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Calyxt Achieves Phase 1 Milestone in Collaboration Agreement to Develop Alternative to Palm Oil

ROSEVILLE, Minn., Nov. 18, 2022 /PRNewswire/ — Calyxt, Inc. (NASDAQ: CLXT), a plant-based synthetic biology company announced today that it has successfully completed the first phase in its research collaboration agreement with a leading global food ingredient manufacturer based in Asia to develop an improved soybean capable of producing an oil as a commercial alternative to palm oil.

“We are proud of the progress we’ve made in this collaboration,” said Michael A. Carr, President and CEO of Calyxt. “The achievement builds on our expertise working with soybeans along with our team’s innovation and collective drive to engineer plant-based solutions that address sustainability challenges for our customers.”

Calyxt’s ability to leverage the power of its proprietary PlantSpring™ technology platform in this space comes at a critical time in the international dialogue regarding the sustainability and environmental impact of traditional palm oil sourcing and production.

As previously disclosed, the completion of this first milestone results in a cash milestone payment to Calyxt. Calyxt has begun the second and final phase of the research collaboration and expects to receive a final milestone payment upon completion. Calyxt anticipates completing the final phase in the first quarter of 2024.

About Calyxt

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring technology platform and Plant Cell Matrix biomass to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory production system. For more information, visit www.calyxt.com.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include statements about the development of the improved soybean and the success of the related research collaboration, and the potential for successfully negotiating, entering into, and receiving fees under, a commercial agreement with respect to the improved soybean. These and other forward-looking statements are predictions and projections about future events and trends based on the Company’s current expectations, objectives, and intentions and are premised on current assumptions. The Company’s actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: the potential impact of cost reduction and other cash-focused measures to manage liquidity; increased competition, including competition from a broader array of synthetic biology companies; competition for customers, partners, and licensees and the successful execution of development and licensing agreements; disruptions at Calyxt’s or its partners key facilities; changes in customer preferences and market acceptance of its products; changes in market consensus as to what attributes are required for a product to be considered “sustainable”; the impact of adverse events during development; disruptions to supply chains, including raw material inputs for its BioFactory; and other important factors discussed in Part I, Item 1A, “Risk Factors” in the Company’s filings with the SEC, included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022, and its subsequent reports on Forms 10-Q and 8-K filed with the SEC. Any forward-looking statements made by management of the Company are based only on currently available information and speak only as of the date of this report. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

Calyxt Media Contact:
Brennan Burks, Calyxt, Inc.
(651) 724-5788
brennan.burks@calyxt.com 

Calyxt Investor Relations Contact:
Kimberly Minarovich / Cameron Willis
Argot Partners
(212) 600-1902
investors@calyxt.com

Calyxt Granted 180-Day Extension by Nasdaq to Regain Compliance with Bid Price Rule

ROSEVILLE, Minn., Nov. 17, 2022 /PRNewswire/ — Calyxt, Inc (Nasdaq: CLXT) a plant-based synthetic biology focused on engineering sustainable ingredients for customers in the cosmeceutical, nutraceutical and pharmaceutical industries, today announced that the Company received written notification from the Listing Qualifications Department of The Nasdaq Stock Market, LLC (“Nasdaq”), granting the Company’s request for a 180-day extension to regain compliance with Nasdaq’s minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”). The Company now has until May 15, 2023 to meet the requirement. If at any time prior to May 15, 2023, the bid price of the Company’s ordinary shares closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Company will regain compliance with the Bid Price Rule, and the matter will be closed.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq staff determined that the Company was eligible for an additional 180 calendar day period, or until May 15, 2023, to regain compliance based on the Company meeting the continued listing requirement for the market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market, with the exception of the bid price requirement, and the Company having provided written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary.

If the Company does not regain compliance with the Bid Price Rule during the additional 180-day extension, Nasdaq will provide written notification to the Company that its ordinary shares will be delisted. At that time, the Company may appeal the relevant delisting determination to a hearings panel pursuant to the procedures set forth in the applicable Nasdaq Listing Rules. However, there can be no assurance that, if the Company does appeal the delisting determination by Nasdaq to the hearings panel, that such appeal would be successful.

About Calyxt
Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform and Plant Cell MatrixTM biomass to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include statements about the Company’s ability to regain compliance with the Bid Price Rule, the Company’s plans to consider implementing available options to regain compliance with the Bid Price Rule, and the Company’s intention to appeal any future delisting determination. These and other forward-looking statements are predictions and projections about future events and trends based on the Company’s current expectations, objectives, and intentions and are premised on current assumptions. The Company’s actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: the potential impact of cost reduction and other cash-focused measures to manage liquidity; increased competition, including competition from a broader array of synthetic biology companies; competition for customers, partners, and licensees and the successful execution of development and licensing agreements; disruptions at Calyxt’s or its partners key facilities; changes in customer preferences and market acceptance of its products; changes in market consensus as to what attributes are required for a product to be considered “sustainable”; the impact of adverse events during development; inaccurate demand forecasting or milestone and royalty payment projections; disruptions to supply chains, including raw material inputs for its BioFactory; and other important factors discussed in Part I, Item 1A, “Risk Factors” in the Company’s filings with the SEC, included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022, and its subsequent reports on Forms 10-Q and 8-K filed with the SEC. Any forward-looking statements made by management of the Company are based only on currently available information and speak only as of the date of this report. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

Calyxt Media Contact:
Brennan Burks, Calyxt, Inc.
(651) 724-5788
brennan.burks@calyxt.com 

Calyxt Investor Relations Contact:
Kimberly Minarovich / Cameron Willis
Argot Partners
(212) 600-1902
investors@calyxt.com

Calyxt Reports Third Quarter 2022 Financial Results and Provides Corporate Update

—Successfully produced squalene, an important ingredient for personal care products and vaccine adjuvants

—Continued to progress customer acquisition activities, including evaluating an incremental 37 customer chemistries for development using PlantSpring™ and BioFactory™ technologies

—Signed agreement with Evologic Technologies to further develop and scale production of its Plant Cell Matrix™ technology platform

—Continuing board-level evaluation of a full range of potential strategic alternatives to maximize shareholder value

—Selected for membership to BioMADE, a Department of Defense-sponsored initiative that brings together industrial, academic and non-profit entities to advance US bioindustrial manufacturing

—Management to host conference call and webcast today at 4:30 p.m. ET

ROSEVILLE, Minn., Nov. 3, 2022 /PRNewswire/ — Calyxt, Inc. (Nasdaq: CLXT), a plant-based synthetic biology company, today announced operating and financial results for its third quarter ended September 30, 2022.

“Last month, we announced we had made substantial technical progress by successfully using  a Calyxt-engineered Plant Cell Matrix to produce squalene. This is a desired ingredient for many cosmetics products and also serves as critical vaccine adjuvant. This milestone is another validation of the promise of our platform to engineer plant metabolism to produce innovative high value chemistries for use in our customers’ materials and products across the end markets of cosmeceuticals, nutraceuticals, and pharmaceuticals,” said Michael A. Carr, President and Chief Executive Officer at Calyxt. “Further, in the third quarter, we continued to progress our customer acquisition activities and evaluated 37 additional customer demand driven chemistries for development and production. These achievements, which come despite unprecedented headwinds in the capital markets and macro economy and resulting liquidity challenges for the Company, reflect our determination to drive our business forward and realize value for our shareholders, while continuing to carefully manage operating expenses.”

Mr. Carr added: “In addition, we signed an agreement with Evologic Technologies, our first global infrastructure partner, which enables us to power our speed-to-scale strategy and supports our ability to meet the growing interest in high-quality sustainable ingredients across the cosmeceutical, nutraceutical, and pharmaceutical markets. With our new pilot program initiated, our first infrastructure partner on board, and additional discussions ongoing, we are encouraged by the increasing traction of our business. We also were selected for membership in BioMADE, a Department of Defense-sponsored manufacturing innovation initiative, which will give us access to a network of industrial and academic entities focused on advancing bioindustrial manufacturing and will enable us to apply for government grants to progress research in plant-based biomanufacturing.  In all, these accomplishments made for a highly productive quarter notwithstanding current capital constraints.”

Key accomplishments in the third quarter of 2022, and through the date of this press release, include the following:

Chemistries under Development for Potential Customers

  • On October 25, 2022, Calyxt announced that using a Calyxt-engineered Plant Cell MatrixTM biomass, it has successfully produced squalene, an important ingredient in many personal care products and vaccine adjuvants, including several strands of flu and COVID-19 vaccines. Traditionally sourced from shark liver, many companies who require the ingredient for their products have already begun to seek out alternative squalene sources that represent a more sustainable path forward. With the increasing demand for natural ingredients in cosmetics along with the urgency to develop more vaccines that are effective at boosting our immune response, the global squalene market represents a significant and growing market opportunity.
  • In the third quarter, Calyxt received 37 new chemistries from potential customers for evaluation, bringing the total number of chemistries cumulatively evaluated for development with PlantSpring for production in its BioFactory to 132. Of the 132 chemistries, 43 have met Calyxt’s target product profile, or TPP, criteria and, subject to prioritization in light of available resources, are subject to further evaluation and discussion with the potential customers. Additionally, the evaluated chemistries include several that were identified by potential customers as having been unsuccessfully attempted by others in the synthetic biology industry.

Current Customer Projects Under Development are on Track

  • Calyxt continued to progress the pilot project for a major consumer packaged goods company with delivery of the plant-based chemistry expected in early 2023. This delivery has the potential to lead to a development agreement for this and potentially other chemistries.
  • Calyxt continued to progress the development of its soybean-based palm oil alternative plant trait, and it expects to achieve the first $100 thousand milestone payment as early as the fourth quarter of 2022, with the overall project scheduled for completion in the first quarter of 2024, at which time the second milestone payment of $100 thousand would be due.

Signed Agreement with First Global Infrastructure Partner to Enable Growth and Scale of Calyxt’s Proprietary Technology

  • On October 6, 2022, Calyxt announced that it signed an agreement with its first manufacturing partner, Evologic Technologies GmbH (Evologic), to further develop and scale Calyxt’s proprietary Plant Cell Matrix (PCM™) technology platform. The agreement supports the continued build-out of Calyxt’s plant-based synthetic biology capabilities. Evologic’s contract development and manufacturing services, based on its proprietary bioprocess platform and technology, support companies delivering unique and sustainable bioproducts. Under the terms of the agreement, Evologic will work alongside Calyxt to grow and scale Calyxt’s proprietary PCM technology. Specifically, Evologic will advance the manufacturing of PCM-derived compounds and establish proof of concept for the subsequent scaling of multiple PCMs simultaneously for commercial production. Calyxt anticipates sending a PCM that will produce squalene to Evologic for scaling in the fourth quarter of 2022.

Evaluation of Strategic and Financing Alternatives

  • On September 22, 2022, Calyxt announced that its Board of Directors is evaluating a full range of potential strategic alternatives and that it had engaged Canaccord Genuity as an advisor. The evaluation of these alternatives as well as the engagement of Canaccord Genuity demonstrates Calyxt’s management and Board of Directors’ commitment to maximize shareholder value.
  • While Calyxt continues to actively assess market conditions and to pursue potential financing alternatives to fund its operations, in light of Calyxt’s current liquidity challenges and market headwinds, management has implemented cost reduction and other cash-focused measures to manage liquidity and prioritize capital resources.

Gained Membership Inclusion to BioMADE

  • On November 1, Calyxt announced that it had been selected for membership in BioMADE, a Department of Defense-sponsored manufacturing innovation initiative. As a result, Calyxt joins a network of industry, academic, not-for-profit and United States government members dedicated to innovating and growing the bioeconomy. Membership also enables Calyxt to apply for government grants to advance research in plant-based biomanufacturing.

Additional Updates

  • In early November 2022, Calyxt reached a settlement with one of its technology vendors regarding alleged intellectual property infringement. As a result of the settlement, Calyxt will receive $750 thousand upon execution of an amended master services agreement (MSA) and another $750 thousand by January 31, 2023. The execution of the MSA is anticipated to occur in the fourth quarter of 2022.

Financial Results for the Three Months Ended September 30, 2022

  • Cash, cash equivalents, and restricted cash totaled $7.2 million as of September 30, 2022.
  • Revenue was nominal in the third quarter of 2022 compared to $7.8 million in the third quarter of 2021. The decrease in revenue was driven by the late 2021 completion of the wind-down of the Company’s soybean product line. Revenue in the third quarter of 2022 was primarily associated with the Company’s agreement with a food ingredient manufacturer to develop a palm oil alternative.
  • Total operating expenses were $6.2 million in the third quarter of 2022 compared to $6.4 million in the third quarter of 2021. The decrease was primarily driven by improved gross margins as a result of lower operating expenses in the period, partially offset by the Company’s adoption of the lease accounting standard which shifted amounts previously reported in interest, net to operating expenses.
  • Net loss was $6.0 million in the third quarter of 2022 compared to $7.3 million in the third quarter of 2021. The improvement in net loss was driven by the late 2021 completion of the wind-down of the Company’s soybean product line, lower operating expenses, a decrease in interest, net resulting from the adoption of the lease accounting standard which shifted amounts previously reported in interest, net to operating expenses, and non-operating income (expenses) including the mark-to-market of the Common Warrants derivative liability, which declined in value due to a decline in stock price in 2022. Net loss per share was $0.13 in the third quarter of 2022 compared to $0.20 in the third quarter of 2021. The improvement in net loss per share was driven by the improvement in net loss and a year-over-year increase in weighted average shares outstanding.
  • Adjusted net loss was $6.2 million in the third quarter of 2022 compared to $9.1 million in the third quarter of 2021. The improvement in adjusted net loss was driven by the completion of the wind-down of the soybean product line in late 2021. Adjusted net loss per share was $0.13 in the third quarter of 2022 compared to $0.24 in the third quarter of 2021. The improvement in adjusted net loss per share was driven by the improvement in adjusted net loss and a year-over-year increase in weighted average shares outstanding.
  • On October 3, 2022, Calyxt entered into an amendment to its Open Market Sale Agreement with Jefferies that enables it, subject to a maximum sale of up to one-third of Calyxt’s public float in any twelve month period, to offer and sell up to 15,661,000 shares of its common stock. From that date to the date of this release, Calyxt issued 2.0 million shares of its common stock, raising $0.1 million, net of offering fees and expenses. As a result of the issuance of these shares, Cellectis, S. A., once Calyxt’s majority shareholder, now has an ownership percentage of 49.1 percent.

“We continue to be focused on the effective and prudent use of our cash resources and we have reduced costs while executing on near term milestones. In the third quarter of 2022 we achieved the lowest burn rate the Company has seen in recent years,” said Bill Koschak, Chief Financial Officer at Calyxt. “Our cash burn in the third quarter of 2022 was $4.7 million, $1.2 million less than the second quarter of 2022. The results of our cost saving efforts, which are ongoing and include discretionary actions in management’s control, and the legal settlement, have provided cash runway into the second quarter of 2023.  Calyxt is also exploring its ability to pursue certain U.S. government grant programs that were previously unavailable to us because of Cellectis’ majority ownership.”

Third Quarter 2022 Results Conference Call

Calyxt’s President and Chief Executive Officer, Michael A. Carr, and Chief Financial Officer, Bill Koschak, will host a conference call discussing Calyxt’s results for the third quarter of 2022 and provide a business update. The conference call will be webcast and accessible via the investor relations section of Calyxt’s website at www.calyxt.com.

To access the call, please use the following information:

Date:Thursday, November 3, 2022
Time:4:30 p.m. ET, 1:30 p.m. PT
Toll Free dial-in number:+1-888-317-6003
Toll/International dial-in number:+1-412-317-6061
Conference ID:10170876

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. The conference call will also be broadcast live and available for replay via the investor relations section of the company’s website at www.calyxt.com.

A replay of the conference call and webcast will be available for 30 days following the event.

About the PlantSpring™ Technology Platform and BioFactory™ Production System

Calyxt’s technology platform, PlantSpring, is founded on the Company’s more than a decade of experience engineering plant metabolism, and incorporates its scientific knowledge, its proprietary systems, tools, and technologies; and an expanding set of related capabilities. In PlantSpring, the Company identifies metabolic pathways to produce plant-based chemistries, designs strategies to reprogram host cells, engineers plant cell metabolism to optimally produce targeted compounds, and produces those targeted compounds at laboratory scale. The Company has implemented AIML capabilities for the identification of targets for editing specific genetic pathways and continues to develop AIML capabilities across the PlantSpring platform, which will enable learning and adaptation of knowledge gained from past activity and are expected to be combined with predictive analytics to rapidly prototype and provide feedback, accelerate the time to complete the development cycle and help mitigate the risk associated with commercial scale-up. As a result, Calyxt believes it can develop biomolecules in plants for customers at both a greater breadth and level of complexity and at faster speeds than its competitors in the synthetic biology industry. The output from the PlantSpring platform integrates with the Company’s BioFactory production system. The Company uses the term “compounds” to describe compounds, molecules, and plant-based chemistries interchangeably.

The BioFactory is a bioreactor-based production system that is designed to be capable of continuous production of plant-based chemistries. The bioreactor can be of any size depending upon factors including yield and titer necessary to reach the required commercial scale. For production, multicellular Plant Cell Matrix™ (PCM™) structures are placed inside the bioreactor, and growth media bathes the PCM structures to provide them with nutrition, which differentiates the Company’s process from other methods that require complete submersion of cells in growth media and/or the application of hormones to facilitate growth. A PCM structure is a living system of various cell types, which is designed to emulate the intercellular metabolism of an entire plant, which grows over time, produces, and stores, or excretes, the target chemistries. The growth media is the feedstock of the BioFactory production system and contains the essential inputs to support growth of the PCM structures and necessary chemistry production. The growth media is expected to be reused throughout the production cycle, which may run for an extended time period. To scale production in the BioFactory productions system, the Company expects to move the PCM structures from its current bioreactor into larger capacity bioreactors or groups of bioreactors. Calyxt began running lab-scale bioreactors in early 2021. The Company’s first pilot-scale bioreactor became operational in December 2021 and is scalable up to 200 liters. The pilot stage of development takes a compound developed with the PlantSpring platform through to commercial production. Depending on the compound to be produced, there may be a range of vessel sizes between the initial pilot facility and the commercial production facility. The Company’s current plan is to engage third parties, referred to as infrastructure partners, for at-scale commercial production. Infrastructure partners are likely to be companies with processing assets that can be converted from current production to the Company’s bioreactor-based approach. If an infrastructure partner is used for production, the Company expects to pay a fee for that production. Because of the expected modular nature of the BioFactory production system and the types of high value compounds the Company expects to develop for customers, it is also possible that commercial production could also occur in a customer’s in-house facility. The Company expects to expand the scope of its pilot facilities based on customer demand, and the scope of production could extend, subject to regulatory and other considerations, outside the United States. Because of its production methodology, Calyxt believes the BioFactory has the potential to be one of the most sustainable production systems across industries

About Calyxt

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

PlantSpring, BioFactory, Plant Cell Matrix™, and the Calyxt logo are trademarks of Calyxt, Inc. Any other trademarks belong to their respective owners.

Contacts
Calyxt Media Contact:Calyxt Investor Relations Contact:
Brennan Burks
Calyxt, Inc.
(651) 724-5788
brennan.burks@calyxt.com 
Kimberly Minarovich/ Cameron Willis 
Argot Partners
(212) 600-1902
investors@calyxt.com 
Calyxt Business Development Contact:
Gerry Nuovo
Senior Vice President of Business Development
(612) 427-7881
contact@calyxt.com 

USE OF NON-GAAP FINANCIAL INFORMATION

To supplement the Company’s financial results prepared in accordance with GAAP, it has prepared certain non-GAAP measures that include or exclude special items. These non-GAAP measures are not meant to be considered in isolation or as a substitute for financial information presented in accordance with GAAP and should be viewed as supplemental and in addition to the Company’s financial information presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In addition, other companies may report similarly titled measures, but calculate them differently, which reduces their usefulness as a comparative measure. Management utilizes these non-GAAP metrics as performance measures in evaluating and making operational decisions regarding the Company’s business.

The Company’s 2021 non-GAAP financial measures reflect adjustments for certain commodity derivatives entered into in connection with its soybean product line. As a result of the completed wind-down of this product line in late 2021, the Company held no commodity derivative contracts as of September 30, 2022.

The Company presents adjusted net loss, a non-GAAP measure, and defines it as net loss adjusted for (i) unrealized gains and losses associated with commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed price grain production agreements that should be recognized in the future when the underlying inventory is sold, (ii) gains and losses from commodity derivatives realized in prior periods but associated with inventory sold in the current period, (iii) net realizable value adjustments to inventories occurring in the period which otherwise would have been recognized in the future when the underlying inventory is sold, and (iv) net realizable value adjustments recognized in prior periods but associated with inventory sold in the current period, and excluding cash-based Section 16 officer transition expenses, the recapture of non-cash stock compensation associated with the departure of Section 16 officers, the gain upon the extinguishment of the Payroll Protection Program (PPP) loan, and non-operating income (expenses). The foregoing adjustments are those necessary to present the underlying gross profit of the Company’s soybean product line for the 2021 periods presented, together with the corresponding adjustments to the extent applicable to the corresponding 2022 periods presented.

The Company provides in the table below a reconciliation of net loss, which is the most directly comparable GAAP financial measure, to adjusted net loss. The Company provides adjusted net loss because it believes that this non-GAAP financial metric provides investors with useful supplemental information in light of the Company’s business model during the periods presented, as the amounts being adjusted affect the period-to-period comparability of net losses and financial performance.

The table below presents a reconciliation of net loss to adjusted net loss:

Three Months Ended September 30,Nine Months Ended September 30,
In Thousands2022202120222021
Net loss (GAAP measure)$        (5,950 )$        (7,307 )$      (14,054 )$      (22,142 )
Non-GAAP adjustments:
Commodity derivative impact, net(2,073 )(2,520 )
Net realizable value adjustment to inventories(88 )(160 )
Section 16 officer transition expenses443452763,079
Recapture of non-cash stock compensation(2,540 )
Gain upon extinguishment of Payroll Protection Program loan(1,528 )
Non-operating income (expenses)(300 )(6 )(5,083 )(11 )
Adjusted net loss$        (6,206 )$        (9,129 )$      (18,861 )$      (25,822 )

The Company presents adjusted net loss per share, a non-GAAP measure, and defines it as net loss per share adjusted for (i) unrealized gains and losses associated with commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed price grain production agreements that should be recognized in the future when the underlying inventory is sold, (ii) gains and losses from commodity derivatives realized in prior periods but associated with inventory sold in the current period, (iii) net realizable value adjustments to inventories occurring in the period which otherwise would have been recognized in the future when the underlying inventory is sold, and (iv) net realizable value adjustments recognized in prior periods but associated with inventory sold in the current period, and excluding cash-based Section 16 officer transition expenses, the recapture of non-cash stock compensation associated with the departure of Section 16 officers, the gain upon the extinguishment of the PPP loan, and non-operating income (expenses). The foregoing adjustments are those necessary to present the underlying gross profit of the Company’s soybean product line for the 2021 periods presented, together with the corresponding adjustments to the extent applicable to the corresponding 2022 periods presented.

The Company provides in the table below a reconciliation of net loss per share, which is the most directly comparable GAAP financial measure, to adjusted net loss per share. The Company provides adjusted net loss per share because it believes that this non-GAAP financial metric provides investors with useful supplemental information in light of the Company’s business model during the periods presented, as the amounts being adjusted affect the period-to-period comparability of net losses per share and financial performance.

The table below presents a reconciliation of net loss per share to adjusted net loss per share:

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Net loss per share (GAAP measure)$             (0.13 )$             (0.20 )$            (0.31 )$            (0.60 )
Non-GAAP adjustments:
Commodity derivative impact, net(0.06 )(0.07 )
Net realizable value adjustment to inventories
Section 16 officer transition expenses0.020.09
Recapture of non-cash stock compensation(0.07 )
Gain upon extinguishment of Payroll Protection Program loan(0.04 )
Non-operating income (expenses)(0.11 )
Adjusted net loss per share$             (0.13 )$             (0.24 )$            (0.42 )$            (0.69 )

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “anticipates,” “believes,” “continue,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “predicts,” “projects,” “should,” “targets,” “will,” or the negative of these terms and other similar terminology. Forward-looking statements in this report include statements about the Company’s future financial performance, including its liquidity and capital resources, cash runway and its ability to continue as a going concern; its product pipeline and development; its business model and strategies for the development, commercialization and sales of commercial products; commercial demand for its synthetic biology solutions; the development and deployment of its PlantSpring technology platform;  the ability to scale production capability for its BioFactory production system; potential development agreements, partnerships, customer relationships, and licensing arrangements and their contribution to its financial results, cash usage, and growth strategies; and anticipated trends in its business. These and other forward-looking statements are predictions and projections about future events and trends based on the Company’s current expectations, objectives, and intentions and are premised on current assumptions. The Company’s actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: any adverse impact of the Company’s cost reduction measures and its pursuit and evaluation of a broad range of strategic alternatives on its relationship with employees and third-parties, including ongoing negotiations with potential customers; whether or not the Company is able to identify and consummate an acceptable strategic alternative pursuant to its ongoing exploration of such transactions; the impact of increased competition, including competition from a broader array of synthetic biology companies; competition for customers, partners, and licensees and the successful execution of development and licensing agreements; disruptions at its key facilities, including disruptions impacting its BioFactory production system; flaws in AIML algorithms, insufficiency of data inputs required by such algorithms, and human error in interacting with AIML; changes in customer preferences and market acceptance of its products; changes in market consensus as to what attributes are required for a product to be considered “sustainable”; the impact of adverse events during development, including unsuccessful pilot production of plant-based chemistries or field trials; the impact of improper handling of its product candidates during development; failures by third-party contractors; inaccurate demand forecasting or milestone and royalty payment projections; the effectiveness of commercialization efforts by commercial partners or licensees; disruptions to supply chains, including raw material inputs for its BioFactory; the impact of changes or increases in oversight and regulation; disputes or challenges regarding intellectual property; proliferation and continuous evolution of new technologies; management changes; changes in macroeconomic and market conditions, including inflation, supply chain constraints, and rising interest rates; dislocations in the capital markets and challenges in accessing liquidity and the impact of such liquidity challenges on the Company’s ability to execute on its business plan; the severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; and other important factors discussed in Part I, Item 1A, “Risk Factors” in the Company’s filings with the SEC, included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022 (its Annual Report) and its subsequent reports on Forms 10-Q and 8-K filed with the SEC. Any forward-looking statements made by management of the Company are based only on currently available information and speak only as of the date of this report. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

CALYXT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Par Value and Share Amounts)
September 30, 2022
(unaudited)
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$                7,031$     13,823
Restricted cash174499
Prepaid expenses and other current assets739859
Total current assets7,94415,181
Non-current restricted cash99
Land, buildings, and equipment4,85921,731
Operating lease right-of-use assets13,736
Other non-current assets163183
Total assets$              26,702$     37,194
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$                    435$       1,260
Accrued expenses380339
Accrued compensation2,3562,522
Due to related parties138172
Current portion of financing lease obligations120370
Common stock warrants402
Other current liabilities397191
Total current liabilities4,2284,854
Financing lease obligations17,506
Operating lease obligations13,550
Other non-current liabilities80702
Total liabilities17,85823,062
Stockholders’ equity:
Common stock, $0.0001 par value; 275,000,000 shares authorized; 46,909,420 shares issued and 46,809,268 shares outstanding as of September 30, 2022, and 38,874,146 shares issued and 38,773,994 shares outstanding as of December 31, 202154
Additional paid-in capital219,196211,263
Common stock in treasury, at cost; 100,152 shares as of September 30, 2022, and December 31, 2021(1,043 )(1,043 )
Accumulated deficit(209,314 )(196,092 )
Total stockholders’ equity8,84414,132
Total liabilities and stockholders’ equity$              26,702$     37,194

See accompanying notes to these consolidated financial statements. 

CALYXT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands Except Shares and Per Share Amounts)
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Revenue$                    42$              7,762$                 115$            24,044
Cost of goods sold8,28126,553
Gross profit42(519 )115(2,509 )
Operating expenses:
Research and development3,0162,5799,2078,473
Selling, general, and administrative3,2293,8599,96511,640
Total operating expenses6,2456,43819,17220,113
Loss from operations(6,203 )(6,957 )(19,057 )(22,622 )
Gain upon extinguishment of Payroll Protection Program loan1,528
Interest, net(47 )(356 )(80 )(1,059 )
Non-operating income (expenses)30065,08311
Loss before income taxes(5,950 )(7,307 )(14,054 )(22,142 )
Income taxes
Net loss$             (5,950 )$             (7,307 )$          (14,054 )$          (22,142 )
Basic and diluted net loss per share$               (0.13 )$               (0.20 )$               (0.31 )$               (0.60 )
Weighted average shares outstanding – basic and diluted46,784,44537,279,70345,173,45537,205,655
Anti-dilutive stock options, restricted stock units, performance stock units, and common stock warrants15,997,2605,966,48815,997,2605,966,488

See accompanying notes to these consolidated financial statements. 

CALYXT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in Thousands)
Nine Months Ended
September 30,
20222021
Operating activities
Net loss$    (14,054 )$    (22,142 )
Adjustments to reconcile net loss to net cash used by operating activities:
Gain upon extinguishment of Payroll Protection Program loan(1,528 )
Depreciation and amortization1,1581,776
Stock-based compensation2,890865
Unrealized (gain) loss on mark-to-market of common stock warrants(5,009 )
Changes in operating assets and liabilities:
Accounts receivable4,681
Due to/from related parties(34 )(617 )
Inventory(291 )
Prepaid expenses and other current assets2972,873
Accounts payable(188 )108
Accrued expenses41(1,742 )
Accrued compensation(166 )334
Other(536 )1,029
Net cash used by operating activities(15,601 )(14,654 )
Investing activities
Proceeds from sales of short-term investments11,698
Purchases of land, buildings, and equipment(1,509 )(376 )
Net cash (used by) provided by investing activities(1,509 )11,322
Financing activities
Proceeds from the issuance of common stock, and pre-funded warrants11,209
Costs incurred related to the issuance of common stock, pre-funded warrants, and common warrants(962 )
Repayments of financing lease obligations(353 )(271 )
Proceeds from the exercise of stock options227
Net cash provided by (used by) financing activities9,894(44 )
Net (decrease) in cash, cash equivalents, and restricted cash(7,216 )(3,376 )
Cash, cash equivalents, and restricted cash – beginning of period14,42118,289
Cash, cash equivalents, and restricted cash – end of period$       7,205$     14,913

See accompanying notes to these consolidated financial statements.

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SOURCE Calyxt, Inc.

Released November 3, 2022

Calyxt Joins Bioindustrial Manufacturing and Design Ecosystem (BioMADE), a Department of Defense Initiative, to Advance Sustainable Plant-Based Biomanufacturing

Calyxt joins a select network of synthetic biology companies, top-tier academic institutions, research-focused not-for-profits, and US government agencies dedicated to innovating and growing the bioeconomy

ROSEVILLE, Minn., Nov. 1, 2022 /PRNewswire/ — Calyxt, Inc. (NASDAQ: CLXT), a plant-based synthetic biology company, announced today that it has become a member of Bioindustrial Manufacturing and Design Ecosystem (BioMADE), a Department of Defense initiated Manufacturing Innovation Institute dedicated to advancing bioindustrial manufacturing across the nation.

BioMADE membership includes a diverse network of large corporations, innovative start-ups, universities and not-for-profit research organizations to elevate and secure U.S. global leadership in advanced bioindustrial manufacturing. Calyxt intends to work with BioMADE and its nationwide roster of collaborating organizations toward BioMADE’s goal of securing America’s future through bioindustrial manufacturing innovation, education and collaboration.

“We are looking forward to collaborating with BioMADE and its member organizations to advance the development of our plant-based technology into sustainable bioproducts,” said Calyxt President and CEO Michael A. Carr. “The bioindustrial manufacturing and broader bioeconomy ecosystem is poised for significant growth, and by joining BioMADE we are positioning Calyxt to be part of that growth.”

“BioMADE is excited to welcome Calyxt into its select membership network,” said BioMADE Chief Technology Officer Melanie Tomczak. “Calyxt’s strength and knowledge in engineering sustainable plant-based solutions will bring important experience and expertise to the BioMADE community, as we collectively build the American bioindustrial manufacturing ecosystem. We are pleased, in pursuing this mission, to have Calyxt among our collaborators.”

In September, the White House announced funding of more than $2 billion to launch the National Biotechnology and Biomanufacturing Initiative to lower prices, create good jobs, strengthen supply chains, improve health outcomes, and reduce carbon emissions.

BioMADE also provides its members with opportunities for access to federal funding, industry collaboration and broader engagement in supporting the development of biomanufacturing technologies to strengthen US bioindustrial competitiveness.

About BioMADE:

BioMADE is one of nine Department of Defense Manufacturing Innovation Institutes. BioMADE and its members also seek to create a more robust, resilient, and bio-based supply chain for the U.S. to become more self-sufficient in the global marketplace. Additionally, BioMADE and its members are committed to building a diverse and globally competitive STEM workforce that is prepared and ready to fill new jobs. Learn more about BioMADE, including how your organization can join us in becoming a member, by visiting their website or following them on LinkedIn and Twitter.

About Calyxt:

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this communication include statements about the Company’s participation in, and contribution to, BioMADE and opportunities afforded to the Company by membership in BioMADE. These and other forward-looking statements are predictions and projections about future events and trends based on the Company’s current expectations, objectives, and intentions and are premised on current assumptions. The Company’s actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: the potential impact of cost reduction and other cash-focused measures to manage liquidity; increased competition, including competition from a broader array of synthetic biology companies; competition for customers, partners, and licensees and the successful execution of development and licensing agreements; disruptions at Calyxt’s or its partners key facilities; changes in customer preferences and market acceptance of its products; changes in market consensus as to what attributes are required for a product to be considered “sustainable”; the impact of adverse events during development; disruptions to supply chains, including raw material inputs for its BioFactory; and other important factors discussed in Part I, Item 1A, “Risk Factors” in the Company’s filings with the SEC, included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022, and its subsequent reports on Forms 10-Q and 8-K filed with the SEC. Any forward-looking statements made by management of the Company are based only on currently available information and speak only as of the date of this report. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

Calyxt Media Contact:
Brennan Burks, Calyxt, Inc.
(651) 724-5788
brennan.burks@calyxt.com 

Calyxt Investor Relations Contact:
Kimberly Minarovich / Cameron Willis
Argot Partners
(212) 600-1902
investors@calyxt.com

Calyxt to Host Third Quarter 2022 Financial Results Conference Call and Webcast on Thursday, November 3, 2022, at 4:30 p.m. Eastern Time

ROSEVILLE, Minn., Oct. 27, 2022 /PRNewswire/ — Calyxt, Inc. (Nasdaq: CLXT), a plant-based synthetic biology company, will host a conference call and webcast on Thursday, November 3, 2022, at 4:30 p.m. ET to discuss results for the third quarter ended September 30, 2022. A press release detailing these results will be issued prior to the call.

President and Chief Executive Officer, Michael A. Carr, and Chief Financial Officer, Bill Koschak, will host the conference call. The conference call will be webcast and can be accessed via the investor relations section of the Company’s website here.

To access the call, please use the following information:

Date:Thursday, November 3, 2022
Time:4:30 p.m. EST, 1:30 p.m. PST
Toll Free dial-in number:+1 888-317-6003
Toll/International dial-in number:+1 412-317-6061
Conference ID:10170876

Participants should call the conference telephone number 5 to 10 minutes prior to the start time. An operator will register each participant’s name and organization. The conference call will also be broadcast live and available for replay via the investor relations section of the Company’s website here.

A replay of the conference call and webcast will be available for 30 days following the event.

Toll Free Replay Number:+1 877-344-7529
International Replay Number:+1 412-317-0088
Replay ID:2769569

About Calyxt:

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

PlantSpring, BioFactory, Plant Cell Matrix™, and the Calyxt logo are trademarks of Calyxt, Inc. Any other trademarks belong to their respective owners.

Contacts:
Calyxt Media Contact:Calyxt Investor Relations Contact:
Brennan BurksCalyxt, Inc.(651) 724-5788brennan.burks@calyxt.comKimberly Minarovich/ Cameron WillisArgot Partners(212) 600-1902investors@calyxt.com

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SOURCE Calyxt, Inc.

Released October 27, 2022

Released July 21, 2022

Calyxt Successfully Produces Plant-Based Squalene, an Important Ingredient in Personal Care Products and Critical Vaccine Adjuvants

ROSEVILLE, Minn., Oct. 25, 2022 /PRNewswire/ — Calyxt, Inc. (NASDAQ: CLXT), a plant-based synthetic biology company, announced today that using a Calyxt-engineered Plant Cell Matrix™ biomass, it has successfully produced squalene, an important ingredient in many personal care products and vaccine adjuvants, including several strands of flu and COVID-19 vaccines.

Leveraging the power of its PlantSpring™ technology platform, Calyxt’s plant-based squalene is a natural alternative to animal-based squalene. This achievement marks the successful development of a more sustainable squalene option for Calyxt’s target customers and key end markets. Traditionally sourced from shark liver oil, companies across several industries, including cosmeceuticals and pharmaceuticals, have already begun to seek out alternative squalene sources for use in their products as a more sustainable path forward.

For example, in the cosmeceutical industry, squalene is an important ingredient, known to contain anti-aging properties, that is often used in topical skin care products. In pharmaceuticals, with its known abilities to boost immune system responses, squalene has become a key ingredient in vaccine adjuvants across the globe. Calyxt is working with its infrastructure partner, Evologic Technologies, to optimize speed to achieve commercial-scale production of its plant-based squalene.

“The successful production of squalene is a major success in advancing our technology platform as well as developing plant-based synthetic biology solutions,” said Michael A. Carr, President and CEO of Calyxt. “The team has done a tremendous job in refining and optimizing our technology, and we are proud to deliver a sustainable, plant-based answer for a highly sought-after ingredient in skincare products and critical vaccine adjuvants.”

About Calyxt

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

PlantSpring, BioFactory, Plant Cell Matrix™, and the Calyxt logo are trademarks of Calyxt, Inc. Any other trademarks belong to their respective owners.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this communication include statements about the Company’s pursuit of target customers and its efforts to optimize scale to achieve commercial scale production. These and other forward-looking statements are predictions and projections about future events and trends based on the Company’s current expectations, objectives, and intentions and are premised on current assumptions. The Company’s actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: the potential impact of cost reduction and other cash-focused measures to manage liquidity; increased competition, including competition from a broader array of synthetic biology companies; competition for customers, partners, and licensees and the successful execution of development and licensing agreements; disruptions at Calyxt’s or Evologic’s key facilities; changes in customer preferences and market acceptance of its products; changes in market consensus as to what attributes are required for a product to be considered “sustainable”; the impact of adverse events during development; inaccurate demand forecasting; disruptions to supply chains, including raw material inputs for its BioFactory; and other important factors discussed in Part I, Item 1A, “Risk Factors” in the Company’s filings with the SEC, included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022, and its subsequent reports on Forms 10-Q and 8-K filed with the SEC. Any forward-looking statements made by management of the Company are based only on currently available information and speak only as of the date of this report. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

Logo (PRNewsfoto/Calyxt, Inc.)
Contacts:
Calyxt Media Contact:Calyxt Investor Relations Contact:
Brennan Burks, Calyxt, Inc.; (651) 724-5788; brennan.burks@calyxt.comKimberly Minarovich/ Cameron Willis, Argot Partners; (212) 600-1902; investors@calyxt.com
Evologic Technologies Media Contact:
Samantha Morellini, Evologic Technologies GmbH; office@evologic-technologies.com

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SOURCE Calyxt, Inc.

Released October 25, 2022

Calyxt Announces Agreement with Evologic Technologies to Scale Production of its Plant-based Ingredients

Agreement will power speed-to-scale strategy to meet the growing interest in high-quality sustainable ingredients across the cosmeceutical, nutraceutical and pharmaceutical markets

ROSEVILLE, Minn., Oct. 6, 2022 /PRNewswire/ — Calyxt, Inc. (Nasdaq: CLXT), a plant-based synthetic biology company, today announced that it has signed an agreement with its first manufacturing partner, Evologic Technologies GmbH, to further develop and scale Calyxt’s proprietary Plant Cell Matrix™ (PCM™) technology platform.

The agreement supports the continued build-out of Calyxt’s plant-based synthetic biology capabilities. Evologic’s contract development and manufacturing services, based on its proprietary bioprocess platform and technology, support companies delivering unique and sustainable bioproducts. Under the terms of the agreement, Evologic will work alongside Calyxt to grow and scale Calyxt’s proprietary PCM™ technology. Specifically, Evologic will advance the manufacturing of PCM™-derived compounds and establish proof of concept for the subsequent scaling of multiple PCMs simultaneously for commercial production.

“This agreement is an important milestone in our speed-to-scale acceleration that will position us to address the growing interest in plant-based solutions across our target markets of cosmeceuticals, nutraceuticals and pharmaceuticals,” said Michael A. Carr, President and Chief Executive Officer at Calyxt. “Evologic shares our commitment to scaled and economically feasible solutions that will enable the accelerated growth of sustainable ingredients that are often difficult to source and finite in nature. We look forward to working closely with their talented team to deliver engineering innovations that help our target customers bring sustainable products to market.”

“Since our founding, we have strongly supported the industry to turn science-based biological ingredients into economically feasible, industrial-scale products,” said Wieland Reichelt, CEO and co-founder of Evologic Technologies. “Manufacturing is clearly the key for high product quality at reasonable costs even so for challenging plant based sustainable products. Through this agreement with Calyxt, we are excited to engage in changing the status quo of manufacturing plant-based solutions.

About Calyxt:

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

PlantSpring, BioFactory, Plant Cell Matrix™, and the Calyxt logo are trademarks of Calyxt, Inc. Any other trademarks belong to their respective owners.

About Evologic Technologies:

Evologic Technologies is a deep tech Spin-off of the Technical University of Vienna.

As Evologic, we believe that living microbes are the key to meeting humanities needs of today without compromising the future. Evologic turns science based biological ingredients into products by developing and scaling manufacturing processes. Evologic´s portfolio of fermentation and formulation technologies allows to grow what is otherwise considered un-culturable. As product quality is a result of excellence in fermentation Evologic’s manufacturing goes the extra mile to deliver high quality ingredients to our customers.

Evologic’s highly talented, EU-based, agile team facilitates the fast delivery of stable, highly concentrated, and pure products to our customers.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “anticipates,” “believes,” “continue,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “predicts,” “projects,” “should,” “targets,” “will,” or the negative of these terms and other similar terminology. Forward-looking statements in this report include statements about the Company’s agreement with Evologic, the ability to develop and scale Calyxt’s proprietary PCM™ technology platform, commercial demand for Calyxt’s synthetic biology solutions, and Calyxt’s ability to deliver engineering innovations to potential customers. These and other forward-looking statements are predictions and projections about future events and trends based on the Company’s current expectations, objectives, and intentions and are premised on current assumptions. The Company’s actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: the potential impact of cost reduction and other cash-focused measures to manage liquidity; disruptions arising from Calyxt’s evaluation of a range of strategic transactions; increased competition, including competition from a broader array of synthetic biology companies; competition for customers, partners, and licensees and the successful execution of development and licensing agreements; disruptions at Calyxt’s or Evologic’s key facilities; flaws in AIML algorithms, insufficiency of data inputs required by such algorithms, and human error in interacting with AIML; changes in customer preferences and market acceptance of its products; changes in market consensus as to what attributes are required for a product to be considered “sustainable”; the impact of adverse events during development, including unsuccessful pilot production of plant-based chemistries or field trials; the impact of improper handling of its product candidates during development; failures by third-party contractors; inaccurate demand forecasting or milestone and royalty payment projections; the effectiveness of commercialization efforts by commercial partners or licensees; disruptions to supply chains, including raw material inputs for its BioFactory; the impact of changes or increases in oversight and regulation; disputes or challenges regarding intellectual property; proliferation and continuous evolution of new technologies; management changes; changes in macroeconomic and market conditions, including inflation, supply chain constraints, and rising interest rates; dislocations in the capital markets; the severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; and other important factors discussed in Part I, Item 1A, “Risk Factors” in the Company’s filings with the SEC, included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022,and its subsequent reports on Forms 10-Q and 8-K filed with the SEC. Any forward-looking statements made by management of the Company are based only on currently available information and speak only as of the date of this report. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

Contacts:

Calyxt Media Contact:Calyxt Investor Relations Contact:
Brennan BurksCalyxt, Inc.(651) 724-5788brennan.burks@calyxt.comKimberly Minarovich/ Cameron WillisArgot Partners(212) 600-1902investors@calyxt.com
Evologic Technologies Media Contact:
Samantha MorelliniEvologic Technologies GmbHoffice@evologic-technologies.com

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SOURCE Calyxt, Inc.

Released October 6, 2022

Calyxt, Inc. Exploring Strategic Alternatives

ROSEVILLE, Minn., Sept. 22, 2022 /PRNewswire/ — Calyxt, Inc. (NASDAQ: CLXT) (“Calyxt”), a plant-based synthetic biology company, today announced that its Board of Directors is evaluating potential strategic alternatives to maximize shareholder value. As part of the process, the Board is considering a full range of strategic alternatives, which may include financing alternatives, merger, reverse merger, other business combinations, sale of assets, licensing, or other transactions. Calyxt has retained Canaccord Genuity as its financial advisor and Sidley Austin as its legal counsel to assist in evaluating potential strategic alternatives.

There can be no assurance that the evaluation of strategic alternatives will result in any strategic alternative, or any assurance as to its outcome or timing. Calyxt has not set a timetable for completion of the process and does not intend to disclose developments related to the process unless and until Calyxt executes a definitive agreement with respect thereto, or the Board otherwise determines that further disclosure is appropriate or required.

About Calyxt

Calyxt (NASDAQ: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

PlantSpring, BioFactory, Plant Cell Matrix™, and the Calyxt logo are trademarks of Calyxt, Inc. Any other trademarks belong to their respective owners.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “intend,” “may,” “potential,” “intend,” or the negative of these terms and other similar terminology. Forward-looking statements in this press release include statements about the board of director’s evaluation of potential strategic alternatives and their impact on shareholder value. The outcome and timing of actual developments could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to changes in macroeconomic and market conditions, any impact of this evaluation process on the Company’s negotiations with potential customers, volatility and dislocations in the capital markets and other important factors discussed in the Company’s filings with the SEC, including in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022 and its subsequent reports filed with the SEC. Any forward-looking statements made by the Company in this press release are based only on currently available information and speak only as of the date of this press release. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

Contacts:

Calyxt Media Contact:Calyxt Investor Relations Contact:
Brennan BurksCalyxt, Inc.(651) 724-5788brennan.burks@calyxt.comKimberly Minarovich/ Cameron WillisArgot Partners(212) 600-1902investors@calyxt.com
Logo (PRNewsfoto/Calyxt, Inc.)

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SOURCE Calyxt, Inc.

Released September 22, 2022

Calyxt to Present at the H.C. Wainwright 24th Annual Investment Conference

ROSEVILLE, Minn., Sept. 7, 2022 /PRNewswire/ — Calyxt, Inc. (Nasdaq: CLXT), a plant-based synthetic biology company, today announced that Michael A. Carr, President and Chief Executive Officer, and Bill Koschak, Chief Financial Officer, will present at the H.C Wainwright 24th Annual Global Investment Conference taking place September 12-14, 2022.

H.C. Wainwright 24th Annual Global Investment Conference
Date: Tuesday, September 13, 2022
Time: 2:30 p.m. ET
Webcast: https://journey.ct.events/view/89f76b34-90f0-4836-b94b-90b001e47b2a

Management is also available for 1:1 meetings during the conference. Conference attendees should reach out to the event organizers or investors@calyxt.com to schedule.

The presentation will be available for viewing and replay from the Investors section of Calyxt’s website at www.calyxt.com.

About Calyxt:

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

PlantSpring, BioFactory, Plant Cell Matrix™, and the Calyxt logo are trademarks of Calyxt, Inc. Any other trademarks belong to their respective owners.

Contacts:

Calyxt Media Contact:Calyxt Investor Relations Contact:
Brennan BurksCalyxt, Inc.(651) 724-5788brennan.burks@calyxt.com Kimberly Minarovich/ Cameron WillisArgot Partners(212) 600-1902investors@calyxt.com

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SOURCE Calyxt, Inc.

Released September 7, 2022

Calyxt Reports Second Quarter 2022 Financial Results and Provides Corporate Update

Evaluated nine new customer demand-driven plant-based chemistries in the quarter, bringing cumulative chemistries evaluated for development to 95, of these 31 meet Calyxt’s target profile and several are the subject of term sheet discussions

Engineering solution for a high-value molecule planned to be delivered in early 2023 to a large global consumer packaged goods company

Progressing discussions with multiple potential infrastructure partners who would produce chemistries in various sizes of bioreactors from pilot to commercial scale

Evaluating term sheets for technology licensing and for licensing of traits

Management to host conference call and webcast today at 4:30 p.m. ET

ROSEVILLE, Minn., Aug. 4, 2022 /PRNewswire/ — Calyxt, Inc. (Nasdaq: CLXT), a plant-based synthetic biology company, today announced financial results for its second quarter ended June 30, 2022.

“Throughout the second quarter of 2022, the Calyxt team tangibly advanced our business and related milestones. We are very pleased to be discussing term sheets for the development and production of chemistries with potential customers in our large and innovative initial target end markets. Calyxt’s progress is evidenced by the 95 customer demand-driven chemistries we have evaluated for development for potential customers, up from 86 at the end of last quarter. Chemistries identified by customers are screened and prioritized by Calyxt to focus on those with the highest probability of success. In terms of our infrastructure partner milestones, we are in discussions with several companies with capabilities to manufacture multiple chemistries concurrently from pilot to multiple commercial scale vessels on a global basis. Also importantly, we are evaluating multiple term sheets for technology licensing and for the licensing of traits, reflecting significant interest in our second-generation high oleic soybean and high fiber wheat offerings. Throughout the quarter, we also continued to work on scaling and standardizing our production in our pilot BioFactory system and building out related capabilities. We are proud of the significant progress we have made in a short period of time, and it is a testament to our new strategic direction gaining traction. We continue our focused drive to realize value for our stakeholders and look forward to providing updates in the coming months,” said Michael A. Carr, President and Chief Executive Officer at Calyxt.

Key accomplishments in the second quarter of 2022, and through the date of this press release, include the following:

Chemistries under Development for Potential Customers

  • The breadth and depth of Calyxt’s business development activities continue to grow. In the second quarter, Calyxt received nine new chemistries from potential customers for evaluation, bringing the total number of chemistries cumulatively evaluated for development with PlantSpring for production in its BioFactory to 95. Of the 95 chemistries, 31 have met Calyxt’s target product profile, or TPP, criteria and are subject to further evaluation and discussion with the potential customers. Additionally, the evaluated chemistries include several that were identified by potential customers as having been unsuccessfully attempted by others in the synthetic biology industry.
  • Leveraging the 31 customer demand-driven chemistries that have passed its TPP criteria, Calyxt is currently negotiating term sheets with several potential customers for the development of a select number of those plant-based chemistries.
  • Calyxt is performing a pilot project for a potential high-value chemistry for a large global consumer packaged goods (CPG) company. Calyxt expects to deliver an engineered solution in early 2023. This could form the basis for a formal engagement to complete development and produce the chemistry for that CPG company, or another company in the space who may be interested in the chemistry.
  • The Company’s goal remains two to four customer demand-driven compounds for development by year end using its TPP selection criteria to determine the compounds to pursue.

Discussions with Multiple Global Infrastructure Partners Underway for Production of Chemistries in Various Size Bioreactors from Pilot to Commercial Scale

  • In the second quarter of 2022, Calyxt initiated discussions with multiple potential infrastructure partners and exchanged a term sheet with one of them. These potential infrastructure partners offer a global footprint and capabilities to enable Calyxt to have the speed to scale quickly, as they have capacities from pilot to commercial scale production. These partnerships have the potential to enable the development and production of chemistries at industrial scale for customers within Calyxt’s key end markets of cosmeceuticals, nutraceuticals, and pharmaceuticals. Calyxt’s asset-lite approach enables the deployment of capital that would otherwise be spent on large scale manufacturing to its development of a robust customer base and accelerates the speed at which Calyxt can bring chemistries to potential customers.

Mr. Carr added: “The state of our discussions with potential infrastructure partners advanced during the quarter, offering a foundation to support the scalability of large customers in our key end markets. These advancements potentially accelerate Calyxt forward in terms of the speed at which we could bring our chemistries to said customers. The feedback we have thus far received from these infrastructure partners is that they understand and appreciate that Calyxt is going after hard-to-solve chemistries that are high-value and potentially high-margin. Importantly, Calyxt’s progress with these infrastructure partners not only supports future deals, but also brings value to ongoing customer conversations.”

Multiple Term Sheets for Licensing of Technology and Traits under Evaluation

  • Since Calyxt refocused its licensing business in late 2021, it has developed its strategy for maximizing potential revenue from the licensing of its technology and plant traits as announced last quarter. In the second quarter, Calyxt procured term sheets for the licensing of its patents and the licensing of its plant traits. For plant traits specifically, there has been significant interest in Calyxt’s high fiber wheat and second generation high oleic soybean offerings. These term sheet discussions with potential licensees are continuing to advance.
  • In the fourth quarter of 2021, Calyxt contracted with a large food ingredient manufacturer to develop a soybean intended to produce an oil that could serve as a replacement for palm oil. The project remains on track for a first quarter of 2024 completion. The food ingredient manufacturer is funding Calyxt’s development costs over the term of the agreement and holds an option for future development and commercialization. Given world events, Calyxt has received inbound interest from other manufacturers and users of palm oil during the quarter. Calyxt was also recently featured in an article by the Wall Street Journal focused on the Company’s licensing of traits and the potential of Calyxt’s innovation to be a solution to global supply chain restraints.

“Late last year, we announced the strategic hire of Pete Ball as Technology Licensing Leader. He has been leading our licensing business, including technology and traits, and Calyxt has since made substantial progress in discussions with potential licensees in this area. It is clear these potential licensees see the value of our offerings, especially in these times of global supply issues and food insecurity. We continue our focused drive to realize value for our stakeholders and look forward to providing updates in the coming months,” Mr. Carr continued.

Upcoming Investor Presentation

Calyxt will present at the Canaccord Genuity 42nd Annual Growth Conference on Thursday, August 11, 2022, at 1:00 p.m. ET in Boston, MA.

The presentation will be available for viewing and replay from the Investors section of Calyxt’s website at www.calyxt.com.

Financial Results for the Three Months Ended June 30, 2022

  • Cash, cash equivalents, and restricted cash totaled $11.9 million as of June 30, 2022.
  • Revenue was nominal in the second quarter of 2022 compared to $11.9 million in the second quarter of 2021. The decrease in revenue was driven by the late 2021 completion of the wind-down of the Company’s soybean product line. Revenue in the second quarter of 2022 was primarily associated with the Company’s agreement with a food ingredient manufacturer to develop a palm oil alternative.
  • Total operating expenses were $6.8 million in the second quarter of 2022 compared to $6.3 million in the second quarter of 2021. The increase was primarily driven by the Company’s adoption of the lease accounting standard which shifted amounts previously reported in interest, net to operating expenses.
  • Net loss was $2.5 million in the second quarter of 2022 compared to $4.8 million in the second quarter of 2021. The improvement in net loss was driven by non-operating income (expenses) including the mark-to-market of the Common Warrants derivative liability, which declined in value due to a decline in stock price in 2022, partially offset by the gain realized on the forgiveness of the Payroll Protection Program loan in the second quarter of 2021. Net loss per share was $0.05 in the second quarter of 2022 compared to $0.13 in the second quarter of 2021. The improvement in net loss per share was driven by the improvement in net loss and a year-over-year increase in weighted average shares outstanding.
  • Adjusted net loss was $6.7 million in the second quarter of 2022 compared to $7.8 million in the second quarter of 2021. The improvement in adjusted net loss was driven by the completion of the wind-down of the soybean product line in late 2021. Adjusted net loss per share was $0.14 in the second quarter of 2022 compared to $0.21 in the second quarter of 2021. The improvement in adjusted net loss per share was driven by the improvement in adjusted net loss and a year-over-year increase in weighted average shares outstanding.

“We are happy with the progress we are making across both our product development activities using PlantSpring for BioFactory production and licensing of patents and traits. Additionally, the discussions we are having with potential infrastructure partners brings us closer to enabling our ability to confidently scale production for potential customers while deploying an asset-lite approach that accelerates the speed in which Calyxt can bring chemistries to potential customers,” said Bill Koschak, Chief Financial Officer at Calyxt. “We continue to be disciplined in our use of cash and thanks to the successful offering of our common stock and warrants in February 2022 that resulted in $10.0 million dollars in net proceeds, and assessing our discretionary spending, we continue to expect Calyxt’s cash runway to reach into early 2023.”

Second Quarter 2022 Results Conference Call

Calyxt’s President and Chief Executive Officer, Michael A. Carr, and Chief Financial Officer, Bill Koschak, will host a conference call discussing Calyxt’s results for the second quarter of 2022, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of Calyxt’s website at www.calyxt.com.

To access the call, please use the following information:

Date:Thursday, August 4, 2022
Time:4:30 p.m. EST, 1:30 p.m. PST
Toll Free dial-in number:+1-888-317-6003
Toll/International dial-in number:+1-412-317-6061
Conference ID:0247091

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. The conference call will also be broadcast live and available for replay via the investor relations section of the company’s website at www.calyxt.com.

A replay of the conference call and webcast will be available for 30 days following the event

About the PlantSpring™ Technology Platform and BioFactory™ Production System

Calyxt’s technology platform, PlantSpring, is founded on the Company’s more than a decade of experience engineering plant metabolism, and incorporates its scientific knowledge, its proprietary systems, tools, and technologies; and an expanding set of related capabilities. In PlantSpring, the Company identifies metabolic pathways to produce plant-based chemistries, designs strategies to reprogram host cells, engineers plant cell metabolism to optimally produce targeted compounds, and produces those targeted compounds at laboratory scale. The Company has implemented AIML capabilities for the identification of targets for editing specific genetic pathways and continues to develop AIML capabilities across the PlantSpring platform, which will enable learning and adaptation of knowledge gained from past activity and are expected to be combined with predictive analytics to rapidly prototype and provide feedback, accelerate the time to complete the development cycle and help mitigate the risk associated with commercial scale-up. As a result, Calyxt believes it can develop biomolecules in plants for customers at both a greater breadth and level of complexity and at faster speeds than its competitors in the synthetic biology industry. The output from the PlantSpring platform integrates with the Company’s BioFactory production system. The Company uses the term “compounds” to describe compounds, molecules, and plant-based chemistries interchangeably.

The BioFactory is a bioreactor-based production system that is designed to be capable of continuous production of plant-based chemistries. The bioreactor can be of any size depending upon factors including yield and titer necessary to reach the required commercial scale. For production, multicellular Plant Cell Matrix™ (PCM™) structures are placed inside the bioreactor, and growth media bathes the PCM structures to provide them with nutrition, which differentiates the Company’s process from other methods that require complete submersion of cells in growth media and/or the application of hormones to facilitate growth. A PCM structure is a living system of various cell types, which is designed to emulate the intercellular metabolism of an entire plant, which grows over time, produces, and stores, or excretes, the target chemistries. The growth media is the feedstock of the BioFactory production system and contains the essential inputs to support growth of the PCM structures and necessary chemistry production. The growth media is expected to be reused throughout the production cycle, which may run for an extended time period. To scale production in the BioFactory productions system, the Company expects to move the PCM structures from its current bioreactor into larger capacity bioreactors or groups of bioreactors. Calyxt began running lab-scale bioreactors in early 2021. The Company’s first pilot-scale bioreactor became operational in December 2021 and is scalable up to 200 liters. The pilot stage of development takes a compound developed with the PlantSpring platform through to commercial production. Depending on the compound to be produced, there may be a range of vessel sizes between the initial pilot facility and the commercial production facility. The Company’s current plan is to engage third parties, referred to as infrastructure partners, for at-scale commercial production. Infrastructure partners are likely to be companies with processing assets that can be converted from current production to the Company’s bioreactor-based approach. If an infrastructure partner is used for production, the Company expects to pay a fee for that production. Because of the expected modular nature of the BioFactory production system and the types of high value compounds the Company expects to develop for customers, it is also possible that commercial production could also occur in a customer’s in-house facility. The Company expects to expand the scope of its pilot facilities based on customer demand, and the scope of production could extend, subject to regulatory and other considerations, outside the United States. Because of its production methodology, Calyxt believes the BioFactory has the potential to be one of the most sustainable production systems across industries.  

About Calyxt

Calyxt (Nasdaq: CLXT) is a plant-based synthetic biology company. The Company leverages its proprietary PlantSpring™ technology platform to engineer plant metabolism to produce innovative high value plant-based chemistries for use in customers’ materials and products. As plant-based solutions, the Company’s synthetic biology products can be used in helping customers meet their sustainability targets and financial goals. Calyxt’s diversified offerings are primarily delivered through its proprietary BioFactory™ production system. For more information, visit www.calyxt.com.

PlantSpring, BioFactory, Plant Cell Matrix™, and the Calyxt logo are trademarks of Calyxt, Inc. Any other trademarks belong to their respective owners.

Contacts

Calyxt Media Contact:Calyxt Investor Relations Contact:
David Rosen/ John Garabo/ Michael Barron
Argot Partners  (212) 600-1902media@calyxt.com 
Kimberly Minarovich/ Cameron Willis 
Argot Partners(212) 600-1902investors@calyxt.com 
Calyxt Business Development Contact:
Gerry NuovoSenior Vice President of Business
Development(612) 427-7881contact@calyxt.com

USE OF NON-GAAP FINANCIAL INFORMATION

To supplement the Company’s financial results prepared in accordance with GAAP, it has prepared certain non-GAAP measures that include or exclude special items. These non-GAAP measures are not meant to be considered in isolation or as a substitute for financial information presented in accordance with GAAP and should be viewed as supplemental and in addition to the Company’s financial information presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In addition, other companies may report similarly titled measures, but calculate them differently, which reduces their usefulness as a comparative measure. Management utilizes these non-GAAP metrics as performance measures in evaluating and making operational decisions regarding the Company’s business.

The Company’s 2021 non-GAAP financial measures reflect adjustments for certain commodity derivatives entered into in connection with its soybean product line. As a result of the completed wind-down of this product line in late 2021, the Company held no commodity derivative contracts as of June 30, 2022.

The Company presents adjusted net loss, a non-GAAP measure, and defines it as net loss adjusted for (i) unrealized gains and losses associated with commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed price grain production agreements that should be recognized in the future when the underlying inventory is sold, (ii) gains and losses from commodity derivatives realized in prior periods but associated with inventory sold in the current period, (iii) net realizable value adjustments to inventories occurring in the period which otherwise would have been recognized in the future when the underlying inventory is sold, and (iv) net realizable value adjustments recognized in prior periods but associated with inventory sold in the current period, and excluding cash-based Section 16 officer transition expenses, the recapture of non-cash stock compensation associated with the departure of Section 16 officers, the gain upon the extinguishment of the Payroll Protection Program (PPP) loan, and non-operating income (expenses). The foregoing adjustments are those necessary to present the underlying gross profit of the Company’s soybean product line for the 2021 periods presented, together with the corresponding adjustments to the extent applicable to the corresponding 2022 periods presented.

The Company provides in the table below a reconciliation of net loss, which is the most directly comparable GAAP financial measure, to adjusted net loss. The Company provides adjusted net loss because it believes that this non-GAAP financial metric provides investors with useful supplemental information in light of the Company’s business model during the periods presented, as the amounts being adjusted affect the period-to-period comparability of net losses and financial performance.

The table below presents a reconciliation of net loss to adjusted net loss:

Three Months Ended June 30, Six Months Ended June 30, 
In Thousands2022202120222021
Net loss (GAAP measure)         $       (2,485 )$       (4,807 )$       (8,104 )$     (14,835 )
Non-GAAP adjustments:
Commodity derivative impact, net     (658 )(447 )
Net realizable value adjustment to inventories     (859 )(72 )
Section 16 officer transition expenses        116132322,734
Recapture of non-cash stock compensation          (2,540 )
Gain upon extinguishment of Payroll Protection Program loan(1,528 )(1,528 )
Non-operating income (expenses)    (4,296 )(6 )(4,783 )(5 )
Adjusted net loss $       (6,665 )$       (7,845 )$     (12,655 )$     (16,693 )

The Company presents adjusted net loss per share, a non-GAAP measure, and defines it as net loss per share adjusted for (i) unrealized gains and losses associated with commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed price grain production agreements that should be recognized in the future when the underlying inventory is sold, (ii) gains and losses from commodity derivatives realized in prior periods but associated with inventory sold in the current period, (iii) net realizable value adjustments to inventories occurring in the period which otherwise would have been recognized in the future when the underlying inventory is sold, and (iv) net realizable value adjustments recognized in prior periods but associated with inventory sold in the current period, and excluding cash-based Section 16 officer transition expenses, the recapture of non-cash stock compensation associated with the departure of Section 16 officers, the gain upon the extinguishment of the PPP loan, and non-operating income (expenses). The foregoing adjustments are those necessary to present the underlying gross profit of the Company’s soybean product line for the 2021 periods presented, together with the corresponding adjustments to the extent applicable to the corresponding 2022 periods presented.

The Company provides in the table below a reconciliation of net loss per share, which is the most directly comparable GAAP financial measure, to adjusted net loss per share. The Company provides adjusted net loss per share because it believes that this non-GAAP financial metric provides investors with useful supplemental information in light of the Company’s business model during the periods presented, as the amounts being adjusted affect the period-to-period comparability of net losses per share and financial performance.

The table below presents a reconciliation of net loss per share to adjusted net loss per share:

Three Months Ended June 30, Six Months Ended June 30, 
2022202120222021
Net loss per share (GAAP measure)  $         (0.05 )$          (0.13 )$          (0.18 )$          (0.40 )
Non-GAAP adjustments:
Commodity derivative impact, net     (0.02 )(0.01 )
Net realizable value adjustment to inventories     (0.02 )
Section 16 officer transition expenses        0.010.07
Recapture of non-cash stock compensation          (0.07 )
Gain upon extinguishment of Payroll Protection Program loan(0.04 )(0.04 )
Non-operating income (expenses)    (0.09 )(0.11 )
Adjusted net loss per share    $         (0.14 )$          (0.21 )$          (0.28 )$          (0.45 )

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “anticipates,” “believes,” “continue,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “predicts,” “projects,” “should,” “targets,” “will,” or the negative of these terms and other similar terminology. Forward-looking statements in this report include statements about the Company’s future financial performance, including its cash runway; its product pipeline and development; its business model and strategies for the development, commercialization and sales of commercial products; commercial demand for its synthetic biology solutions; the development and deployment of its PlantSpring technology platform; its ability to deploy and leverage its artificial intelligence and machine learning (AIML) capabilities; the ability to scale production capability for its BioFactory production system; potential development agreements, partnerships, customer relationships, and licensing arrangements and their contribution to its financial results, cash usage, and growth strategies; the potential impact of the COVID-19 pandemic on its business and operating results; and anticipated trends in its business. These and other forward-looking statements are predictions and projections about future events and trends based on the Company’s current expectations, objectives, and intentions and are premised on current assumptions. The Company’s actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: the impact of increased competition, including competition from a broader array of synthetic biology companies; competition for customers, partners, and licensees and the successful execution of development and licensing agreements; disruptions at its key facilities, including disruptions impacting its BioFactory production system; flaws in AIML algorithms, insufficiency of data inputs required by such algorithms, and human error in interacting with AIML; changes in customer preferences and market acceptance of its products; changes in market consensus as to what attributes are required for a product to be considered “sustainable”; the impact of adverse events during development, including unsuccessful pilot production of plant-based chemistries or field trials; the impact of improper handling of its product candidates during development; failures by third-party contractors; inaccurate demand forecasting or milestone and royalty payment projections; the effectiveness of commercialization efforts by commercial partners or licensees; disruptions to supply chains, including raw material inputs for its BioFactory; the impact of changes or increases in oversight and regulation; disputes or challenges regarding intellectual property; proliferation and continuous evolution of new technologies; management changes; changes in macroeconomic and market conditions, including inflation, supply chain constraints, and rising interest rates; dislocations in the capital markets; the severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; and other important factors discussed in Part I, Item 1A, “Risk Factors” in the Company’s filings with the SEC, included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022 (its Annual Report) and its subsequent reports on Forms 10-Q and 8-K filed with the SEC. Any forward-looking statements made by management of the Company are based only on currently available information and speak only as of the date of this report. Except as otherwise required by securities and other applicable laws, the Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change.

CALYXT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Par Value and Share Amounts)
June 30, 2022
(unaudited)
December 31,
2021
Assets
Current assets:
Cash and cash equivalents        $     11,316$     13,823
Restricted cash     545499
Prepaid expenses and other current assets1,002859
Total current assets        12,86315,181
Non-current restricted cash    5399
Land, buildings, and equipment         5,07721,731
Operating lease right-of-use assets   13,855
Other non-current assets         169183
Total assets$     32,017$     37,194
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $           519$       1,260
Accrued expenses          262339
Accrued compensation  2,2722,522
Due to related parties    101172
Current portion of financing lease obligations      246370
Common stock warrants688
Other current liabilities 413191
Total current liabilities   4,5014,854
Financing lease obligations      3717,506
Operating lease obligations     13,652
Other non-current liabilities    68702
Total liabilities      18,25823,062
Stockholders’ equity:
Common stock, $0.0001 par value; 275,000,000 shares authorized; 46,815,694 shares issued and
     46,715,542 shares outstanding as of June 30, 2022, and 38,874,146 shares issued and 38,773,994
     shares outstanding as of December 31, 2021  
54
Additional paid-in capital          218,161211,263
Common stock in treasury, at cost; 100,152 shares as of June 30, 2022, and December 31, 2021   (1,043 )(1,043 )
Accumulated deficit       (203,364 )(196,092 )
Total stockholders’ equity       13,75914,132
Total liabilities and stockholders’ equity     $     32,017$     37,194
CALYXT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands Except Shares and Per Share Amounts)
Three Months Ended June 30,Six Months Ended June 30, 
2022202120222021
Revenue     $                41$        11,880$                73$        16,282
Cost of goods sold11,52718,272
Gross profit4135373(1,990 )
Operating expenses:
Research and development     3,2502,8446,1915,894
Selling, general, and administrative   3,5563,4936,7367,781
Total operating expenses          6,8066,33712,92713,675
Loss from operations     (6,765 )(5,984 )(12,854 )(15,665 )
Gain upon extinguishment of Payroll Protection Program loan          1,5281,528
Interest, net          (16 )(357 )(33 )(703 )
Non-operating income (expenses)    4,29664,7835
Loss before income taxes        (2,485 )(4,807 )(8,104 )(14,835 )
Income taxes        
Net loss      $         (2,485 )$         (4,807 )$         (8,104 )$      (14,835 )
Basic and diluted net loss per share $           (0.05 )$           (0.13 )$           (0.18 )$           (0.40 )
Weighted average shares outstanding – basic and diluted      46,663,47537,199,34944,354,61037,168,018
Anti-dilutive stock options, restricted stock units, performance stock
     units, and common stock warrants        
16,234,0305,223,32716,234,0305,223,327
CALYXT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in Thousands)
Six Months Ended
June 30,
20222021
Operating activities
Net loss$ (8,104 )$ (14,835 )
Adjustments to reconcile net loss to net cash used by operating activities:
Gain upon extinguishment of Payroll Protection Program loan(1,528 )
Depreciation and amortization7631,180
Stock-based compensation      1,855(371 )
Unrealized (gain) loss on mark-to-market of common stock warrants(4,723 )
Changes in operating assets and liabilities: 
Accounts receivable       893
Due to/from related parties     (71 )(638 )
Inventory    (1,085 )
Prepaid expenses and other current assets53,301
Accounts payable (114 )1,254
Accrued expenses(87 )(555 )
Accrued compensation  (250 )143
Other(550 )992
Net cash used by operating activities          (11,276 )(11,249 )
Investing activities
Proceeds from sales of short-term investments   11,698
Purchases of land, buildings, and equipment        (1,289 )(307 )
Net cash (used by) provided by investing activities        (1,289 )11,391
Financing activities
Proceeds from the issuance of common stock, and pre-funded warrants   11,209
Costs incurred related to the issuance of common stock, pre-funded warrants, and common warrants     (961 )
Repayments of financing lease obligations  (190 )(178 )
Proceeds from the exercise of stock options        227
Net cash provided by financing activities    10,05849
Net (decrease) increase in cash, cash equivalents, and restricted cash       (2,507 )191
Cash, cash equivalents, and restricted cash – beginning of period    14,42118,289
Cash, cash equivalents, and restricted cash – end of period    $ 11,914$ 18,480

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SOURCE Calyxt, Inc.

Released August 4, 2022