YTEN - Earnings call transcript Q1 2018 | YIELD10 Bioscience, Inc.

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Operator

Welcome to the First Quarter and 2018 Financial Results and Business Update Conference Call for Yield10 Bioscience.

During the call, participants will be in a listen-only mode. The presenters will address questions from an analyst as well as questions submitted by shareholders as part of our call today. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference call over to your host, Yield10 Vice President of Planning and Corporate Communications, Lynne Brum.

Lynne Brum

Great. good and Tim, you, afternoon, everyone. Thank the to YieldXX Bioscience call. conference XXXX quarter first Welcome

the release are Chief call Dr. on Accounting me Joining today Earlier Haaser. Vice Kristi section yieldXXbio.com. presentation issued available and today our this This of Officer, on XXXX Dr. of Chuck slides at Oli as the news quarter President President we Research well to Relations Officer, and Science Snell; Chief Peoples; CEO, and our are website afternoon, release. Investor first as accompany our

to those discussion recent note XX-K. you filings call. after Let’s to undertakes therefore, the management now that date X. including statements. statements guarantees strictly most events with or Company’s Slide differ making arise to any YieldXX’s Such uncertainties of cause forward-looking reflect turn the place to no materially the forward-looking not statements. These and in subject are are that risks results performance should constitute be undue of on anticipated. that to include The not and not detailed from actual SEC, as of uncertainties could risks obligation that the may These Please this part Investors statements reliance statements order historical risks forward-looking circumstances future are of call our will forward-looking them. a are to turn number also and statements update today, in I’ll cautioned conference over now the Oli. company

Oli Peoples

bonuses million last first sheet. securities sheet. of employee cash let’s cover million starting And usage financial $X as Please to and the net for cash XXXX first our the in today. grant on balance and with to quarter $X.X everyone, year. quarter with We first turn in reflects usage $XX.X Slide highlights Hello, thanks X, few expenditure Thanks, ended and joining and lower the revenues quarter on well compared million was balance equivalents operating and cash, Lynne. as for short-term cash a call

We end quarter. the XXXX million have at in shares million of final preferred estimated restructuring end quarter. cash completed balance converted in usage net have the offering XXXX We to this sheet. of $X.X outstanding the first range will for of May full-year includes in $XXX,XXX first shares All common of million, approximately approximately the We $XX for payments no as December the to and been $X early our shares debt had be we issued common costs. our

current mid-XXXX. with cash We hand together our technology proof government of expect our expected support points revenue operations on into a under grants to to number

the first expect second payments oil reflected quarter quarter contract, our for under began the second to of Due work first fall the through approximately through quarter. works last this work boosting plus grant study new we and conducted We on continue in be revenue. to review revenue Let’s reported in Camelina. $XXX,XXX of of a quarter to fall spend revenue, million in boost quarterly to share. new the YieldXX R&D now We Grant million per grant results. reported first loss we $X.X $X.XX million in for announced or subawardee a $X.X – $X.X on DOE and $X.X Last million We spend. was net named operating the timing the activities the the in grant G&A that quarter

release. results, on the please refer earnings details more financial our to For

our our shareholders we move would review like hold on, I’ll be proxy annual XX. Before meeting return our I mention votes your May proxy can and so to statement will card, on shareholder your I that tabulated.

and trait inputs feed for with produce of water fertilizer. YieldXX is food accomplishments. recent technologies gene our lower and X, land, higher Slide to turn to let’s crops Now developing yields

t primarily XXXX. in far quarter level on really in R&D. we’ve this, advances but We’re making so high is will progress view. here solid our a made And elaborate Kristi this accomplishments

field evaluate to upcoming planning seed related our to for We test. yield. and permitting plan to events Canola have field and increasing CXXXX test We completed XXXX in versus Camelina a

plots traits to enable grown provide non-regulated best the The edit Camelina up will field status CXXXX studies. soybean will field first CXXXX testing sites combined We field divide to CXXXXb our in small the of to defense three the in test We studies and of from is perform we also for testing U.S. to combination seed of program USDA-APHIS completed that us seeds test And future a with plant data goal of plant genome-edited bulk this enable the points field U.S. trait CXXXXa, trait with first for us XXXX. that plan we of improve in time of in choose quarter, a In future the and Camelina. milestone to the seed genome-editing to of

Our team peer-review published two in Science. research recent papers Journal the Plant

metabolic using crop to describes yield. engineering one first The increase technology approach a

data the yield time boost that reports showing paper second first biomass dramatically switchgrass. The for in CXXXX

also We application GTFs new to seed then to factors corn. global transcription approach and the yield or related filed boost in recently patent using

As the a front. recent R&D accomplishment suggests, we are on track on

to on milestones the achieving We key focus we’ve corporate XXXX. for continue laid will out

X. now Let’s to for XXXX. is turn Slide well-positioned YieldXX

of market pipeline Our ag tiers and assemble is value for objective traits to and compelling opportunity a to yield proposition a growers alike. rich create

and resources in R&D proof We with commercial to and key greenhouse points tests field our the our traits studies. deploying through are on crops in focused conducted generate

our test based to for to on genome-edited We USDA-APHIS with a collaborations and our proof for and to enable create activities cost-effective XXXX the points interest opportunities plan licensees field traits. potential believe overtime. planned also the generating path make submissions will in traits U.S. on We in

to traits. now Let’s X, of turn Slide pipeline

and in CXXXX expect soybean. crops. proof Camelina, current yields as points that be for to is deploy our we CXXXX additional GMO in seed such the have will regulated generate We acreage them Canola In XXXX, trait focus to large and

increase to suggest its model yield traits. CXXXX distinct like metabolic traits to CXXXX continue further we compliment Our performance that that and study these maybe can

pipeline. categories of our in two We traits genome-editing have

enhancing and Our CXXXXb, CXXXXa, CXXXX CXXXX, traits oil CXXXX. include

addition their We the also enabling But identifying improve factor genome-editing series own right. to and to the factors have crop in of genes very and of CXXXX transcription in for have us performance. these number been begin combinations a instrumental exciting of transcription are

Our demonstrate like technology key turn services and revenue by the providing Kristi progress. ag Kristi? licensing platform an generate these With to our this call to over on the is sector. R&D of objective for our see that, R&D we all of for our for opportunities we proposition partnerships I’d areas, to as traits the platforms. value Across update

Kristi Snell

seed recent to Slide X. and presentation pipeline. our R&D turn plants. advancements is Thanks, my I’ll everyone. lead plants in in range today, resulting into CX Please biological be in capturing more a improve mechanism a our we In enables of it some believe to unique Oli, carbon yields. to in gene, involves crops. through In activity It wide CXXXX hello, This potential efficient yield has trait and describe photosynthesis, higher the other introduced

our CXXXX in level, to build their license understanding and new related the the for Danny believe based be we study daily grant. a photosynthesis. are We through The photorespiration, to combination competes CXXXX expand continue program. will in work XXXX our with of our impacts of continue Monsanto wasteful in on with new patent filed that work. that late under is have on research Schnell, We’ll and we that signed pipeline CXXXX, and collaborator metabolic and metabolic insights including testing CXXXX modeling In applications to the germplasm his soybean from technologies process mechanism team tested in path at our four our to a knowledge Professor. key eventually YieldXX the the provides continued trait performing trait in CXXXX CXXXX. field to elite about our additional XXXX,

in Let’s data year on tests to results on generation three-year a in key in the We field generation our CXXXX. the the in the field in this have prior Canola. discussed this obtained data occasions. XXXX summarizes CXXXX on On those our have we Slide X. being detail CXXXX turn field The last tests and encouraging results of column data snapshot with first work we with slide obtained Camelina and second data

plant the includes designed to in CXXXX test testing XXXX up which about CXXXX field The CXXXX Gen collect test performance. CXXXX, are: of X.X several the specific different activating first to times of locations, generations in of third genes are in and to of Let’s of we evaluate plan the for optimize note Camelina; soybean in the field. Gen test what of receive plant most for this of gene agronomic generation generation and to to expression X.X, Canola soybean this one, we CXXXX designed certainly talk We field means expensive. turn in and in observations two, express Please program to is, season our the to test use We’ll Slide generations different will the throughout repeat the Gen time levels to first our Canola; at seed second in the three, trait, CXXXX. field bulk main and testing X. parameters in The study X.X and when XXXX objectives programs. to for trait be and the pure

these be pure is scale objective will production. the main However, seed pilot small in trials

will All sites of at be tests field in Canada. conducted various these

and perform we’ll on the several sites I seed designed is this data contractors We will over the the It the of year. using conduct data data triple will our and oil collect that on field, boost to take conduct crops. allow in oil plant, first at tests test part field guide CXXXX of expect We’ll field be we composition. future plan content with traits oil we test is this content get the the work expectation conducted see how the have collect begin soil conditions CXXXXa combination U.S. also Camelina This trait that a two amount help stack. on planning will first our CXXXXa will place genome-edited and We our CXXXXa triple year. In in significant This next we to to field of stack combination also will weather in our plants genome-edited trait as and weeks. our field

XX. turn Let’s to Slide number now

Soybean collaborator X developing soybean is an plants on CXXXX academic in with important constructs. are CXXXX for with and Canada crop X.X an working we and Gen transformed target Gen

in greenhouse the were that Soybean XXXX the of into soybean. in and lines tested transformations suggest translate effects these observations CXXXX preliminary may from

XXXX. This greenhouse our our with in studies develop. typical from on As preliminary because branching the for suggest in plant Gen seed for scale in with CXXXX plants an provides lower individual with Seeds CXXXX has of field some work greenhouse observed could small X weights tested. seed in branching in used our to X.X events soybeans. soybean Further, seed in more Camelina, we be XXXX increase weights individual Gen more to the sites significant, the been pod results

and X Gen lines further or Additional soybean being by Gen are progressed X.X our in events collaborator. studied for

this independently, its specialty around biosynthesis there oils Slide pursuing we and are solely in number with put Monsanto to crops. optimizing oil market is a CXXXX but Please we will concepts compelling turn We devised seed this opportunity work We believe for and have year. XX. oil activities

path as accessible to objective oils. We traits high genome to oil fatty efficient omega have these and changing biosynthesis. for containing oil that acid identify through other believe composition, Our editing traits to such stack through will also the potential with is oleic construct traits more

top The targets. oil a to currently oil The role biosynthesis and in CXXXX a of mainly Targets play downstream test and on acts of simplified biosynthesis. focused controlling gene in may the schematic CXXXXb shows oil turnover. and and version oil in in test CXXXX, CXXXXa illustration are right tissue. five biosynthesis working biosynthesis these fatty of this reducing We trait seed and CXXXX the IP targets this building acid on field to plan are on our year. involved reduction around activity target We the CXXXXa

We CXXXXb We have Camelina CXXXXa, multiple edited completed and working edited recently lines on also genome for line for been CXXXX. the traits. editing,

file field non-regulated to USDA-APHIS with for is plan conduct and status Our tests.

have we Camelina technology and exclusive also we our in in the Missouri, soon. both hope working Canola, license with are an editing CXXXX CXXXX University option obtain and We to an started in of in

through licenses this is and USDA-APHIS test Our is to to enable for non-regulated work believe the MI-regulated field to lines them We we’ll process to collaboration. objective create edited promising submit identify opportunities work and and to traits. their

research three turn our Slide the to now number papers submitted of reviewed At peer XX. end Let’s journals. we technology to related XXXX, to

others research online. organized of differently call in our two insight the As the manuscripts efforts today, they been have we think provide our of into field. have how And is published than this some I

number These outcome. Our gene the strategies of apply yield. metabolic and produce we the minimum changes strategies engineering paper use to predictive problem tackle define allow to crop us describe engineering models the yield how to needed metabolic maximum of

work and increase off And researchers and our outlines CXXXX. factors, foundational photosynthesis two transcription Our Transcription CXXXX two switches, gene to second essentially paper turn factors of on and are done global factors YieldXX that’s significantly identify described unique by yield. paper that a gain. biomass it transcription novel

driven both to with investors papers As it our it unique the intend we increase company, is a collaborators. employing approach is, yield. science crop and these are potential illustrates YieldXX The

XX% weight of XXX% dry Slide above or The science the describes regulatory genes In plan transcription expressing the paper of a plants, in XX. to to CXXXX CXXXX. biomass. transgenic factors of we expressing turn are gram the core now Let’s increase production plants and achieved global CXXXX, t switchgrass

to increase weight XXX% in dry achieved aboveground we to CXXXX, XXX% For biomass.

photos, evidence root an also biomass. As in increase was the you maybe there in

crops, finding they very environments cows. may fed have alfalfa CXXXX, crops key change this seed, plant. genes may shown dairy that that such to as target expressed potential product. are suggesting the corn paper primary potential work Since where analysis crops silage for also CXXXX our corn similar seed be is Thus the widespread that highly sorghum, applications applications our things. a in Another is inland for in in to in increasing generally has that good are It yield and similar are potential and

set are our increased identification in of up related to by gene factor stuff provide an the patent recently work. of study genes for yield. are to We and a the different Because has doing how successfully traits transcription as and groundwork we these the this that exceeded corn in approach filed crop intrigued this example identifying in target, study of the

to Let’s XX. Slide now turn

transformation and CXXXX CXXXX and initiate the are plan traits both We currently soon. given we working to and findings corn date, with our rise we to

shown We transcription are yield. eliminate another by it’s eliminating to have Previous CXXXX expression. CXXXX may a edit is plant that Thus decrease or work or also factor working to expression regulator growth. researchers it’s negative reducing increase YieldXX

using yielding the targets of foundation genome editing. date. technology, accessible high the trade, well use generated series CXXXX have by develop identify that are that additional to To to as be plants We been as will

is unique back identify our and summary, are you? crop XXXX edits productive look also to We positioned year of year In very as for to updating to forward to I in increase working combinations yields. the R&D team you Oli, progresses.

Oli Peoples

terrific as rest Thanks, since Kristi. the under is of I’m progress, sure the to YieldXX all I’m leadership, come has year. progress our technology you And January XXXX. we Kristi’s confident will throughout much team in there became made more this recognize we

editing editing as techniques and March the enhancing equivalent completes and additional the box risks genome USDA is plant does not requiring generate turn for now traits On value enabling oversight. statement, Let’s used to such XX, carry traditionally breeders Slide to beneficial USDA Genome saying to precision the that by XX. gene crop combinations. release by tool editing yield of

we’re capability. discovery genome-editing, are we Targets shorter well innovators. gene combinations lower the Editing by of development gene have statement very time novel YieldXX form doing, the Given series the genome editing the identify development Smart to encouraging. Traits we We editing to performance. as powerful as and commercial using to race introduction. the found improve we a that of hasn’t targets, a crop ag had traits anticipate a in small Opening cost market of to new the work produce

now Let’s XX. turn Slide to

to traits by us yield our provide and multiple development potential capabilities. in driven traits revenue, unique paths with Our

accelerate think, as ag we working possible can as the North development through American major commodity soon we Our majors. crops,

and is technical traits germplasm a gain approach develop our to begin them sufficient Our their for deploying to hurdle data to interest then in testing their resources. provide using low elite and

companies the innovation taken including with we is approach license we next crops, participation in lot agreements in The is exactly path a ore Here ag specialty envisage niche improve economics. share with have composition. see agreements significant going path for oils. non-regulated economics. a to and area, this soybean. improve and to oil majors We genome traits anticipate specialty with of in JV-type of payments market We stack to in traits edited on opportunities to composition. milestone CXXXX with and There’s and and deploying to Monsanto This YieldXX with a CXXXX downstream downstream yield

Here in the the potential ag number is partners and seed types companies much space. than handful larger of of commodity

color plan in future this provide service technology and plant gene yield editing investor as oil predict content support genome increase for this crop. there date, We accessed To crop value see directly the our can potential programs. we our expand revenue is with seed, grants as R&D this which we third-party increase, of high on involves where deploy by have for from partner-funded discovery on relationships on platform leading plan government accelerate of more demand innovation the economic soybean, two communications. ongoing such nutritional to access to improvements to we provide we oils The market of combinations platforms, the the capability sector. the integration to to the a the layering Further, platforms would scientists our increase traits to and based of and further to technology

this quarter business. We Let’s field in XX, technologies, crop will pipeline in believe to tests In results value year. we quarter reporting second is CXXXX of conducting XXXX, now significant Canola we turn in us and Canada. build YieldXX the planting help Slide a in at sites which anticipate would and milestones. exciting strong of fourth in Camelina out

have sufficiency few is we In to in of we that confirmed with we On have field that independent I XXXX, in year, from a soybean, CXXXX also with ads and rice. will test CXXXX in continued the development soybean. research continue will working to work plant license we CXXXX but this was will the currently Monsanto

in We We will rice believe next-generation trait the will progress editing. our CRISPR and as I corn will CXXXX ahead. of traits and applications data and well journals with academic in to We months We’ll in in discovery to genome the new scientific to and XXXX. and their as generating we’ve published continue oil patent gene underlying work progress ag been work academic science also continue presented discoveries our in filed targets well series doing we our collaborations. platforms, us of enhancing traits secure position partners industry our using and are be across to expect much our conferences. the platform

We’re expecting to very XXXX and be beyond. productive in

up. let’s wrap turn to So now to XX Slide

Our meeting for progress making team our is milestones good towards XXXX.

We’re of soybean a for and North Camelina new translate constructs focused trait American program important yield Canola seed the into seeing executing from are CXXXX, and it advising we crops. oil

promising Our in will editing is vision and genome oil under to discovery unique be the trait together, platform. all commercial improve the and approach to our further areas: this have for working defining R&D of develop crops, we these three a oils targets content our Taking targets, opportunity identification to business, specialty led to yield clear we biomass. seed commodity

to questions. continue call our steady to turn the making our for With that, I’d value will for goal like We create shareholders. Lynne to over progress to towards

Lynne Brum

you, Thank you now, for Oli. Tim, please Great. poll And can questions?

Operator

line question. Jay Our Please of from with question [Operator comes proceed SeeThruEquity. you. the of Thank Albany your first Instructions]

Jay Albany

congratulations the Jay far. so on is this guys, call my progress SeeThruEquity. Thanks taking from and Hey for

Kristi Snell

Thanks, Jay.

Jay Albany

you will as additional maybe but it’s know first My can at additional great. partnership is respect recent something with Is pretty progressing. there that I this be Monsanto. anything how do say to color with any you point question to can or

Oli Peoples

by for biotech of Monsanto can what for soybean lines Monsanto Monsanto Canola simply It the this joining year, agreement is the Well. the that call. a begin with the traits provided develop CXXXX working milestone we’re plant the matter. in year. soybean. end like of Thanks start transformation the soybean in developing Jay, YieldXX longer I’ll And that start YieldXX process last to Hi major delighted the team to this on for at CXXXX. in At Camelina leader is saying soybean. was world have so under needed, with they takes Monsanto lot a the they or Oli.

have unique to capacity. CXXXX working So capabilities in it’s a with great them and

for the Our working as new both its business parties attracted gene interest well ag major, also of for with crops. other traits model additional other as

goal forward ag with some additional to bring other new yield Jay? traits. have We our is companies questions, ongoing and discussions Any work to

Jay Albany

testing pretty just Sorry. I look what as can reported refresh trials, our Canola looking you memory soy you when was some sort we prior be the report and benchmarks just you success at CXXXX to results. just the in a for refresh the in year can consistent would in Camelina future. Can of for with results

Oli Peoples

Yes.

or of traits yield losses through space. ag an crop both in largely the challenge increasing attractive use So use other herbicide than yield buyer the been insect through

results robust be into performance answer in validate question? we and first expect how in recognize Canola impact, also can So season just as a it a there’s technology large fast should our Hopefully developing of crop Does crops. in that of soybean CXXXX I a every to lot given for growing trial the learning for uncertainty to Camelina a as achieved weather large Camelina to American lot provide CXXXX is different testing crops. With platform know time. to guidance field do in important conditions. you the in more of major repeated It crops and and that expectations terms your think a lot the different at And every North traits. actually around growing of help deploy season. it’s with the We and not go can useful generate insights show potential trait respect different for to seen a and a to of that to the We’ve for data but three us minimum we’re big picture. the at best about still system

Jay Albany

have just one I much. so more. Thanks

progress how a of now way growing versus encouraging a some you expand maybe been time with picture for been bigger Could sort think we’ve the with CXXXX as tracking I consistent So as partnerships have about a value you out bit trait we’ve on crops. little of on you trait portfolio, for near-term but waiting to results. progress reporting for know you off test potentially tracking larger

Oli Peoples

money in this you issue partnering, the value The always long-term tradeoff market path the innovations. or always like the space. to if CXXXX. grant with trait. That’s regulated capture a near-term lies and be comes maximize There’s That’s what’s is CXXXX case between in going genes the which penetration to for case where particularly best licensing from biology, so a

We in know potential is corn. what Canola soybean also possibly and

currently are North BASF which perhaps seed crops consolidation of from of Bayer farm recent ag is three America The dominated in All sector acquisition and acquisition. industry for the GMO. Canola for the these this majors by

getting this So strategy was which we YieldXX, to No an the crops. but to for in avoid it’s locked exclusive With license their during timing and also shortly agreement, of of three revenue and of long-term potential space. technology the we Monsanto arrangements reflects soybean. have a topic bio to value we negotiate harder, they’ve success years this approach focus was for regard early right approach major the the doubt we to after the exclusive reason discussion. key due Ag need think to the around a for YieldXX a evaluation, and best up Decision makes for the prematurely task develop shareholders. this on on, capturing derisk little This as of the our means management

payments revenue from relationship from a goes associated to this first well if license. the all the with So executing be typical

Jay Albany

Okay.

appears questions I done think my up. Thank you. that all

Operator

further question. Pardon There are me. no

You continue may Brum. Ms.

Lynne Brum

Yes, thank you.

questions and future you shareholder, by to submitted current will So, use And question platform? that expected turn take We’ll yes, is thanks thanks, Jay Kristi, this. your Can which now your and a tonight. CRISPR/CasX a question? detail of you for

Kristi Snell

will breeding This it cool be edited Yes. no for game Camelina CRISPR Canada. levels case To And providing year mainly the really at also the where you Sure, companies? our changer be study YieldXX. talked as a question step ag – field given innovation will playing know, unfolds. the the testing field we’ve the companies. industry a the years actively guidance a There’s triple over very facility achieving very gene more DMO first edited we’re it’s is test last small line change using plant the to just we this advanced field, the gene changing for as in at XX improvements to it’s and we’ll in USDA-APHIS in capability it single farming. hard tools, establish experience Is And both technology line, possibly system the of year using a our and non-regulated about Lynne. imagine

gene which So we this not detail metabolic required planting, new combinations why its XX-K. and functionality in described of bring here now is in genes in key our The believe change And platform. changing platform which either activity to in system. new to present we’re achievable green of through plant discovery is introducing investing knowing trait what genes our like path of combinations CXXXX, or the is is the CRISPR

Lynne Brum

to I’ll Kristi. now you, thank wrap back Great, Oli call turn up. the to

Oli Peoples

security. produce team fulfill call Thank mission to joining progress for ensure global of and change job step well yield to in working Lynne. the shareholders YieldXX hard Thanks XXXX. to to food Thanks, your employees to to crop to done Thanks night. a for our everyone traits also support first to quarter for thanks improvements to is our our you.

Lynne Brum

everyone. you, Thank Great.

You may disconnect. now

Operator

This concludes call. today’s

lines your your day. a of disconnect time. this rest may And wonderful You have at

YIELD10 Bioscience (YTENQ) 10 May 182018 Q1 Earnings call transcript