Yield10 Bioscience Announces First Quarter 2023 Financial Results
- Executing commercial strategy for elite Camelina in the biofuels market
- Met target for 2023 contracted spring Camelina acres
- Permitting complete, planting underway for spring seed scale-up and field testing program
- Management will host a conference call today at
4:30 pm (ET)to review financial results and provide a corporate update
"We remain focused on executing our commercial strategy with an emphasis on positioning elite Camelina as a source of low-carbon intensity feedstock oil for the biofuels market," said
"There is considerable interest in Camelina as a feedstock oil for biofuels and we continue to engage with interested parties. Our plan is to build a network of alliances across the value chain to enable the production of Camelina feedstock oil for the biofuel market. We recently signed a non-binding Letter of Intent ("LOI") with Marathon Petroleum ("MPC") for an investment and offtake agreement and discussions around terms for definitive agreements are in progress. Earlier this year we signed Memorandum of Understanding agreements ("MOUs") with
"We are rapidly advancing the next generation of elite Camelina varieties engineered for herbicide tolerance to provide farmers with weed control while seamlessly integrating with their crop rotations. Our efforts also extend to seed scale-up activities for spring E3902-HT Camelina. Currently, we are conducting field tests at 13 sites for several traits including broad leaf herbicide tolerance, stacked herbicide tolerance (broad leaf and soil residual), as well as performance traits for seed yield and oil content. We will conduct our first field testing and seed scale-up of EPA omega-3 Camelina to enable larger-scale planting.
"We are making demonstrable progress on the commercial front engaging with growers and biofuel industry players. We are also rapidly advancing the development of elite herbicide tolerant Camelina varieties that will enable new revenue-generating options for farmers. We look forward to continuing to build value and report on our progress across our Camelina products business in 2023," concluded
Recent progress by Yield10 is underscored by several key milestones achieved since the start of 2023.
- Signing grower contracts for Camelina: Yield10 has met its internal target for contracted spring Camelina acres based on good interest from growers in a variety of locations in the
U.S.and Canada. These farmers will be growing Camelina on a scale of 45 to 200+ acres. Recent visits to farms participating in our winter 2022/2023 grower contracts indicate that the crop demonstrated impressive cold tolerance during the winter season, even in areas with little to no persistent snow cover. Harvest of Camelina grain under these contracts is expected in the third quarter of 2023. Yield10 continues to build awareness for the benefits of growing Camelina and to identify growers for the 2023/2024 winter Camelina contracts.
- Building the supply chain for biofuels: Yield10 continues to conduct discussions with industry players across the biofuel supply chain. In May, Yield10 announced signing a non-binding LOI with MPC for a potential investment and offtake agreement for low-carbon intensity Camelina feedstock oil for use in renewable fuel production. In connection with the execution of the LOI, Yield10 issued to
MPC Investment, LLC, an affiliate of MPC, a senior unsecured promissory note in the original principal amount of $1.0 million.
- Controlling weeds is critical to large-scale production of Camelina: Yield10 researchers are executing a program to deploy herbicide tolerance ("HT") technology in Camelina to enable robust broad-leaf weed control and to tolerate the effects of other herbicide residues sometimes present in soil. In the first quarter of 2023, filings were made with
U.S.regulatory authorities for herbicide tolerant Camelina. Yield10 filed Request for Status Review packages under the SECURE Rule with USDA-APHIS for stacked herbicide tolerance traits in Camelina. Yield10 also supported the filing of a label amendment with the U.S. Environmental Protection Agency("EPA") to expand the label of a broad leaf herbicide to include usage in Camelina.
- Producing omega-3 oil in Camelina represents a significant market opportunity: Camelina is an excellent platform for producing omega-3 oils as a sustainable alternative to the stagnating harvest of ocean fish. Yield10 is advancing development of Camelina lines to produce the EPA component of omega-3, conducting field trials and seed scale-up activities, and expects to engage in commercial discussions with potential customers for this high-value specialty oil in 2023.
FIRST QUARTER 2023 FINANCIAL OVERVIEW
Yield10 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 2023 with
In connection with the MPC LOI, the Company sold and issued to an affiliate of MPC a senior unsecured convertible note in the principal amount of
Research grant revenue was consistent at
Yield10 reported a net loss after taxes of
Conference Call Information
For more information about the Company, please visit www.yield10bio.com, or follow the Company on Twitter, Facebook and LinkedIn.
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 and commercialization 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 outcomes of its 2022-2023 seed production activities, 2023 spring field tests, 2022-2023 winter field tests, Camelina planting under growers contracts 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 geopolitical uncertainty caused by the conflict between
Managing Director, CORE IR
FischTank Marketing and PR
(FINANCIAL TABLES FOLLOW)
YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|Three Months Ended
|Research and development||2,162||1,763|
|General and administrative||1,698||1,707|
|Loss from operations||(3,800||)||(3,321||)|
|Other income (expense):|
|Other income (expense), net||18||(1||)|
|Total other income (expense)||18||(1||)|
|Loss from operations before income taxes||(3,782||)||(3,322||)|
|Income tax provision||—||(9||)|
|Basic and diluted net loss per share||$||(0.76||)||$||(0.68||)|
|Number of shares used in per share calculations:|
|Basic and diluted||4,999,606||4,888,915|
YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
|Cash and cash equivalents||$||1,809||$||2,356|
|Prepaid expenses and other current assets||634||641|
|Total current assets||2,443||5,018|
|Property and equipment, net||715||775|
|Liabilities and Stockholders’ Equity|
|Current portion of lease liabilities||591||575|
|Total current liabilities||2,270||1,610|
|Lease liabilities, net of current portion||1,921||2,075|
|Commitments and contingencies|
|Preferred stock (
|Common stock (
|Additional paid-in capital||404,803||404,277|
|Accumulated other comprehensive loss||(232||)||(229||)|
|Total stockholders’ equity||1,143||4,400|
|Total liabilities and stockholders’ equity||$||5,334||$||8,085|
YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|Three Months Ended
|Cash flows from operating activities|
|Adjustments to reconcile net loss to cash used in operating activities:|
|Depreciation and amortization||69||59|
|Charge for 401(k) company common stock match||29||45|
|Non-cash lease expense||104||95|
|Deferred income tax provision||—||6|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||37||(2||)|
|Net cash used by operating activities||(2,667||)||(3,102||)|
|Cash flows from investing activities|
|Purchase of property and equipment||(9||)||(114||)|
|Proceeds from the maturity of short-term investments||1,991||26|
|Net cash provided (used by) investing activities||1,982||(88||)|
|Cash flows from financing activities|
|Proceeds from At-the-Market offering, net of issuance costs||182||—|
|Taxes paid on employees' behalf related to vesting of stock awards||(41||)||(14||)|
|Net cash provided (used by) financing activities||141||(14||)|
|Effect of exchange rate changes on cash, cash equivalents and restricted cash||(3||)||3|
|Net decrease in cash, cash equivalents and restricted cash||(547||)||(3,201||)|
|Cash, cash equivalents and restricted cash at beginning of period||2,620||5,593|
|Cash, cash equivalents and restricted cash at end of period||$||2,073||$||2,392|
|Supplemental disclosure of non-cash information:|
|Offering costs remaining in accounts payable||$||79||$||—|
Source: Yield10 Bioscience, Inc.