Zymergen Reports Preliminary Fourth Quarter and Full Year 2021 Financial Results
March 22 2022 - 4:05PM
Biotechnology company Zymergen Inc. (“Zymergen” or the “Company”),
today reported preliminary financial results for the fourth quarter
and full year ended December 31, 2021.
“Our strategy is committed to bringing products
to market by designing and producing molecules, microbes, and
materials for diverse end markets across advanced materials, drug
discovery and automation,” said Zymergen’s interim CEO, Jay
Flatley. “We have implemented a rigorous product development
process which evaluates programs through stringent phase gates that
verify aspects of the market, the product, and the team resources
to fully develop that product to launch. Ahead of the process, we
have a robust research engine to create a pipeline of new
opportunities that we believe have high potential. We are pleased
with our progress and remain focused on our strategy of pursuing
continuous launches of breakthrough products.”
Recent Highlights
- Announced
prioritization on three key businesses focused on advanced
materials, drug discovery and automation
- Demonstrated early results from the
company’s infectious disease program, supported by a grant from the
Bill & Melinda Gates Foundation, which discovered hundreds of
potential novel hits against malaria, tuberculosis, and COVID-19
targets
- Launched automation technology
offering supported by a commercial pipeline of more than 20
potential customers and two signed contracts for system design
Preliminary Fourth Quarter 2021
Financial ResultsTotal revenue for the fourth quarter of
2021 was $3.0 million, primarily relating to R&D service
agreements and collaboration revenue.
Total operating expenses for the fourth quarter
of 2021 were $74.3 million, including total restructuring charges
of $7.6 million.
Net loss in the fourth quarter of 2021 was $78.1
million.
Preliminary Full Year 2021 Financial
ResultsTotal revenue was $16.7 million for the year ended
December 31, 2021, primarily relating to R&D service agreements
and collaboration revenue.
Total operating expenses for 2021 were $364.3
million, including total restructuring charges of $28.8 million and
a reversal of accrued performance bonuses of approximately $9.4
million.
Net loss was $361.8 million in 2021.
Cash and cash equivalents were $386.1 million as
of December 31, 2021, excluding restricted cash of
$12.0 million.
The financial results presented in this press
release are preliminary, estimated, and unaudited. They are subject
to the completion and finalization of Zymergen’s financial and
accounting closing procedures. They reflect management’s estimates
based solely upon information available to management as of the
date of this press release. Further information learned during that
completion and finalization may alter the final results. In
addition, the preliminary estimates should not be viewed as a
substitute for full quarter or audited full year financial
statements prepared in accordance with GAAP. There is a possibility
that Zymergen’s fourth quarter and full year financial results
could vary materially from these preliminary results. Accordingly,
you should not place undue reliance upon this preliminary
information.
Webcast InformationZymergen
will host a conference call to discuss the preliminary fourth
quarter and full year 2021 financial results after market close on
Tuesday, March 22, 2022, 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/
About ZymergenZymergen is a
biotech company that designs and produces molecules, microbes and
materials for diverse end markets. We partner with nature to make
better products, a better way, for a better world.
Forward Looking StatementsThis
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. In some cases, you can
identify these statements by forward-looking words such as “may,”
“will,” “continue,” “anticipate,” “intend,” “could,” “project,”
“expect” or the negative or plural of these words or similar
expressions. Forward-looking statements in this press release,
include but are not limited to statements regarding the Company’s
preliminary financial results, the Company’s strategy of pursuing
continuous launches of breakthrough products, the potential for our
advanced materials, drug discovery and automation businesses, the
potential therapeutic benefit of any of the potential novel hits
discovered against malaria, tuberculosis, and COVID-19 targets, the
customer pipeline for our automation business and the potential
benefits of our new product development process. 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, risks relating to the Company’s ability to
successfully commercialize or generate revenue from its products;
the Company’s ability to execute on its new strategic plan; the
Company’s ability to identify commercial opportunities; the
Company’s ability to attract automation customers; the
effectiveness and rigor of the Company’s phase gates and product
evaluation process; the Company’s ability to reduce its operating
costs and extend its cash runway; and material differences between
the Company’s actual financial results and the preliminary
financial results presented herein. These and other risks are
described more fully in the Company’s filings with the Securities
and Exchange Commission, including the Company’s Quarterly Report
on Form 10-Q for the quarter ended September 30, 2021 and the
Company’s Annual Report on Form 10-K once it is filed. 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
Contactinvestors@zymergen.com
|
|
|
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except share and per
share amounts)(unaudited) |
| |
|
|
|
|
| |
|
Three Months EndedDecember
31, |
|
Year endedDecember 31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
| Revenue |
|
$ |
3,039 |
|
|
$ |
5,906 |
|
|
$ |
16,743 |
|
|
$ |
13,284 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service revenue |
|
|
9,583 |
|
|
|
21,097 |
|
|
|
69,721 |
|
|
|
84,818 |
|
|
Research and development |
|
|
30,084 |
|
|
|
29,866 |
|
|
|
159,120 |
|
|
|
90,852 |
|
|
Sales and marketing |
|
|
4,895 |
|
|
|
4,150 |
|
|
|
23,648 |
|
|
|
18,627 |
|
|
General and administrative |
|
|
22,111 |
|
|
|
15,363 |
|
|
|
83,009 |
|
|
|
60,076 |
|
|
Restructuring charges |
|
|
7,615 |
|
|
|
— |
|
|
|
28,808 |
|
|
|
— |
|
| Total operating expenses |
|
|
74,288 |
|
|
|
70,476 |
|
|
|
364,306 |
|
|
|
254,373 |
|
| Loss from operations |
|
|
(71,249 |
) |
|
|
(64,570 |
) |
|
|
(347,563 |
) |
|
|
(241,089 |
) |
| Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
2 |
|
|
|
41 |
|
|
|
64 |
|
|
|
492 |
|
|
Interest and other expense |
|
|
(6,814 |
) |
|
|
(11,016 |
) |
|
|
(14,235 |
) |
|
|
(21,646 |
) |
|
Total other expense |
|
|
(6,812 |
) |
|
|
(10,975 |
) |
|
|
(14,171 |
) |
|
|
(21,154 |
) |
| Loss before income taxes |
|
|
(78,061 |
) |
|
|
(75,545 |
) |
|
|
(361,734 |
) |
|
|
(262,243 |
) |
| (Provision for) benefit from
income taxes |
|
|
(77 |
) |
|
|
(53 |
) |
|
|
(51 |
) |
|
|
49 |
|
| Net loss |
|
$ |
(78,138 |
) |
|
$ |
(75,598 |
) |
|
$ |
(361,785 |
) |
|
$ |
(262,194 |
) |
| Net loss per share
attributable to common stockholders, basic |
|
$ |
(0.76 |
) |
|
$ |
(5.96 |
) |
|
$ |
(4.87 |
) |
|
$ |
(21.46 |
) |
| Net loss per share
attributable to common stockholders, diluted |
|
$ |
(0.76 |
) |
|
$ |
(5.96 |
) |
|
$ |
(4.89 |
) |
|
$ |
(21.46 |
) |
| Weighted-average shares used
in computing net loss per share to common stockholders, basic |
|
|
102,608,689 |
|
|
|
12,676,335 |
|
|
|
74,226,964 |
|
|
|
12,217,889 |
|
| Weighted-average shares used
in computing net loss per share to common stockholders,
diluted |
|
|
102,608,689 |
|
|
|
12,676,335 |
|
|
|
74,305,802 |
|
|
|
12,217,889 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRELIMINARY CONDENSED CONSOLIDATED BALANCE
SHEETS(in
thousands)(unaudited) |
| |
|
|
|
| |
As of December 31, 2021 |
|
As of December 31, 2020 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
386,105 |
|
$ |
210,205 |
|
|
Accounts receivable, billed and unbilled |
|
3,085 |
|
|
4,175 |
|
|
Inventory |
|
6,035 |
|
|
4,969 |
|
|
Other current assets |
|
12,124 |
|
|
9,225 |
|
|
Total current assets |
|
407,349 |
|
|
228,574 |
|
| Property and equipment,
net |
|
53,799 |
|
|
48,718 |
|
| Goodwill |
|
36,481 |
|
|
11,604 |
|
| Intangible assets, net |
|
8,529 |
|
|
4,790 |
|
| Other assets |
|
12,074 |
|
|
11,235 |
|
|
Total assets |
$ |
518,232 |
|
$ |
304,921 |
|
| LIABILITIES AND
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
(DEFICIT) |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable, accrued and other liabilities |
$ |
22,914 |
|
$ |
38,985 |
|
|
Short-term debt, net |
|
43,953 |
|
|
79,331 |
|
|
Other current liabilities |
|
6,665 |
|
|
3,142 |
|
|
Total current liabilities |
|
73,532 |
|
|
121,458 |
|
| Warrant liabilities |
|
— |
|
|
14,231 |
|
| Other long-term
liabilities |
|
36,214 |
|
|
12,170 |
|
|
Total liabilities |
|
109,746 |
|
|
147,859 |
|
| Convertible preferred
stock |
|
— |
|
|
900,798 |
|
|
Total stockholders' equity (deficit) |
|
408,486 |
|
|
(743,736 |
) |
|
Total liabilities and convertible preferred stock and stockholders'
equity (deficit) |
$ |
518,232 |
|
$ |
304,921 |
|
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