Yield10 Bioscience Announces Second Quarter 2023 Financial Results
-Harvesting underway for contracted winter and spring Camelina acres for the biofuels market
-Reported positive results in first field tests of stacked herbicide tolerant Camelina
-Filed a request for regulatory status review with USDA-APHIS for omega-3 (EPA) Camelina
-Strengthened balance sheet with recent financing
-Management will host a conference call today at
"The first half of 2023 was productive for Yield10 as we demonstrated significant progress toward building our value chain for broadly commercializing Camelina as a platform crop to produce low-carbon intensity feedstock oil for the biofuel market," said
"We have supported our Camelina growers throughout the season and anticipate harvesting all contracted acres across the
"Our research team recently reported positive results in the first field test of stacked herbicide tolerance ("HT") traits in spring Camelina, setting the stage for broad adoption of the crop for production of biofuels. In the second quarter, we filed a request for regulatory status review ("RSR") under USDA-APHIS’s SECURE rule covering stacked herbicide tolerance traits in Camelina. With the achievement of these key milestones, we remain firmly on-track to develop and commercialize stacked HT spring and winter Camelina varieties. We anticipate the launch of our first commercial HT spring Camelina variety in 2025 with stacked HT Camelina varieties following soon after.
"In the second quarter, we filed an RSR covering Camelina designed to produce the eicosapentaenoic acid ("EPA") component of omega-3 oil. This spring, we planted omega-3 (EPA) Camelina at acre-scale in the
"In the second half of 2023, our focus will remain on securing offtake agreements for the biofuel market, engaging growers to sign winter grower contracts, advancing our HT and omega-3 Camelina varieties toward launch, innovating to introduce high-value traits into Camelina, and building shareholder value," concluded
- Executing on commercial Camelina grower contracts for production of grain for the biofuel market.
- 2022/2023 winter: The harvest of winter Camelina under grower contracts is well underway. The first delivery of Camelina grain to a biofuel customer has been completed. This milestone is expected to produce Yield10's first grain product revenue and demonstrates the steps in our biofuel value chain spanning seed multiplication and planting, grain harvest and ultimately delivery of grain to a biofuel crusher/refiner customer.
- 2023 spring: The harvest of spring Camelina under grower contracts is expected to take place through the end of August. Yield10 anticipates selling some of the grain for biofuel feedstock oil and using some for the production for customer samples.
- 2023/2024 winter: Yield10 is engaging with growers in the
U.S.and Canadawho are interested in planting winter Camelina for the 2023/2024 season. The Company anticipates that contracts will be signed with growers and that winter seed will be planted by the end of the third quarter of 2023.
- Building the value chain for Camelina offtake in biofuels: Yield10 continues discussions with Marathon Petroleum Corporation and Mitsubishi Corporation for potential investment and offtake agreements for low-carbon intensity Camelina feedstock oil for use in renewable fuel production.
- Obtained positive field test results for stacked HT Camelina to enable planting on large acreage: In the second quarter of 2023, Yield10 researchers initiated the first field tests of candidate E3902 spring Camelina lines deployed with stacked HT traits. These traits are intended to provide the plants with tolerance to the application of an over-the-top broadleaf herbicide for weed control as well as tolerance to soil residues of Group 2 herbicides, specifically including tolerance to both imidazolinones (“IMI”) and sulfonylureas (“SU”). Group 2 herbicides are commonly used to manage weeds in cereal and other crop rotations and can persist in the soil for months following use. The initial field test results show promising tolerance to both target herbicide chemistries. Yield10 intends to harvest the plants and collect seed yield and oil yield data in the weeks ahead with the goal of selecting lead and back-up stacked HT spring E3902 Camelina lines for commercial development and seed scale-up. Field tests for the first winter stacked HT Camelina lines are planned in the upcoming winter season.
- Yield10 achieved a key regulatory milestone in the omega-3 program: In July, the Company announced the filing of a request for a Regulatory Status Review (RSR) with USDA-APHIS Biotechnology Regulatory Services (BRS) under the SECURE Rule for proprietary elite Camelina varieties containing genes enabling the plant to produce the EPA component of omega-3 oil. In addition, in the second quarter, Yield10 planted omega-3 (EPA) Camelina at acre-scale in the
U.S.to begin the ramp up of seed inventory for future planting as well as to produce oil for use in business development activities.
- Strengthened the balance sheet with recent capital raise: On
August 11, 2023, the Company priced a $3.7 millionpublic offering of units consisting of one share of common stock and one warrant to purchase one share of common stock.
SECOND QUARTER 2023 FINANCIAL OVERVIEW
Yield10 ended the second quarter of 2023 with
Net cash used by operating activities during the second quarter of 2023 was
Yield10's present capital resources, including net funds to be received from its public offering that is expected to close on
Yield10 did not record grant revenue during the three months ended
Yield10 reported a net loss of
For the six months ended
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 13739001. The replay will be available until
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 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
(In thousands, except share and per share amounts)
|Three Months Ended
||Six Months Ended
|Research and development||1,997||2,016||4,159||3,779|
|General and administrative||1,670||1,523||3,368||3,230|
|Loss from operations||(3,667||)||(3,436||)||(7,467||)||(6,757||)|
|Other income (expense):|
|Other income (expense), net||(14||)||2||4||1|
|Total other income (expense)||(14||)||2||4||1|
|Loss from operations before income taxes||(3,681||)||(3,434||)||(7,463||)||(6,756||)|
|Income tax provision||—||(9||)||—||(18||)|
|Basic and diluted net loss per share||$||(0.64||)||$||(0.70||)||$||(1.39||)||$||(1.38||)|
|Number of shares used in per share calculations:|
|Basic and diluted||5,729,012||4,900,298||5,366,324||4,894,638|
|YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
|Cash and cash equivalents||$||2,336||$||2,356|
|Prepaid expenses and other current assets||689||641|
|Total current assets||3,025||5,018|
|Property and equipment, net||663||775|
|Liabilities and Stockholders’ Equity|
|Current portion of lease liabilities||628||575|
|Total current liabilities||2,470||1,610|
|Lease liabilities, net of current portion||1,842||2,075|
|Convertible note payable, net of issuance costs||971||—|
|Commitments and contingencies|
|Preferred stock (
|Common stock (
|Additional paid-in capital||407,930||404,277|
|Accumulated other comprehensive loss||(244||)||(229||)|
|Total stockholders’ equity||587||4,400|
|Total liabilities and stockholders’ equity||$||5,870||$||8,085|
|YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|Six Months Ended
|Cash flows from operating activities|
|Adjustments to reconcile net loss to cash used in operating activities:|
|Depreciation and amortization||145||128|
|Charge for 401(k) company common stock match||63||76|
|Non-cash lease expense||110||192|
|Deferred income tax provision||—||19|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||(48||)||(37||)|
|Net cash used in operating activities||(5,746||)||(5,640||)|
|Cash flows from investing activities|
|Purchase of property and equipment||(27||)||(133||)|
|Purchase of investments||—||(710||)|
|Proceeds from the maturity of short-term investments||1,991||4,371|
|Net cash provided by investing activities||1,964||3,528|
|Cash flows from financing activities|
|Proceeds from issuance of common stock and warrants in equity offering, net of issuance costs||2,717||—|
|Proceeds from At-the-Market offering, net of issuance costs||103||—|
|Proceeds for convertible debt note||1,000||—|
|Taxes paid on employees' behalf related to vesting of stock awards||(41||)||(14||)|
|Net cash provided by (used by) financing activities||3,779||(14||)|
|Effect of exchange rate changes on cash, cash equivalents and restricted cash||(17||)||(23||)|
|Net decrease in cash, cash equivalents and restricted cash||(20||)||(2,149||)|
|Cash, cash equivalents and restricted cash at beginning of period||2,620||5,593|
|Cash, cash equivalents and restricted cash at end of period||$||2,600||$||3,444|
|Supplemental disclosure of non-cash information:|
|Right-of-use assets acquired in exchange for lease liabilities||$||100||$||—|
Source: Yield10 Bioscience, Inc.