UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
|
|
|
|
|
|
|
|||
(State or other jurisdiction of incorporation) |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
(Address and zip code of principal executive offices)
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of exchange on which registered |
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
Item 2.02. |
Results of Operations and Financial Condition |
On August 5, 2021, Calyxt, Inc. (the “Company”) announced its financial results for the quarter ended June 30, 2021. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing, regardless of any general incorporation language in any such filing, unless the Company expressly sets forth in such filing that such information is to be considered “filed” or incorporated by reference therein.
Item 9.01. |
Financial Statements and Exhibits. |
d. Exhibits
|
|
|
Exhibit Number |
|
Description |
|
|
|
|
||
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Calyxt, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 5, 2021
|
CALYXT, INC |
|
|
|
|
|
|
|
By: |
/s/ Yves Ribeill |
|
|
Name: |
Yves Ribeill |
|
|
Title: |
Executive Chair |
|
|
|
|
|
Exhibit 99.1
Calyxt Reports Second Quarter 2021 Financial Results
Appointed Michael A. Carr as President and Chief Executive Officer
Expanded Commercial Potential of Proprietary Hemp Breeding Platform with Multiple Innovations, including “Pollen-Proof” (Seedless) Hemp and Genome Transformation
Sold More than 75% of 2020 Grain Crop to Date to Archers Daniels Midland (ADM) Generating $27 Million in Total Cash Since Sales Commenced in Q3 2020
Net Cash Used by Operating Activities Improved by $11.6 Million Year-Over-Year
Management to Host Conference Call Today at 4:30 p.m. ET
Roseville, MN – August 5, 2021 – 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:
1
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.
2
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
3
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.
4
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.
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.
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.
5
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
6
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.
7
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.
8
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.
9
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.
10
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
11
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.
12
CALYXT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Par Value and Share Amounts)
|
June 30, 2021 |
|
|
December 31, |
|
||
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 |
|
13
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 |
|
14
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 |
|
15