Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience
company, today reported financial results for the three months
ended March 31, 2021.
"We remain solidly on track for progressing our technical and
business plans to support a specialty products business based on
our Camelina platform," said Oliver Peoples, Ph.D., president and
chief executive officer of Yield10 Bioscience. "During 2021, we
will scale-up seed production of certain new Camelina varieties as
well as evaluate our novel yield traits in multi-site field trials
conducted in the U.S. and Canada. We are also creating strong
option value for our performance traits discovered using our GRAIN
platform by providing access to our novel trait discoveries through
research license agreements to leading seed companies by enabling
them to evaluate our traits in the major commercial crops.
"We have commenced scale-up of seed production for our new
Camelina varieties, a step required for early commercial-scale
planting and for producing nutritional oils and meal for sampling
to prospective customers. Scale-up of two of our best prototype PHA
bioplastic lines is ongoing in parallel with the development of
commercial quality PHA bioplastic lines with the goal of increasing
PHA content in the seed. We plan to use PHA Camelina seed from this
year’s harvest for larger scale field work in 2022 as well as for
initial product evaluation. Permitting for field testing of our
regulated traits is substantially complete and we expect planting
to be completed in the second quarter.
"Under our collaboration with Rothamsted Research, we are
well-positioned with an exclusive option to commercialize advanced
omega-3 (DHA+EPA) oil technology developed as a sustainable
solution for the aquaculture feed market. In the first quarter, the
U.S. Patent and Trademark Office granted to Rothamsted the first
patent covering the co-production of omega-3 components DHA and EPA
in Camelina. We have ramped up our business development efforts on
this technology with a focus on the South American market including
establishing agreements with a seed service provider for evaluation
of multiple Camelina varieties in Argentina. Planning and business
development activities are also underway in Chile aimed at
establishing relationships with growers and oilseed crushers as
part of our regulatory activities working toward the approval of
Camelina oil and meal in aquaculture feed. The Chilean salmon feed
industry is our initial target market for the Camelina omega-3
(DHA+EPA) oil product. In 2021, as we chart a regulatory path
forward for commercialization of omega-3 oil and meal, Rothamsted
will conduct additional development and seed scale-up activities
with its lead Camelina line, pending the lifting of certain COVID
restrictions in the U.K.
"We also strengthened our balance sheet in early 2021 which we
anticipate will support the achievement of milestones and other
advancements in the coming quarters as we execute against our core
business strategy of utilizing Camelina as a platform crop to
produce fuel, food and PHA bioplastic,” said Dr. Peoples.
Recent Accomplishments
- Yield10 engaged a leading seed
company to perform seed scale-up of three Camelina lines: E3902, a
CRISPR edited high oil line; DH12, a doubled haploid elite line;
and a disease resistant elite line. Seed scale-up of these lines is
expected to enable future planting at the 100-to-1000 acre scale
for subsequent larger scale planting and for producing oil and meal
for customer sampling.
- Yield10 began planting for its 2021
field trial program to evaluate several seed yield and oil content
traits. In addition, the Company will conduct field trials and seed
scale-up of two PHA containing Camelina lines. Planting is expected
to be completed in the second quarter.
- In the first quarter, the first
U.S. patent (U.S. Patent No. 10,881,631) covering the co-production
of the omega-3 fatty acids DHA and EPA in Camelina was granted to
Rothamsted Research Ltd.
- In April 2021, USDA-APHIS confirmed
that new Camelina lines that had been CRISPR edited in the C3007
(BadC) gene are exempt from regulation under 7 CFR part 340. This
clearance was obtained by Yield10 under the SECURE Rule, a new
regulatory framework in the U.S. for regulating crops. In the first
quarter, a U.S. patent (U.S. Patent No. 10,883,113) was granted to
the University of Missouri covering modifications to C3007 genes to
increase oil content in oilseed crops. Yield10 has an exclusive
license to this technology.
COVID-19 Impact on Operations. The Company has
implemented business continuity plans to address the COVID-19
pandemic and minimize disruptions to ongoing operations. To date,
despite the pandemic, we have been able to move forward with the
operational steps required to execute our 2021 field trials in
Canada and the United States. However, it is possible that any
potential future closures of our research facilities, should they
continue for an extended time period, could adversely impact our
anticipated time frames for evaluating and/or reporting data from
our field trials and other work we plan to accomplish during 2021
and beyond.
FIRST QUARTER 2021 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.
Yield10 ended the first quarter of 2021 with $22.7 million in
unrestricted cash and investments; a net increase of $13.0 million
over unrestricted cash and investments of $9.7 million as of
December 31, 2020. During the three months ended
March 31, 2021, the Company raised $12.7 million, before
offering costs of $0.7 million, from an underwritten public
offering of 1,040,000 shares of common stock and received
additional cash proceeds of $3.9 million from investors who
exercised 481,973 warrants issued in the Company's November 2019
securities offering. Net cash used by operating activities during
the first quarter of 2021 was $2.6 million compared to $2.3 million
used in the first quarter of 2020. The Company continues to
estimate total net cash usage during the full year 2021 within a
range of $10.0 - $11.0 million.
The Company's present capital resources are expected to fund its
planned operations into the first quarter of 2023. 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
Grant revenue for the first quarter of 2021 and first quarter of
2020 were consistent at $0.2 million for both periods. Research and
development expenses decreased $0.2 million from $1.5 million in
the first quarter of 2020 to $1.3 million in the first quarter of
2021. The decrease was primarily the result of reductions in
facility related expense stemming from the elimination of excess
space in the Company's Woburn, Massachusetts facility. General and
administrative expenses remained at $1.4 million during the first
quarters of 2021 and 2020.
Yield10 reported a loss from operations of $2.6 million for the
first quarter ended March 31, 2021 compared to a loss from
operations of $2.7 million for the same quarter of 2020. The
Company reported a total net loss after income taxes of $2.6
million, or $0.60 per share, for the three months ended
March 31, 2021, in comparison to a total net loss after income
taxes of $3.6 million, or $2.12 per share, for the three months
ended March 31, 2020.
Conference Call Information
Yield10 Bioscience management will host a conference call at
4:30 p.m. (ET) today to discuss the first quarter 2021 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 13718656. The replay will be available until May 25,
2021. 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
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, nutritional oils, and PHA
bioplastics, 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
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, expectations related to research and
development 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 planting and the outcomes of 2021 field tests 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
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.com FischTank
PR
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months EndedMarch 31, |
|
2021 |
|
2020 |
Revenue: |
|
|
|
Grant revenue |
$ |
196 |
|
|
$ |
179 |
|
Total revenue |
196 |
|
|
179 |
|
|
|
|
|
Expenses: |
|
|
|
Research and development |
1,316 |
|
|
1,460 |
|
General and administrative |
1,432 |
|
|
1,387 |
|
Total expenses |
2,748 |
|
|
2,847 |
|
Loss from operations |
(2,552 |
) |
|
(2,668 |
) |
|
|
|
|
Other income (expense): |
|
|
|
Change in fair value of warrants |
— |
|
|
(957 |
) |
Other income (expense), net |
(1 |
) |
|
33 |
|
Total other income (expense) |
(1 |
) |
|
(924 |
) |
Net loss before income tax
expense |
(2,553 |
) |
|
(3,592 |
) |
Income tax expense |
(8 |
) |
|
(8 |
) |
Net loss |
$ |
(2,561 |
) |
|
$ |
(3,600 |
) |
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.60 |
) |
|
$ |
(2.12 |
) |
|
|
|
|
Number of shares used in per
share calculations: |
|
|
|
Basic and diluted |
4,296,129 |
|
|
1,697,125 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
March 31,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
18,582 |
|
|
$ |
3,423 |
|
Short-term investments |
3,262 |
|
|
6,279 |
|
Accounts receivable |
39 |
|
|
86 |
|
Unbilled receivables |
120 |
|
|
27 |
|
Prepaid expenses and other current assets |
527 |
|
|
527 |
|
Total current assets |
22,530 |
|
|
10,342 |
|
Long-term investments |
886 |
|
|
— |
|
Restricted cash |
264 |
|
|
264 |
|
Property and equipment,
net |
968 |
|
|
921 |
|
Right-of-use assets |
2,625 |
|
|
2,712 |
|
Other assets |
295 |
|
|
283 |
|
Total assets |
$ |
27,568 |
|
|
$ |
14,522 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
111 |
|
|
$ |
60 |
|
Accrued expenses |
840 |
|
|
1,297 |
|
Lease liabilities |
470 |
|
|
457 |
|
Total current liabilities |
1,421 |
|
|
1,814 |
|
Lease liabilities, net of
current portion |
3,041 |
|
|
3,163 |
|
Other long-term
liabilities |
12 |
|
|
13 |
|
Total liabilities |
4,474 |
|
|
4,990 |
|
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, 2021 and December 31, 2020; 4,865,335 and
3,334,048 shares issued and outstanding at March 31, 2021 and
December 31, 2020, respectively |
49 |
|
|
33 |
|
Additional paid-in
capital |
400,865 |
|
|
384,758 |
|
Accumulated other
comprehensive loss |
(159 |
) |
|
(159 |
) |
Accumulated deficit |
(377,661 |
) |
|
(375,100 |
) |
Total stockholders’ equity |
23,094 |
|
|
9,532 |
|
Total liabilities and stockholders’ equity |
$ |
27,568 |
|
|
$ |
14,522 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
Three Months Ended March
31, |
|
2021 |
|
2020 |
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(2,561 |
) |
|
$ |
(3,600 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
Depreciation and
amortization |
54 |
|
|
48 |
|
Change in fair value of
warrants |
— |
|
|
957 |
|
Loss on disposal of fixed
assets |
— |
|
|
206 |
|
Charge for 401(k) company
common stock match |
44 |
|
|
42 |
|
Stock-based compensation |
324 |
|
|
137 |
|
Non-cash lease expense |
87 |
|
|
151 |
|
Deferred income tax
provision |
6 |
|
|
30 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable |
47 |
|
|
18 |
|
Unbilled receivables |
(93 |
) |
|
(105 |
) |
Prepaid expenses and other assets |
(6 |
) |
|
(69 |
) |
Accounts payable |
51 |
|
|
(144 |
) |
Accrued expenses |
(480 |
) |
|
259 |
|
Lease liabilities |
(109 |
) |
|
(236 |
) |
Other liabilities |
(1 |
) |
|
18 |
|
Net cash used for operating activities |
(2,637 |
) |
|
(2,288 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property and
equipment |
(101 |
) |
|
(42 |
) |
Proceeds from sale of property
and equipment |
— |
|
|
10 |
|
Purchase of investments |
(869 |
) |
|
(503 |
) |
Proceeds from the maturity of
short-term investments |
3,000 |
|
|
750 |
|
Net cash provided by investing activities |
2,030 |
|
|
215 |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
3,856 |
|
|
928 |
|
Proceeds from public offering,
net of issuance costs |
11,993 |
|
|
— |
|
Taxes paid on employees'
behalf related to vesting of stock awards |
(83 |
) |
|
— |
|
Net cash provided by financing activities |
15,766 |
|
|
928 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
— |
|
|
(55 |
) |
|
|
|
|
Net decrease in cash, cash
equivalents and restricted cash |
15,159 |
|
|
(1,200 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
3,687 |
|
|
5,749 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
18,846 |
|
|
$ |
4,549 |
|
|
|
|
|
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