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 and six months ended June 30,
2019.
"We have focused on executing against our
business strategy and have made considerable progress positioning
Yield10 for multiple proof points and catalysts in 2019,” said
Oliver Peoples, Ph.D., president and chief executive officer of
Yield10 Bioscience. “With our 2019 field tests underway and the
deployment of our novel yield traits in progress in crops including
canola, soybean and corn, we expect to generate proof points
including agronomic, yield, oil content and other biochemical data
throughout the rest of 2019.”
“We continue to invest in the development of our
GRAIN technology platform to drive new insights based on the role
of metabolic pathways, leading to the identification of novel plant
and microbial gene targets that demonstrate promising activities.
Our focus is to engineer better plants to improve crop performance,
improve nutritional content and produce new products using crops as
a low-cost production system. We have generated significant new
intellectual property in 2019 including the filing of new patents
relating to the discovery of new gene targets using our GRAIN
platform, the use of combinations of novel traits to boost oil
content in crops, and the use of our Camelina platform to produce
PHA biomaterials. Our novel 'Trait Factory' approach, including the
generation of proof points in key crops and the expansion of our
intellectual property portfolio, is driving collaborative
opportunities for Yield10 with the objective of forming revenue
generating partnerships to create a path to commercialization for
our traits,” Dr. Peoples concluded.
Recent Progress to Achieve 2019
Milestones
Generate Proof Points on Novel Yield
Traits in Key Crops. Yield10 completed planting of
the Company's 2019 Field Tests to evaluate several yield and crop
performance traits. Key studies include the evaluation of second
generation C3003 in canola, as well as the evaluation of C3004 and
certain CRISPR genome edited traits in field tests in Camelina.
Harvest of the test fields is expected in third quarter 2019, which
will enable the collection and evaluation of agronomic, seed yield,
oil content and other data from the studies by year end 2019 or
early 2020.
Broaden its Intellectual Property
Portfolio. Yield10 has filed four new patent applications
during 2019, bringing the portfolio to 21 issued patents and
pending applications. Recently, a U.S. patent was granted on C3003
and Yield10 received a Notice of Allowance from the U.S. PTO for
claims relating to C4001. Earlier this year, Yield10 signed an
exclusive global license with the University of Missouri related to
a patent application covering additional advanced technology to
boost oil content in crops.
Communicate its Scientific
Innovations. Yield10 attended the 3rd Precision CRISPR
& NBT AgBio Congress in June and focused its presentation on
its proprietary GRAIN platform. The presentation described several
traits identified by Yield10 using GRAIN and highlighted a case
study demonstrating the use of the GRAIN platform to identify and
rank potential regulatory genes predicted to affect yield and/or
oil content in an oilseed crop. In August, Yield10 presented at the
Plant Biology 2019 conference (ASPB) in a presentation that
highlighted recent efforts by Yield10 to boost seed oil
content using CRISPR genome edited Camelina and highlighted
greenhouse data showing that traits can be deployed to increase oil
content in seed. A poster was also presented at the ASPB meeting
showcasing the use of the GRAIN platform to identify genome editing
targets using metabolism to rationally mine genomics data.
Form Revenue Generating License
Agreements and Collaborations. Yield10 continues to
monitor the progress of Bayer and Forage Genetics as they deploy
and test certain traits in soybean and forage sorghum,
respectively, under non-exclusive research licenses from Yield10.
Yield10 is also actively engaged in discussions with third parties
interested in the Company’s traits for deployment in a variety of
commercially important crops.
Manage its Financial Profile and
Strengthen the Balance Sheet. Yield10’s financial results
for the six month period ended June 30, 2019 are on track with
internal forecasts and the guidance range, reflecting a level of
investment in research and development consistent with achieving
the Company’s objectives for 2019. The Company is committed to
strengthening its balance sheet and generating a series of proof
points to build value for Yield10 in 2019 and beyond.
SECOND QUARTER 2019 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 second quarter of 2019
with $4.3 million in unrestricted cash, cash equivalents and
short-term investments. The Company continues to anticipate
total net cash usage in a range of approximately $9.0 million to
$9.5 million during 2019.
The Company's present capital resources will not
be sufficient to fund its planned operations for the next twelve
months and therefore raises substantial doubt about its 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 the second quarter of 2019 was $1.8 million, a
decrease of $0.1 million from the $1.9 million used in operating
activities during the second quarter of 2018.
For the second quarter ending June 30,
2019, the Company reported a net operating loss of $1.9 million, or
$0.15 per share, which is $0.5 million lower than the net operating
loss of $2.4 million, or $0.24 per share, reported for the same
period of 2018.
Total research grant revenue for the second
quarter of 2019 was $0.3 million and consistent with the $0.3
million recorded in the second quarter of 2018. Research and
development expenses were $1.2 million and $1.3 million for the
second quarters of 2019 and 2018, respectively. General and
administrative expenses declined by $0.5 million from $1.5 million
in the second quarter of 2018 to $1.0 million for the second
quarter of 2019, and is primarily the result of lower compensation
and benefit expenses, including stock-based compensation and
employee bonus expenses, and lower professional fees for legal,
audit and patent processing charges.
The Company's 2018 condensed consolidated
financial statements included in this press release have been
adjusted to reflect the Company's adoption of Accounting Standards
Update No. 2016-02 ("Topic 842"), Leases, on January 1, 2019.
The effect of the new standard is material to the Company's
financial statements. As permitted by Topic 842, the Company
elected to modify its 2018 comparative financial statements to
incorporate the new lease accounting guidance in order to ensure
comparability between all financial periods being presented.
Conference Call Information
Yield10 Bioscience management will host a
conference call today at 4:30 p.m. (ET) to discuss the second
quarter 2019 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 accompanying 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 13692377. The replay will be
available until August 26, 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 of at least 10 to 20
percent in order to enhance global food security and to develop
specialty crop products. 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
https://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
OPERATIONS |
UNAUDITED |
(In thousands, except share and per share
amounts) |
|
|
|
Three Months Ended June 30, |
|
Six Months EndedJune 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue: |
|
|
|
|
|
|
|
Grant revenue |
$ |
318 |
|
|
$ |
285 |
|
|
$ |
442 |
|
|
$ |
345 |
|
Total revenue |
318 |
|
|
285 |
|
|
442 |
|
|
345 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Research and development |
1,191 |
|
|
1,260 |
|
|
2,414 |
|
|
2,361 |
|
General and administrative |
1,025 |
|
|
1,456 |
|
|
2,211 |
|
|
2,732 |
|
Total expenses |
2,216 |
|
|
2,716 |
|
|
4,625 |
|
|
5,093 |
|
Loss from operations |
(1,898 |
) |
|
(2,431 |
) |
|
(4,183 |
) |
|
(4,748 |
) |
|
|
|
|
|
|
|
|
Other income (expense),
net |
27 |
|
|
38 |
|
|
52 |
|
|
63 |
|
Net loss |
$ |
(1,871 |
) |
|
$ |
(2,393 |
) |
|
$ |
(4,131 |
) |
|
$ |
(4,685 |
) |
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.15 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
Number of shares used in per
share calculations: |
|
|
|
|
|
|
|
Basic & Diluted |
12,494,337 |
|
|
9,991,460 |
|
|
11,504,314 |
|
|
9,845,902 |
|
YIELD10 BIOSCIENCE, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
UNAUDITED |
(In thousands, except share and per share
amounts) |
|
|
June 30, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
3,252 |
|
|
$ |
3,023 |
|
Short-term investments |
998 |
|
|
2,746 |
|
Accounts receivable |
148 |
|
|
94 |
|
Unbilled receivables |
103 |
|
|
66 |
|
Prepaid expenses and other current assets |
516 |
|
|
448 |
|
Total current assets |
5,017 |
|
|
6,377 |
|
Restricted cash |
332 |
|
|
332 |
|
Property and equipment,
net |
1,298 |
|
|
1,385 |
|
Right-of-use assets |
4,467 |
|
|
4,766 |
|
Other assets |
42 |
|
|
100 |
|
Total assets |
$ |
11,156 |
|
|
$ |
12,960 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
55 |
|
|
$ |
117 |
|
Accrued expenses |
586 |
|
|
680 |
|
Lease liabilities |
865 |
|
|
844 |
|
Total current liabilities |
1,506 |
|
|
1,641 |
|
Lease liabilities, net of
current portion |
5,196 |
|
|
5,621 |
|
Total liabilities |
6,702 |
|
|
7,262 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
Preferred Stock ($0.01 par value per share); 5,000,000 shares
authorized; no shares issued or outstanding |
— |
|
|
— |
|
Common stock ($0.01 par value per share); 60,000,000 shares
authorized at June 30, 2019 and December 31, 2018; 12,494,731 and
10,025,811 shares issued and outstanding at June 30, 2019 and
December 31, 2018, respectively |
125 |
|
|
100 |
|
Additional paid-in
capital |
360,516 |
|
|
357,646 |
|
Accumulated other
comprehensive loss |
(118 |
) |
|
(110 |
) |
Accumulated deficit |
(356,069 |
) |
|
(351,938 |
) |
Total stockholders’ equity |
4,454 |
|
|
5,698 |
|
Total liabilities and stockholders’ equity |
$ |
11,156 |
|
|
$ |
12,960 |
|
YIELD10 BIOSCIENCE, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
UNAUDITED |
(In thousands) |
|
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(4,131 |
) |
|
$ |
(4,685 |
) |
Adjustments to reconcile net
loss to cash used in operating activities: |
|
|
|
Depreciation |
100 |
|
|
96 |
|
Charge for 401(k) company
common stock match |
49 |
|
|
70 |
|
Stock-based compensation |
275 |
|
|
596 |
|
Non-cash lease expense |
299 |
|
|
145 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivables |
(54 |
) |
|
54 |
|
Unbilled receivables |
(37 |
) |
|
22 |
|
Prepaid expenses and other assets |
(10 |
) |
|
(56 |
) |
Accounts payable |
(62 |
) |
|
(42 |
) |
Accrued expenses |
(102 |
) |
|
(926 |
) |
Lease liabilities |
(404 |
) |
|
(162 |
) |
Net cash used for operating activities |
(4,077 |
) |
|
(4,888 |
) |
|
|
|
|
Cash flows from
investing activities |
|
|
|
Purchase of property and
equipment |
(13 |
) |
|
(34 |
) |
Purchase of short-term
investments |
(998 |
) |
|
(7,986 |
) |
Proceeds from the sale and
maturity of short-term investments |
2,746 |
|
|
1,500 |
|
Net cash provided by (used for) investing activities |
1,735 |
|
|
(6,520 |
) |
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds from warrants
exercised |
— |
|
|
124 |
|
Taxes paid on employees'
behalf related to vesting of stock awards |
(4 |
) |
|
(6 |
) |
Proceeds from registered
direct offering, net of issuance costs |
2,583 |
|
|
— |
|
Net cash provided by financing activities |
2,579 |
|
|
118 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
(8 |
) |
|
(14 |
) |
|
|
|
|
Net increase (decrease) in
cash, cash equivalents and restricted cash |
229 |
|
|
(11,304 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
3,355 |
|
|
14,804 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
3,584 |
|
|
$ |
3,500 |
|
|
|
|
|
Supplemental
disclosure of non-cash information: |
|
|
|
Right-of-use assets acquired
in exchange for lease liabilities |
$ |
— |
|
|
$ |
74 |
|
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From Apr 2024 to May 2024
Yield10 Bioscience (NASDAQ:YTEN)
Historical Stock Chart
From May 2023 to May 2024