Metabolix Announces Second Quarter 2015 Financial Results
"In June, we raised
"We have now completed the capital expansion of our pilot recovery facility for Mirel PHA biopolymers and have resumed biopolymer recovery operations with fermentation broth produced earlier this year. In the third quarter, we expect to begin ramping production to our new nameplate capacity with fermentation broth from our new larger-scale U.S. supplier. We will focus our current production resources on our new amorphous-PHA to serve our ongoing commercial development activities as well as initial customer conversions. Separately, we are working on manufacturing options for commercial-scale biopolymer production.
"We are executing our business plan and working to transform
"During the quarter, customers conducted numerous trials with Mirel biopolymers in projects across our target application spaces at various stages of development and commercialization. We are pleased to see projects continuing to advance. We are especially pleased that some customers have begun initial commercialization of products containing our innovative materials as performance additives, including a Mirel PHA-modified PVC wood polymer composite in a decking and railing application and a Mirel PHA-modified PLA for nonwoven applications.
"The broad biodegradation profile of PHA provides our customers with a unique value proposition for applications that require items to be left in the environment. We are working with several customers who are developing products intended to biodegrade in compost, soil or marine environments. For example, a customer making a railcar lubricant recently launched a new product using our Mirel PHA for its soil biodegradation profile. This customer has made repeat orders for PHA this year.
"While we don't expect to convert every opportunity to recurring commercial sales, we are encouraged by the commercial progress we are making with our PHA materials in PVC, PLA and functional biodegradation applications.
"In our crop science program, we are consolidating our intellectual property portfolio around several technologies targeting step changes in crop yield and developing a plan for the spin out of these yield improvement technologies. We continue to see this as a distinct business from biopolymers and will be reaching out to agricultural companies and potential investors regarding the opportunity to participate in the commercialization of these technologies in a separately funded business dedicated to crop yield improvement.
"Taking it all together, the first half of 2015 has unfolded consistent with our expectations as the biopolymers team made progress in application development and achieved some initial, albeit smaller scale, successes on the commercial side of the business. In addition, we continued to move some of our larger scale customer projects down the path towards conversion," said Shaulson.
SECOND QUARTER 2015 FINANCIAL OVERVIEW
On
The Company's current capital resources are not sufficient to fund its planned operations for a twelve month period and, therefore, raise substantial doubt about the Company's ability to continue as a going concern. The Company expects that reductions in 2015 cash usage due to the discontinuation of its German operations, the restructuring of its U.S. organization and other cost-containment measures taken in 2014 will be largely offset by increased biopolymer pilot material production costs. As a result,
On
Continuing Operations:
For the second quarter of 2015, the Company reported a net loss from continuing operations of
Total revenue from continuing operations in the second quarter of 2015 was
In the second quarter of 2015, research and development expenses for continuing operations were
The Company's net cash used in operating activities for continuing operations during the second quarter of 2015 was
For the first half of 2015, the Company reported a net loss from continuing operations of
Total revenue during the first six months of 2015 was
Research and development expenses were
The Company's net cash used by continuing operations for operating activities during the first half of 2015 was
Discontinued Operations:
In
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About
For more information, please visit www.metabolix.com. (MBLX-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, including, without limitation, statements regarding the Company's business plans and strategies; expectations for pilot and commercial scale PHA biopolymer manufacturing; expected market demand and commercialization plans for the Company's PHA biopolymer products; business plans and funding for the crop science program; expected future financial results and cash requirements; plans for obtaining additional funding; plans and expectations that depend on the
Company's ability to continue as a going concern; and expectations for future research, product development and collaborations 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
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS UNAUDITED (in thousands, except share and per share data) |
||||
Three Months Ended |
Six Months Ended |
|||
2015 | 2014 | 2015 | 2014 | |
Revenue: | ||||
Product revenue | $ 113 | $ 211 | $ 185 | $ 313 |
Grant revenue | 470 | 463 | 922 | 911 |
License fee and royalty revenue | 161 | 25 | 282 | 88 |
Total revenue | 744 | 699 | 1,389 | 1,312 |
Costs and expenses: | ||||
Cost of product revenue | 90 | 420 | 174 | 586 |
Research and development | 4,319 | 4,380 | 8,244 | 9,192 |
Selling, general, and administrative | 2,464 | 2,665 | 4,930 | 5,797 |
Total costs and expenses | 6,873 | 7,465 | 13,348 | 15,575 |
Loss from continuing operations | (6,129) | (6,766) | (11,959) | (14,263) |
Other income (expense), net | 56 | 4 | 43 | 10 |
Net loss from continuing operations | (6,073) | (6,762) | (11,916) | (14,253) |
Discontinued operations: | ||||
Loss from discontinued operations | — | (473) | — | (1,136) |
Total loss from discontinued operations | — | (473) | — | (1,136) |
Net loss | $ (6,073) | $ (7,235) | $ (11,916) | $ (15,389) |
Basic and diluted net loss per share: | ||||
Net loss from continuing operations | $ (0.26) | $ (1.16) | $ (0.52) | $ (2.45) |
Net loss from discontinued operations | — | (0.08) | — | (0.20) |
Net loss per share | $ (0.26) | $ (1.24) | $ (0.52) | $ (2.65) |
Number of shares used in per share calculations: | ||||
Basic & Diluted | 23,117,539 | 5,831,490 | 22,838,511 | 5,816,379 |
CONDENSED CONSOLIDATED BALANCE SHEET UNAUDITED (in thousands) |
||
2015 |
2014 |
|
Assets | ||
Current Assets: | ||
Cash and cash equivalents | $ 22,707 | $ 20,046 |
Accounts receivable | 139 | 45 |
Due from related parties | 90 | 112 |
Unbilled receivables | 346 | 420 |
Inventory | 555 | 586 |
Prepaid expenses and other current assets | 1,631 | 756 |
Total current assets | 25,468 | 21,965 |
Restricted cash | 619 | 619 |
Property and equipment, net | 743 | 456 |
Other assets | 95 | 95 |
Total assets | $ 26,925 | $ 23,135 |
Liabilities and Stockholders' Equity | ||
Current Liabilities: | ||
Accounts payable | $ 384 | $ 333 |
Accrued expenses | 3,184 | 3,709 |
Short-term deferred revenue | 246 | 147 |
Total current liabilities | 3,814 | 4,189 |
Other long-term liabilities | 150 | 150 |
Total liabilities | 3,964 | 4,339 |
Commitments and contingencies (Note 10) | ||
Stockholders' Equity: | ||
Preferred stock ( |
— | — |
Common stock ( |
270 | 225 |
Additional paid-in capital | 336,749 | 320,707 |
Accumulated other comprehensive loss | (70) | (64) |
Accumulated deficit | (313,988) | (302,072) |
Total stockholders' equity | 22,961 | 18,796 |
Total liabilities and stockholders' equity | $ 26,925 | $ 23,135 |
|
||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||
UNAUDITED | ||
(in thousands) | ||
Six Months Ended |
||
2015 | 2014 | |
Cash flows from operating activities | ||
Net loss | $ (11,916) | $ (15,389) |
Less: | ||
Loss from discontinued operation | — | (1,136) |
Loss from continuing operations | (11,916) | (14,253) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation | 100 | 333 |
Charge for 401(k) company common stock match | 218 | 259 |
Stock-based compensation | 894 | 1,379 |
Inventory impairment | — | 228 |
Changes in operating assets and liabilities: | ||
Accounts receivables | (94) | 424 |
Due from related party | 22 | 51 |
Unbilled receivables | 74 | 48 |
Inventory | 31 | 28 |
Prepaid expenses and other assets | (875) | 17 |
Accounts payable | (165) | (147) |
Accrued expenses | (517) | (1,741) |
Deferred rent and other long-term liabilities | — | (50) |
Deferred revenue | 99 | 58 |
Net cash used by continuing operations for operating activities | (12,129) | (13,366) |
Net cash used by discontinued operations for operating activities | — | (480) |
Net cash used in operating activities | (12,129) | (13,846) |
Cash flows from investing activities | ||
Purchase of property and equipment | (209) | (100) |
Purchase of short-term investments | — | (1,508) |
Proceeds from the sale and maturity of short-term investments | — | 13,019 |
Net cash provided by investing activities | (209) | 11,411 |
Cash flows from financing activities | ||
Proceeds from options exercised | — | 300 |
Proceeds from private placement offering, net of issuance costs | 15,000 | — |
Net cash provided by financing activities | 15,000 | 300 |
Effect of exchange rate changes on cash and cash equivalents | (1) | (32) |
Net increase (decrease) in cash and cash equivalents | 2,661 | (2,167) |
Cash and cash equivalents at beginning of period | 20,046 | 7,698 |
Cash and cash equivalents at end of period | $ 22,707 | $ 5,531 |
Supplemental disclosure of non-cash information: | ||
Purchase of property and equipment remaining in accrued expenses | $ 178 | — |
Private placement offering costs remaining in accounts payable and accrued expenses | $ 297 | — |
Restricted stock units issued to settle incentive compensation obligation | $ 305 | — |
CONTACT: Metabolix Inquiries:Source:Lynne H. Brum , (617) 682-4693, LBrum@metabolix.com
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