Yield10 Bioscience, Inc. (Nasdaq:YTEN), an agricultural bioscience
company, today reported financial results for the three and six
months ended June 30, 2021.
"We are focused on executing against our core
business strategy of utilizing Camelina as a platform crop to
produce food, fuel, and PHA bioplastic," said Oliver Peoples,
Ph.D., President and Chief Executive Officer of Yield10. "Our
important early commercialization activities continue, highlighted
by our recent new hires to support the regulatory, supply chain and
commercial paths for our traits, as well as by contracting with
third parties to scale up and crush seed to produce samples of
Camelina oil for business development efforts. We are field testing
Camelina in Argentina, for the first time, with the goal of forming
strategic partnerships to enable our market entry strategy for
commercializing omega-3 oils in the farmed salmon feed market.
"Our team is making excellent progress across
our R&D priorities for 2021. We remain on track scaling up
certain Camelina lines to enable planting at larger scale as we are
also field testing Camelina elite germplasm, as well as lines
designed to produce increased seed yield, oil content, and PHA in a
field program spanning more than 12 sites across the U.S., Canada
and Argentina. We are also supporting the Rothamsted team as they
field test and scale up omega-3 (DHA+EPA) Camelina lines. We
believe our innovations will enable the delivery of sustainable
product options well matched to market demands.
"Our GRAIN platform addresses the main challenge
in agricultural biotechnology that being the consistent
identification of novel targets that produce meaningful
improvements in crop performance. Our team has discovered four new
oil content targets, including C3020, and three additional traits
accessible by CRISPR, a timely development given the increasing
demand for vegetable oil for the food and fuel markets.
"In the second half of 2021, we look forward to
continuing to advance our business plans for Camelina, reporting
proof points from our R&D activities, and achieving key
milestones supporting the growth of our business," said Dr.
Peoples.
Recent Accomplishments
- Executing
on 2021 Field Test and Seed Scale Up Program. Planting was
completed under our 2021 Field Test and Seed Scale Up program at
all contracted sites in the United States, Canada, and Argentina.
The program is designed to test several varieties of elite
Camelina, as well as seed yield and oil content traits. In
addition, we are scaling up three Camelina varieties under contract
with a seed company to enable larger scale plantings in 2022. We
expect that harvest of seeds across the field tests will be
completed in third quarter 2021, and that data will be received
starting in fourth quarter 2021.
- Adding Key Hires to the Team. Tichafa
Munyikwa, Ph.D. was appointed as Director of Regulatory Affairs and
will be responsible for developing and executing regulatory
strategy for Yield10’s performance and content traits deployed in
Camelina. In addition, Nicholas Renegar, Ph.D.was appointed as
Director, Business Analytics and Operations and will be responsible
for business analytics and project management as well as supporting
Yield10’s business development, supply chain development, and seed
operations activities.
- Expanding our Portfolio of Promising Oil Content Trait
Targets. Yield10 researchers achieved proof of concept
showing that four novel gene targets identified using the GRAIN
(Gene Ranking Artificial Intelligence Network) platform impact seed
development and/or oil content. In greenhouse testing, one of the
three targets, C3020, produced a 10% increase in seed oil content
when engineered with increased activity in Camelina. Data obtained
from increasing activity of the other three targets, C3019, C3021,
and C3022 indicates these represent good targets for CRISPR
genome-editing. Pure field grown seed of C3020 is being produced in
2021 for subsequent larger scale evaluation.
- Expanding our Intellectual Property Portfolio.
In 2021, U.S. patents were granted on two traits in-licensed by
Yield10 including trait C3007 for increasing oil content, as well
as for the Camelina omega-3 (DHA+EPA) oil trait. In July, a U.S.
patent was allowed for the synthetic biology trait C3006 developed
in-house to increase seed yield and oil content in Camelina.
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, 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.
SECOND 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 second quarter of 2021 with
$20.6 million in unrestricted cash and investments; a net decrease
of $2.1 million from unrestricted cash and investments of $22.7
million versus the previous quarter ended March 31, 2021. Net cash
used by operating activities during the second quarter of 2021 was
$2.1 million compared to $2.3 million used in the second quarter of
2020. The Company continues to estimate 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 second 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 second quarter of 2021 and
the second quarter of 2020 was consistent at $0.2 million. Research
and development expenses increased by $0.5 million from $1.2
million during the second quarter of 2020 to $1.7 million in the
second quarter of 2021. This increase was primarily the result of
higher stock-based compensation costs, a non-cash charge, and
expanded Camelina field trials and related work being undertaken
during 2021 at sites in the U.S., Canada and Argentina. General and
administrative expenses increased by $0.4 million from $1.2 million
during the second quarter of 2020 to $1.6 million during the second
quarter of 2021. This increase was partly due to higher stock-based
compensation expense as well as from costs associated with
recruiting and hiring additional professional staff. Yield10 also
incurred higher consulting expenses during the second quarter of
2021 in connection with early stage Camelina business development
activity.
Yield10 reported a loss from operations of $3.1
million for the second quarter ended June 30, 2021, compared
to a loss from operations of $2.1 million for the same quarter of
2020. The Company also reported a net loss after income taxes of
$3.1 million, or $0.64 per share, for the three months ended
June 30, 2021, in comparison to a net loss after income taxes
of $1.8 million, or $0.92 per share, for the three months ended
June 30, 2020. During the second quarter of 2020, Yield10
recognized $0.3 million of income within other income (expense)
from its PPP loan that was issued and forgiven pursuant to the
CARES Act.
For the six months ended June 30, 2021, the
Company reported a loss from operations of $5.6 million in
comparison to a six-month loss from operations of $4.8 million
during the same period of 2020. Net loss after taxes was $5.7
million and $5.4 million during the six months ended June 30,
2021 and 2020, respectively. Year to date grant revenue earned
through June 30, 2021 and June 30, 2020 was $0.4 million
for both periods. Research and development and general and
administrative expenses were both $3.0 million during the six
months ended June 30, 2021. In comparison, research and
development and general and administrative expenses were both $2.6
million for the six months ended June 30, 2020. During the
first six months of 2020, Yield10 reported a loss of $1.0 million
within other income (expense) as a result of a change in fair value
of its warrant liability. The Company also reported the $0.3
million of income from its forgiven PPP loan during the six months
ended June 30, 2020.
Conference Call Information
Yield10 Bioscience management will host a
conference call at 4:30 p.m. (ET) today to discuss the second
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 13720690. The replay will be
available until August 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.comFischTank PR
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
174 |
|
|
|
$ |
221 |
|
|
|
$ |
370 |
|
|
|
$ |
400 |
|
|
Total revenue |
174 |
|
|
|
221 |
|
|
|
370 |
|
|
|
400 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Research and development |
1,651 |
|
|
|
1,179 |
|
|
|
2,967 |
|
|
|
2,639 |
|
|
General and administrative |
1,604 |
|
|
|
1,179 |
|
|
|
3,036 |
|
|
|
2,566 |
|
|
Total expenses |
3,255 |
|
|
|
2,358 |
|
|
|
6,003 |
|
|
|
5,205 |
|
|
Loss from operations |
(3,081 |
) |
|
|
(2,137 |
) |
|
|
(5,633 |
) |
|
|
(4,805 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
Change in fair value of warrants |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(957 |
) |
|
Loan forgiveness income |
— |
|
|
|
333 |
|
|
|
— |
|
|
|
333 |
|
|
Other income (expense), net |
— |
|
|
|
15 |
|
|
|
(1 |
) |
|
|
48 |
|
|
Total other income (expense) |
— |
|
|
|
348 |
|
|
|
(1 |
) |
|
|
(576 |
) |
|
Net loss from operations
before income taxes |
(3,081 |
) |
|
|
(1,789 |
) |
|
|
(5,634 |
) |
|
|
(5,381 |
) |
|
Income tax provision |
(11 |
) |
|
|
(7 |
) |
|
|
(19 |
) |
|
|
(15 |
) |
|
Net loss |
$ |
(3,092 |
) |
|
|
$ |
(1,796 |
) |
|
|
$ |
(5,653 |
) |
|
|
$ |
(5,396 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.64 |
) |
|
|
$ |
(0.92 |
) |
|
|
$ |
(1.23 |
) |
|
|
$ |
(2.95 |
) |
|
|
|
|
|
|
|
|
|
Number of shares used in per
share calculations: |
|
|
|
|
|
|
|
Basic and diluted |
4,868,156 |
|
|
|
1,957,927 |
|
|
|
4,583,723 |
|
|
|
1,827,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
June 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
15,641 |
|
|
|
$ |
3,423 |
|
|
Short-term investments |
4,921 |
|
|
|
6,279 |
|
|
Accounts receivable |
76 |
|
|
|
86 |
|
|
Unbilled receivables |
38 |
|
|
|
27 |
|
|
Prepaid expenses and other current assets |
509 |
|
|
|
527 |
|
|
Total current assets |
21,185 |
|
|
|
10,342 |
|
|
Restricted cash |
264 |
|
|
|
264 |
|
|
Property and equipment,
net |
949 |
|
|
|
921 |
|
|
Right-of-use assets |
2,537 |
|
|
|
2,712 |
|
|
Other assets |
275 |
|
|
|
283 |
|
|
Total assets |
$ |
25,210 |
|
|
|
$ |
14,522 |
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
101 |
|
|
|
$ |
60 |
|
|
Accrued expenses |
1,237 |
|
|
|
1,297 |
|
|
Lease liabilities |
485 |
|
|
|
457 |
|
|
Total current liabilities |
1,823 |
|
|
|
1,814 |
|
|
Lease liabilities, net of
current portion |
2,915 |
|
|
|
3,163 |
|
|
Other long-term
liabilities |
10 |
|
|
|
13 |
|
|
Total liabilities |
4,748 |
|
|
|
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 June 30, 2021 and December 31, 2020; 4,868,466 and
3,334,048 shares issued and outstanding at June 30, 2021 and
December 31, 2020, respectively |
49 |
|
|
|
33 |
|
|
Additional paid-in
capital |
401,319 |
|
|
|
384,758 |
|
|
Accumulated other
comprehensive loss |
(153 |
) |
|
|
(159 |
) |
|
Accumulated deficit |
(380,753 |
) |
|
|
(375,100 |
) |
|
Total stockholders’ equity |
20,462 |
|
|
|
9,532 |
|
|
Total liabilities and stockholders’ equity |
$ |
25,210 |
|
|
|
$ |
14,522 |
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(in
thousands)
|
Six Months Ended June
30, |
|
2021 |
|
2020 |
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(5,653 |
) |
|
|
$ |
(5,396 |
) |
|
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
Depreciation and
amortization |
108 |
|
|
|
91 |
|
|
Change in fair value of
warrants |
— |
|
|
|
957 |
|
|
Loan forgiveness income |
— |
|
|
|
(333 |
) |
|
Loss on disposal of fixed
assets |
— |
|
|
|
206 |
|
|
Charge for 401(k) company
common stock match |
69 |
|
|
|
66 |
|
|
Stock-based compensation |
739 |
|
|
|
297 |
|
|
Non-cash lease expense |
175 |
|
|
|
262 |
|
|
Deferred income tax
provision |
14 |
|
|
|
27 |
|
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable |
10 |
|
|
|
59 |
|
|
Unbilled receivables |
(11 |
) |
|
|
(39 |
) |
|
Prepaid expenses and other assets |
24 |
|
|
|
84 |
|
|
Accounts payable |
41 |
|
|
|
(129 |
) |
|
Accrued expenses |
(69 |
) |
|
|
(390 |
) |
|
Lease liabilities |
(220 |
) |
|
|
(391 |
) |
|
Other liabilities |
(3 |
) |
|
|
17 |
|
|
Net cash used for operating activities |
(4,776 |
) |
|
|
(4,612 |
) |
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property and
equipment |
(136 |
) |
|
|
(42 |
) |
|
Proceeds from sale of property
and equipment |
— |
|
|
|
10 |
|
|
Purchase of investments |
(3,891 |
) |
|
|
(503 |
) |
|
Proceeds from the maturity of
short-term investments |
5,250 |
|
|
|
999 |
|
|
Net cash provided by investing activities |
1,223 |
|
|
|
464 |
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
3,856 |
|
|
|
1,658 |
|
|
Proceeds from PPP loan |
— |
|
|
|
333 |
|
|
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 |
|
|
|
1,991 |
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
5 |
|
|
|
(48 |
) |
|
|
|
|
|
Net increase (decrease) in
cash, cash equivalents and restricted cash |
12,218 |
|
|
|
(2,205 |
) |
|
Cash, cash equivalents and
restricted cash at beginning of period |
3,687 |
|
|
|
5,749 |
|
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
15,905 |
|
|
|
$ |
3,544 |
|
|
|
|
|
|
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Apr 2023 to Apr 2024