Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience
company, today reported financial results for the three months
ended March 31, 2020.
“In the first quarter, we prioritized focus on activities
relating to our 2020 Field Testing program where we expect our
major technical milestones for the year will be generated,” said
Oliver Peoples, Ph.D., president and chief executive officer of
Yield10 Bioscience. “Permitting for testing of our traits at sites
in the United States and Canada was completed in April for the
largest field testing program we have ever undertaken, a testament
to the outstanding outcome our team achieved working closely with
regulatory agencies and our field site contractors. We expect
planting will take place in the second quarter.”
“In Camelina, we are progressing a technical and business plan
to support a specialty products business. We are also making
excellent progress in our corn development program where we
executed a smooth transition between the contractor who deployed
several of our novel traits in corn and the new contractor who will
carry the program forward through initial field tests. This rapid
transition may enable us to begin field tests on some of the lines
in 2021 to evaluate performance of these seed yield traits."
“As 2020 progresses, we look forward to ongoing program
developments and remain focused on advancing our traits to achieve
additional development milestones, advancing our business plan for
Camelina, continuing to build relationships with major agricultural
companies, and further demonstrating the commercial pathways for
our performance traits," said Dr. Peoples.
Recent Accomplishments in 2020
- 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.
- Secured a positive response from USDA-APHIS on the regulatory
status of our CRISPR genome-edited C3007 trait in Camelina, paving
the way for U.S. field tests in 2020.
- Secured all regulatory permits required for U.S. and Canadian
sites, completed all seed scale up and other logistics activities
to enable our field trials and announced plans for our 2020 Field
Testing Program in Camelina and canola.
- Signed a contract with a third-party seed company to advance
our early development program in corn. The next steps in the
technical development of our traits in corn include creating hybrid
lines, bulking up seed, and conducting field testing. The goal of
this effort is to evaluate the impact of several of our novel
traits on seed yield in corn.
COVID-19 impact on operations. The Company has
implemented business continuity plans to address the COVID-19
pandemic and minimize disruptions on ongoing operations. To date,
despite the pandemic, we have been able to move forward with
planning and operational steps required to initiate our planned
2020 field trials in Canada and the United States. It is
possible, however, that current and potential future closures of
our research facilities, if they continue for an extended time
period, could adversely impact our anticipated time frames for
completing field trials and other work we have planned to
accomplish during 2020.
FIRST QUARTER 2020 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.
Net cash used by operating activities during the first quarter
of 2020 was consistent at $2.3 million for both the first quarter
of 2020 and 2019. Yield10 ended the first quarter of 2020 with $9.8
million in unrestricted cash, cash equivalents and short-term
investments. The Company anticipates total net cash usage during
2020 in a range of approximately $9.0 million to $9.5 million.
The Company's present capital resources 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 three months ended March 31,
2020 was $0.2 million, compared to $0.1 million recorded during the
first quarter of 2019. Research and development expenses were
higher at $1.5 million for the first quarter of 2020 compared to
$1.2 million during the first quarter of 2019. General and
administrative expenses also reflected an increase from $1.2
million during the first quarter of 2019 to $1.4 million during the
first quarter of 2020.
Yield10 reported a loss from operations of $2.7 million for the
quarter ended March 31, 2020 as compared to a loss from
operations of $2.3 million for the same quarter of 2019. The
Company reported a total net loss after income tax expense of $3.6
million, or $2.12 per share for the three months ended
March 31, 2020, in comparison to a total net loss after income
taxes of $2.3 million, or $8.61 per share, for the first quarter of
2019. The increase in total net loss of $1.3 million during
the most recent quarter is primarily the result of a non-cash
charge of $1.0 million recorded within other income (expense) from
the change in fair value of the Company's warrant liability and a
non-cash operating charge to write-off $0.2 million in leasehold
improvements associated with a lease modification to eliminate
excess space and reduce operating expenses in the Company's Woburn,
Massachusetts headquarters.
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 condensed consolidated financial statements for the
quarters ending March 31, 2020 and March 31, 2019,
including those presented in this earnings release, have been
retroactively adjusted to reflect the reverse stock split.
In May 2020, Yield10 was informed by its warrant agent that the
exercise price of each warrant issued in the November 2019 public
securities offering had been proportionately adjusted in accordance
with the Company's reverse stock split, but that the number of
shares issuable upon the exercise of each warrant had not been
proportionately adjusted following the stock split within the
records of DTCC (The Depository Trust and Clearing
Corporation). It appears probable that certain investors who
exercised warrants during the month of February 2020 were issued up
to 88,762 excess shares of the Company’s common stock, and the
Company received up to approximately $710,000 in excess warrant
exercise proceeds from these investors. The Company is working with
DTCC and its warrant agent to return any excess proceeds that were
collected, and to reclaim any excess number of shares of common
stock that were issued in connection with these warrant
exercises.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 6:00 p.m. (ET) to discuss the first quarter 2020 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 13701523. The replay will be available until May 26,
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 and bioplastic 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, the potential impact on operations of the COVID-19
pandemic, 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, |
|
2020 |
|
2019 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
179 |
|
|
$ |
124 |
|
Total revenue |
179 |
|
|
124 |
|
|
|
|
|
Expenses: |
|
|
|
Research and development |
1,460 |
|
|
1,223 |
|
General and administrative |
1,387 |
|
|
1,186 |
|
Total expenses |
2,847 |
|
|
2,409 |
|
Loss from operations |
(2,668 |
) |
|
(2,285 |
) |
|
|
|
|
Other income (expense): |
|
|
|
Change in fair value of warrants |
(957 |
) |
|
— |
|
Interest income |
37 |
|
|
27 |
|
Other income (expense), net |
(4 |
) |
|
(2 |
) |
Total other income (expense) |
(924 |
) |
|
25 |
|
Net loss from operations
before income tax expense |
(3,592 |
) |
|
(2,260 |
) |
Income tax expense |
(8 |
) |
|
— |
|
Net loss |
$ |
(3,600 |
) |
|
$ |
(2,260 |
) |
|
|
|
|
Basic and diluted net loss per
share |
$ |
(2.12 |
) |
|
$ |
(8.61 |
) |
|
|
|
|
Number of shares used in per
share calculations: |
|
|
|
Basic and diluted |
1,697,125 |
|
|
262,567 |
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
March 31, 2020 |
|
December 31, 2019 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
4,295 |
|
|
$ |
5,417 |
|
Short-term investments |
5,475 |
|
|
5,700 |
|
Accounts receivable |
54 |
|
|
72 |
|
Unbilled receivables |
125 |
|
|
20 |
|
Prepaid expenses and other current assets |
560 |
|
|
475 |
|
Total current assets |
10,509 |
|
|
11,684 |
|
Restricted cash |
254 |
|
|
332 |
|
Property and equipment,
net |
1,021 |
|
|
1,243 |
|
Right-of-use assets |
2,990 |
|
|
3,141 |
|
Other assets |
272 |
|
|
318 |
|
Total assets |
$ |
15,046 |
|
|
$ |
16,718 |
|
|
|
|
|
Liabilities,
Convertible Preferred Stock and Stockholders’ (Deficit)
Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
135 |
|
|
$ |
279 |
|
Accrued expenses |
1,579 |
|
|
1,326 |
|
Lease liabilities |
473 |
|
|
602 |
|
Total current liabilities |
2,187 |
|
|
2,207 |
|
Lease liabilities, net of
current portion |
3,512 |
|
|
3,619 |
|
Warrant liability |
— |
|
|
14,977 |
|
Other long-term
liabilities |
18 |
|
|
— |
|
Total liabilities |
5,717 |
|
|
20,803 |
|
Commitments and
contingencies |
|
|
|
Series B Convertible Preferred
Stock ($0.01 par value per share); 0 and 5,750 shares issued and
outstanding at March 31, 2020 and December 31, 2019,
respectively |
— |
|
|
— |
|
Stockholders’ Equity
(Deficit): |
|
|
|
Series A Convertible Preferred Stock ($0.01 par value per share);
296 shares and 796 shares issued and outstanding at March 31, 2020
and December 31, 2019, respectively |
— |
|
|
— |
|
Common stock ($0.01 par value per share); 60,000,000 shares
authorized at March 31, 2020 and December 31, 2019; 1,923,184 and
933,423 shares issued and outstanding at March 31, 2020 and
December 31, 2019, respectively |
19 |
|
|
9 |
|
Additional paid-in
capital |
377,963 |
|
|
360,926 |
|
Accumulated other
comprehensive loss |
(159 |
) |
|
(126 |
) |
Accumulated deficit |
(368,494 |
) |
|
(364,894 |
) |
Total stockholders’ equity (deficit) |
9,329 |
|
|
(4,085 |
) |
Total liabilities, convertible preferred stock and stockholders’
equity (deficit) |
$ |
15,046 |
|
|
$ |
16,718 |
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Cash flows from operating activities |
|
|
|
|
|
|
|
Net loss |
$ |
(3,600 |
) |
|
$ |
(2,260 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
Depreciation |
48 |
|
|
50 |
|
Change in fair value of
warrants |
957 |
|
|
— |
|
Loss on disposal of fixed
assets |
206 |
|
|
— |
|
Charge for 401(k) company
common stock match |
42 |
|
|
24 |
|
Stock-based compensation |
137 |
|
|
162 |
|
Non-cash lease expense |
151 |
|
|
147 |
|
Deferred tax provision |
30 |
|
|
— |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivables |
18 |
|
|
49 |
|
Unbilled receivables |
(105 |
) |
|
(13 |
) |
Prepaid expenses and other assets |
(69 |
) |
|
(60 |
) |
Accounts payable |
(144 |
) |
|
(105 |
) |
Accrued expenses |
259 |
|
|
(92 |
) |
Lease liabilities |
(236 |
) |
|
(198 |
) |
Other liabilities |
18 |
|
|
— |
|
Net cash used for operating activities |
(2,288 |
) |
|
(2,296 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property and
equipment |
(42 |
) |
|
— |
|
Proceeds from sale of property
and equipment |
10 |
|
|
— |
|
Purchase of short-term
investments |
(503 |
) |
|
— |
|
Proceeds from the sale and
maturity of short-term investments |
750 |
|
|
2,746 |
|
Net cash provided by investing activities |
215 |
|
|
2,746 |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
928 |
|
|
— |
|
Proceeds from registered
direct offering, net of issuance costs |
— |
|
|
2,597 |
|
Net cash provided by financing activities |
928 |
|
|
2,597 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
(55 |
) |
|
(5 |
) |
|
|
|
|
Net (decrease) increase in
cash, cash equivalents and restricted cash |
(1,200 |
) |
|
3,042 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
5,749 |
|
|
3,355 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
4,549 |
|
|
$ |
6,397 |
|
|
|
|
|
Supplemental
disclosure of non-cash information: |
|
|
|
Purchase of property and
equipment included in accounts payable and accrued expenses |
$ |
— |
|
|
$ |
12 |
|
Offering costs remaining in
accrued expenses |
$ |
— |
|
|
$ |
14 |
|
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