stockholders, basic   12,996,344       11,322,626    
Weighted-average shares used in computing net loss per share to common stockholders, diluted   13,340,457       11,322,626    

CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(unaudited)

    As of March 31,2021   As of December 31,2020
ASSETS        
Current assets:        
Cash and cash equivalents   $ 121,035       $ 210,205    
Accounts receivable, billed and unbilled   4,116       4,175    
Inventory   5,683       4,969    
Other current assets   8,896       9,225    
Total current assets   139,730       228,574    
Property and equipment, net   55,462       48,718    
Goodwill   11,604       11,604    
Intangible assets, net   4,443       4,790    
Other assets   15,993       11,235    
Total assets   $ 227,232       $ 304,921    
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable, accrued and other liabilities   $ 37,520       $ 38,985    
Short-term debt, net         79,331    
Other current liabilities   2,790       3,142    
Total current liabilities   40,310       121,458    
Long-term debt, net   79,615          
Warrant liabilities   11,952       14,231    
Other long-term liabilities   15,490       12,170    
Total liabilities   147,367       147,859    
Convertible preferred stock   900,798       900,798    
Total stockholders' deficit   (820,933 )     (743,736 )  
Total liabilities and redeemable convertible preferred stock and stockholders' deficit   $ 227,232       $ 304,921    
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