Yield10 Bioscience, Inc. (Nasdaq:YTEN), a Company developing new
technologies to achieve step-change improvements in crop yield to
enhance global food security, today reported financial results for
the three and nine months ended September 30, 2018.
"During the third quarter we continued to execute on our key
objectives for 2018 as we signed a new research license with Forage
Genetics for testing our yield traits in sorghum, clarified the
regulatory path for genome-edited plants containing multiple edits,
and advanced our yield traits in development," said Oliver Peoples,
Ph.D., President and Chief Executive Officer of Yield10 Bioscience.
"As the end of the year approaches, we plan to report out results
from our 2018 field tests; select the traits and constructs in
Camelina, canola and soybean for field testing in 2019; and
continue to identify opportunities for collaboration with leading
players in the agricultural industry."
"Our recent agreement with Forage Genetics, a market leader in
forage crops, will expand the evaluation of our traits in another
commercially important crop. Further, it provides another path to
generating data for our traits as well as a potential path to
commercialization in sorghum if the traits add a performance
benefit to the crop."
"Our results with C3004 in growth chamber studies showing seed
yield improvements of up to 65% in Camelina are early, but very
exciting, and highlight our leadership as an agricultural biotech
innovator. This outstanding result is another demonstration that we
can significantly increase seed yield based on insights developed
using our technology platform. We are accelerating development of
our C3004 trait alone and in combination with C3003, and we plan on
using our Camelina platform for field testing in 2019. In
addition, we believe there may be paths to develop C3004 as a
genome-edited, nonregulated trait, and work is underway to deploy
C3004 in canola and soybean," concluded Dr. Peoples.
Recent AccomplishmentsSigned Research
License with Forage Genetics for Development of Novel Traits for
Sorghum. Yield10 signed a non-exclusive research license
with Forage Genetics International, LLC, a subsidiary of Land
O’Lakes, Inc., to evaluate five novel yield traits in forage
sorghum. Under the license, Forage Genetics plans to conduct
research with the novel traits within its sorghum development
program as a strategy to improve biomass yields. The novel yield
traits included in the research license agreement include C3003, a
trait derived from algae, as well as four traits from Yield10's
“GRAIN” platform, C4001, C4002, C4003 and C4029. The C4000 series
traits included in the research license have been shown to
significantly increase photosynthesis and biomass in research
conducted by Yield10.Nonregulated Status Confirmed for
Camelina Containing Novel Oil Biosynthesis Pathway.
Yield10 received confirmation of nonregulated status from
USDA-APHIS for its genome-edited Camelina sativa plant lines
developed using CRISPR-Cas9 for increased oil content. This
clarification of the regulatory status of the triple genome-edited
Camelina plant lines accelerates the path to conducting field
trials in the United States in 2019.
Reported Promising Results for C3004 Trait in Camelina
Platform. Yield10 reported promising results for its novel
yield trait C3004 in growth chamber studies conducted using its
Camelina platform. Camelina plant lines containing C3004 grew more
vigorously, and the best lines produced increases in average seed
yield (grams per plant) in a range of 26% to 65% as compared to
control plants. Yield10 plans to conduct field tests of the C3004
trait in Camelina as part of its 2019 Field Test program in Canada.
In addition, Yield10 is fast tracking deployment of the C3004 trait
into canola and soybean to determine if the trait produces similar
effects on plant vigor and seed yield in major oilseed
crops.Harvest Complete for 2018 Field Test
Program. Yield10 recently completed the harvest of plants
and seeds at field test sites in the U.S. and Canada. In the field
test program, Yield10 tested versions of C3003 in Camelina and
canola, and grew C3003 containing soybean lines primarily to bulk
up seed for field tests planned for 2019. Yield10 is also conducted
a study in the U.S. of Camelina lines that have been genome-edited
to deactivate the C3008 gene as part of a new multi-gene trait
approach to increase seed oil content and to potentially improve
oil stability. Yield10 expects to report results of the field tests
beginning in the fourth quarter of 2018.
THIRD QUARTER 2018 FINANCIAL OVERVIEW
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. The Company ended the third quarter
of 2018 with $7.8 million in unrestricted cash, cash equivalents
and short-term investments. The Company’s net cash used in
operating activities during the third quarter of 2018 and the third
quarter of 2017 was $1.8 million and $2.0 million,
respectively.
The Company anticipates net cash usage of approximately $9.0
million to $9.5 million during its fiscal year ending December 31,
2018, including final payments of $0.5 million made during the
first half of 2018 related to its restructuring that was undertaken
in 2016.
For the third quarter ending September 30, 2018, the Company
reported a net loss of $2.6 million, or $0.26 per share. The
Company reported a net loss of $2.0 million or $0.59 per share, for
the third quarter of 2017.
Total government grant revenue for the third quarter of 2018 and
the third quarter of 2017 was $0.1 million and $0.2 million,
respectively. Grant revenue for the third quarter of 2018 was
earned from the Company's subcontract with Michigan State
University. Research and development expenses for the three months
ending September 30, 2018 and September 30, 2017 were $1.3 million
and $1.1 million, respectively. The variance is primarily the
result of increased employee compensation and benefits expense,
resulting from the hiring of additional research personnel during
2018. General and administrative expenses for the three months
ending September 30, 2018 and September 30, 2017 were $1.4 million
and $1.1 million, respectively. The increase in general and
administrative expense of $0.3 million is primarily the result of a
lease impairment charge of $0.2 million recorded during the quarter
for the Company's discontinued use of its Lowell, Massachusetts
facility pursuant to a lease that will terminate in May 2020.
For the nine months ending September 30, 2018, the Company
reported a net loss of $7.3 million, or $0.74 per share, as
compared to a net loss of $6.8 million, or $2.25 per share, for the
nine months ending September 30, 2017.
Total research grant revenue for the nine months ending
September 30, 2018 was $0.4 million, compared to $0.8 million for
the nine months ending September 30, 2017. Research and development
expenses and general and administrative expenses were $3.7 million
and $4.1 million, respectively, for the nine months ending
September 30, 2018 compared to $3.4 million and $4.2 million,
respectively, for the nine months ending September 30, 2017.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 4:30 p.m. (ET) to discuss the results for the third quarter of
2018. The Company will also 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 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 13684058. The replay will be available for 14 days. In
addition, the webcast will be archived on the Company's website in
the investor relations section.
About Yield10 Bioscience
Yield10 Bioscience, Inc. is focused on developing new
technologies to achieve step-change improvements in crop yield to
enhance global food security. Yield10 has an extensive track record
of innovation based around optimizing the flow of carbon in living
systems. Yield10 is leveraging its technology platforms and
unique knowledge base to design precise alterations to gene
activity and the flow of carbon in plants to produce higher yields
with lower inputs of land, water or fertilizer. Yield10 is
advancing several yield traits it has developed in crops such as
Camelina, canola, soybean and rice. Yield10 is headquartered in
Woburn, MA and has an Oilseeds Center of Excellence in Saskatoon,
Canada.
For more information visit www.yield10bio.com(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 research and
development, collaborations, intellectual property, the
reproducibility of data from field tests, the translation of yield
improvements from Camelina to other crops, the potential to produce
improvements in seed yield and oil content, the timing of
completion of additional greenhouse and field test studies, the
signing of research licenses and collaborations, and value creation
as well as the Company’s cash position, cash forecasts, and
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.
Yield10 Inquiries:
Lynne H. Brum, (617) 682-4693, LBrum@yield10bio.com
Investor Relations Contact:Amato and Partners, LLC
admin@amatoandpartners.com
Media Inquiries:Eric Fischgrund, FischTank
Marketing and PReric@fischtankpr.com
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
76 |
|
|
$ |
223 |
|
|
$ |
421 |
|
|
$ |
840 |
|
Total revenue |
76 |
|
|
223 |
|
|
421 |
|
|
840 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Research and development |
1,330 |
|
|
1,132 |
|
|
3,677 |
|
|
3,379 |
|
General and administrative |
1,407 |
|
|
1,073 |
|
|
4,132 |
|
|
4,215 |
|
Total expenses |
2,737 |
|
|
2,205 |
|
|
7,809 |
|
|
7,594 |
|
Loss from operations |
(2,661 |
) |
|
(1,982 |
) |
|
(7,388 |
) |
|
(6,754 |
) |
|
|
|
|
|
|
|
|
Other income (net): |
|
|
|
|
|
|
|
Interest income, net |
43 |
|
|
2 |
|
|
123 |
|
|
5 |
|
Other expense, net |
(12 |
) |
|
(45 |
) |
|
(45 |
) |
|
(95 |
) |
Total other income (expense), net |
31 |
|
|
(43 |
) |
|
78 |
|
|
$ |
(90 |
) |
Net loss |
$ |
(2,630 |
) |
|
$ |
(2,025 |
) |
|
$ |
(7,310 |
) |
|
$ |
(6,844 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$ |
(0.26 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.74 |
) |
|
$ |
(2.25 |
) |
|
|
|
|
|
|
|
|
Number of shares used in per share calculations: |
|
|
|
|
|
|
|
Basic & Diluted |
10,010,762 |
|
|
3,410,847 |
|
|
9,901,459 |
|
|
3,035,352 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
|
September 30,
2018 |
|
December 31,
2017 |
Assets |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
3,306 |
|
|
$ |
14,487 |
|
Short-term investments |
|
4,491 |
|
|
— |
|
Accounts receivable |
|
54 |
|
|
54 |
|
Unbilled receivables |
|
29 |
|
|
65 |
|
Prepaid expenses and other current assets |
|
384 |
|
|
311 |
|
Total current assets |
|
8,264 |
|
|
14,917 |
|
Restricted cash |
|
332 |
|
|
317 |
|
Property and equipment, net |
|
1,435 |
|
|
1,539 |
|
Other assets |
|
106 |
|
|
109 |
|
Total assets |
|
$ |
10,137 |
|
|
$ |
16,882 |
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current Liabilities: |
|
|
|
|
Accounts payable |
|
$ |
39 |
|
|
$ |
76 |
|
Accrued expenses |
|
1,770 |
|
|
2,299 |
|
Total current liabilities |
|
1,809 |
|
|
2,375 |
|
Other liabilities, net of current portion |
|
1,000 |
|
|
1,005 |
|
Total liabilities |
|
2,809 |
|
|
3,380 |
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
Series A Convertible Preferred Stock ($0.01 par
value per share); 5,000,000 shares authorized at September
30, 2018 and December 31, 2017; 0 and 1,826 shares
issued and outstanding at September 30, 2018 and December 31,
2017, respectively |
|
— |
|
|
818 |
|
Common stock ($0.01 par value per share); 60,000,000
shares and 40,000,000 shares authorized at September 30, 2018
and December 31, 2017, respectively; 10,011,395 and 9,089,159
shares issued and outstanding at September 30, 2018 and
December 31, 2017, respectively |
|
100 |
|
|
91 |
|
Additional paid-in capital |
|
357,396 |
|
|
355,431 |
|
Accumulated other comprehensive loss |
|
(105 |
) |
|
(85 |
) |
Accumulated deficit |
|
(350,063 |
) |
|
(342,753 |
) |
Total stockholders’ equity |
|
7,328 |
|
|
13,502 |
|
Total liabilities and stockholders’ equity |
|
$ |
10,137 |
|
|
$ |
16,882 |
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
Nine Months Ended September
30, |
|
2018 |
|
2017 |
Cash flows from operating activities |
|
|
|
Net loss |
$ |
(7,310 |
) |
|
$ |
(6,844 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
Depreciation |
146 |
|
|
158 |
|
Charge for 401(k) company common stock match |
91 |
|
|
68 |
|
Stock-based compensation |
952 |
|
|
1,063 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
29 |
|
|
(69 |
) |
Due from related party |
— |
|
|
1 |
|
Unbilled receivables |
36 |
|
|
19 |
|
Prepaid expenses and other assets |
(70 |
) |
|
715 |
|
Accounts payable |
(37 |
) |
|
(8 |
) |
Accrued expenses |
(563 |
) |
|
(828 |
) |
Other long-term liabilities |
(5 |
) |
|
(584 |
) |
Net cash used for operating activities |
(6,731 |
) |
|
(6,309 |
) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property and equipment |
(42 |
) |
|
(6 |
) |
Purchase of short-term investments |
(9,742 |
) |
|
— |
|
Proceeds from the sale and maturity of short-term investments |
5,250 |
|
|
— |
|
Net cash used for investing activities |
(4,534 |
) |
|
(6 |
) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Proceeds from warrants exercised |
124 |
|
|
— |
|
Taxes paid related to net share settlement upon vesting of stock
awards |
(6 |
) |
|
(12 |
) |
Proceeds from registered direct offering |
— |
|
|
1,966 |
|
Net cash provided by financing activities |
118 |
|
|
1,954 |
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
(19 |
) |
|
3 |
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
(11,166 |
) |
|
(4,358 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
14,804 |
|
|
7,741 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
3,638 |
|
|
$ |
3,383 |
|
|
|
|
|
Supplemental disclosure of non-cash
information: |
|
|
|
Reversal of deferred financing costs related to Aspire stock
purchase agreement |
$ |
— |
|
|
$ |
450 |
|
|
|
|
|
|
|
|
|
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