YTEN - Earnings call transcript Q4 2021 | YIELD10 Bioscience, Inc.

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Operator

Welcome to the Fourth Quarter and Full Year 2021 Financial Results and Business Update Conference Call for Yield10 Bioscience. [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

Thank you, Alex, and good afternoon, everyone. Fourth Full Bioscience Call. XXXX YieldXX to Quarter Year and Conference Welcome

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

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

Oliver Peoples

present and against We of call. scale-up made for our of as new Camelina open our field including and other significant low-carbon XXXX. on momentum for Camelina platform well Today, year-end into then production accomplishments, tests provide advances replacements XXXX executed products. and an the crop emphasis various see conducted recent made afternoon, quarter our strategic we key on and summarize with petroleum as Thanks, everyone, the establish target Lynne. hires, and to field create Good thanks XXXX, a questions. joining call lines key our and markets plan as feedstock the the fourth food to In tests an update in oil that We'll financials milestones. review going we'll biofuel

Let's turn to Slide X.

platform, and Trait innovation platform of oilseed a crop centered Factory, the the synthetic plan produce good Trait of more high-value replacements, content COX products. the that of Factory some increase Our seed This improve more to potential production performance the applying seed low-carbon on is the the sequester includes Camelina, approach, crop yield term oil new principles the shown seed as use of biology fixing around the may our petroleum the for products, slide. cropping from establish proprietary the and near the also producing future. the We to in in to soil the carbon varieties products as air have believe our in and to

X. Slide to turn Let's

supply Camelina low-carbon We to have us biofuel by enable XXXX. to commercial entering our lines to focus the that early feedstock We've market. identifying significant momentum transitioned turn activities to will oil the

BASF, in supply Darren welcomed engaging operations. Dow January, In to has lead Greenfield model. Cibus. experience to form alliances team support is and with seed chain capital-light canola than potential companies business will AgroSciences team more commercial Our that with we years' XX partners our our to Darren including

registrations plant growers seed support is in management out planting reaching and planning product XXXX, launch. and commercial inventory to for to contract variety enable team for to branding seed supply and commercial systems Our establishing

tolerance intensive launch Elite developing the novel XXXX, In lines well-established As effort we gene portfolio to downy Camelina our a began Elite mildew business done herbicide build and trades. an we resistance has into an team and Camelina. job our business research of traits late to our around differentiated deploy Camelina, outstanding

high-value the Over revenue. strategy as other seed new these and scaling up to acreage further be part winter gene so, continue we varieties to by of create varieties introducing will In or in XXXX, and the traits increased varieties farmers access the traits product and enhanced developing current offering next the year large new for benefits lie as to Bioplastics will our and land products for YieldXX cover in omega-X view in would seed when near there Camelina development, no fallow, competition as crop soy We goal establishing strategic for and key term a the and off-season X so with be canola. cash PHA oils. biofuels a winter

research And around we've on biofuel the biofuel that our programs, we test Camelina data and XXXX commercial on our recently field space spring and boosting early the is focus rate. content feedstock, discovered including our efforts using provided activities generated progressing reported commercial in near-term PHA oil the bioplastic platform. updates prioritized Given GRAIN and in

XXXX our field Kristi. on results, call test more For the over I'll pass to

Kristi Snell

Thanks, Oli, afternoon, everyone. and good

rich testing a findings. with set the in I'll has of which lines. field some key review Camelina program canola Our our provided executed of extensive performance team XXXX, spring data and our now on an us

of Let's Camelina XXXX performance data collected in results. XX spring turn germplasm and lines. more spring-based on summary test collection X, XXXX field germplasm to Slide than our We evaluated

collections that our acquired. others were collection from Some from we internal were and university

best were agronomic determined content performers internal by among the lines key properties. as and overall in Our oil seed Camelina yield germplasm field the

to oil X% Camelina Camelina CXXXX Based our evaluated is our oil best-performing content field. line also germplasm EXXXX CRISPR also the performer, plant performance, on confirm Based lines. one EXXXX, on a Camelina we our about that in we PHA. traits variety registrations. consistent EXXXX CRISPR apply and line a for CRISPR EXXXX. showed production increased of evaluating line that in germplasm are for comparing plan Camelina again of deployed seed producing the work it performance yield and of germplasm We

studies. seed oil Camelina tested for seed Camelina CXXXX confirmed work field with prototype We PHA that yields. increase field promising good the trait during observed we trait. time CXXXX up which produces in also trait the the to X% first trait CRISPR the gene CXXXX using our in with best-performing comparable a Lines which in CXXXX the Our increase PHA containing the Camelina the produced to X% GRAIN is XXXX in discovery our containing identified line, up XXXX this and We XX% Canola to trait. platform, oil greenhouse content is season.

like CXXXX which lot seed is canola very in trait conditions studies, produced variability seed of yield, a managing We a oil targets first in the for the at analysis great site extensive in Warm time range this the with as XXXX the well a In X% job a doing also of enzyme program yield in canola regulator lines negative in efforts. trait we as in tested tested increase trait many produced test thank to completing field produced to increase biosynthesis and I'd up team an increase a X% yield. resolving the weather in in the of data. CXXXX in XXXX in of collection such oil for complexities The our the in In content. the key tests, the greenhouse CXXXX oil of seed our as significant field where our from canola this data encouraging. XXXX. complicated trait as data well

program varieties. This plan Slide new development. which evaluating growers seed XXXX extensive X. scaling up build and as will field XXXX, to conducting well we we test outlook contract will scale-up an our as to to we Camelina Camelina include leading lines, Camelina register and In utilizing best our continue the for as as turn germplasm. Let's Elite spring continue winter of

herbicide We soil control. tolerance also Camelina We've will traits continue seed expand develop weed made downy seed and mildew resistance. residual and boost we'll to over-the-top working good broadleaf herbicide to progress content, and for Elite testing yield, on with our oil tolerance

We downy EXXXX. mildew, will to lines Camelina for candidate test fungal CRISPR disease. a also resistance line

Seed season, seed not expect Given the it plan and renewable the been the EXXXX, to currently genome-edited We our of seed variety. for further use we in Elite U.S. being first our we ramp has registered Argentina, this market scaled of to and is plan feedstock EXXXX in production for oil line oil commercial in XXXX. to for contract regulated the which be Camelina XXXX-XXXX as production up high up performance confirmed diesel. for is

produced Camelina will EXXXX the trait with be PHA. for lines for in tolerance herbicide Camelina and first We these the team, have first time tested our field CXXXX also this year.

to trait production planning oil PHA acre scale, the PHA containing bioplastic our CXXXX XX% seed seed PHA and are scale-up for bioplastic product continue prototype sampling to optimize We Camelina. to bioplastic produce of and copolymer Camelina the line R&D, production will demonstrate of content. XX% for trait trait PHA Camelina we work to bioplastic development in for to purposes. In in process CXXXX

the that, tests field conduct yield For with oil call Camelina to we and With seed will Oli. the hand content back data. seed trait, CXXXX over collect line to I'll

Oliver Peoples

advancing their Kristi, Thanks, year. and accomplishments the for to program congrats the team last

strategy Elite is for for a Our to Camelina build the our leverage advances renewable crop feedstock to diesel to shareholder commercialize term, crop PHA Camelina future. oils and to value to renewable near PHA produce and including products, platform the in development as launch bioplastics varieties in

we're be In replace for X petroleum food. omega-X EPA produce where with used Rothamsted Camelina addition to also can DHA areas, to products, Research to these oils collaborating

will carbon standard, in in increased by annually be Low fuel to carbon Let's diesel to requires billion from industry is oil prices grow tailwind petroleum estimated is California diesel the Based crisis diesel selling carbon investments, to projected billion biofuel producers production. in carbon lowering Carbon California and credits. demand meet This renewable Slide Standard fuel are -- as gallons adding to a mostly X. demand. of meet to XXXX. Fuel to These X due either necessary regulations another investments from potential new renewable announced for by production on turn energy Increasing renew the alone X vegetable met or an gallons to to such Ukraine lower have diesel purchasing

winter billion available, oil would increasing new for crop feedstock and to the This harvesting for growing generate that and oil, Camelina Just canola so this varieties of is new another to to an X acres XX the crops, cover gallons is acreage oil this a using YieldXX. cover from and this productive According of approaches. and illustration an seed not demand will soybean of simply oilseed less crop soybean scale fallow. crop require acres which challenge, require for the soybean would are to canola soybean and meal. million adding [indiscernible], Camelina on revenue is opportunity as million otherwise billion illustrate when areas this new XX includes A traits suited multiple million land $X to XX spring be in which support of well slide, in over

Let's start to Slide X.

agreements with offtake the risk to light for of of costs large-scale capital commercial early Our farming, and To Camelina are in the seed leadership while crushing inventory manage customer business. term, herbicide development years we Camelina resistance the in Elite lines to the disease establish strategy enable contract and Camelina prioritizing acreage. colors a using position and near in

progress. stacked we performance are XXXX, oil activities Our these were seed In yielded X,XXX enable will to XX,XXX as the XXXX into execute of scale-up to rates range to planting lines be planning to in acres. we

our nonregulated forward for progress We varieties, needed. the tolerance and with current new have herbicide regulatory with path including will as varieties those packed

efforts In to and is where PHA in the chain the with to seed our have Turn enable optimizing ongoing players agreements. to Slide addition R&D bioplastic. Camelina goal PHA In our secure bioplastic PA processors little production as seed. X, in PHA to our focused stated, including bioplastic offtake key the we activities, area, a discussions on companies, trait are biofuel discussion on value

outlined more the the range bioplastic directing air potential already seed, to in COX in like carbon increasing low-cost use they which bioplastic, Elite of the feedstock a fully advantage biodegradable Our and it's petroleum compelling. Systems contract take From will increased the the develop, growers business PHA here directly PHA production highly processed can into the pressure to which produce biofuel but are is biofuel oils. feedstock brand alternative has functional protein integrate interest be with PHA PHA produce and brand from are the meal. it same will to products, PHA to agriculture PLA, prices time and perspective, feedstocks, the as model new Camelina, listed compostable bioplastics, But in taking This R&D large-scale, for in owner environment. Consumer that costs added in and for activities the has and this materials -- year. just in Industrial use have major this platform Kristi expensive bioplastic

think a in interested industry for is that We materials plastics we believe to And waste this biodegradable PHA attractive made with brand end-of-life with from their a collaborations like subtraction and PHA pursuing represents on are by of to market, produced plants this look progress so We disruptive Bioplastics as throughout I'd as plants. owners you products very a forward bioplastics our technology, year. solution potentially these packaging. X updating

Let's on driven Omega-X. solution fish update turn market. by Omega-X of from an oil aquaculture is reduced large markets. opportunity this in fish an demand of to Slide oil XX There's harvesting for for and and a fish potential land-based important oil We believe the market, production to feed nutraceutical growing supply omega-X

XXXX, market. Elite plan development which ALA, to across and combined on stack oils to EPA DHA attractive sustainable the we the for be by plan progress discussions. DHA continue table, shown As with with the third-party EPA clear a YieldXX growth plus to to meet and omega-X international Camelina under our and has varieties and to omega-Xs potential traits, work into way the progress best-in-class to this business In represents omega-X XX% feedstock the around to anticipated we omega-X in currently product quality Rothamsted third composition family and

opportunities. Now let's XX, Slide turn licensing to

those nonexclusive Simplot in company Each various target research in a in agreements license crops. evaluating traits place their Bayer, test on slide with commercial negotiate duration our traits the and GDM, our Genetics arrows with The the have the We indicate for crop to license. option commercial is agreements. of to

including soybean performance a for corn. canola in opportunity by interest represents traits, platform and industry interest The oil seeking are traits We also traits. content are novel collaborative in partners on to we and CXXXX test up following also GRAIN in driven identifying unique

Slide Now let's for an results. update XX on to turn financial

fourth $X.X year operating net usage full Our XXXX million and for million for the cash was quarter $X.X XXXX. the

actual and usage Our was our XXXX cash $XX.X $XX.X total guidance net XXXX usage net approximately for million cash was for million.

estimate million seed The year For including operations cash, the cash usage is goal million. our well net spend in ended XXXX support full to $XX transition and in We total with of investments. activities, cash increase we year XXXX, over $XX $XX.X million as achievement to the equivalents to accelerated as R&D. commercial

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

sheet. debt We on have balance no our

XXXX review full and year operating the quarter now results. Let's fourth

net $XXX,XXX million for year per XX, the full full $XX.X after $X.XX XXXX compared share $X.XX million or December $XXX,XXX year research loss XXXX. XXXX. to $XX For share ending the our XXXX, taxes per or for the were Total was versus full as in revenues grant year

For the full in $X to $X.X for to G&A R&D expenses million million XXXX $X.X million compared XXXX, year the in $X.X expenses full were compared as million were XXXX. year XXXX.

company internal net The reflects of resources $X.X of XXXX. XXXX. $X.X quarter were for In XXXX XXXX. compared fourth the expenses $X.X the of XXXX, taxes quarter fourth fourth million XXXX. loss revenues the in fourth quarter versus goals. in the near-term million $X.X reported after the the quarter of of as fourth to in Total the were quarter as compared of the in assignment decrease commercial million $X.X G&A quarter XXXX $XXX,XXX of For fourth fourth million quarter research of and were in million quarter a a grant our compared to R&D expenses XXXX, after of to million taxes fourth quarter $XXX,XXX net in $X loss

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

that, Securing optimization of over turn portfolio. differentiated the Camelina launch trait; seed industry to the XXXX, and I'd for to to field milestones: XXXX back With for to turn our the following property intellectual activities upcoming our let's Elite collaborations to on executing plan and build collection; list focus our advancing we revenue PHA targeting our strategic diesel milestones. Slide the of Camelina, program; bioplastic Lynne continue revenue commercial our germplasm and additional market; expanding oils. testing a DHA, like commercial progressing omega-X scale-up revenue will continue renewable and questions. -- expanding XX In the EPA generating call Now grant for the grant

Lynne Brum

Thanks, Oli. Alex, ready for questions. we're

Operator

[Operator Instructions].

of Maxim comes the Anthony question with line first Our Group. Vendetti from

Anthony Vendetti

renewable business this the nature the talk what having the you team about point, behind So supply the in COVID? the commercial on any -- from recently supply and of chain chain with do diesel you? impact you feel conversations, at your side the of like is that's can participants? have And market, had you Or

Oliver Peoples

Yes.

COVID take that back table for on. the another time there off being. So be just and it let's And the hopefully, brings variant won't

much situation. I we're COVID So think the pretty through

companies, because, fallow we're obviously, I by many third-party from conversations oil, say these facilities with of conversations I supply being around. is we've one, obviously, and what having really different types number securing be mean, their literally they learned have, supplied biofuel are: And the the go we frankly, Regarding would can't with quite soybean there are and built. more no to priorities

So has seed processing increase. to oil oil or obviously,

diesel like much thing to which And is That with food actually move thing targeting to is score blend driver big index it can we're into also of second The fits in obviously they'd away lowest really sell from and getting possible, the hearing final they're Camelina story. a they third carbon the intensity the fuel the their defines have is before how they of to renewable California. value crops.

hearing what we're fuel the So players. from that's

seed is both and big and These then a Cargills, number aligning with there's ADMs, U.S., big fuel list also capacity, among the there's hearing processors. the we're the the Bunges, areas crushing get in the the obviously, large these in of that a country of you are Richardsons that And the these. thing also YieldXX of seeing, some and second on. co-ops many only among The are is of Dreyfus, and focused seed the but soybean that into not of players companies, we're ABC also players, investment new Canada

Camelina chain. then how in seeing in value place, has our get a, YieldXX would crushing that a when for would market to already a YieldXX started this in have, for the where capabilities say, we'd channel you be where I I situation, So And the across an region we're has be capability biofuel and in ideal business would in a we player would and growing like look place. at It to preferably say, fuel. the suitable already

more -- also launch seeing as sort of of that is they some long lot say, honest term because they're quite low-carbon we're really story, a compelling so be interest how these busy players. a with point. driven, that's do bigger get it's most of would would more have that I capital but to But the to the ideal you. with So interest investments, strategic be from about nonfood, And and

because One combination have to seems feedstock of carbon that of of the of and the attractions bioplastics synergies. and major some negative the is PHA impact the biofuel bioplastic

things So which at dictates we'll progress. see company the pace how size the the all you also out. shake Obviously, of can those

And -- we've is talk ongoing, codified it. something things obviously, but we able then to wouldn't of about lot a actually, so I we be until are got legally would say,

Anthony Vendetti

just the codifying of, with a actually said, over conversations. like in that sounds anything Okay. requiring having At customers, the like Or contract? tests, talks it like so they're terms just it's least to -- them from anything field But are process. get that requiring a sounds more your you more speak, comments, or progressing. lengthy Oli, especially it's they're it larger to validation, it's think you whether Is more there hump, you're signing

Oliver Peoples

is of Global Oils Sustainable the platform. which secure Exxon sees lengthy Camelina obviously just It's I business. would this owns mean, sought And an some how the a obviously frankly, our of part seed Clean And of company quite Energy obviously as that -- mean, in Sustainable players the I larger example I XX% largest of Yes. Camelina it's deal, called is think Oils, has players, they involved Holdings, non-GMO be obviously pretty is with a which recent a to process.

these do whole area on is clearly believe in And oil at our YieldXX we Camelina not thing that. the shareholders. that can don't of with work are do capabilities meets just We we an control the intellectual and -- strategically. with so interest that retain work our essentially intellectual we of their believe looking will to and this way have One will they interest partner. partners trade in protects still long-term to property not needs a We property our but

Operator

line the H.C. Wainwright. of Our with next question comes Joshi from Sameer

Sameer Joshi

deeper. do on renewable little you Just your the how market. would I likely envisage is access renewable to concerned, the Like is the contract and as -- the days most digging producers know But diesel this YieldXX as with diesel who will early or discussions or partner? it a on bit the ABCs crushing farmers of or will you interacting far be world companies? be

Oliver Peoples

Yes.

already drinking with -- farmers the right literally And just conversation regarding basically, hose. in us mean, now, Darren, So -- are he's I we growing joined from who a contracts. fire about

we'll kept So with also of very team. in based obviously on and work And production we're Ukraine the grain ag our goes. and discussions grain some spring how the unique to really, is this the actually ground running that in planned he's obviously, an contract dynamics due already for as guy. see a this -- There's growers being real he well. sector Kristi busy winter a about Basically, producer. the to big obviously have And all important such

are in trying that on after to do, offtake few companies the however, be have So oil with growers company, contract grain require to harvest YieldXX. crushing crushers are contracts place. -- our we What is really which the would that of with

enabler the seeds farm from chain the the collects but would who So farm. at more that our or an for the value we selling income basically gate see I as being versus ourselves not agent, say, also, less is

Sameer Joshi

Understood.

variety? acres you in one I slides -- the XX,XXX Or Kristi to variety? think the X,XXX the to be EXXXX planted. that EXXX-XX is so mentioned mentioned And of Is that

Oliver Peoples

too early literally, And team mean for really EXXX-XX. obviously space. grain of -- CXXXX plot the so we its results. ether there's literally, team it's Yes. with -- CXXXX. Kristi new don't It's But right, I to that, R&D by CXXXX And take the to time only team traits other but not obviously, the EXXXX but we do itself, these own have it forward. starting combine a things her in with hand have very into bring at obviously literally the some exciting will think out whether exciting plugged development, and is in that an that looking the of CXXXX. Camelina I EXXXX, that's or oil very

would clear interest say some that driver are one as Camelina in both I and we per value CXXXX, the itself, seed you a business So for thing soybean. seeing seeking is suddenly, terms players. just is of seed is investors acre just larger a are huge of from Because similar oil the

already well on out, but will have of to seed that some works having conversations the how we're those So we with see, players in things.

Lynne Brum

EXXXX... Yes,

Oliver Peoples

Yes.

I reminded Lynne, here. me a So point key think,

you to the speed our is scaling up. But to and X winter Kristi, want obviously, also we're do EXXXX up spring scaled speak variety lines. lead So those?

Kristi Snell

Yes.

extreme We have now scaling then to lines diesel. up and have two in temporary those in are we've meet one well, more well renewable very that proprietary need climates. the developed both that we works for And that we're in-house right working cold winter

Sameer Joshi

Do number they like have a XX-something? E

Oliver Peoples

No.

the number yet. We haven't decided

Kristi Snell

so number, not number. external It's internal

Sameer Joshi

it. Got it. Got

How X the that? content compare X% X over the actually is question me -- was X improvement control Question sorry, next my X oil X questions EXXXX, and canola? does and what that of soybean out. is and the or for to or hear one, just content total oil So that part

Oliver Peoples

Yes.

really there's up can't percent XX% variation oil. the depending those soybean the oil; canola has about of across to a XX-plus And Essentially, You geographies. can then, make on have course, comparisons. varieties wide

-- are small trials, still these relatively small think. I So

why the having it more So other CXXXX Camelina really of our But launch out traits compare beneficial control. that's do that these which it is like obviously, is stands And to of case, obviously and oil, we X% obviously, only in terms the can really as there, interesting. won't business. are in we stop thing some of to the

Sameer Joshi

XX% around So fair closely because Camelina is canola? related to is assume the it control was that to XX% to it

Kristi Snell

where depends was really It it grown.

it content in oil U.S. you you Pacific up grow than the when higher Northwest Canada get do You states. in

So it's it really is depends grown. where

Oliver Peoples

Yes.

can You way... at that look

Sameer Joshi

Yes. new due is that here to... not considered the Yes. which But that against be is, it development. EXXXX, question understand culminating regulated a regulated as and I considered And then could XXXX is is

Kristi Snell

new believe there be we, gene. through see advantage. the it the regulation it a rule, of We be But have pans is out, that go how secure advantageous believe will process we some course, to will Camelina to but through

Sameer Joshi

agreements? should do And with be Forage, to Okay. that are Or outcome agreements The licensing question these of -- one how we should and what topic. on a we different -- at last then XXXX, have Simplot, is in you to those expect look these? others licensing you ending -- extended the expect these be further? What

Oliver Peoples

Yes.

field of I they see on over and That mean, depend view to some year can't on know an that obviously, trials -- color We and this will information, We they're doing think, basically have it. this ideal field what can't really provide do we commercial share you. but any will certainly, in further they're progressing the we these, them that. year. trials companies situation, how clearly I licenses. So translate But with there's these

Operator

and Ladies closing to for I question-and-answer over reached end Lynne of the Brum gentlemen, now turn remarks. session. the the have we call will

Lynne Brum

and back Thanks, turn to over Oli. I'll Yes. Alex, the call

Oliver Peoples

XXXX is exciting ahead like the time for for to have the in call and In This tonight, near support. shareholders our for and gained on beyond. YieldXX an especially I'd term, all clarity us continued the personally of are and your Camelina well we activities So everyone joining in to opportunities as we of you on thank for goals focus preparing PHA keeping and oil in Have launch a us to products in YieldXX the reach thank our for development. for focused everyone. as on in our nice RD as I want advancing Bioplastics XXXX. omega-X the at evening, track space on

Lynne Brum

Alex. Thanks,

Operator

Thanks, everyone.

may You disconnect. now

YIELD10 Bioscience (YTENQ) 10 Mar 222021 Q4 Earnings call transcript