Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience
company, today reported financial results for the three and twelve
months ended December 31, 2019.
"In 2019 we consistently met our milestones as we brought
forward new crop traits in development, generated proof points, and
expanded testing of our traits into additional crops," said Oliver
Peoples, Ph.D., president and chief executive officer of Yield10
Bioscience. "In 2020 we expect to advance our traits to achieve
additional development milestones, continue to build relationships
with major agricultural companies, and further demonstrate the
commercial pathways for our performance traits."
“Our traits represent potentially game-changing technology in
agriculture that could allow the development of new crops with
advanced performance and compositional profiles. We reported
encouraging data from our 2019 field tests, and planning is well
underway to support our field testing program in Camelina and
canola in the 2020 growing season. Our 2020 field tests will
be configured with the objective of generating valuable research,
agronomic, and field data that support the formation of
collaborations and other opportunities for revenue generation."
“We are now well-positioned to capture value from our
investments, capabilities, and performance in Camelina as a
platform crop for producing specialty products including
nutritional oils, as well as future products of commercial
interest, such as PHA biomaterials for water treatment
applications. Camelina has high upside potential and is
readily segregated geographically from the major row crops so it is
not expected to compete with acreage with elite corn or soybean. In
2019, we filed three new patent applications including the use of
gene combinations to boost oil content in crops, and on
breakthrough technology for making PHB biomaterials in Camelina
which we are planning to field test in 2020. As we develop our
business plan for the Camelina platform, we plan to pursue new
opportunities for collaboration along the value chain."
"We have begun the transition into a development stage company,
actively engaging in commercialization efforts by identifying
partners and processes we believe will scale our business and
position Yield10 for future growth. In 2019, we executed a
critical component of our strategy working with major agricultural
companies to test our yield traits in commercial crops. We expanded
our research agreement with Bayer for evaluation of our C3004 trait
in soybean and signed a research agreement with Simplot, a major,
privately held food and agribusiness company, to test our novel
traits in potato. Both of these are examples of market
leaders deploying and testing our innovative performance traits in
crops of commercial significance. In addition, we engaged
with a major agricultural company to deploy six traits in corn and
the first phase of this development was recently completed.
Further, we have signed a new agreement with a seed company for the
next phase of technical development to enable field trials with our
traits in the future and to position the program for partnership
going forward. In 2020, we expect the work executed through major
agriculture companies to generate additional data and insights into
deploying our traits in commercial crops,” said Dr. Peoples.
Recent Accomplishments
- Reported encouraging results for our field tests conducted in
2019 in the U.S. and Canada. See press release issued today
for details.
- Outlined the plans for the 2020 field testing program including
testing seed yield traits C3003 and C3004, oil boosting traits
CRISPR genome-edited C3007 and the triple edit trait (C3008a,
C3008b,C3009), and the compositional trait for PHB.
- Completed early development milestones in the Corn Program in
early 2020 and secured an agreement with a major agriculture
company to advance the corn lines.
- Identified and began development of eight new seed yield/oil
content traits in Camelina
- Appointed Sherri M. Brown, Ph.D., to the Board of Directors.
Dr. Brown will also serve as the chair of the newly formed Science
and Technology Committee of the Board.
- Strengthened the balance sheet raising approximately $10.2
million in net proceeds in an equity offering completed in November
2019.
- Expanded our research agreement with Bayer for evaluation of a
new discovery related to the C3004 yield trait gene in
soybean.
- Signed a new research agreement with J. R. Simplot Company to
evaluate novel new traits to produce high yielding, sustainable
potato crop.
FULL YEAR AND FOURTH QUARTER 2019 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.
Cash used by operating activities during 2019 was $8.7 million,
a decrease of $0.1 million from the $8.8 million used in operating
activities during 2018. During 2019, Yield10 completed securities
offerings, raising a total of $12.8 million, net of offering costs.
As a result, the Company ended 2019 with $11.1 million in
unrestricted cash, cash equivalents and short-term investments.
Yield10 also received an additional $1.6 million from investor
warrant exercises that were completed during early 2020. The
Company anticipates net cash usage during 2020 in a range of
approximately $9.0 million to $9.5 million.
The Company's present capital resources, including funds
received from its 2019 offerings and recent warrant exercises, are
expected to fund its planned operations into the second quarter of
2021. Yield10'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.
Operating Results
Research grant revenue for the year ended December 31, 2019
was $0.8 million, compared to $0.6 million recorded in the previous
year. Research and development expenses were consistent at
$4.8 million for both 2019 and 2018. General and administrative
expenses were $4.6 million and $5.1 million for the years ended
December 31, 2019 and 2018, respectively.
Yield10 reported a loss from operations of $8.6 million for the
full year 2019 as compared to a loss from operations of $9.3
million in 2018. For the year ended December 31, 2019,
the Company reported a net loss of $13.0 million, or $35.50 per
share, which compares to a net loss of $9.2 million, or $36.99 per
share, for 2018. The increase in net loss of $3.8 million in
2019 is the result of non-cash and other charges related to the
Company's securities offering completed in November 2019 and
reported under other income (expense) as described below.
Total research grant revenues were consistent at $0.1 million
during the fourth quarters of 2019 and 2018. Research and
development expense increased by $0.1 million from $1.1 million in
the fourth quarter of 2018 to $1.2 million in the fourth quarter of
2019. General and administrative expenses increased by $0.5
million from $0.9 million during the fourth quarter of 2018
to $1.4 million in the fourth quarter of 2019.
Yield10 reported a loss from operations of $2.4 million for the
fourth quarter of 2019, compared to $1.9 million in the fourth
quarter of 2018. The Company also reported a net loss of $6.8
million, or $12.02 per share, for the fourth quarter of 2019,
compared to a net loss of $1.9 million, or $7.43 per share, for the
fourth quarter of 2018. The increase in net loss of $4.9
million during the quarter ended December 31, 2019 is the
result of the charges related to the November securities
offering.
Other Income (Expense)
During November 2019, Yield10 completed concurrent public and
private offerings of its securities, raising $10.2 million, net of
offering costs of $1.3 million. The Company reviewed
applicable accounting guidance as it relates to the various
elements of the two offerings and determined that the warrants
issued in both offerings should be reported at their fair value and
classified as liabilities within the Company's balance sheet.
As a result, Yield10 reported a non-cash charge of $13.0 million
during the three and twelve months ended December 31, 2019,
for the difference between the fair value of the warrants on their
issuance date and the cash proceeds received from the
offerings. At December 31, 2019, the Company
recalculated the fair value of the warrants, as required by
accounting standards, and recorded a non-cash gain of $9.5 million
as a result of a decline in their fair value. The Company
also recorded the $1.3 million in offering costs within other
income (expense) for the three and twelve months ended
December 31, 2019.
Reverse Stock Split
Yield10 completed a 1-for-40 reverse stock split of its common
stock on January 15, 2020, in order to regain compliance with the
Nasdaq Stock Market minimum bid price qualification of $1.00 per
share as required by Nasdaq Listing Rule 5550(a)(2). In
accordance with applicable accounting guidance, all share amounts,
per share data, share prices and conversion rates set forth in the
Company's 2019 and 2018 consolidated financial statements,
including those presented in this earnings release, have been
retroactively adjusted to reflect the reverse stock split.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 4:30 p.m. (ET) to discuss the fourth quarter and full year 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 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 13699663. The replay will be available until April 2,
2020. 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
developing crop innovations to improve crop yields and enhance
sustainable global food security. The Company utilizes its
proprietary “GRAIN“ (Gene Ranking Artificial Intelligence Network)
gene discovery platform to identify gene targets to improve yield
performance and value in major commercial food and feed crops.
Yield10 uses its Camelina oilseed platform to rapidly evaluate and
field test new trait leads enabling the translation of promising
new traits into the major commercial crops. As a path toward
commercialization, Yield10 is pursuing a partnering approach with
agricultural companies to drive new traits into development in
crops such as canola, soybean and corn. The Company is also
developing Camelina as a platform crop for producing nutritional
oils and specialty products such as PHA biomaterials for use in
water treatment applications. 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, 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.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 OPERATIONS |
UNAUDITED |
(In
thousands, except share and per share amounts) |
|
|
Three Months
Ended December 31, |
|
Twelve
Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
140 |
|
|
$ |
135 |
|
|
$ |
806 |
|
|
$ |
556 |
|
Total
revenue |
140 |
|
|
135 |
|
|
806 |
|
|
556 |
|
Expenses: |
|
|
|
|
|
|
|
Research and development |
1,202 |
|
|
1,087 |
|
|
4,848 |
|
|
4,783 |
|
General and administrative |
1,353 |
|
|
943 |
|
|
4,554 |
|
|
5,092 |
|
Total expenses |
2,555 |
|
|
2,030 |
|
|
9,402 |
|
|
9,875 |
|
Loss from operations |
(2,415 |
) |
|
(1,895 |
) |
|
(8,596 |
) |
|
(9,319 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Loss on issuance of securities |
(13,018 |
) |
|
— |
|
|
(13,018 |
) |
|
— |
|
Offering costs |
(1,254 |
) |
|
— |
|
|
(1,254 |
) |
|
— |
|
Change in fair value of warrants |
9,541 |
|
|
— |
|
|
9,541 |
|
|
— |
|
Interest income |
22 |
|
|
35 |
|
|
96 |
|
|
158 |
|
Other income (expense), net |
27 |
|
|
(2 |
) |
|
21 |
|
|
(24 |
) |
Total other income (expense) |
(4,682 |
) |
|
33 |
|
|
(4,614 |
) |
|
134 |
|
Net loss
from operations before income tax benefit |
(7,097 |
) |
|
(1,862 |
) |
|
(13,210 |
) |
|
(9,185 |
) |
Income tax benefit |
254 |
|
|
— |
|
|
254 |
|
|
— |
|
Net
loss |
$ |
(6,843 |
) |
|
$ |
(1,862 |
) |
|
$ |
(12,956 |
) |
|
$ |
(9,185 |
) |
|
|
|
|
|
|
|
|
Basic and
diluted net loss per share |
$ |
(12.02 |
) |
|
$ |
(7.43 |
) |
|
$ |
(35.50 |
) |
|
$ |
(36.99 |
) |
Number of
shares used in per share calculations: |
|
|
|
|
|
|
|
Basic & diluted |
569,207 |
|
|
250,600 |
|
|
364,967 |
|
|
248,312 |
|
YIELD10
BIOSCIENCE, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
UNAUDITED |
(In
thousands, except share and per share amounts) |
|
|
December
31, |
|
December
31, |
|
2019 |
2018 |
Assets |
|
|
|
Current
Assets: |
|
|
|
Cash and cash equivalents |
$ |
5,417 |
|
|
$ |
3,023 |
|
Short-term investments |
5,700 |
|
|
2,746 |
|
Accounts receivable |
72 |
|
|
94 |
|
Unbilled receivables |
20 |
|
|
66 |
|
Prepaid expenses and other current assets |
475 |
|
|
448 |
|
Total current assets |
11,684 |
|
|
6,377 |
|
Restricted
cash |
332 |
|
|
332 |
|
Property and
equipment, net |
1,243 |
|
|
1,385 |
|
Right-of-use
assets |
3,141 |
|
|
4,766 |
|
Other
assets |
318 |
|
|
100 |
|
Total assets |
$ |
16,718 |
|
|
$ |
12,960 |
|
|
|
|
|
Liabilities, Convertible Preferred Stock and Stockholders'
(Deficit) Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts payable |
$ |
279 |
|
|
$ |
117 |
|
Accrued expenses |
1,326 |
|
|
680 |
|
Lease liabilities |
602 |
|
|
844 |
|
Total current liabilities |
2,207 |
|
|
1,641 |
|
Lease liabilities, net of current portion |
3,619 |
|
|
5,621 |
|
Warrant liability |
14,977 |
|
|
— |
|
Total liabilities |
20,803 |
|
|
7,262 |
|
Commitments
and contingencies |
|
|
|
Series B
Convertible Preferred Stock ($0.01 par value per share); 5,750 and
0 shares issued and outstanding at December 31, 2019 and December
31, 2018, respectively |
— |
|
|
— |
|
Stockholders' (Deficit) Equity: |
|
|
|
Series A Convertible Preferred Stock ($0.01 par value per share);
796 and 0 shares issued and outstanding at December 31, 2019 and
December 31, 2018, respectively |
— |
|
|
— |
|
Common stock ($0.01 par value per share); 60,000,000 shares
authorized at December 31, 2019 and 2018, respectively, and
933,423 and 250,631 shares issued and outstanding at
December 31, 2019 and 2018, respectively |
9 |
|
|
3 |
|
Additional
paid-in capital |
360,926 |
|
|
357,743 |
|
Accumulated
other comprehensive loss |
(126 |
) |
|
(110 |
) |
Accumulated
deficit |
(364,894 |
) |
|
(351,938 |
) |
Total stockholders' (deficit) equity |
(4,085 |
) |
|
5,698 |
|
Total liabilities, convertible preferred stock and stockholders'
(deficit) equity |
$ |
16,718 |
|
|
$ |
12,960 |
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
UNAUDITED |
(In
thousands) |
|
|
Years Ended December 31, |
|
|
2019 |
|
2018 |
Cash
flows from operating activities |
|
|
|
|
Net loss |
|
$ |
(12,956 |
) |
|
$ |
(9,185 |
) |
Adjustments
to reconcile net loss to cash used in operating activities: |
|
|
|
|
Depreciation |
|
203 |
|
|
196 |
|
Loss on
issuance of securities |
|
13,018 |
|
|
— |
|
Change in
fair value of warrants |
|
(9,541 |
) |
|
— |
|
Expense for
401(k) company common stock match |
|
98 |
|
|
102 |
|
Stock-based
compensation |
|
656 |
|
|
1,181 |
|
Noncash
lease expense |
|
1,625 |
|
|
588 |
|
Deferred tax
provision |
|
(254 |
) |
|
— |
|
Changes in
operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
22 |
|
|
(40 |
) |
Unbilled receivables |
|
46 |
|
|
(1 |
) |
Prepaid expenses and other assets |
|
9 |
|
|
(128 |
) |
Accounts payable |
|
162 |
|
|
41 |
|
Accrued expenses |
|
502 |
|
|
(1,072 |
) |
Lease liabilities |
|
(2,244 |
) |
|
(436 |
) |
Net cash used in operating activities |
|
(8,654 |
) |
|
(8,754 |
) |
|
|
|
|
|
Cash
flows from investing activities |
|
|
|
|
Purchase of
property and equipment |
|
(61 |
) |
|
(42 |
) |
Purchase of
investments |
|
(5,704 |
) |
|
(11,496 |
) |
Proceeds
from sale and maturity of short-term investments |
|
2,750 |
|
|
8,750 |
|
Net cash used by investing activities |
|
(3,015 |
) |
|
(2,788 |
) |
|
|
|
|
|
Cash
flows from financing activities |
|
|
|
|
Proceeds
from warrants exercised |
|
— |
|
|
124 |
|
Proceeds
from securities offerings, net of issuance costs |
|
14,083 |
|
|
— |
|
Taxes paid
on employees' behalf related to vesting of stock awards |
|
(4 |
) |
|
(6 |
) |
Net cash provided by financing activities |
|
14,079 |
|
|
118 |
|
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
(16 |
) |
|
(25 |
) |
Net increase
(decrease) in cash, cash equivalents and restricted cash |
|
2,394 |
|
|
(11,449 |
) |
Cash, cash
equivalents and restricted cash at beginning of period |
|
3,355 |
|
|
14,804 |
|
Cash, cash
equivalents and restricted cash at end of period |
|
$ |
5,749 |
|
|
$ |
3,355 |
|
|
|
|
|
|
Supplemental Cash Flow Disclosure: |
|
|
|
|
Interest
paid |
|
$ |
7 |
|
|
$ |
19 |
|
|
|
|
|
|
Supplemental Disclosure of Non-cash
Information: |
|
|
|
|
Right-of-use
assets acquired in exchange for lease liabilities |
|
$ |
— |
|
|
$ |
194 |
|
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Mar 2023 to Mar 2024