ROSEVILLE, Minn., Aug. 5, 2021 /PRNewswire/ -- Calyxt,
Inc. (NASDAQ: CLXT), a plant-based technology company, today
announced financial results for its second quarter ended
June 30, 2021.
"We made significant progress in the second quarter, notably
appointing Michael A. Carr as
President and Chief Executive Officer where he will lead us in our
efforts to advance the evolution of our plant-based technology
platform," said Yves Ribeill, Ph.D., Executive Chair. "Our
scientific and technical teams have made important advances across
our hemp breeding technologies. In addition to successfully
transforming the hemp genome, we also added triploid breeding
technology, allowing for the development of "pollen-proof",
seedless hemp. This is a significant innovation and marks the
second step in our comprehensive approach to improving the hemp
species and expanding its commercial potential."
"I'm excited to be joining the Calyxt team as we advance our
mission to utilize plants to generate innovative, sustainable, and
high-value products for customers and partners," said Mr. Carr.
"The highly skilled team has built an impressive and unique
plant-based technology platform. Calyxt has significant value to
unlock through the commercialization of our product portfolio,
proprietary technologies, and know-how. I look forward to working
closely with the team to advance our exciting platform and realize
this potential."
Key accomplishments in the second quarter of 2021 and through
the date of this release include:
- Appointed Michael A. Carr as its
President, Chief Executive Officer, and member of its Board of
Directors effective July 27, 2021.
Mr. Carr brings more than 20 years of business, financial and
operational leadership experience to Calyxt and will focus on
advancing and monetizing Calyxt's technologies. Most recently, he
served as Vice President of M&A, Strategy, and Innovation at
Darling Ingredients, Inc.
- With the expansion of its hemp breeding platform, Calyxt is
demonstrating industry leadership in modernizing the species.
Calyxt has successfully transformed the genome and produced
"pollen-proof" (seedless) hemp with its triploid breeding
technology. Combined, Calyxt's hemp advancements offer significant
advantages in innovation, crop management, and harvest potential.
More broadly, Calyxt can now deliver hemp products tailored for the
benefit of both growers and consumers, who are increasingly looking
for plant-based and sustainable foods, materials, cosmeceuticals,
nutraceuticals, and more.
- Completed the sale of more than 75% percent of the 2020 grain
crop to date to ADM, with the remaining grain projected to be sold
throughout 2021. This series of transactions, which began in the
third quarter of 2020, has generated $27
million in total cash since sales commenced.
- Net cash used by operating activities improved by $11.6 million from the same period a year ago
driven primarily by an improvement in Calyxt's working capital
investment associated with the change to the go-to-market strategy
for its soybean product line and a lower net loss in the period
driven by a reduction in operating expenses following that change
in go-to-market strategy.
- Promoted Sarah Reiter to the
newly created role of Chief Business Officer, effective
May 1, 2021. In this role Ms. Reiter
is responsible for all of Calyxt's commercial activities, including
securing strategic partners for the development and
commercialization of products. She is also responsible for
corporate communications and product marketing.
Go-To-Market Strategies and Current Development
Pipeline
Calyxt's baseline go-to-market strategies include product
development agreements, product license arrangements, and
technology licensing agreements. Calyxt intends to move its current
soybean product to a product license go-to-market strategy in 2022
and is currently in discussions with potential licensors.
Calyxt has seven publicly disclosed products in development that
have a target commercial planting year, and for which it is
actively seeking partners in all cases but alfalfa, where it has
executed a commercialization agreement with S&W Seed Company
(Nasdaq: SANW). A summary as of June 30,
2021, is as follows:
CROP
|
PRODUCT1
|
TARGET
COMMERCIAL
PLANTING YEAR
|
Alfalfa
|
Improved
Digestibility
|
2022
|
Wheat
|
High Fiber
|
2023
|
Soybean
|
High Oleic, Low
Linolenic
(HOLL)
|
2023
|
Hemp
|
"Pollen-Proof"
(Seedless)
|
2023
|
Hemp
|
Stability for Food,
Oil &
Fiber
|
2024
|
Oat
|
Winter
|
2026
|
Soybean
|
High Saturated
Fat
(Palm Alternative)
|
2026
|
1 The agronomic and functional quality of product
candidates and the timing of development are subject to a variety
of factors and risks, which are described in Calyxt's filings with
the Securities and Exchange Commission.
Calyxt will selectively continue to develop the products in the
table above to enable development and commercial agreements to be
reached, and its baseline go-to-market strategies support modest
capital requirements for these products. When commercialized by the
licensors, the products are expected to deliver high margin royalty
revenue streams.
Calyxt is also pursuing strategic product development
opportunities. In these cases, Calyxt's core strengths of research
and product development are aligned with the commercialization and
downstream execution capabilities of a potential partner. Calyxt
anticipates that these partnerships will reduce its capital
requirements for research and development, result in near-term cash
inflow, and provide opportunities for additional revenue streams
over time, including high margin milestone and royalty or license
payments.
"As our R&D team continues to innovate our development
pipeline based on Calyxt's proprietary systems and advanced
analytics platforms, the management team remains focused on the
identification and development of high value customer- and
partner-driven targets to expand the company's potential commercial
footprint," said Dr. Ribeill.
Financial Results for the Three Months Ended June 30, 2021
- Revenue was $11.9 million in the
second quarter of 2021, an increase of $9.6
million, or 415 percent, from the second quarter of 2020.
The increase was driven by the volume and mix of product sold in
the quarter, as Calyxt sold seed and 25 percent of the 2020 grain
crop in the second quarter of 2021 as compared to the second
quarter of 2020, when it was selling soybean oil and meal. As of
June 30, 2021, Calyxt had sold over
75 percent of the 2020 grain crop.
- Cost of goods sold was $11.5
million in the second quarter of 2021, an increase of
$6.2 million, or 117 percent, from
the second quarter of 2020. The increase was driven by higher
volumes of product sold and higher average prices paid for grain
due to increases in commodity market prices for soybeans. These
increases were partially offset by the benefits resulting from the
move to sell grain compared to selling oil and meal, as well as a
$2.9 million year-over-year decrease
in net realizable value adjustments to inventory, as the year ago
period included costs to write down excess seed inventory and also
reflected the margin profile of selling soybean oil and meal
compared to selling grain, and $0.5
million of unrealized commodity derivative gains from
hedging contracts sold to convert fixed price grain inventory and
fixed price forward purchase contracts to floating prices to link
them to market, consistent with how it expects to sell the
grain.
- Gross margin was $0.4 million, or
3 percent, in the second quarter of 2021, an increase of
$3.4 million or 112% percent from the
second quarter of 2020. The improvement was primarily driven by the
benefits resulting from the move to sell grain compared to selling
oil and meal, as well as a $2.9
million year-over-year decrease in net realizable value
adjustments to inventory as the year ago period included costs to
write down excess seed inventory and also reflected the margin
profile of selling soybean oil and meal compared to selling grain,
and $0.5 million
of unrealized commodity derivative gains from hedging
contracts sold to convert fixed price grain inventory and
fixed price forward purchase contracts to floating prices to
link them to market, consistent with how it expects to sell
the grain.
Adjusted gross margin, a non-GAAP
measure, was negative $1.2 million,
or negative 10 percent, in the second quarter of 2021, compared to
negative $0.8 million, or negative 34
percent, in the second quarter of 2020. The improvement on a
percentage basis was driven by benefits resulting from the move to
sell grain compared to selling oil and meal.
See below under the heading "Use
of Non-GAAP Financial Information" for a discussion of adjusted
gross margin and a reconciliation of gross margin, the most
comparable GAAP measure, to adjusted gross margin.
- Total operating expenses were $6.3
million in the second quarter of 2021, a decrease of
$1.7 million, or 21 percent, from
$8.0 million in the second quarter of
2020. The decrease was driven by lower personnel expenses as a
result of cost reductions following the move to sell grain compared
to selling oil and meal, as well as other reductions in operating
expenses from the second quarter of 2020.
- Net loss was $4.8 million in the
second quarter of 2021, an improvement of $6.1 million, or 56 percent, from the second
quarter of 2020. The improvement in net loss was driven by improved
gross margins, reduced operating expenses, and the gain upon the
extinguishment of Calyxt's Payroll Protection Program (PPP) loan.
Net loss per share was $0.13 in the
second quarter of 2021, an improvement of $0.20 per share, or 61 percent, from the second
quarter of 2020. The improvement in net loss per share was driven
by the change in net loss and the year-over-year increase in the
weighted average share count.
Adjusted net loss was $7.8 million in the second quarter of 2021, an
improvement of $0.8 million, or 9
percent, from the second quarter of 2020. The improvement in
adjusted net loss was driven by the benefits resulting from the
move to sell grain compared to selling oil and meal and reductions
in operating expenses. Adjusted net loss per share was $0.21 in the second quarter of 2021, an
improvement of $0.05 per share, or 19
percent, from the second quarter of 2020. The improvement in
adjusted net loss per share was driven by the change in adjusted
net loss and the year-over-year increase in the weighted average
share count.
See below under the heading "Use
of Non-GAAP Financial Information" for a discussion of adjusted net
loss and adjusted net loss per share, and reconciliations of net
loss and net loss per share, the most comparable GAAP measures, to
adjusted net loss and adjusted net loss per share.
- Adjusted EBITDA loss was $5.8
million in the second quarter of 2021, an improvement of
$0.7 million, or 11 percent, from the
second quarter of 2020. The improvement was driven by the benefits
resulting from the move to sell grain compared to selling oil and
meal and reductions in operating expenses.
See below under the heading "Use
of Non-GAAP Financial Information" for a discussion of adjusted
EBITDA and a reconciliation of net loss, the most comparable GAAP
measure, to adjusted EBITDA.
- Net cash used by operating activities was $1.8 million in the second quarter of 2021, an
improvement of $11.6 million from the
second quarter of 2020. The improvement was driven primarily by an
improvement in working capital investment associated with the
change in go-to-market strategy for the soybean product line and a
lower net loss in the period driven by a reduction in operating
expenses following that change in go-to-market strategy.
- Cash, cash equivalents, and restricted cash totaled
$18.5 million as of June 30, 2021.
CFO Summary
"In the second quarter, we realized an $11.6 million year over year improvement in cash
flow from operations as a result of increased product sales,
improved gross margins and cash performance in the period,
including expense management. We believe our cash, cash
equivalents, and restricted cash of $18.5
million will fund our operations into the second half of
2022," said Bill Koschak, Calyxt's
Chief Financial Officer.
Second Quarter 2021 Results Conference Call
Executive Chair Yves Ribeill,
Ph.D., President and Chief Executive Officer Michael A. Carr, and Chief Financial Officer
Bill Koschak will host a conference
call discussing Calyxt's results for the second quarter of 2021,
followed by a question-and-answer session. The conference
call will be accompanied by a presentation, which can be viewed
during the webcast or accessed via the investor relations section
of Calyxt's website here.
To access the call, please use the following information:
Date Thursday, August 5, 2021
Time: 4:30 p.m. EST, 1:30 p.m. PST
Toll Free dial-in number: +1 (877) 407-9747
Toll/International dial-in number: +1 (412) 902-0044
Conference ID: 13721585
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. The conference call will also be broadcast live and
available for replay via the investor relations section of the
company's website here. A replay of the webcast will be available
for 30 days following the event.
A replay of the call will be available for one month following
the conference.
Toll Free Replay Number: +1 (877) 660-6853
International Replay Number: +1 (201) 612-7415
Replay ID: 13721585
About Calyxt:
Calyxt (NASDAQ: CLXT) is a plant-based biotechnology platform
company focused on delivering innovations that revolutionize how
the world uses plants. Calyxt uses its advanced plant-based
biotechnology platform to generate innovative, high-value, and
sustainable materials and products for world-class and industry
leading customers and partners. For more information, go to
www.calyxt.com.
Calyxt Media Contact:
Patrick
Milan, Chief Insights Officer
TUNHEIM
+1 (612) 695-1369
media@calyxt.com
Calyxt Investor Relations Contact:
Heather Savelle, Managing
Director
Sherri Spear, Managing Director
Argot Partners
+1 (212) 600-1902
investors@calyxt.com
USE OF NON-GAAP FINANCIAL INFORMATION
To supplement Calyxt's audited financial results prepared in
accordance with GAAP, it has prepared certain non-GAAP measures
that include or exclude special items. These non-GAAP measures are
not meant to be considered in isolation or as a substitute for
financial information presented in accordance with GAAP and should
be viewed as supplemental and in addition to financial information
presented in accordance with GAAP. Investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures. In addition, other companies may report
similarly titled measures, but calculate them differently, which
reduces their usefulness as a comparative measure. Management
utilizes these non-GAAP metrics as performance measures in
evaluating and making operational decisions regarding Calyxt's
business.
Calyxt presents adjusted gross margin, a non-GAAP measure that
reflects adjustments necessary to present the underlying gross
margin of our soybean product line, including (i) unrealized gains
and losses associated with commodity derivatives entered into to
hedge the change in value of fixed price grain inventories and
fixed price forward purchase contracts that should be recognized in
the future when the underlying inventory is sold, (ii) gains and
losses from commodity derivatives realized in prior periods but
associated with inventory sold in the current period, (iii) net
realizable value adjustments to inventories occurring in the
period, which otherwise would have been recognized in the future
when the underlying inventory is sold, and (iv) net realizable
value adjustments recognized in prior periods but associated with
inventory sold in the current period.
Calyxt provides in the table below a reconciliation of gross
margin, which is the most directly comparable GAAP financial
measure, to adjusted gross margin. It provides adjusted gross
margin because it believes that this non-GAAP financial metric
provides investors with useful supplemental information at this
stage of commercialization as the amounts being adjusted affect the
period-to-period comparability of gross margins and financial
performance.
The table below presents a reconciliation of gross margin to
adjusted gross margin:
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
In
Thousands
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Gross margin(GAAP
measure)
|
$
|
353
|
|
|
$
|
(3,014)
|
|
|
$
|
(1,990)
|
|
|
$
|
(4,521)
|
|
Gross margin
percentage
|
|
3
|
%
|
|
|
(131)
|
%
|
|
|
(12)
|
%
|
|
|
(97)
|
%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(658)
|
|
|
|
—
|
|
|
|
(447)
|
|
|
|
—
|
|
Net realizable value
adjustments to inventories
|
|
(859)
|
|
|
|
2,221
|
|
|
|
(72)
|
|
|
|
2,555
|
|
Adjusted gross
margin
|
$
|
(1,164)
|
|
|
$
|
(793)
|
|
|
$
|
(2,509)
|
|
|
$
|
(1,966)
|
|
Adjusted gross
margin percentage
|
|
(10)
|
%
|
|
|
(34)
|
%
|
|
|
(15)
|
%
|
|
|
(42)
|
%
|
Calyxt presents adjusted net loss, a non-GAAP measure, and
define it as net loss including adjustments necessary to present
the underlying gross margin of our soybean product line, including
(i) unrealized gains and losses associated with commodity
derivatives entered into to hedge the change in value of fixed
price grain inventories and fixed price forward purchase contracts
that should be recognized in the future when the underlying
inventory is sold, (ii) gains and losses from commodity derivatives
realized in prior periods but associated with inventory sold in the
current period, (iii) net realizable value adjustments to
inventories occurring in the period, which otherwise would have
been recognized in the future when the underlying inventory is
sold, and (iv) net realizable value adjustments recognized in prior
periods but associated with inventory sold in the current period;
and excluding Section 16 officer transition expenses, the
recapture of non-cash stock compensation primarily associated with
the departure of Section 16 officers, the gain upon the
extinguishment of Calyxt's PPP loan, and non-operating expenses,
which are primarily gains and losses on foreign exchange
transactions and losses on the disposals of land, buildings, and
equipment.
Calyxt provides in the table below a reconciliation of net loss,
which is the most directly comparable GAAP financial measure, to
adjusted net loss. It provides adjusted net loss because it
believes that this non-GAAP financial metric provides investors
with useful supplemental information at this stage of
commercialization as the amounts being adjusted affect the
period-to-period comparability of net losses and financial
performance.
The table below presents a reconciliation of net loss to
adjusted net loss:
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
In
Thousands
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss (GAAP
measure)
|
$
|
(4,807)
|
|
|
$
|
(10,902)
|
|
|
$
|
(14,835)
|
|
|
$
|
(21,965)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(658)
|
|
|
|
—
|
|
|
|
(447)
|
|
|
|
—
|
|
Net realizable value
adjustments to inventories
|
|
(859)
|
|
|
|
2,221
|
|
|
|
(72)
|
|
|
|
2,555
|
|
Section 16 officer
transition expenses
|
|
13
|
|
|
|
77
|
|
|
|
2,734
|
|
|
|
437
|
|
Recapture of non-cash
stock compensation
|
|
—
|
|
|
|
—
|
|
|
|
(2,540)
|
|
|
|
(471)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
(1,528)
|
|
|
|
—
|
|
|
|
(1,528)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
(6)
|
|
|
|
8
|
|
|
|
(5)
|
|
|
|
19
|
|
Adjusted net
loss
|
$
|
(7,845)
|
|
|
$
|
(8,596)
|
|
|
$
|
(16,693)
|
|
|
$
|
(19,425)
|
|
Calyxt presents adjusted net loss per share, a non-GAAP measure,
and define it as net loss per share including adjustments necessary
to present the underlying gross margin of our soybean product line,
including (i) unrealized gains and losses associated with commodity
derivatives entered into to hedge the change in value of fixed
price grain inventories and fixed price forward purchase contracts
that should be recognized in the future when the underlying
inventory is sold, (ii) gains and losses from commodity derivatives
realized in prior periods but associated with inventory sold in the
current period, (iii) net realizable value adjustments to
inventories occurring in the period, which otherwise would have
been recognized in the future when the underlying inventory is
sold, and (iv) net realizable value adjustments recognized in prior
periods but associated with inventory sold in the current period;
and excluding Section 16 officer transition expenses, the recapture
of non-cash stock compensation primarily associated with the
departure of Section 16 officers, the gain upon the extinguishment
of Calyxt's PPP loan, and non-operating expenses, which are
primarily gains and losses on foreign exchange transactions and
losses on the disposals of land, buildings, and
equipment.
Calyxt provides in the table below a reconciliation of net loss
per share, which is the most directly comparable GAAP financial
measure, to adjusted net loss per share. It provides adjusted net
loss per share because it believes that this non-GAAP financial
metric provides investors with useful supplemental information at
this stage of commercialization as the amounts being adjusted
affect the period-to-period comparability of net losses per share
and financial performance.
The table below presents a reconciliation of net loss per share
to adjusted net loss per share:
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended June 30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss per share
(GAAP measure)
|
$
|
(0.13)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.67)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivative
impact, net
|
|
(0.02)
|
|
|
|
—
|
|
|
|
(0.01)
|
|
|
|
—
|
|
Net realizable value
adjustments to inventories
|
|
(0.02)
|
|
|
|
0.07
|
|
|
|
—
|
|
|
|
0.08
|
|
Section 16 officer
transition expenses
|
|
—
|
|
|
|
—
|
|
|
|
0.07
|
|
|
|
0.01
|
|
Recapture of non-cash
stock compensation
|
|
—
|
|
|
|
—
|
|
|
|
(0.07)
|
|
|
|
(0.01)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
(0.04)
|
|
|
|
—
|
|
|
|
(0.04)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net loss
per share
|
$
|
(0.21)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.59)
|
|
Calyxt presents adjusted EBITDA, a non-GAAP measure, and define
it as net loss excluding interest, net, depreciation and
amortization expenses, non-cash stock-based compensation expenses
including the recapture of non-cash stock compensation primarily
associated with the departure of Section 16 officers, Section 16
officer transition expenses, the gain upon the extinguishment
of Calyxt's PPP loan, and non-operating expenses, which are
primarily gains and losses on foreign exchange transactions and
losses on the disposals of land, buildings, and equipment, and
including adjustments necessary to present the underlying gross
margin of our soybean product line, including (i) unrealized gains
and losses associated with commodity derivatives entered into to
hedge the change in value of fixed price grain inventories and
fixed price forward purchase contracts that should be recognized in
the future when the underlying inventory is sold, (ii) gains and
losses from commodity derivatives realized in prior periods but
associated with inventory sold in the current period, (iii) net
realizable value adjustments to inventories occurring in the
period, which otherwise would have been recognized in the future
when the underlying inventory is sold, and (iv) net realizable
value adjustments recognized in prior periods but associated with
inventory sold in the current period.
Calyxt provides in the table below a reconciliation of net loss,
which is the most directly comparable GAAP financial measure, to
adjusted EBITDA. Because adjusted EBITDA excludes non-cash items
and discrete or infrequently occurring items, it believes that
adjusted EBITDA provides investors with useful supplemental
information about the operational performance of Calyxt's business
and facilitates the period-to-period comparability of financial
results where certain items may vary significantly independent of
business performance.
The table below presents a reconciliation of net loss to
adjusted EBITDA:
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
In
Thousands
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss (GAAP
measure)
|
$
|
(4,807)
|
|
|
$
|
(10,902)
|
|
|
$
|
(14,835)
|
|
|
$
|
(21,965)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Interest,
net
|
|
357
|
|
|
|
(154)
|
|
|
|
703
|
|
|
|
244
|
|
Depreciation and
amortization expenses
|
|
595
|
|
|
|
452
|
|
|
|
1,180
|
|
|
|
904
|
|
Stock-based
compensation expenses
|
|
1,079
|
|
|
|
1,797
|
|
|
|
(371)
|
|
|
|
3,068
|
|
Commodity derivative
impact, net
|
|
(658)
|
|
|
|
—
|
|
|
|
(447)
|
|
|
|
—
|
|
Net realizable value
adjustments to inventories
|
|
(859)
|
|
|
|
2,221
|
|
|
|
(72)
|
|
|
|
2,555
|
|
Section 16 officer
transition expenses
|
|
13
|
|
|
|
77
|
|
|
|
2,734
|
|
|
|
437
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
(1,528)
|
|
|
|
—
|
|
|
|
(1,528)
|
|
|
|
—
|
|
Non-operating
expenses
|
|
(6)
|
|
|
|
8
|
|
|
|
(5)
|
|
|
|
19
|
|
Adjusted
EBITDA
|
$
|
(5,814)
|
|
|
$
|
(6,501)
|
|
|
$
|
(12,641)
|
|
|
$
|
(14,738)
|
|
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify these statements by forward-looking words such as
"anticipates," "believes," "continue," "estimates," "expects,"
"targets," "intends," "may," "might," "plans," "potential,"
"predicts," "projects," "should," "will," or the negative of these
terms and other similar terminology. Forward-looking statements in
this press release include statements about the potential impact of
the COVID-19 pandemic on our business and operating results; our
future financial performance; product pipeline and development; our
business model and principal strategy for commercialization and
sales of commercial products; regulatory progression; potential
collaborations, partnerships and licensing arrangements and their
contribution to our financial results, cash usage, and growth
strategies; and anticipated trends in our business. These and other
forward-looking statements are predictions and projections about
future events and trends based on our current expectations,
objectives and intentions and premised on current assumptions. Our
actual results, level of activity, performance, or achievements
could be materially different than those expressed, implied, or
anticipated by forward-looking statements due to a variety of
factors, including, but not limited to: the severity and duration
of the evolving COVID-19 pandemic and the resulting impact on
macro-economic conditions; the impact of increased competition;
disruptions at our key facilities; changes in customer preferences
and market acceptance of our products; competition for
collaboration partners and licensees and the successful execution
of collaborations and licensing agreements; the impact of adverse
events during development, including unsuccessful field trials or
development trials or disruptions in seed production; the impact of
improper handling of our product candidates by unaffiliated third
parties during development, such as the improper aerial spraying of
our high fiber wheat product candidate; failures by third-party
contractors; inaccurate demand forecasting or milestone and royalty
payment projections; the effectiveness of commercialization efforts
by commercial partners or licensees; our ability to make grain
sales on terms acceptable to us; the timing of our grain sales; our
ability to collect accounts receivable; disruptions to supply
chains, including transportation and storage functions; commodity
price conditions; the impact of changes or increases in oversight
and regulation; disputes or challenges regarding intellectual
property; proliferation and continuous evolution of new
technologies; management changes; dislocations in the capital
markets; and other important factors discussed in Part I, Item 1A,
"Risk Factors" of our Annual Report on Form 10-K and subsequent
filings on Form 10-Q or Form 8-K with the U.S. Securities and
Exchange Commission. Any forward-looking statements made by us are
based only on information currently available to us when, and speak
only as of the date, such statement is made. Except as otherwise
required by securities and other applicable laws we do not assume
any obligation to publicly provide revisions or updates to any
forward-looking statements, whether as a result of new information,
future developments or otherwise, should circumstances change.
CALYXT,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In Thousands,
Except Par Value and Share Amounts)
|
|
|
June 30, 2021
(unaudited)
|
|
|
December 31,
2020
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
17,489
|
|
|
$
|
17,299
|
|
Short-term
investments
|
|
—
|
|
|
|
11,698
|
|
Restricted
cash
|
|
393
|
|
|
|
393
|
|
Accounts
receivable
|
|
3,994
|
|
|
|
4,887
|
|
Inventory
|
|
2,468
|
|
|
|
1,383
|
|
Prepaid expenses and
other current assets
|
|
629
|
|
|
|
3,930
|
|
Total current
assets
|
|
24,973
|
|
|
|
39,590
|
|
Non-current
restricted cash
|
|
598
|
|
|
|
597
|
|
Land, buildings, and
equipment
|
|
21,998
|
|
|
|
22,860
|
|
Other non-current
assets
|
|
207
|
|
|
|
280
|
|
Total
assets
|
$
|
47,776
|
|
|
$
|
63,327
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
2,183
|
|
|
$
|
929
|
|
Accrued
expenses
|
|
2,326
|
|
|
|
2,891
|
|
Accrued
compensation
|
|
2,093
|
|
|
|
1,950
|
|
Due to related
parties
|
|
128
|
|
|
|
766
|
|
Current portion of
financing lease obligations
|
|
380
|
|
|
|
364
|
|
Other current
liabilities
|
|
46
|
|
|
|
45
|
|
Total current
liabilities
|
|
7,156
|
|
|
|
6,945
|
|
Financing lease
obligations
|
|
17,682
|
|
|
|
17,876
|
|
Long-term
debt
|
|
—
|
|
|
|
1,518
|
|
Other non-current
liabilities
|
|
1,042
|
|
|
|
113
|
|
Total
liabilities
|
|
25,880
|
|
|
|
26,452
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock, $0.0001
par value; 275,000,000 shares authorized; 37,305,625 shares issued
and 37,205,473 shares outstanding as of June 30, 2021, and
37,165,196 shares issued and 37,065,044 shares outstanding as of
December 31, 2020
|
|
4
|
|
|
|
4
|
|
Additional paid-in
capital
|
|
204,663
|
|
|
|
204,807
|
|
Common stock in
treasury, at cost; 100,152 shares as of June 30, 2021, and December
31, 2020
|
|
(1,043)
|
|
|
|
(1,043)
|
|
Accumulated
deficit
|
|
(181,728)
|
|
|
|
(166,893)
|
|
Total
stockholders' equity
|
|
21,896
|
|
|
|
36,875
|
|
Total liabilities
and stockholders' equity
|
$
|
47,776
|
|
|
$
|
63,327
|
|
CALYXT,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited and in
Thousands Except Shares and Per Share Amounts)
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended June 30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenue
|
$
|
11,880
|
|
|
$
|
2,307
|
|
|
$
|
16,282
|
|
|
$
|
4,684
|
|
Cost of goods
sold
|
|
11,527
|
|
|
|
5,321
|
|
|
|
18,272
|
|
|
|
9,205
|
|
Gross
margin
|
|
353
|
|
|
|
(3,014)
|
|
|
|
(1,990)
|
|
|
|
(4,521)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,844
|
|
|
|
2,825
|
|
|
|
5,894
|
|
|
|
5,612
|
|
Selling, general, and
administrative
|
|
3,478
|
|
|
|
5,167
|
|
|
|
7,736
|
|
|
|
11,465
|
|
Management
fees
|
|
15
|
|
|
|
42
|
|
|
|
45
|
|
|
|
104
|
|
Total operating
expenses
|
|
6,337
|
|
|
|
8,034
|
|
|
|
13,675
|
|
|
|
17,181
|
|
Loss from
operations
|
|
(5,984)
|
|
|
|
(11,048)
|
|
|
|
(15,665)
|
|
|
|
(21,702)
|
|
Gain upon
extinguishment of Payroll Protection
Program loan
|
|
1,528
|
|
|
|
—
|
|
|
|
1,528
|
|
|
|
—
|
|
Interest,
net
|
|
(357)
|
|
|
|
154
|
|
|
|
(703)
|
|
|
|
(244)
|
|
Non-operating
expenses
|
|
6
|
|
|
|
(8)
|
|
|
|
5
|
|
|
|
(19)
|
|
Loss before income
taxes
|
|
(4,807)
|
|
|
|
(10,902)
|
|
|
|
(14,835)
|
|
|
|
(21,965)
|
|
Income
taxes
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net
loss
|
$
|
(4,807)
|
|
|
$
|
(10,902)
|
|
|
$
|
(14,835)
|
|
|
$
|
(21,965)
|
|
Basic and diluted
net loss per share
|
$
|
(0.13)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.67)
|
|
Weighted average
shares outstanding - basic and diluted
|
|
37,199,349
|
|
|
|
33,039,338
|
|
|
|
37,168,018
|
|
|
|
33,013,739
|
|
CALYXT,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited and in
Thousands)
|
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
|
2020
|
|
Operating
activities
|
|
|
|
|
|
Net loss
|
$
|
(14,835)
|
|
|
$
|
(21,965)
|
|
Adjustments to
reconcile net loss to net cash used by operating
activities:
|
|
|
|
|
|
Gain upon
extinguishment of Payroll Protection Program loan
|
|
(1,528)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
1,180
|
|
|
|
904
|
|
Stock-based
compensation
|
|
(371)
|
|
|
|
3,068
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
893
|
|
|
|
(1,289)
|
|
Due to/from related
parties
|
|
(638)
|
|
|
|
(598)
|
|
Inventory
|
|
(1,085)
|
|
|
|
(2,688)
|
|
Prepaid expenses and
other current assets
|
|
3,301
|
|
|
|
(1,118)
|
|
Accounts
payable
|
|
1,254
|
|
|
|
(505)
|
|
Accrued
expenses
|
|
(555)
|
|
|
|
(546)
|
|
Accrued
compensation
|
|
143
|
|
|
|
(888)
|
|
Other
|
|
992
|
|
|
|
(26)
|
|
Net cash used by
operating activities
|
|
(11,249)
|
|
|
|
(25,651)
|
|
Investing
activities
|
|
|
|
|
|
Sales and (purchases)
of short-term investments, net
|
|
11,698
|
|
|
|
(29,942)
|
|
Purchases of land,
buildings, and equipment
|
|
(307)
|
|
|
|
(525)
|
|
Net cash provided
by (used by) investing activities
|
|
11,391
|
|
|
|
(30,467)
|
|
Financing
activities
|
|
|
|
|
|
Proceeds from Payroll
Protection Program loan
|
|
—
|
|
|
|
1,518
|
|
Repayments of
financing lease obligations
|
|
(178)
|
|
|
|
(130)
|
|
Proceeds from the
exercise of stock options
|
|
227
|
|
|
|
—
|
|
Net cash provided
by financing activities
|
|
49
|
|
|
|
1,388
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
|
191
|
|
|
|
(54,730)
|
|
Cash, cash
equivalents, and restricted cash - beginning of period
|
|
18,289
|
|
|
|
60,038
|
|
Cash, cash
equivalents, and restricted cash – end of
period
|
$
|
18,480
|
|
|
$
|
5,308
|
|
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SOURCE Calyxt, Inc.