Yield10 Bioscience, Inc. (Nasdaq:YTEN) ("Yield10" or the
"Company"), an agricultural bioscience company, today reported
financial results for the first quarter ended March 31, 2023.
"We remain focused on executing our commercial
strategy with an emphasis on positioning elite Camelina as a source
of low-carbon intensity feedstock oil for the biofuels market,"
said Oliver Peoples, Ph.D., President and Chief Executive Officer
of Yield10 Bioscience. "I am pleased to report that we have met our
target for 2023 contracted spring Camelina acres with growers in
the U.S. and Canada. Our contracted 2022/2023 winter Camelina crop
showed excellent cold tolerance over the season and is resuming its
growth cycle driven by the arrival of warm weather. We expect
harvest of both crops during the third quarter of 2023, and are
committed to matching our grower contracts with Camelina grain
offtake contracts. We anticipate the first grain revenue from our
Camelina products business in the fourth quarter of 2023.
"There is considerable interest in Camelina as a
feedstock oil for biofuels and we continue to engage with
interested parties. Our plan is to build a network of alliances
across the value chain to enable the production of Camelina
feedstock oil for the biofuel market. We recently signed a
non-binding Letter of Intent ("LOI") with Marathon Petroleum
("MPC") for an investment and offtake agreement and discussions
around terms for definitive agreements are in progress. Earlier
this year we signed Memorandum of Understanding agreements ("MOUs")
with Mitsubishi and American Airlines driven by their respective
interest in Camelina feedstock oil for use in sustainable aviation
fuel. In addition, earlier this year we signed an agreement with a
third party crusher/refiner as a regional customer for Camelina
grain offtake.
"We are rapidly advancing the next generation of
elite Camelina varieties engineered for herbicide tolerance to
provide farmers with weed control while seamlessly integrating with
their crop rotations. Our efforts also extend to seed scale-up
activities for spring E3902-HT Camelina. Currently, we are
conducting field tests at 13 sites for several traits including
broad leaf herbicide tolerance, stacked herbicide tolerance (broad
leaf and soil residual), as well as performance traits for seed
yield and oil content. We will conduct our first field testing and
seed scale-up of EPA omega-3 Camelina to enable larger-scale
planting.
"We are making demonstrable progress on the
commercial front engaging with growers and biofuel industry
players. We are also rapidly advancing the development of elite
herbicide tolerant Camelina varieties that will enable new
revenue-generating options for farmers. We look forward to
continuing to build value and report on our progress across our
Camelina products business in 2023," concluded Dr. Peoples.
Recent AccomplishmentsRecent
progress by Yield10 is underscored by several key milestones
achieved since the start of 2023.
- Signing grower contracts for Camelina: Yield10
has met its internal target for contracted spring Camelina acres
based on good interest from growers in a variety of locations in
the U.S. and Canada. These farmers will be growing Camelina on a
scale of 45 to 200+ acres. Recent visits to farms participating in
our winter 2022/2023 grower contracts indicate that the crop
demonstrated impressive cold tolerance during the winter season,
even in areas with little to no persistent snow cover. Harvest of
Camelina grain under these contracts is expected in the third
quarter of 2023. Yield10 continues to build awareness for the
benefits of growing Camelina and to identify growers for the
2023/2024 winter Camelina contracts.
- Building the supply chain for biofuels:
Yield10 continues to conduct discussions with industry players
across the biofuel supply chain. In May, Yield10 announced signing
a non-binding LOI with MPC for a potential investment and offtake
agreement for low-carbon intensity Camelina feedstock oil for use
in renewable fuel production. In connection with the execution of
the LOI, Yield10 issued to MPC Investment, LLC, an affiliate of
MPC, a senior unsecured promissory note in the original principal
amount of $1.0 million.
- Controlling weeds is critical to large-scale production
of Camelina: Yield10 researchers are executing a program
to deploy herbicide tolerance ("HT") technology in Camelina to
enable robust broad-leaf weed control and to tolerate the effects
of other herbicide residues sometimes present in soil. In the first
quarter of 2023, filings were made with U.S. regulatory authorities
for herbicide tolerant Camelina. Yield10 filed Request for Status
Review packages under the SECURE Rule with USDA-APHIS for stacked
herbicide tolerance traits in Camelina. Yield10 also supported the
filing of a label amendment with the U.S. Environmental Protection
Agency ("EPA") to expand the label of a broad leaf herbicide to
include usage in Camelina.
- Producing omega-3 oil in Camelina represents a
significant market opportunity: Camelina is an excellent
platform for producing omega-3 oils as a sustainable alternative to
the stagnating harvest of ocean fish. Yield10 is advancing
development of Camelina lines to produce the EPA component of
omega-3, conducting field trials and seed scale-up activities, and
expects to engage in commercial discussions with potential
customers for this high-value specialty oil in 2023.
FIRST QUARTER 2023 FINANCIAL
OVERVIEW
Cash Position
Yield10 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 first quarter of 2023 with $1.8
million in unrestricted cash and cash equivalents; a net decrease
of $2.5 million from unrestricted cash, cash equivalents and
investments of $4.3 million reported as of December 31, 2022.
The Company used $2.7 million in cash for its operating activities
during the three months ended March 31, 2023, in comparison to
$3.1 million used for operating activities during the first three
months of 2022, the decrease reflecting efforts by the Company to
carefully manage its cash resources. The Company reduced its total
net cash usage guidance for the year ended December 31, 2023 to a
range of $12.5 - $13.0 million, as it better aligns resources to
its efforts to further develop and commercialize its Camelina plant
varieties for the biofuel, omega-3 food and feed, and PHA
bioplastic markets. Cash usage for operating activities will
support seed scale-up and other pre-commercial Camelina production
activities, employee compensation and benefits, and further
expansion of the Company's crop trial programs.
In connection with the MPC LOI, the Company sold
and issued to an affiliate of MPC a senior unsecured convertible
note in the principal amount of $1.0 million, the funds of which
have been received. Also during early May, the Company closed on a
$3.0 million offering of its common stock (or prefunded warrants in
lieu thereof), in a registered direct offering and concurrent
private placement, receiving $2.7 million in cash proceeds after
issuance costs.
Operating Results
Research grant revenue was consistent at $0.1
million for the three months ended March 31, 2023 and
March 31, 2022. As of March 31, 2023, the Company's
five-year sub-award with Michigan State University in support of a
U.S. Department of Energy funded grant was completed with no
further grant revenue to be recognized. Research and development
expenses were $2.2 million during the first three months of 2023
compared to $1.8 million during the first three months of 2022.
General and administrative expenses remained at $1.7 million during
both the three months ended March 31, 2023 and March 31,
2022.
Yield10 reported a net loss after taxes of $3.8
million for the quarter ended March 31, 2023, or $0.76 per
share, as compared to a net loss after taxes of $3.3 million, or
$0.68 per share, for the quarter ended March 31, 2022.
Conference Call Information
Yield10 Bioscience management will host a
conference call today at 4:30 p.m. (ET) to discuss the first
quarter 2023 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 800-709-8150 or 201-689-8354 (international). Reference
Event ID:13737614. 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
(EPA, 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
a Canadian subsidiary, Yield10 Oilseeds Inc., located 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 and commercialization
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 its 2022-2023 seed production activities, 2023 spring
field tests, 2022-2023 winter field tests, Camelina planting under
growers contracts 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
geopolitical uncertainty caused by the conflict between Ukraine and
Russia, and value creation as well as the overall progress of
Yield10, 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’s filings with the Securities and Exchange
Commission. Yield10 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.com FischTank Marketing and PR
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONSUNAUDITED
|
|
|
Three Months EndedMarch 31, |
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
Grant revenue |
$ |
60 |
|
|
$ |
149 |
|
Total revenue |
|
60 |
|
|
|
149 |
|
|
|
|
|
Expenses: |
|
|
|
Research and development |
|
2,162 |
|
|
|
1,763 |
|
General and administrative |
|
1,698 |
|
|
|
1,707 |
|
Total expenses |
|
3,860 |
|
|
|
3,470 |
|
Loss from operations |
|
(3,800 |
) |
|
|
(3,321 |
) |
|
|
|
|
Other income (expense): |
|
|
|
Other income (expense), net |
|
18 |
|
|
|
(1 |
) |
Total other income
(expense) |
|
18 |
|
|
|
(1 |
) |
Loss from operations before
income taxes |
|
(3,782 |
) |
|
|
(3,322 |
) |
Income tax provision |
|
— |
|
|
|
(9 |
) |
Net loss |
$ |
(3,782 |
) |
|
$ |
(3,331 |
) |
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.76 |
) |
|
$ |
(0.68 |
) |
Number of shares used in per
share calculations: |
|
|
|
Basic and diluted |
|
4,999,606 |
|
|
|
4,888,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
|
|
|
|
March 31,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
1,809 |
|
|
$ |
2,356 |
|
Short-term investments |
|
— |
|
|
|
1,991 |
|
Unbilled receivables |
|
— |
|
|
|
30 |
|
Prepaid expenses and other current assets |
|
634 |
|
|
|
641 |
|
Total current assets |
|
2,443 |
|
|
|
5,018 |
|
Restricted cash |
|
264 |
|
|
|
264 |
|
Property and equipment,
net |
|
715 |
|
|
|
775 |
|
Right-of-use assets |
|
1,857 |
|
|
|
1,961 |
|
Other assets |
|
55 |
|
|
|
67 |
|
Total assets |
$ |
5,334 |
|
|
$ |
8,085 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
495 |
|
|
$ |
109 |
|
Accrued expenses |
|
1,184 |
|
|
|
926 |
|
Current portion of lease liabilities |
|
591 |
|
|
|
575 |
|
Total current liabilities |
|
2,270 |
|
|
|
1,610 |
|
Lease liabilities, net of
current portion |
|
1,921 |
|
|
|
2,075 |
|
Total liabilities |
|
4,191 |
|
|
|
3,685 |
|
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, 2023 and December 31, 2022; 5,078,557 and
4,944,202 shares issued and outstanding at March 31, 2023 and
December 31, 2022, respectively |
|
51 |
|
|
|
49 |
|
Additional paid-in
capital |
|
404,803 |
|
|
|
404,277 |
|
Accumulated other
comprehensive loss |
|
(232 |
) |
|
|
(229 |
) |
Accumulated deficit |
|
(403,479 |
) |
|
|
(399,697 |
) |
Total stockholders’ equity |
|
1,143 |
|
|
|
4,400 |
|
Total liabilities and stockholders’ equity |
$ |
5,334 |
|
|
$ |
8,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
|
|
Three Months Ended March
31, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(3,782 |
) |
|
$ |
(3,331 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
Depreciation and
amortization |
|
69 |
|
|
|
59 |
|
Charge for 401(k) company
common stock match |
|
29 |
|
|
|
45 |
|
Stock-based compensation |
|
436 |
|
|
|
523 |
|
Non-cash lease expense |
|
104 |
|
|
|
95 |
|
Deferred income tax
provision |
|
— |
|
|
|
6 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable |
|
— |
|
|
|
40 |
|
Unbilled receivables |
|
30 |
|
|
|
(24 |
) |
Prepaid expenses and other assets |
|
37 |
|
|
|
(2 |
) |
Accounts payable |
|
307 |
|
|
|
(59 |
) |
Accrued expenses |
|
241 |
|
|
|
(330 |
) |
Lease liabilities |
|
(138 |
) |
|
|
(124 |
) |
Net cash used by operating activities |
|
(2,667 |
) |
|
|
(3,102 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property and
equipment |
|
(9 |
) |
|
|
(114 |
) |
Proceeds from the maturity of
short-term investments |
|
1,991 |
|
|
|
26 |
|
Net cash provided (used by) investing activities |
|
1,982 |
|
|
|
(88 |
) |
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from At-the-Market
offering, net of issuance costs |
|
182 |
|
|
|
— |
|
Taxes paid on employees'
behalf related to vesting of stock awards |
|
(41 |
) |
|
|
(14 |
) |
Net cash provided (used by) financing activities |
|
141 |
|
|
|
(14 |
) |
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(3 |
) |
|
|
3 |
|
|
|
|
|
Net decrease in cash, cash
equivalents and restricted cash |
|
(547 |
) |
|
|
(3,201 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
2,620 |
|
|
|
5,593 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
2,073 |
|
|
$ |
2,392 |
|
|
|
|
|
Supplemental
disclosure of non-cash information: |
|
|
|
Offering costs remaining in
accounts payable |
$ |
79 |
|
|
$ |
— |
|
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