QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
3 | ||||
3 | ||||
18 | ||||
26 | ||||
26 | ||||
27 | ||||
27 | ||||
27 | ||||
27 | ||||
28 | ||||
29 |
June 30, 2022 (unaudited) |
December 31, 2021 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
$ | ||||||
Restricted cash |
||||||||
Prepaid expenses and other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Non-current restricted cash |
||||||||
Land, buildings, and equipment |
||||||||
Operating lease right-of-use |
||||||||
Other non-current assets |
||||||||
|
|
|
|
|||||
Total assets |
$ |
$ | ||||||
|
|
|
|
|||||
Liabilities and stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
$ | ||||||
Accrued expenses |
||||||||
Accrued compensation |
||||||||
Due to related parties |
||||||||
Current portion of financing lease obligations |
||||||||
Common stock warrants |
||||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Financing lease obligations |
||||||||
Operating lease obligations |
||||||||
Other non-current liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Stockholders’ equity: |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Common stock in treasury, at cost; |
( |
) |
( |
) | ||||
Accumulated deficit |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ |
$ | ||||||
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Revenue |
$ |
$ | $ |
$ | ||||||||||||
Cost of goods sold |
||||||||||||||||
Gross profit |
( |
) | ||||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
||||||||||||||||
Selling, general, and administrative |
||||||||||||||||
Total operating expenses |
||||||||||||||||
Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Gain upon extinguishment of Payroll Protection Program loan |
||||||||||||||||
Interest, net |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Non-operating income ( expenses) |
||||||||||||||||
Loss before income taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income taxes |
||||||||||||||||
Net loss |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) | ||||
Basic and diluted net loss per share |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) | ||||
Weighted average shares outstanding – basic and diluted |
||||||||||||||||
Anti-dilutive stock options, restricted stock units, performance stock units, and common stock warrants |
||||||||||||||||
Three Months Ended June 30, 2022 |
Shares Outstanding |
Common Stock |
Additional Paid-In Capital |
Shares in Treasury |
Accumulated Deficit |
Total Stockholders’ Equity |
||||||||||||||||||
Balance at March 31, 2022 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units |
— | — | — | |||||||||||||||||||||
Issuance of common stock upon exercise of pre-funded warrants |
— | — | ||||||||||||||||||||||
Balance at June 30, 2022 |
$ |
$ |
$ |
( |
) | $ |
( |
) |
$ |
|||||||||||||||
Three Months Ended June 30, 2021 |
Shares Outstanding |
Common Stock |
Additional Paid-In Capital |
Shares in Treasury |
Accumulated Deficit |
Total Stockholders’ Equity |
||||||||||||||||||
Balance at March 31, 2021 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units |
— | — | — | |||||||||||||||||||||
Balance at June 30, 2021 |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||||||
Six Months Ended June 30, 2022 |
Shares Outstanding |
Common Stock |
Additional Paid-In Capital |
Shares in Treasury |
Accumulated Deficit |
Total Stockholders’ Equity |
||||||||||||||||||
Balance at December 31, 2021 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units |
— | — | — | — | — | |||||||||||||||||||
Issuance of common stock from ATM facility, net of offering expenses |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Issuance of common stock and pre-funded warrants in registered offering, net of $ |
— | — | ||||||||||||||||||||||
Issuance of common stock upon exercise of pre-funded warrant s |
— |
— |
— |
— |
— |
|||||||||||||||||||
Cumulative effect of adoption of lease accounting standard |
— | — | — | — | ||||||||||||||||||||
Balance at June 30, 2022 |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||||||
Six Months Ended June 30, 2021 |
Shares Outstanding |
Common Stock |
Additional Paid-In Capital |
Shares in Treasury |
Accumulated Deficit |
Total Stockholders’ Equity |
||||||||||||||||||
Balance at December 31, 2020 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Stock-based compensation |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units |
— | — | — | |||||||||||||||||||||
Balance at June 30, 2021 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Six Months Ended June 30, |
||||||||
2022 |
2021 |
|||||||
Operating activities |
||||||||
Net loss |
$ |
( |
) |
$ | ( |
) | ||
Adjustments to reconcile net loss to net cash used by operating activities: |
||||||||
Gain upon extinguishment of Payroll Protection Program loan |
— |
( |
) | |||||
Depreciation and amortization |
||||||||
Stock-based compensation |
( |
) | ||||||
Unrealized (gain) loss on mark-to-market of common stock warrants |
( |
) |
— | |||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
— |
|||||||
Due to/from related parties |
( |
) |
( |
) | ||||
Inventory |
— |
( |
) | |||||
Prepaid expenses and other current assets |
||||||||
Accounts payable |
( |
) |
||||||
Accrued expenses |
( |
) | ( |
) | ||||
Accrued compensation |
( |
) |
||||||
Other |
( |
) |
||||||
|
|
|
|
|||||
Net cash used by operating activities |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Investing activities |
||||||||
Proceeds from sales of short-term investments |
— |
|||||||
Purchases of land, buildings, and equipment |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Net cash (used by) provided by investing activities |
( |
) |
||||||
|
|
|
|
|||||
Financing activities |
||||||||
Proceeds from the issuance of common stock , and pre-funded warrants |
— | |||||||
Costs incurred related to the issuance of common stock , pre-funded warrants, and common warrants |
( |
) |
— | |||||
Repayments of financing lease obligations |
( |
) |
( |
) | ||||
Proceeds from the exercise of stock options |
— |
|||||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
|
|
|
|
|||||
Net (decrease) increase in cash, cash equivalents, and restricted cash |
( |
) | ||||||
Cash, cash equivalents, and restricted cash – beginning of period |
||||||||
|
|
|
|
|||||
Cash, cash equivalents, and restricted cash – end of period |
$ |
$ | ||||||
|
|
|
|
June 30, 2022 |
June 30, 2022 |
|||||||||||||||||||||||||||||||
Fair Values of Assets |
Fair Values of Liabilities |
|||||||||||||||||||||||||||||||
In Thousands |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||||||||||
Other items reported at fair value: |
||||||||||||||||||||||||||||||||
Common stock warrants |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2022 |
||||
Estimated fair value of Common Warrants |
$ |
|||
Assumptions: |
||||
Risk-free interest rate |
% | |||
Expected volatility |
% | |||
Expected term to liquidation (in years) |
||||
|
|
Number of Pre-Funded Warrants |
Weighted Average Exercise Price |
Number of Common Warrants |
Weighted Average Exercise Price |
|||||||||||||
Outstanding as of December 31, 2021: |
||||||||||||||||
Issued |
$ | $ | ||||||||||||||
Forfeited/canceled |
— | — |
— | — |
||||||||||||
Exercised |
$ |
— |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Outstanding as of June 30, 2022: |
$ | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Exercisable as of June 30, 2022: |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
2022 |
2021 |
|||||||
Estimated fair values of stock options granted |
$ |
$ | ||||||
Assumptions: |
||||||||
Risk-free interest rate |
% |
% | ||||||
Expected volatility |
% |
% | ||||||
Expected term (in years) |
||||||||
|
|
|
|
Options Exercisable |
Weighted- Average Exercise Price Per Share |
Options Outstanding |
Weighted- Average Exercise Price Per Share |
|||||||||||||
Balance as of December 31, 2021 |
$ | $ | ||||||||||||||
Granted |
||||||||||||||||
Exercised |
— | — | ||||||||||||||
Forfeited or expired |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance as of June 30, 2022 |
$ |
$ |
||||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Stock-based compensation expense |
$ |
$ | $ |
$ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Net cash proceeds |
$ | $ |
$ |
$ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Intrinsic value of options exercised |
$ | $ |
$ |
$ | ||||||||||||
|
|
|
|
|
|
|
|
Number of Restricted Stock Units Outstanding |
Weighted- Average Grant Date Fair Value |
|||||||
Unvested balance as of December 31, 2021 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
|
|
|
|
|||||
Unvested balance as of June 30, 2022 |
$ |
|||||||
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Grant-date fair value |
$ |
$ | $ |
$ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Stock-based compensation expense |
$ |
$ | $ |
$ | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Deemed dividends from grants to Cellectis employees |
$ |
$ | $ |
$ | ||||||||||||
|
|
|
|
|
|
|
|
Number of PSUs |
||||
Outstanding as of December 31, 2021: Issued |
|
| ||
Forfeited/canceled |
( |
) | ||
Exercised |
||||
|
|
|||
Outstanding as of June 30, 2022: |
||||
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Stock-based compensation expense |
$ |
$ | $ |
$ | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
• | A lease for its headquarters and laboratory facilities in Roseville, MN which encompasses approximately |
• | An equipment financing arrangement that is considered a financing-type lease. This arrangement has a term of four years for each draw. The Company was required to deposit cash into a restricted account in an amount equal to the future rent payments required by the lease. As of June 30, 2022, restricted cash totaled $ |
• | A small number of short-term and immaterial leases for office equipment. |
As Reported December 31, 2021 |
Adoption of Lease Standard |
As Adjusted December 31, 2021 |
||||||||||
Assets |
||||||||||||
Land, buildings, and equipment |
$ | $ | ( |
) | $ | |||||||
Operating lease right-of-use assets |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | ( |
) | $ | ||||||||
|
|
|
|
|
|
|||||||
Liabilities and stockholders’ equity |
||||||||||||
Current portion of financing lease obligations |
$ | $ | ( |
) | $ | |||||||
Other current liabilities |
||||||||||||
Financing lease obligations |
( |
) | ||||||||||
Operating lease obligations |
||||||||||||
Accumulated deficit |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
$ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
As of June 30, 2022 |
||||||||
Remaining |
Right-of-Use |
|||||||
In Thousands |
Term (years) |
Asset |
||||||
Roseville, MN lease |
$ | |||||||
|
|
|||||||
Total |
$ | |||||||
|
|
In Thousands |
Three Months Ended June 30, 2022 |
Six Months Ended June 30, 2022 |
||||||
Finance lease costs |
$ | $ | ||||||
Operating lease costs |
||||||||
Variable lease costs |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
In Thousands except for lease term and discount rate |
As of and for Six Months Ended June 30, 2022 |
|||||||
Operating |
Financing |
|||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||
Operating cash flows |
$ | $ | ||||||
Financing cash flows |
$ | $ | ||||||
Weighted average remaining lease term (years) |
||||||||
Weighted average discount rate |
% | % | ||||||
|
|
|
|
In Thousands |
Operating |
Financing |
Total |
|||||||||
Remainder of 2022 |
$ | $ | $ | |||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
2026 |
||||||||||||
2027 |
||||||||||||
Thereafter |
||||||||||||
|
|
|
|
|
|
|||||||
Less: imputed interest |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Stock-based compensation expense: |
||||||||||||||||
Research and development |
$ |
$ | $ |
$ | ||||||||||||
Selling, general, and administrative |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
$ | $ |
$ | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Interest, net: |
||||||||||||||||
Interest expense |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) | ||||
Interest income |
||||||||||||||||
Common stock warrants - financing costs amortization |
( |
) |
( |
) |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) | ||||
|
|
|
|
|
|
|
|
In Thousands |
As of June 30, 2022 |
As of December 31, 2021 |
||||||
Cash, cash equivalents, and restricted cash: |
||||||||
Cash and cash equivalents |
$ |
$ | ||||||
Restricted cash |
||||||||
Non-current restricted cash |
||||||||
|
|
|
|
|||||
Total |
$ |
$ | ||||||
|
|
|
|
As of June 30, |
||||||||
In Thousands |
2022 |
2021 |
||||||
Interest paid |
$ |
$ | ||||||
|
|
|
|
As of June 30, |
||||||||
In Thousands |
2022 |
2021 |
||||||
Receivable from Jefferies for shares issued under ATM facility |
$ |
( |
) |
$ | ||||
Non-cash additions to land, buildings, and equipment |
$ |
( |
) |
$ | ||||
Unpaid stock offering costs included in stockholders’ equity |
$ |
$ | ||||||
Cumulative effect of adoption of lease accounting standard on stockholders’ equity |
$ |
$ | ||||||
Establishment of operating lease right-of-use |
$ |
$ | ||||||
|
|
|
|
• | Research and development (R&D) expenses to continue to enhance the capabilities of its PlantSpring technology platform; |
• | R&D expenses and potential capital expenditures to expand its BioFactory production system from laboratory scale through various pilot vessel sizes; |
• | other R&D expenses to further develop traditional agriculture seed-trait product candidates for its licensee customers; |
• | to the extent not reimbursed by its customers, conducting regulatory studies and other associated activities for its current and future products under development; |
• | acquiring or in-licensing other products, technologies, germplasm, or other biological material; |
• | maintaining, protecting, expanding, and defending its intellectual property portfolio, including intellectual property related to the PlantSpring technology platform and BioFactory production system; |
• | seeking to attract and retain skilled personnel; |
• | identifying and negotiating agreements with customers, licensees, and infrastructure partners; and |
• | experiencing any delays or encountering issues with any of the above, including due to the COVID-19 pandemic and its impacts. |
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Three Months Ended June 30, |
||||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||
(In thousands, except percentage values) |
||||||||||||||||
Revenue |
$ |
41 |
$ | 11,880 | $ | (11,839 | ) | (100 | )% | |||||||
Cost of goods sold |
— |
11,527 | (11,527 | ) | (100 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
41 |
353 | (312 | ) | (88 | )% | ||||||||||
Research and development |
3,250 |
2,844 | 406 | 14 | % | |||||||||||
Selling, general, and administrative |
3,556 |
3,493 | 63 | 2 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(6,765 |
) |
(5,984 | ) | (781 | ) | (13 | )% | ||||||||
Gain upon extinguishment of Payroll Protection Program loan |
— |
1,528 | (1,528 | ) | (100 | )% | ||||||||||
Interest, net |
(16 |
) |
(357 | ) | 341 | 96 | % | |||||||||
Non-operating income (expenses) |
4,296 |
6 | 4,290 | 71,500 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(2,485 |
) |
$ | (4,807 | ) | $ | 2,322 | 48 | % | ||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net loss per share |
$ |
(0. |
) | $ | (0.13 | ) | $ | 0.08 | 62 | % | ||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA 1 |
$ | (4,815 |
) |
$ | (5,814 | ) | $ | 999 | 17 | % | ||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||
(In thousands, except percentage values) |
||||||||||||||||
Revenue |
$ |
73 |
$ | 16,282 | $ | (16,209 | ) | (100 | )% | |||||||
Cost of goods sold |
— |
18,272 | (18,272 | ) | (100 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
73 |
(1,990 | ) | 2,063 | 104 | % | ||||||||||
Research and development |
6,191 |
5,894 | 297 | 5 | % | |||||||||||
Selling, general, and administrative |
6,736 |
7,781 | (1,045 | ) | (13 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(12,854 |
) |
(15,665 | ) | 2,811 | 18 | % | |||||||||
Gain upon extinguishment of Payroll Protection Program loan |
— |
1,528 | (1,528 | ) | (100 | )% | ||||||||||
Interest, net |
(33 |
) |
(703 | ) | 670 | 95 | % | |||||||||
Non-operating income (expenses) |
4,783 |
5 | 4,778 | 95,560 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(8,104 |
) |
(14,835 | ) | $ | 6,731 | 45 | % | |||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net loss per share |
$ |
(0.18 |
) |
(0.40 | ) | $ | 0.22 | 55 | % | |||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA 1 |
$ |
(9,769 |
) |
(12,641 | ) | $ | 2,872 | 23 | % | |||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, | ||||||||||||||||
In Thousands |
2022 |
2021 |
$ Change |
% Change |
||||||||||||
Net loss |
$ |
(8,104 |
) |
$ | (14,835 | ) | $ | 6,731 | 45 | % | ||||||
Gain upon extinguishment of Payroll Protection Program loan |
— |
(1,528 | ) | 1,528 | 100 | % | ||||||||||
Depreciation and amortization expenses |
763 |
1,180 | (417 | ) | (35 | )% | ||||||||||
Stock-based compensation |
1,855 |
(371 | ) | 2,226 | 600 | % | ||||||||||
Unrealized (gain) loss on mark-to-market of common stock warrants |
(4,723 |
) |
— | (4,723 | ) | NM | ||||||||||
Changes in operating assets and liabilities |
(1,067 |
) |
4,305 | (5,372 | ) | (125 | )% | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used by operating activities |
$ |
(11,276 |
) |
$ | (11,249 | ) | $ | (27 | ) | NM | ||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||||||||||
In Thousands |
2022 |
2021 |
$ Change |
% Change |
||||||||||||
Proceeds from sales of short-term investments |
$ |
— |
$ | 11,698 | $ | (11,698 | ) | (100 | )% | |||||||
Purchases of land, buildings, and equipment |
(1,289 |
) |
(307 | ) | (982 | ) | (320 | )% | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash (used by) provided by investing activities |
$ |
(1,289 |
) |
$ | 11,391 | $ | (12,680 | ) | (111 | )% | ||||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||||||||||
In Thousands |
2022 |
2021 |
$ Change |
% Change |
||||||||||||
Proceeds from common stock issuance |
$ |
11,209 |
$ | — | $ | 11,209 | NM | |||||||||
Costs incurred related to the issuance of stock |
(961 |
) |
— |
(961 | ) | NM | ||||||||||
Repayments of financing lease obligations |
(190 |
) |
(178 | ) | (12 | ) | (7 | )% | ||||||||
Proceeds from the exercise of stock options |
— |
227 | (227 | ) | (100 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by financing activities |
$ |
10,058 |
$ | 49 | 10,009 | 20,427 | % | |||||||||
|
|
|
|
|
|
|
|
As of June 30, 2022 |
||||
Estimated fair value of Common Warrants |
$ |
0.09 |
||
Assumptions: |
||||
Risk-free interest rate |
3.0 |
% | ||
Expected volatility |
85.0 |
% | ||
Expected term to liquidation (in years) |
5.2 |
|||
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Net loss (GAAP measure) |
$ |
(2,485 |
) |
$ | (4,807 | ) | $ |
(8,104 |
) |
$ | (14,835 | ) | ||||
Non-GAAP adjustments: |
||||||||||||||||
Commodity derivative impact, net |
— |
(658 | ) | — |
(447 | ) | ||||||||||
Net realizable value adjustment to inventories |
— |
(859 | ) | — |
(72 | ) | ||||||||||
Section 16 officer transition expenses |
116 |
13 | 232 |
2,734 | ||||||||||||
Recapture of non-cash stock compensation |
— |
— | — |
(2,540 | ) | |||||||||||
Gain upon extinguishment of Payroll Protection Program loan |
— |
(1,528 | ) | — |
(1,528 | ) | ||||||||||
Non-operating income (expenses) |
(4,296 |
) |
(6 | ) | (4,783 |
) |
(5 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net loss |
$ |
(6,665 |
) |
$ | (7,845 | ) | $ |
(12,655 |
) |
$ | (16,693 | ) | ||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Net loss per share (GAAP measure) |
$ |
(0.05 |
) |
$ | (0.13 | ) | $ |
(0.18 |
) |
$ | (0.40 | ) | ||||
Non-GAAP adjustments: |
||||||||||||||||
Commodity derivative impact, net |
— |
(0.02 | ) | — |
(0.01 | ) | ||||||||||
Net realizable value adjustment to inventories |
— |
(0.02 | ) | — |
— | |||||||||||
Section 16 officer transition expenses |
— |
— | 0.01 |
0.07 | ||||||||||||
Recapture of non-cash stock compensation |
— |
— | — |
(0.07 | ) | |||||||||||
Gain upon extinguishment of Payroll Protection Program loan |
— |
(0.04 | ) | — |
(0.04 | ) | ||||||||||
Non-operating income (expenses) |
(0.09 |
) |
— | (0.11 |
) |
— | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net loss per share |
$ |
(0.14 |
) |
$ | (0.21 | ) | $ |
(0.28 |
) |
$ | (0.45 | ) | ||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
In Thousands |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Net loss (GAAP measure) |
$ |
(2,485 |
) |
$ | (4,807 | ) | $ |
(8,104 |
) |
$ | (14,835 | ) | ||||
Non-GAAP adjustments: |
||||||||||||||||
Interest, net |
16 |
357 | 33 |
703 | ||||||||||||
Depreciation and amortization expenses |
393 |
595 | 763 |
1,180 | ||||||||||||
Operating lease right-of-use asset amortization expenses |
118 |
— | 235 |
— | ||||||||||||
Stock-based compensation expenses |
1,323 |
1,079 | 1,855 |
(371 | ) | |||||||||||
Commodity derivative impact, net |
— |
(658 | ) | — |
(447 | ) | ||||||||||
Net realizable value adjustment to inventories |
— |
(859 | ) | — |
(72 | ) | ||||||||||
Section 16 officer transition expenses |
116 |
13 | 232 |
2,734 | ||||||||||||
Gain upon extinguishment of Payroll Protection Program loan |
— |
(1,528 | ) | — |
(1,528 | ) | ||||||||||
Non-operating income (expenses) |
(4,296 |
) |
(6 | ) | (4,783 |
) |
(5 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ |
(4,815 |
) |
$ | (5,814 | ) | $ |
(9,769 |
) |
$ | (12,641 | ) | ||||
|
|
|
|
|
|
|
|
(a) | Index of Exhibits |
* | Filed herewith |
† | Indicates management contract or compensatory plan. |
CALYXT, INC. | ||
By: | /s/ Michael A. Carr | |
Name: | Michael A. Carr | |
Title: | President & Chief Executive Officer (Principal Executive Officer) | |
By: | /s/ William F. Koschak | |
Name: | William F. Koschak | |
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |
Exhibit 31.1
CERTIFICATION PURSUANT TO RULES 13a-l4(a) AND l5d-l4(a)
UNDER THE SECURITIES EXCHANGE ACT, AS AMENDED
I, Michael A. Carr, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Calyxt, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and I 5d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 4, 2022 |
/s/ Michael A. Carr |
Michael A. Carr |
President and Chief Executive Officer |
Exhibit 31.2
CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT, AS AMENDED
I, William F. Koschak, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Calyxt, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and I 5d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 4, 2022 |
/s/ William F. Koschak |
William F. Koschak |
Chief Financial Officer |
Exhibit 32
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Calyxt, Inc. (the Company) on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), each of the undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: August 4, 2022
/s/ Michael A. Carr |
Michael A. Carr |
President and Chief Executive Officer |
/s/ William F. Koschak |
William F. Koschak |
Chief Financial Officer |