Yield10 Bioscience, Inc. (NASDAQ:YTEN), an agricultural bioscience
company which uses its “Trait Factory” to develop high value seed
traits for the agriculture and food industries, today reported
financial results for the three months and full year ended December
31, 2018.
"During the fourth quarter we accomplished each of our key
objectives outlined for 2018 as we completed our field testing and
analysis of C3003 to improve seed yield in canola and we began our
early development program for several promising traits in corn,”
said Oliver Peoples, Ph.D., president and chief executive officer
of Yield10 Bioscience. “In 2019, we intend to continue building
upon our strong reputation as an innovator in crop yield technology
by continuing to identify novel crop yield traits for development
and building our growing portfolio of traits, all while focusing on
activities that will allow us to generate proof points in major
crops.”
“We made a key transition in 2018 to enable the evaluation of
our novel yield traits broadly in the major commercial food and
feed crops: canola, soybean, corn, wheat and rice. In 2019, Yield10
will focus on generating key proof points from field tests of C3003
in canola and, building on encouraging findings reported in 2018,
conduct our first field test of C3004 in Camelina, a model oil seed
crop. This year, we also plan to evaluate CRISPR-Cas9 genome-edited
versions of C3007 in canola and C4004 in wheat and rice for the
first time. Concurrently, we will continue to support Bayer Crop
Science (formerly Monsanto) and Forage Genetics as they undertake
the testing of our traits in soybean and forage sorghum,
respectively. We plan to leverage the data generated across
our studies to identify opportunities for revenue generating
collaborations with leading players in the agricultural industry,”
Dr. Peoples concluded.
Recent Accomplishments
Announced encouraging results from the 2018 Field Tests
of C3003 in canola. The C3003 yield trait produced seed
yield increases of up to 11% in the best lines of canola tested.
Based on these results, Yield10 plans to progress C3003 in canola
into the commercial development phase in 2019 including field
testing in Canada and the creation of additional events for
testing.
Initiated an early development program in corn to
evaluate novel seed yield and drought tolerance traits.
Corn is the highest value commercial row crop grown in the United
States. Under Yield10’s corn program, six novel traits discovered
by Yield10 will be deployed in corn by a third-party agriculture
company with proven expertise introducing new traits into corn.
This aspect of the development activity is expected to be completed
in early 2020. Yield10 plans to engage an additional third-party to
conduct field testing of the novel traits in corn to evaluate the
impact on seed yield.
Appointed Sherri M. Brown, Ph.D., a former Monsanto
executive as our Special Commercial and Technical Advisor.
Dr. Brown possesses a wealth of experience leading teams that have
successfully developed and commercialized innovative biotechnology
traits globally in canola, soybean and corn. Her extensive
background in plant science, the assessment of yield traits in the
field, global experience and knowledge of the commercial landscape
will make her an invaluable resource for the Yield10 team.
FULL YEAR AND FOURTH 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 2018 with $5.8 million in unrestricted cash,
cash equivalents and short-term investments. On March 18, 2019,
Yield10 closed on a registered direct offering of its common stock,
raising $2.6 million, net of offering costs. The Company
anticipates net cash usage in a range of approximately $9.0 million
to $9.5 million during 2019.
The Company's present capital resources, including funds
received from its March 2019 offering, will not be 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'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.
Operations
The Company’s net cash used by operating activities during 2018
was $8.8 million, an increase of $0.6 million from the $8.2 million
used in operating activities during 2017. The increase in net cash
used for operating activities during the year ended December 31,
2018 was primarily due to the Company's payment of 2017 employee
bonuses during early 2018. Bonuses were not paid during the
previous year.
For the year ending December 31, 2018, the Company reported a
net operating loss of $9.2 million, or $0.92 per share which
compares to a net operating loss of $10.8 million, or $3.29 per
share, for 2017. The 2017 loss includes a $1.4 million
adjustment related to the Company's accounting for a deemed
dividend from a beneficial conversion feature recorded in
connection with Series A convertible preferred stock issued in its
December 2017 financing.
Total research grant revenue for the full year 2018 was $0.6
million, compared to $0.9 million recorded in the previous
year. Research and development expenses were $4.8 million in
2018, compared to $4.6 million for 2017. General and
administrative expenses were $5.1 million and $5.6 million for the
years ended December 31, 2018 and 2017, respectively.
The Company reported a net operating loss of $1.9 million, or
$0.19 per share, for the fourth quarter of 2018, compared to a net
operating loss applicable to common shareholders of $4.0 million,
or $0.99 per share, for the fourth quarter of 2017.
Total research grant revenues in the fourth quarter of 2018 and
fourth quarter of 2017 were consistent at $0.1 million.
In the fourth quarter of 2018, research and development expenses
were $1.1 million and general and administrative expenses were $0.9
million compared to $1.2 million of research and development
expenses and $1.4 million of general and administrative expenses in
the fourth quarter of 2017.
Conference Call Information
Yield10 Bioscience management will host a conference call today
at 4:30 p.m. (ET) to discuss the fourth quarter and full year 2018
results. The Company also will 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 events
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 13687674. The replay will be available until April 9,
2019. In addition, the webcast will be archived on the Company's
website in the investor relations events section.
About Yield10 Bioscience
Yield10 Bioscience, Inc. is an agricultural bioscience company
which uses its “Trait Factory” to develop high value seed traits
for the agriculture and food industries 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. The “Trait Factory” has two
components: the “GRAIN” computational modeling platform, which is
used to identify specific gene changes designed to improve crop
performance, and the deployment of those changes into crops using
genome-editing or traditional agricultural biotechnology
approaches. The purpose of the “Trait Factory” is to engineer
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 canola, soybean, rice, wheat and corn.
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 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, and value creation as well as the overall 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.
Contacts:
Yield10 Bioscience:Lynne H. Brum, (617) 682-4693,
LBrum@yield10bio.com
Investor Relations:Bret Shapiro, 561-479-8566,
brets@coreir.comManaging Director, CORE IR
Media Inquiries:Eric Fischgrund, eric@fischtankpr.comFischTank
Marketing and PR
(FINANCIAL TABLES FOLLOW)
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONSUNAUDITED(In thousands,
except share and per share amounts)
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant
revenue |
$ |
135 |
|
|
$ |
104 |
|
|
$ |
556 |
|
|
$ |
944 |
|
Total
revenue |
135 |
|
|
104 |
|
|
556 |
|
|
944 |
|
Expenses: |
|
|
|
|
|
|
|
Research
and development |
1,082 |
|
|
1,218 |
|
|
4,759 |
|
|
4,597 |
|
General
and administrative |
939 |
|
|
1,415 |
|
|
5,071 |
|
|
5,630 |
|
Total
expenses |
2,021 |
|
|
2,633 |
|
|
9,830 |
|
|
10,227 |
|
Loss from
operations |
(1,886 |
) |
|
(2,529 |
) |
|
(9,274 |
) |
|
(9,283 |
) |
Other income (expense),
net |
26 |
|
|
(23 |
) |
|
104 |
|
|
(113 |
) |
Net
loss |
$ |
(1,860 |
) |
|
$ |
(2,552 |
) |
|
$ |
(9,170 |
) |
|
$ |
(9,396 |
) |
|
|
|
|
|
|
|
|
Loss attributable to
common shareholders and loss per common share: |
|
|
|
|
|
|
|
Net
loss |
$ |
(1,860 |
) |
|
$ |
(2,552 |
) |
|
$ |
(9,170 |
) |
|
$ |
(9,396 |
) |
Deemed
dividend on Series A Convertible Preferred Stock issuance |
— |
|
|
(1,427 |
) |
|
— |
|
|
|
(1,427 |
) |
Net loss
applicable to common shareholders |
$ |
(1,860 |
) |
|
$ |
(3,979 |
) |
|
$ |
(9,170 |
) |
|
$ |
(10,823 |
) |
|
|
|
|
|
|
|
|
Basic and Diluted net
loss per share |
$ |
(0.19 |
) |
|
$ |
(0.99 |
) |
|
$ |
(0.92 |
) |
|
$ |
(3.29 |
) |
Number of shares used
in per share calculations: |
|
|
|
|
|
|
|
Basic
& Diluted |
10,024,557 |
|
|
4,040,156 |
|
|
9,932,487 |
|
|
3,288,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED(In
thousands, except share and per share amounts)
|
|
|
|
|
December 31,2018 |
|
December 31,2017 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash
equivalents |
$ |
3,023 |
|
|
$ |
14,487 |
|
Short-term investments |
2,746 |
|
|
— |
|
Accounts
receivable |
94 |
|
|
54 |
|
Unbilled
receivables |
66 |
|
|
65 |
|
Prepaid
expenses and other current assets |
448 |
|
|
311 |
|
Total
current assets |
6,377 |
|
|
14,917 |
|
Restricted cash |
332 |
|
|
317 |
|
Property and equipment,
net |
1,385 |
|
|
1,539 |
|
Other assets |
100 |
|
|
109 |
|
Total
assets |
$ |
8,194 |
|
|
$ |
16,882 |
|
Liabilities and
Stockholders' Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
117 |
|
|
$ |
76 |
|
Accrued
expenses |
1,429 |
|
|
2,299 |
|
Total
current liabilities |
1,546 |
|
|
2,375 |
|
Other
liabilities, net of current portion |
935 |
|
|
1,005 |
|
Total
liabilities |
2,481 |
|
|
3,380 |
|
Commitments and
contingencies |
|
|
|
Stockholders'
Equity: |
|
|
|
Series A
Convertible Preferred Stock ($0.01 par value per share); 5,000,000
authorized at December 31, 2018 and 2017, respectively; 0 and 1,826
shares issued and outstanding at December 31, 2018 and 2017,
respectively |
— |
|
|
818 |
|
Common
stock ($0.01 par value per share); 60,000,000 shares and 40,000,000
shares authorized at December 31, 2018 and 2017, respectively;
10,025,811 and 9,089,159 shares issued and outstanding at
December 31, 2018 and 2017, respectively |
100 |
|
|
91 |
|
Additional paid-in
capital |
357,646 |
|
|
355,431 |
|
Accumulated other
comprehensive loss |
(110 |
) |
|
(85 |
) |
Accumulated
deficit |
(351,923 |
) |
|
(342,753 |
) |
Total
stockholders' equity |
5,713 |
|
|
13,502 |
|
Total
liabilities and stockholders' equity |
$ |
8,194 |
|
|
$ |
16,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELD10
BIOSCIENCE, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOWSUNAUDITED(In
thousands)
|
|
|
Years Ended December 31, |
|
2018 |
|
2017 |
Cash flows from
operating activities |
|
|
|
|
|
|
|
Net loss |
$ |
(9,170 |
) |
|
$ |
(9,396 |
) |
Adjustments to
reconcile net loss to cash used in operating activities: |
|
|
|
Depreciation |
196 |
|
|
206 |
|
Expense for 401(k)
company common stock match |
102 |
|
|
85 |
|
Stock-based
compensation |
1,181 |
|
|
1,395 |
|
Changes in operating
assets and liabilities: |
|
|
|
Accounts
receivable |
(40 |
) |
|
12 |
|
Due from
related parties |
— |
|
|
1 |
|
Unbilled
receivables |
(1 |
) |
|
56 |
|
Prepaid
expenses and other assets |
(128 |
) |
|
660 |
|
Accounts
payable |
41 |
|
|
17 |
|
Accrued
expenses |
(865 |
) |
|
(622 |
) |
Other
long-term liabilities |
(70 |
) |
|
(616 |
) |
Net cash
used in operating activities |
(8,754 |
) |
|
(8,202 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property
and equipment |
(42 |
) |
|
(6 |
) |
Purchase of
investments |
(11,496 |
) |
|
— |
|
Proceeds from sale and
maturity of short-term investments |
8,750 |
|
|
— |
|
Net cash
used by investing activities |
(2,788 |
) |
|
(6 |
) |
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
124 |
|
|
— |
|
Proceeds from private
placement offering, net of issuance costs |
— |
|
|
1,966 |
|
Proceeds from public
stock offerings, net of issuance costs |
— |
|
|
13,318 |
|
Taxes paid on
employees' behalf related to vesting of stock awards |
(6 |
) |
|
(12 |
) |
Net cash
provided by financing activities |
118 |
|
|
15,272 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
(25 |
) |
|
(1 |
) |
Net (decrease) increase
in cash, cash equivalents and restricted cash |
(11,449 |
) |
|
7,063 |
|
Cash, cash equivalents
and restricted cash at beginning of period |
14,804 |
|
|
7,741 |
|
Cash, cash equivalents
and restricted cash at end of period |
$ |
3,355 |
|
|
$ |
14,804 |
|
|
|
|
|
Supplemental
Cash Flow Disclosure: |
|
|
|
Interest paid |
$ |
50 |
|
|
$ |
116 |
|
|
|
|
|
Supplemental
Disclosure of Non-cash Information: |
|
|
|
Stock offering costs
remaining in accounts payable and accrued expenses |
— |
|
|
$ |
221 |
|
Deemed dividend related
to Series A Convertible Preferred Stock beneficial conversion
feature |
— |
|
|
$ |
1,427 |
|
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