Yield10 Bioscience Announces First Quarter 2020 Financial Results
“In the first quarter, we prioritized focus on activities relating to our 2020 Field Testing program where we expect our major technical milestones for the year will be generated,” said
“In Camelina, we are progressing a technical and business plan to support a specialty products business. We are also making excellent progress in our corn development program where we executed a smooth transition between the contractor who deployed several of our novel traits in corn and the new contractor who will carry the program forward through initial field tests. This rapid transition may enable us to begin field tests on some of the lines in 2021 to evaluate performance of these seed yield traits."
“As 2020 progresses, we look forward to ongoing program developments and remain focused on advancing our traits to achieve additional development milestones, advancing our business plan for Camelina, continuing to build relationships with major agricultural companies, and further demonstrating the commercial pathways for our performance traits," said
Recent Accomplishments in 2020
- Appointed
Sherri M. Brown , Ph.D., to the Board of Directors.Dr. Brown will also serve as the chair of the newly formedScience and Technology Committee of the Board. - Secured a positive response from USDA-APHIS on the regulatory status of our CRISPR genome-edited C3007 trait in Camelina, paving the way for
U.S. field tests in 2020. - Secured all regulatory permits required for
U.S. and Canadian sites, completed all seed scale up and other logistics activities to enable our field trials and announced plans for our 2020 Field Testing Program in Camelina and canola. - Signed a contract with a third-party seed company to advance our early development program in corn. The next steps in the technical development of our traits in corn include creating hybrid lines, bulking up seed, and conducting field testing. The goal of this effort is to evaluate the impact of several of our novel traits on seed yield in corn.
COVID-19 impact on operations. The Company has implemented business continuity plans to address the COVID-19 pandemic and minimize disruptions on ongoing operations. To date, despite the pandemic, we have been able to move forward with planning and operational steps required to initiate our planned 2020 field trials in
FIRST QUARTER 2020 FINANCIAL OVERVIEW
Cash Position
Net cash used by operating activities during the first quarter of 2020 was consistent at
The Company's present capital resources are expected to fund its planned operations into the second quarter of 2021. 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
Research grant revenue for the three months ended
Yield10 reported a loss from operations of
Reverse Stock Split
Yield10 completed a 1-for-40 reverse stock split of its common stock on
In
Conference Call Information
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 13701523. The replay will be available until
About
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, ability to obtain sufficient financing to continue operating, expectations related to research and development activities, collaborations, 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 signing of research licenses and collaborations, the potential impact on operations of the COVID-19 pandemic, and value creation as well as the overall progress of
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(FINANCIAL TABLES FOLLOW)
YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(In thousands, except share and per share amounts)
| Three Months Ended |
|||||||||||||||
| 2020 |
2019 |
||||||||||||||
| Revenue: | |||||||||||||||
| Grant revenue | $ | 179 | $ | 124 | |||||||||||
| Total revenue | 179 | 124 | |||||||||||||
| Expenses: | |||||||||||||||
| Research and development | 1,460 | 1,223 | |||||||||||||
| General and administrative | 1,387 | 1,186 | |||||||||||||
| Total expenses | 2,847 | 2,409 | |||||||||||||
| Loss from operations | (2,668 | ) | (2,285 | ) | |||||||||||
| Other income (expense): | |||||||||||||||
| Change in fair value of warrants | (957 | ) | — | ||||||||||||
| Interest income | 37 | 27 | |||||||||||||
| Other income (expense), net | (4 | ) | (2 | ) | |||||||||||
| Total other income (expense) | (924 | ) | 25 | ||||||||||||
| Net loss from operations before income tax expense | (3,592 | ) | (2,260 | ) | |||||||||||
| Income tax expense | (8 | ) | — | ||||||||||||
| Net loss | $ | (3,600 | ) | $ | (2,260 | ) | |||||||||
| Basic and diluted net loss per share | $ | (2.12 | ) | $ | (8.61 | ) | |||||||||
| Number of shares used in per share calculations: | |||||||||||||||
| Basic and diluted | 1,697,125 | 262,567 | |||||||||||||
YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(In thousands, except share and per share amounts)
2020 |
2019 |
||||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 4,295 | $ | 5,417 | |||||||
| Short-term investments | 5,475 | 5,700 | |||||||||
| Accounts receivable | 54 | 72 | |||||||||
| Unbilled receivables | 125 | 20 | |||||||||
| Prepaid expenses and other current assets | 560 | 475 | |||||||||
| Total current assets | 10,509 | 11,684 | |||||||||
| Restricted cash | 254 | 332 | |||||||||
| Property and equipment, net | 1,021 | 1,243 | |||||||||
| Right-of-use assets | 2,990 | 3,141 | |||||||||
| Other assets | 272 | 318 | |||||||||
| Total assets | $ | 15,046 | $ | 16,718 | |||||||
| Liabilities, Convertible Preferred Stock and Stockholders’ (Deficit) Equity | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 135 | $ | 279 | |||||||
| Accrued expenses | 1,579 | 1,326 | |||||||||
| Lease liabilities | 473 | 602 | |||||||||
| Total current liabilities | 2,187 | 2,207 | |||||||||
| Lease liabilities, net of current portion | 3,512 | 3,619 | |||||||||
| Warrant liability | — | 14,977 | |||||||||
| Other long-term liabilities | 18 | — | |||||||||
| Total liabilities | 5,717 | 20,803 | |||||||||
| Commitments and contingencies | |||||||||||
| Series B Convertible Preferred Stock ( |
— | — | |||||||||
| Stockholders’ Equity (Deficit): | |||||||||||
| Series A Convertible Preferred Stock ( |
— | — | |||||||||
| Common stock ( |
19 | 9 | |||||||||
| Additional paid-in capital | 377,963 | 360,926 | |||||||||
| Accumulated other comprehensive loss | (159 | ) | (126 | ) | |||||||
| Accumulated deficit | (368,494 | ) | (364,894 | ) | |||||||
| Total stockholders’ equity (deficit) | 9,329 | (4,085 | ) | ||||||||
| Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 15,046 | $ | 16,718 | |||||||
YIELD10 BIOSCIENCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(In thousands)
| Three Months Ended March 31, |
|||||||||||||||
| 2020 |
2019 |
||||||||||||||
| Cash flows from operating activities | |||||||||||||||
| Net loss | $ | (3,600 | ) | $ | (2,260 | ) | |||||||||
| Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||||||
| Depreciation | 48 | 50 | |||||||||||||
| Change in fair value of warrants | 957 | — | |||||||||||||
| Loss on disposal of fixed assets | 206 | — | |||||||||||||
| Charge for 401(k) company common stock match | 42 | 24 | |||||||||||||
| Stock-based compensation | 137 | 162 | |||||||||||||
| Non-cash lease expense | 151 | 147 | |||||||||||||
| Deferred tax provision | 30 | — | |||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivables | 18 | 49 | |||||||||||||
| Unbilled receivables | (105 | ) | (13 | ) | |||||||||||
| Prepaid expenses and other assets | (69 | ) | (60 | ) | |||||||||||
| Accounts payable | (144 | ) | (105 | ) | |||||||||||
| Accrued expenses | 259 | (92 | ) | ||||||||||||
| Lease liabilities | (236 | ) | (198 | ) | |||||||||||
| Other liabilities | 18 | — | |||||||||||||
| Net cash used for operating activities | (2,288 | ) | (2,296 | ) | |||||||||||
| Cash flows from investing activities | |||||||||||||||
| Purchase of property and equipment | (42 | ) | — | ||||||||||||
| Proceeds from sale of property and equipment | 10 | — | |||||||||||||
| Purchase of short-term investments | (503 | ) | — | ||||||||||||
| Proceeds from the sale and maturity of short-term investments | 750 | 2,746 | |||||||||||||
| Net cash provided by investing activities | 215 | 2,746 | |||||||||||||
| Cash flows from financing activities | |||||||||||||||
| Proceeds from warrants exercised | 928 | — | |||||||||||||
| Proceeds from registered direct offering, net of issuance costs | — | 2,597 | |||||||||||||
| Net cash provided by financing activities | 928 | 2,597 | |||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (55 | ) | (5 | ) | |||||||||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (1,200 | ) | 3,042 | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 5,749 | 3,355 | |||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 4,549 | $ | 6,397 | |||||||||||
| Supplemental disclosure of non-cash information: | |||||||||||||||
| Purchase of property and equipment included in accounts payable and accrued expenses | $ | — | $ | 12 | |||||||||||
| Offering costs remaining in accrued expenses | $ | — | $ | 14 | |||||||||||
Source: Yield10 Bioscience, Inc.
