YTEN - Earnings call transcript Q2 2020 | YIELD10 Bioscience, Inc.

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Operator

Greetings. Welcome to the Second Quarter 2020 Financial Results and Business Update Conference for Yield10 Bioscience.

During the call participants will be in a listen-only mode. [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. ma'am. you, Thank

begin. now You may

Lynne Brum

Thank you, Bioscience Welcome YieldXX afternoon, and quarter XXXX good second everyone. conference to Donna, call.

Science website slide XXXX Relations are presentation, available of Joining me the Investor Dr. YieldXX quarter and and President CEO, its Officer, afternoon, release Chuck today's President are financial issued Kristi our Haaser. Chief as Chief Research Earlier Accounting on the Oliver call accompany press Peoples; section today Officer, Snell; at of our Dr. this Events and results second well yieldXXbio.com. as a on Vice

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

turn I'll Now, call Oli. to over the

Oliver Peoples

financials recent I'll will start the call have We'll program joining milestones some against open on of and from for key of the and to review and an test research the for on XXXX. of plan will everyone, our business highlight afternoon, field business update solid science an Good progress, seeds. -- with thanks our and GDM questions our R&D review analysts. a XXXX summarize including activities. objectives our the made Today, Lynne. we Kristi license call. some our update then Thanks, XXXX, provide Camelina then provide R&D progress our since the we

business slide to turn profile. three, let's Now, our

you on where sustainable most with ad licensing security. varieties rates is are food YieldXX companies crops feed agricultural building an for performance This innovations for relationships of company includes Camelina. focused As major and food we of and and know, bioscience oilseed improved major developing

Our trait discovery producing Camelina creative for PHA and platform nutritional biomaterials. is activity oils core and to gene our platform our process

We a Canada. team in in and have operations leadership Woburn, strong Mass Saskatoon,

of slide for progress Kristi I'm to test four, more turn let's and last made that in our call now Now, highlight We our since some and May, We discuss accomplishments. program, accomplishments. detail. completed considerable was will in which planting field recent XXXX

more platform seed leading varieties YieldXX's in elite and experts in explore soybean editing plan. broader novel collaboration to and a to capabilities the develop company GDM and Earlier to GDM additional our crop. provide the for I the we submission on During is We footprint with took Midwest letter traits where in development later agreement Brazil Argentina a research today business large varieties. in obviously in well treating the in canola. soybean is trade performance as soybean also of to and detail our an GDM with of soybean CXXXX in GDM fourth performance Camelina this some the intend traits. genetics. second and oil a USDA-APHIS we of significantly screening, We our certain discovery boosting evaluation to will elite steps agency signed our accounted, and CRISPR submitted forming first advance call. discovery trade we in of GDM's I inquiry This quarter, regulated? Am in for major the leverage rapid launch of and content the

provide us will commercial the enable the to of varieties spring potential stacking lines of advanced traits. deploying crop. proprietary and for developing increase are with acreage for to performance This We core us planting and of Camelina product winter

data team potential experience season acres establishing samples We of good. executed America's XXXX/XXXX produce Canadian We is oil Camelina very the of The Our field will soon us test chain. looks with in varieties and in the enable our value Camelina get Montana. and crop customers. contracted the being and harvested to winter XX meal production the for

plan. proof XXXX through generating look forming additional executing XXXX, our forward Moving alliances points, to we business forward and strategic into

Now, an let's COVID-XX on our update turn five business continuity for to plan. slide

thanks In Act, Saskatoon CARES relying focused work as With our some pandemic. masks on And tests for employees video in our ongoing Canadian schedule working is IRAP payroll implementing trait R&D returned progressing Camelina pipeline. track the May development. travel monitoring we funding are on certain grant to big a field second new team to secured we site technologies and a restrictions, goes development late quarter, and PPP and to trials. Camelina traits First, and as to The onsite we U.S. supported through continuing wore pivot we accelerate local consultants monitor keeping product new business on field and on to to expenses. conferencing

development Lastly, format. investor in activities our business and virtual relations continue

on productive We continue to development setting business on up side have relationships. as the various focused interactions we business

participating meetings XX. September Global in Investor Wainwright Conference and one-on-one we front, looking on virtual LD X forward on are the H.C. the Micro Virtual investor the to Conference On and holding September

turn of YieldXX of is slide performance And three distinct Now, data traits on platform, enables grain, Camelina let's trait the discovery fast to business seven, opportunities. gene generate commercial to field phasing targets opportunities. performance and of field testing our Camelina Trait data. our business modification made of factory opportunities. let's trait to genetic up the in turn six, Factory proprietary a slide

crops; for crops a and traits use soybean, value largely The crops first option yield canola, global and food and crops. feed most row important trait of is other corn, licensing performance for of equate a major the and rich

that our in foundation for the for goal based biomaterials efficient PHA And strategic oils for platform The the packed in and on products build sales a product Camelina access value oils a trait to then specialty agreements near our onto higher nutritional and here in the is collaboration products. is Camelina in producing for GRAIN term future. business to develop capital platform third, Second the targets. manner

turn acre to trait slide major corn canola licensing best Now, progression its in seed through to let's leading like eight, is YieldXX in from companies. crops. to large The and soybean, value capture the for way traits crops

executed commercial non-exclusive research of license. agreement term the negotiate specific progressive agreements. arrows has of license number a The Ag majors option the indicate YieldXX and research with to So, but slide on the traits license to a crops, the

maximize crops. is seeds research XX% Paraguay, GDM we a ag new companies of GDM development varieties the including XX and multinational the of and Argentine origin, in have supplies GDM major other and genetics. to group United the of the With of global announcement traits Canada. with research, added crops productivity. commercialization presence license, around to employees, GDM soybeans different of companies in Argentina, With a soybean group dedicated the around XXX to working of countries, States Brazil, new of they have the

million Paraguay located where XXX around and has primarily as Argentina, Brazil, America leader. a GDM soybean in of acres South

these our timeframe, by partners on focus commercial our plan XXXX program discovery and progressing the important is quite licensees. have for North the consistent we YieldXX crops data With plan Camelina and other they currently to GDM, trait development. creating as field with internal identify our in American canola, R&D is should corn resources

time is trait traits Let's the volume farmers discussions. commercial turn for in can model to licensing does, slide sharing data some At licensing rich revenue source. a generate for the Trait It in to be well nine, development. industry. very take to lucrative however, enable understood

the timelines. sequence turn a high it's component presentation. a the improve crop. now our oils potential opportunities Kristi. I PHA the Camelina opportunity chart, time, to us very the From in Progressing in as a factory of the traits major in has a Camelina, the same double trait that So, really oil field we will don't seed high I'll varieties, development control their with with produce later this basically including to revenue biomaterials direct and has call provides business, play. crops using participate to clear route those Camelina we Camelina with do product products, testing our of believe Unlike At specialty stage the likely for key the of the proprietary the potential. discuss we commercial and and have new

Kristi Snell

Thanks, Oli and good afternoon, everyone.

identify side objective field and our quarter, our Let's photos generate In our our taken July business of our now turn at XXXX and lines from we drive traits photos U.S. the further field quality These slide canola on of and discussions the slide. tests characterize were both of right trials commercial field test included XX. partnership two in multiple Camelina to completed Canada. flowering. data the second sites to field in planning and to the to The to early data is plan. tests when were to obtain products multi-site the We've

weather fuel Camelina lines. far for canola So and and of both have been conditions the favorable growth our

goal performance for harvesting oil over trials is or the are to sites our seed obtain our data continue ready will ready so. as the increase of PHA or produce to Camelina will be Some and biomaterials. to trace soon, harvest design In for they the contractors month yield, next

for our seed designed this to time Camelina testing in the are CXXXX CRISPR boost We content trait year. oil first

EXXXX. We grown for up oil And producing reported edited our year larger increases content in our are bulk we line seed in conducting this also encouraging of in seeds are for field tests trait CRISPR XXXX. XXXX content We each EXXXX. tests oil field

seed tests. vigor testing from yield showed and also evidence field CXXXX We and produced increased in yield photosynthesis and in increased are Camelina, It which branching promising of a is prior plants trait. very in vigor, greenhouse seed

-- lines. field content increased conducted our seed in to multiple suggested and we this researchers trial Recent oil CXXXX Here, measurements during by year's meal plan obtain photosynthesis yield data. has

our goal product and PHA CXXXX of first first scale our to tests this partnership to is are our co-production the oil for in field suitable for important generate traits generation Canada, are begin purpose prototyping. year of to in PHA biomaterial data this to field trial the discussions. to in testing lines canola our We The time oil PHA and the larger determine the drive also this if planting with evaluate of seeds. crop CXXXX next PHA is food in In traits,

canola the canola. in if first to CXXXX for observed are the trait time We increases translate determine to in the Camelina testing

quality lines as We trial. lines a field up in these in our prior studies canola for seed XX plan XX%. also canola future seed testing gave early of bulking We where of and CXXXX of work, extension lines to new are up yields commercial an seeds to evaluate increases

licensing provide The test advance and yet. may XXXX this our and most crops. feed opportunities help Our in other canola will extensive data harvest and us largest field major and from Camelina program work is our program and

Let's our now outlines slide XXXX remains to which priorities. our our top R&D R&D XX, turn Completing trials field XXXX priority.

business are this this conducting in In support addition Camelina to to field our we plan. activities work, additional

As you performance we are our been aware, crops. platform evaluate to identify more have and traits than for XX potential Camelina using

we commercialization eventual produced developing plan and of core varieties YieldXX the scale. needed further Camelina, to crop is commercialize large development products at Camelina As the for in successfully

Over the sustain platform last and are development as will this and work traits. and for doubled that stable varieties years, capture few building several of a we with the with haploid our varieties have on genetics performance worked

taken tested double haploids started were in that in We XXXX the of summer year, about our the that spring last snow is six May are and of recently on recently field varieties. has in the winter late melt. after photo test included developed the The this reemergence were and and varieties to in good. included The winter melt study slide a variety program. winter reported weeks trials survival very after team The Our varieties was snow winter spring harvested.

maturity, and reached on type XX value we at it's wild intended customers. will development during and Camelina scale. and established From in crop provide the This pictured chain We the be flowering meal contract with activity Camelina for has producing establishing available weeks under is spring have recently in the harvested we oil that the a The potential ahead. is us the for drying business It to the in to stage. grower also now down expect sampling right seed, announced Montana. acres to commercial experience of with

germplasms. are elite will Our evaluating our also their be three soybean in in companies by ag traits traits several tested germplasm. their of GDM being

the impressed and and be are We and we'll with deploy with GDM team germplasm. our information resources test them in the needed their to them elite traits providing

potato. our evaluate Bayer, soybean, continue sorghum forage they as Forage and We Simplot to traits support Genetics and in

being test seed field canola the our traits and of data crops, build traits which generation tolerance enable and plan to resistance. and traits, to evaluated. by In corn commercial varieties are and may tend yield business with companies some of Camelina Our herbicide expand and in including with of yield for newer Camelina, develop a we're continuing technology our traits performance advanced number complimented to disease oil

working also to for commercial traits. PHA are We Camelina events our develop

our points Oli develop Camelina team specialty back would Our is far on further so our focus generating tremendous lead I for to for to and you. technology R&D team our to their year. this technology thank continuing products. to like proof traits for efforts

Oliver Peoples

be field So, and the like persistence tests to would I have months. the whose few and as entire Kristi team in last dedication will the echo executed R&D critical we

and using light seed large Camelina a based attributes an growth some platform. term its oils near-term, a we see on launch as farming We Camelina a Let's crushing. opportunity growing produce business longer Camelina profitable turn crop capital the nutritional over to to to for contract develop positive YieldXX's a slide winter the In opportunities high PHA and XX, believe biomaterials. toll areas, to strategy our using represents cover business,

is crushed in our ALA, like health term our products. cold in the clinical like And to for the acid benefits. player to produce directly believe indicate Camelina leading in having use a is we feed. on our in the business heart The end higher seed of Camelina, content the to without Corn oil varieties strategy. and a for of preferred EXXXX, make agriculture to the well-positioned with head-to-head have Harvested markets execute of of acres guy high biomaterials meal, outside the it protein produce near-term participate beginning wide strategy with these and for Camelina traits accelerating to the treatment vision with acid a is a YieldXX produce line with we're crops. near commodity In establish experience oil products. this term, Camelina animal Omega-X YieldXX in advanced plans alpha-Linolenic and nutritional oil as In processing result, development oil the and typically oils oils, to of oil production recent a in seeds. PHA generating product deployment in are including the sale the chain traits is developed value bioplastics. studies third Omega-X has wastewater that natural Camelina play of to biomaterials Camelina Some PHA the rich of as fatty Belt longer for compete that initially focused gain into Camelina nutrition, polymers applications the with the to specialty range of goal revenue yield become nutrition, engineered parallel we CXXXX where

our cost adoption. our According if to nutrition with and XX% range goods efforts focus internal to achieve Our would produce treatment engineering broad seed goal planned is bio-plastics and estimates, the cost the of oils animal to enabled we a able market water polymer be biomaterials to Camelina for of applications viable produce find We from PHA edible the opportunity. partners seed PHA for internal can over to good and deals. the weight on we

In new trait for an we two for sky we large and commercial years disruptive and it's the to another engineered We technology exciting markets program will take believe farmers, Camelina payroll we loan We personally XX quarter of thereby acreage to knowledge funds estimated and a short-term second Program, program. feed opening $X.X although, improving to to of few the team, in Act received the biomaterials April, the PHA production. move investments. now the and slide highly support quarter farm the Payroll for loan and into that, response see under sustainability Protection ag financial income fully COVID-XX. including Please PPP, apply in implemented food tools, plastics a forgiveness have from blue under We develop cover it could equivalents this highlights. cash CARES are under let's said attractive, very Greenfield, and cash, the the we million varieties. the and the utilized platform, crop the be ended to the the to cash start U.S. intend cover confident the Having amount GRAIN to to produced So, this $XXX,XXX markets. a second with optimize

research that in We us obtained provides Canadian the grant support. $XX,XXX IRAP also additional

In sheet. balance exercises. of half which to turning exercises approximately warrant first capital XXXX, there added million Now, the $X.X warrant our to were

We have debt. no

$X.X the Our million usage first for for second XXXX. and half $X net million quarter operating cash was the of

expect grant second operations into with expected revenue will together hand of the support quarter XXXX. government our on current cash from We our our

for Given the balance to funds, net million million. our as of PPP of well of XXXX, to from range $X and the range and anticipated we usage million million $X.X of lowering the as savings captured IRAP previous $X are the $X.X to cash estimate operating

are this business We toward investment directing executing plan. the

research XXXX. second review $XXX,XXX of were a million the the $XXX,XXX of in now second of Let's quarter results. million The quarter second second the $X.X for the reported the a XXXX of of loss $X.X net versus revenues quarter Total net quarter company grant loss in second XXXX. XXXX compared quarter for of operating to

conduct ability second of months quarter research we million quarter, significant expenses completed related on expenses a not legacy second $X XXXX R&D were ahead. and were the our development also facility. expenses be In the million end G&A DOE plan and million Mass. Woburn, obligations the $X.X This second million. first to research $X.X unused quarter subleased our G&A our XXXX. in Our At to quarter, space the in we conduct and expect we May, to to the the In grant way under excess and in in space research of compares was of Woburn effective $X.X to of of expenses in able

we grow result, retaining be savings while sufficient will Woburn our as a costs, our facility space going to on in XXXX facilities As capturing needed. our forward in team

more the For second please XX-Q. financial to our details results, quarter and on earnings release refer our

an our to -- to for we following recently as XX CXXXX of our lines to In to and EXXXX continue will edited on the testing focus now remainder and Camelina milestones; genome boosting traits executing part Let’s make program field CXXXX putting data slide USDA-APHIS. the by XXXX, discuss oil XXXX the in turn of milestones. yield Camelina line upcoming generate cleared

XXXX/XXXX and toll growers agreements acreage strategic trait growing I'd seed licenses. expansion revenue provide season, like crushing Partners, turn generating bulk in Lynne also yield partners, will business from plans these respective our in results business that, AllState larger report questions. canola pending in Camelina to and commercial traits to prospective collaborations securing for and and evaluation for commercial relationships Camelina logistics and of secure crops. in with oil resistance supporting Forage back the success for And disease products samples and Genetics and their Establishing up while meal studies including agronomic plan, We enable corn to GDM, the tolerance, Bayer, call seed to advanced Progressing the finally, varieties and Simplot XXXX. and our development. progressing also for oil with including traits in With traits. industry be And seed herbicide developing traits, developing we'll to of the seeking

Lynne Brum

now you questions. can for Thanks, Oli. poll Donna,

Operator

Securities. ahead. you. floor of The is National from [Operator Ben go Klieve question questions. open Our is Thank coming first for now Please Instructions]

Ben Klieve

my taking All right. for Thanks questions.

they'd said on question considering a believe the three collaboration. I Kristi, you traits. First, GDM that be

part that of correctly? I traits hear collaboration? And so, did if a what this First, are

Kristi Snell

can't to what are You're but we correct according traits, are there disclose our these agreement. that traits three

Ben Klieve

launch in to trajectory that highlighted think the And that that the or a XXXX then just launch can Okay. -- like needs is of was notes Got made that notate slide the your of Camelina here a a taken outline steps seemingly and there's to guys where between that commercially case you would commercial event. in to case kind hone kind realistically where and of the comments throughout -- make the remarks. of potentially viable happen made was the -- now be this on you XXXX seven it. Oli, a XXXX? -- I kind you could you over one on product to XXXX, the in launch kind lot of prepared

Oliver Peoples

Yeah.

is with some well at where already doing kind is out there. we aware are And up of there and who So, lead production it. it of they're

frankly that it we seed we that's did really is year, XX in next seed speaking, acres down really, want available, the and requires purpose as the of we So, to go soon up Montana the just this should to scale sure have make what year. as path

And so that's the first step.

primary is the samples focus oil because and because customers, actually the is oil with YieldXX have start in available oil marketing we step second camelina does to days, need early for on and internet. The meal and to plan also meal branding prospective not

Our in goal you is to be efficient as partners can this as find offtake capital year-over-year. and for

larger So, in that as expand development lot some scaling a to The XXXX. have acreage lines EXXXX of haploid seeds there the new those of is is means of next lines like a reason goal. available some potential availability doubled up to also and a the of year, our we're business

crushing So, and storage systematically handling hard potential there off check working operate the on obviously on the to offtake meal going a to the and obviously activity manage is and the partners. business create tremendous team's of sort very oil amount ability contracts, and the of core of and ability to development identifying

and getting regions in Camelina meal. are oil interest We various from interested

Ben Klieve

it. Got

be to agreement do hand determined? have product oil. partners looking will your at there whereby in the a you've follow-up And be month, guess, you pace agreements is folks And harvest to offtake Are great. that that so, to which is the -- then. as have is still -- conversations had mean, here Or there a this -- once I it's to on with for if I as looks -- you be sample processed?

Oliver Peoples

we egg get because a To and be without to be can't of business contract. it's establishing situation, Ben, seed, Basically, the of crushing honest. a chicken into kind determined,

have how very these doing emphasis the understanding cost good we way. lined really go to obviously of capabilities of that's and we a So, next And step. that. once have up, light we'll in is a know the where and establishing The capital

to the buy You're new way going our to business. into try not

products, new oils have including opportunities. We and represent specialty really to biomaterials those. to PHA and volume will takes It larger the time get growth that the

And purpose have is of to it improved make makes the so, the and to some establishing sure in today platform potential camelina PHAs. we oils future value deliver oils that the the this based here based on our called on term with specialty and near materials and

Ben Klieve

the And that's your the well. of there -- in were are But Perfect. weeks? regarding right really trial that think me. for any are true the is plots that in rain, looking ground now nature? progressing it. XXX% here On enough we've crop are -- industry this And on that plots the Kristi, that is I the that, Anything you I a canola, well to answer rain? with field for I a any And right access here. to field to last know want as mean, not trials for then like set for highlighted Got just we seen is clear that concerned be now I canola harvest there you're But this. reports one whole. coming

Kristi Snell

still we but harvested. year, this weather good very haven't had We've

we've of far. very and very a growth had far, pleased there's been so we bit So, good had. weather But weather so be little with to still the

Ben Klieve

Got it.

Okay. -- sorry Well, Very crossed mothers fingers good. -- Oli. --

Oliver Peoples

a As field. disaster you in the year know, was last literally

And the a of so that ability report on compromised couple data obviously our traits. yield to

year the CXXXX the EXXXX Camelina plant the by with are ongoing trials -- this encouraged and contact trials, basically seed. including that all genome of yield oil we very trials So, are and edited with

So, a going lot have on. we

and it. I given even it's the pretty in growing particularly to of chunk how actually on good, and long looking spent PHA thing see pretty it. field It's that our And the trial large years looking we've far three have spent exciting So given good. on attractive this looking Kristi a is

on. So, we actually last could all have And lot a a going we heck better a this then anything analysis. can and between harvested and looks the do than safely so having it lot now of year. But happen storage obviously

Ben Klieve

was Yeah. everybody. That year brutal last for

in So, Mother glad questions. Nature back I'll queue. cooperating. my And is things are looking up with thanks this year, And taking that get for

Oliver Peoples

welcome. You're

Kristi Snell

Thanks Ben.

Operator

the Instructions] I'd closing to At over turn this you back [Operator comments. to floor like time, for

Lynne Brum

Donna. I'll over And Thanks, for Great. it Oli turn to closing.

Oliver Peoples

Thanks, Lynne.

we the can So, a and to crops varieties used food in scale and wide products. range summary, platform fast development for of a the of be specialty address of enable broader Camelina believe and traits feed range of GRAIN large production proprietary

We three revenue opportunities. distinct are currently pursuing

safety you thank for an the continued support. around our and third, else, challenges I product with traits like and collaborations we licensing of being everyone based call your COVID-XX first major are of and and especially crops would biomaterials. sales R&D in performance shareholders platform nutritional us The industry tonight, our all with our yield And use dealing to and for continuity. the strategic revenues. for row joining on Camelina for business on producing oils personally Like PHA and emphasis

particularly everybody for thank at our providing to I for I so, YieldXX continuing on year. look employees further the And want want thank this forward I our diligent track to XXXX. setting updates efforts. goals And to in us to reach

you. Thank everyone. evening, nice a have So,

Lynne Brum

to back you. Donna,

Operator

Thank thank and participation. you you. your gentlemen, Ladies for

at day. time, You this may your and have disconnect a lines wonderful

Lynne Brum	Vice President, Planning and Corporate Communications
Oliver Peoples	President and Chief Executive Officer
Kristi Snell	Vice President, Research and Chief Science Officer
Chuck Haaser	Chief Accounting Officer
Ben Klieve	National Securities

YIELD10 Bioscience (YTENQ) 11 Aug 202020 Q2 Earnings call transcript