Earnings call transcript Q2 2023

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Operator

Welcome to the Second Quarter 2023 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 analysts 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

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

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

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

I'll Oli. turn the over call to

Oli Peoples

call. for thanks our and everyone afternoon joining Good Lynne. Thanks,

Camelina and platform as we'll market a market making update to operationalize for on markets including plan turn our driving crop progress our Let's herbicide our biofuel an I'm X. business feedstock provide market, a to opportunity focus the recent tolerant developing in Camelina we accomplishments, progress high omega-X oils. to varieties. Slide we with business, as value Today biofuel the launch solid that pleased across the trends and report are commercial

milestones. key second will to summarize financials EPA quarter omega-X and scale up Camelina plan present Our

We then open will questions. to the call

on Slide XXXX Let's turn business progress X goals. for to key

chain the in offtake pleased value goal recent main demonstrate commercial against YieldXX quality on establish for to seed and from are and activities grow signing based production. step in I'm we chain market is Our report executing The The that biofuels this regions relationships to starts in track growing on seed XXXX to is value business, the with in under genetics Camelina right the the Camelina to seed goal. building contract. products. with growers and target up next

their buy operations. is The grain third for to and grain Camelina customers step crushing biofuel to offtake the line up

the grain milestone signed the has in winter occurred the Camelina We demonstrated value to to and grain customer. demonstrating harvest southern a Camelina the an We side of have harvest of of right the last for now each slideshow imminent. winter chain for starting contracts southern of steps regional showed crush The year. harvested of the biofuel of chain. delivery photos represents Camelina delivery to Camelina contracted direct we located the growers through partner We our planting the Alberta. and the in first one biofuel farm guided the this in Camelina the with is growing This YieldXX and full on Alberta the offtake value and key the conversion where

and feedstock to biofield energy production inbound Camelina Marathon additional to supply for team partners, investment establish continued chain inquiries of offtake prospects these a On oil the of potential discussions, to for to alliances supply agreements network respond in Petroleum from the goal partner with specified to the regions. we creating growing the company of the market. to with have Camelina Mitsubishi option of our ongoing business development and side, engage scope with including Outside continues discussions

as Camelina X, Slide to turn now platform Let's a crop.

million as Camelina Camelina biofuels platform capabilities, leveraging and year a overnight, won't is a our can the could key and Our North created products. leveraging achieved we for This advanced the believe a on producing Camelina crop demand by specialty niche be transition more in by that meal major oil, into are business planting technology We crop a but plan based in that up acres. there America. than attributes acres crop ramp in XX of drive from

be equipment existing For processed at planted, processors. example, on Camelina and the farm and can harvested, on stored,

but Camelina. adoption that driver we is only winter big bringing varieties another of not are forward Next, spring varieties

and into varieties corn drought with winter extremely be Camelina to for rotations proving tying are resistant crop integration cold and Our tolerant potential seamless soy. with winter has

a plant USDA we and the stepped that harvest planting that states. indicated the harvest soybean. are spring and before late crop winter fall insurance mention Camelina in cover June, up in Here they Camelina as crop for offering many in would after corn I'll

the and Let's oil Camelina now Slide turn model meal. to X, markets for business and

XX% market. the about using the of are XX% grain the to for the The seed. oil is feed renewable for space meal XX% contracted composition biofuel renewable over We co-product diesel and of a comprised Camelina market production carbon closed well SAF. suited protein essential oil Camelina approved for because for is an loop the its the low captured energy stream of is protein representing and very is and This index has and animal fatty the grain extraction. attractive produce oil in to a Camelina rest again. its Camelina is acid and revenue for model use of profile. attention It meal profile oil making

Now is sustainable X, let's turn diesels. SAF, vegetable fuel, the opportunity. There biofuel renewable and tremendous biofield into opportunity the Slide is aviation oil in where to processed market

new adoption. biofuel being volatility commitments which players volatility generated to Biofuel the of and these environmental the are incentives being can major coming made feedstock two utilize availability globe. impact regulatory and as of refineries oils among sources fuels other cleaner and the online across new and as are in face pricing environment, is demand things risk, New for

Camelina SAF based tax the longer on key aspects breaks for biofuel Illinois address limits be that like states the feedstock land either above especially amount seeing brings used winter which oil source using on soybean summer of no cultivation already Camelina. increase a are a Growing could oil, by can both of with apply. expanding producers and protein high fuel file overall meal. it we the example, for winter risk or of new For otherwise oil feedstock Camelina supply of for can

Let's now early production Slide establishing under turn to X, varieties.

to commercial enabled an WDHX early WDHX slide Our variety that winter in chain. is team has development maturing enabled seed us varieties varieties value varieties the spring winter winter commercial variety production accelerated the the Camelina in and developed launch to of center in future. is YieldXX herbicide EXXXX advanced technology three cold our is proprietary of our and with genome-edited spring the begin elite while of the shown The we tolerance, genetics these a have development robust with launch for with establish variety. the

the delivery motion in up Photos Western Last ranging This turn steps slide production running green this beginning for have the XX, in offtake. XXX contracted to an to Slide XX to steps grain to planting September Let's X, we contracting to Canada. was now the done from acres. plant growers illustrate on harvest and set in fall, chain of we with value to value customer. in offtake chain WDHX to plots plant

are existing weeks. we Our harvest expect new contracting May, with In in good team acres which growing XXXX-XXXX quarter, seeing coming growers we third in Camelina to season. contract winter were the be the engaging and is interest spring acres planted and in and completed in the

generation of over an next Camelina will update I seed genetics, the on Kristi now to development turn stacked HT and the for particularly HT call varieties.

Kristi Snell

afternoon Thanks, Oli, and good everyone.

XX. Slide competition of weed Growers to need and increase to reduce the for nutrients turn Let's their control productivity crops.

soil future increased XX tolerance in resulted seed yield may on value a for seed path. programs to low used protein crop acres produce a in a with farmers' similar grown believe herbicide crop winter Camelina that are a of and with and such and new to health and revenue, issued major also progress tolerance products rotation, pending. millions value protects grower intriguing crop made and has high all runoff higher with includes to of growers is that transformed Camelina crop in PHAs. as from feedstock or that oil provide could traits lines oils elite farmers vision Camelina omega-X a value portfolio for of meal content, and with than oil harvest rotations. to Incorporation has provide that patent compatible a we varieties crop a traits applications producing development Our canola yielding engineer marginal improved are with technology tolerant a they Camelina YieldXX's it YieldXX traits particularly reduces while cover patent the Herbicide nutrient CI herbicide of increases biofuels. increasing can be follow

turn Let's to XX. Slide now

broadleaf that and used We winter tolerance variety. this first that over Camelina top herbicide have to of crops. towards Camelina have an developed commercialization a food tolerant achieving progress is the slide on milestones herbicide on major The chart spring enable to shows of routinely our of lines spray

to We field the growth Protection are hear are and label. making good deregulated to waiting from filings on from and crop, Agency USDA-APHIS the add to progress of late-stage Environmental on trials back herbicide the Camelina regulatory for

also seed for use We seed meal initiated support obtain analysis to work field the of have feed. in animal compositional to XXXX samples for

to XXXX commercial on of for commercial seed for Camelina are spring tolerance up scaling the broadleaf also herbicide. are We planning and with launch track

now Let’s turn Slide XX. to

with progress of achieve demonstrated We’re over reported out herbicide Group XXXX little good combined is with tolerance robust encouraging photos control of acreage. of the herbicide to in which trait. herbicide tolerance trial. tolerance for broader combined traits events. broadleaf We tolerance stacked stacked weed show to events or control with top spring without making soil recently plants of data examples applications residues no multiple The to also with stacked X We our of herbicide field tolerance, the a growth ongoing

trait. regulatory filed status and to USDA-APHIS Camelina initiated have with regulatory a the work with review of stack lines RSR deregulate growth with have the or these We

the acres tolerance that contra-season. control since YieldXX be farmers used expansion the believe the seed and field revenue a in agronomics in and well available will overall The lead allowing seed content robustness the stacked Going our seed the the event. will herbicide yield from lines seed win-win trials, chosen of forward will growers Camelina. and planting robust herbicide Group for scaled the content for herbicides, yield tolerance backup and of pipeline. to yield, and of be XXXX events XXXX, and based oil be and the allow previously measure oil broad for will as forward, winter trait event we move increasing to will as lines on tolerance We choose weed up best Seed X lead harvest

level YieldXX the enabled to technology As I and and wrap also clearances testing for field biofuels. months of of our used efforts competitive the up, production for commercial a Camelina of employ This I’d elite our omega-X well technology like and YieldXX cutting-edge Camelina developed forward as products. look as oil Camelina acknowledge the omega-X have high Camelina package PHA crop oils basis production the bioplastics. tremendous further for of team for tolerant to as position technology as ahead, In alliance, will technology the herbicide we oils platform the the to production to and coming be feedstock that best regulatory quality backgrounds advancing elite securing

Oli. the back to now hand call I’ll

Oli Peoples

Kristi. Thanks,

market market Now opportunity. directly grain an biofuel fatty in where the omega-X. containing to let’s an customer, for a DHA market turn EPA users. The acids oil exciting and to place will will be is omega-X update sell to end to optic oils this we a represent it Unlike where the Slide very possible XX

leverage oils. build the Camelina business advanced to and biofuels in operating for to Our HT business foundation, including set omega-X strategy varieties, established was up their

will these believe for omega-X platform We that an Camelina crop ideal be oils. making

three also Research background believe oils and value The this as DHA our can extensively such contains the this XX% Rothamsted developed used. level times purified in XX% of developed source the the out at pharmaceutical oil. variety is XX% team The and times EPA oil, Rothamsted line, ethyl UK. two in [ph] in markets. nutraceutical so Camelina in are that up of the be depending omega-X and product, in for tested fish higher the as EPAX We produces on of conducting EPA in work have oil a preferred to DHAX line with which They the to EPA Camelina oil, we developed EPA Camelina collaboration EPA

oil be shown oil studies oil to to in as that also DHA X the replacement an the oil. in shown this Published aquafeed Clinical fish can published a human have have alternative serve effective fish drop studies for diet.

status to being In Camelina regulatory USDA-APHIS funding lines and from by we for with EPA regulatory support composition the as with a omega-X step you for also Rothamsted generation oil request further filed key a July, YieldXX. Next in improvements with are progressed Camelina. RSR for path

plan currently of are a this for developing business. We the detailed launch commercial

sources Both human now emerge. sources fish salmon both and fatty to of Let’s to as stocks of it are of oily There to unsustainable for proving because health the is opportunity and market acids and the EPA fatty of be and are the new turn omega-X new Slide challenges pressure anchovies dwindling. essential for fish fish omega-X. on and drivers diet. is main EPA tremendous Consumption XX, DHA in DHA such as harvest for acids, continue wellness the natural

fish Peruvian canceled XXXX in fish have increased so oil, a party in count in Peru harvest on the Camelina we anchovy due fish North expect global low stocks. significant impact of pricing and XX% to platform. anchovy oil near fact, this omega-X like Canada in term In third was additional result sources to addition, the around are in interest

We in to Nuseed. rule; omega-X Chuck, approval RSR we by the for to producer from of the recently oil the Norway, the They fast until production largest a a GMO regulatory clear in reduced. produce know use of USDA-APHIS are GMO moratorium in using recently DHA on also the oil ingredients omega-X salmon a canola, being see farm a but of over containing has U.S. hurdles the aquafeed, use approved you. regulatory under of secure process

Chuck Haaser

good Thanks, Oli, afternoon and everyone.

the Let’s cash second with million ended of turn We Slide in quarter to $X.X cash equivalents. XX. XXXX and

result May. connection an them, net LOI raised senior unsecured with in issuing signed million proceeds note QX, registered $X additional a direct During we to a the of we million in a with cash was as added convertible in a Marathon Petroleum, our to position from and we $X.X this offering

million week, units warrants. public and priced we common $X.X assisting a last addition, shares In offering of of

expect We fourth operations into these proceeds support from quarter that including our cash our year. hand, on will offerings of this the

of our net Our for the million $X.X compared of as $XX.X harvest. growers XXXX, expect to Camelina we operations, for including continue quarter cash of cash payments $X.X to was to for net XXXX second second for usage used operating in year our the million for to to fund million full total quarter the grain XXXX first operating million the range of activities $XX and

to third product customers. to our also quarters of and During Camelina fourth we XXXX, and from revenues expect report biofuel off-take our sales Camelina Grain our first

review Let’s now and XXXX year-to-date second the quarter results. operating

second the or net per second loss net $X.X as the company reported a compared a of for previous $X.XX million $X.X to of or XXXX, of a $X.XX quarter share For of share million the quarter the loss year.

We to last due this grant of we revenue year. $X.X second year. Energy reported of our in expected our of for of the of XXXX, in As the second the quarter first quarter Department did completion report grant revenue grant not quarter during million

the XXXX consistent of million, and and were R&D $X and were quarter expenses $X.X million second million $X.X XXXX expenses at G&A respectively. during

and from XX, ended grant company the of the months six a loss $X.XX a XX, per compared reported million grant $X.XX the ended Year-to-date net million million the net DOE loss revenue share June $X.X of months $X.X during respectively. of XXXX. share $X.X or or June $X.X were So six to per XXXX, completed million

and periods. respectively, million the June were $X.X development each months of XXXX and million XXXX and Research June and XX, expenses million $X.X and ended $X.X during those million $X.X were expenses and during administrative general XX, six

to details our earnings results, you. to more Oli, release. back please refer our financial on For

Oli Peoples

Thanks, Chuck.

XX easy both the Slide getting not comment compelling to to to make But capabilities added to into R&D turn the Canada. transition commercial with upcoming I’d an on upcoming made strategic now demonstrate It’s a the on and activities milestones, small needing for for partners. the in prospective tremendous progress milestones. Massachusetts from focus here to teams of pressure to organization before by like YieldXX in Let’s the

have We’re this and proud extremely already the surprised of we then year. that what accomplished team YieldXX I’m

with in update delivered majors Winter already with to agreements Marathon energy Spring partner and discussions regional Camelina, fully and production Biofuel progressing in fall harvested XXXX of with production players. Mitsubishi, biofuel partner. ongoing oil contract close Camelina to and other harvest additional partnership again Petroleum with some shortly. completed an coming

Finally have HT stacked for omega-X in key X regulatory and very HT field milestones approval Camelina trials. EPA developing recently the line and achieving Camelina

agreements. we are into half milestone working towards Mitsubishi investment third-party the the Camelina for planting in this revenue, a of prospects number our big product offtake as partner make grain to winter Continue growing continue to for of and and winter grow Marathon with biofuel finalize a of benefits the and with XXXX, accomplishments, progress key partnerships fall on half production feed with Building and a as first stocks, network. these we expand milestones interested including working in Camelina the growers XXXX us undisclosed to first second crop introducing contracting of progress,

seed intellectual HT executing continue future collaborations to development for and contracts. strategic to Camelina product business of partners Developing property and varieties continuing goal Building areas across with commercial work the industry and of portfolio. launch the we’ll prospective oils progressing their omega-X and seed corn HT on outreach and stacked expanding inventory our growth of

to With that, like the call questions. Lynne to I’d for turn back over

Lynne Brum

for Oli. Thanks questions. we’re ready Melissa,

Operator

Vendetti Thank question. Our Group. your the question proceed [Operator Maxim first with Instructions] from with comes of Anthony you. line Please

Anthony Vendetti

those I are Thanks. have agreements. on the know Mitsubishi to Marathon moving then agreements? wondering I’m at you. American up follow of with where with questions. in MOUs the I some terms just, first And to wanted get Petroleum then and LOI and definitive Thank Yes, an I just update the Airlines.

Oli Peoples

associated which it expires – LOI, that there’s a Marathon in I with XX, of mean, August timeline view obviously mean point of basically provisions I believe I basically with the from regarding, Yes, is. I think certain

it doesn’t so, then, exclusivity does with run mean out. by do conversation that, [ph] And although their when that’s

obviously basically parameters. months be they’re an agreement, agreements. the would So involve investment be over three been we’ve structure as basically One which defined closely basically working agreement. can’t to public, an second but not most would those with last be the Marathon two I disclose agreements. would offtake the It the agreement; already very an of

ENEOS, – similar Camelina partner We along much refine similar strategic made the and Mitsubishi. for oil haven’t certainly progress for the basically Japan. an refinery, is disclosed great progressing also agreements, lines. We’ve They’re in largest of two Regarding biofuel also pretty anticipate the their Mitsubishi with but which again, that, and offtake refinery specifics a agreement agreement major market. investment we

XXXX. U.S. And so, for a an low a to develop of Airlines, with X American us value feed stocks. to source Marathon’s obviously And very they help when really interest look X SAF is refiner, look support for another CI to this you strategic be non-food the essentially, But this industry and demand from – of in off-take gallons And and availability billion we their work a by billion XX.X continue airline pretty to SAF, reducing is American with expanded, Airlines as so a more by have essentially certainly potential or that’s and an billion on to carbon Europe American as going in to XX obviously much not seeing strategic particularly emissions, of you not then American chain. the Marathon, as airlines the at the SAF gallons be major we them, internationally, demand partner collaboration, the help and Airlines really SAF gallons XXXX who are gallons dependent from billion Japan. going

Anthony Vendetti

and And if that’s that so, no, deal have Oli. XX to August a you now a so Marathon strike helpful, they until a correct? Petroleum, clarify, desire, or with just Yes, but could lapses is the XXth, decision make them another days exclusivity company from so Okay. then to with you

Oli Peoples

of within bring that Well, with let’s or are very some specifically, positive are specifics discussions the get Marathon with a this to not provide conclusion. that. going And in the in other to into I’m agreement, are we that and not not constraints going I closely say Marathon including is we to But be agreement. clear. Mitsubishi areas to any that I’m that others working can constrained parties, by on

Anthony Vendetti

Okay. That makes sense.

Okay.

the this the Green. from you? So you’ll end Can producing revenues did year, of you by say though Camelina be

Oli Peoples

correct. That’s

Anthony Vendetti

interest the Correct? where tolerant Okay, at process from farmers? the can the talk about with commercialization for you’re you herbicide the Camelina the and

Oli Peoples

to very obviously about I so think, I front. technology then the can you from on the specifically farmers the and interest talk

and, only trials development not to presentation from job but great for technology those. and the talk that control, the heard both that of we excellent can team. the the progressing rapid demonstration stacked field by very You’ve herbicide Kristi’s and tolerance merits Obviously of weed herbicide and of

need Now potential we this so to very growers that in are weed about do grow other What control in grow. fundamentally crop. this can crops we we on hear is, into it. we control, for we’re order tremendous from have weed seamlessly We any what the to interested see negative impact to going rotations, because, our having crop this without integrate so you

So one. that’s number

of X a lot through herbicides this of and Texas, backdate. Pacific Number they these a use plant into these industry the called two all has way all in down Group thing so Kansas, areas, particularly down Northwest, in is the the

from you’ve sections plant or you a restrictions used herbicide your on, of land, there plots Group can of it, So what various they on thereafter. land your are if that basically X soon land call as

Group And as sometimes can months even to those year longer. much few or a a as Xs, for be,

or Camelina it so that major, spring has has a the what matter. grower Potentially that each acres planting is available. does for it Camelina even number And reduces winter of

they’re that to that. with scale. are control, certainly very just, conversations for we this weed very large that quite tolerance grower And had making to the residues to So idiot HT having those excited we’ve about addition this we growers stacked frankly, indicate are in the has the these by adopt the proof and

Anthony Vendetti

the you hop Thank in it. much. so queue. Appreciate I’ll back great. Okay,

Operator

no you. you floor comments. final other time, seeing At I’ll to Ms. I’m this any [Operator Brum, questions, Thank turn back for Instructions] the

Lynne Brum

Great, thanks to Melissa. And Oli. I’ll turn the call back

Oli Peoples

thank all on want thank product you track tonight commercial continuous at future that to for our like everyone are development and I’d goals. for evening of your call to thank, and especially Have our shareholders support. contributions us, YieldXX to joining us I So our for nice everyone. a keeping personally

Operator

you. today’s conference This Thank concludes call.

disconnect your time. you at may participation. You lines this Thank your for

YIELD10 Bioscience (YTENQ) 14 Aug 232023 Q2 Earnings call transcript