NRGene’s Genomics Platform to Accelerate Calyxt’s Trait Discovery in Hemp
Roseville, MN – November 11, 2020 –Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, today announced a research collaboration with NRGene® that includes the adoption of NRGene’s cloud-based genomics platform to support key Calyxt’s research projects. The genomics solutions are expected to allow for more comprehensive evaluations to accelerate trait discovery and breeding across multiple crops.
Calyxt is leveraging its proprietary breeding techniques and TALEN® technology to optimize product performance and transition hemp to a broad acre crop for use across food, industrial fiber and therapeutic applications.
NRGene’s QuickGENETICS™ technology analyzes breeding populations, delivers high resolution genetic mapping, and generates unique genetic markers for high value traits. NRGene’s CannaGene™ technology is an optimized and customizable genomics database allowing for the search and discovery of novel gene candidates to enable Calyxt targeting of key traits of interest in hemp.
Calyxt is integrating NRGene’s genomic resources to build out its proprietary predictive data analytics, which combines insights, scientific data, predictive algorithms, and data visualization tools to develop customized products to meet specific customer requirements. The company is also adopting advanced technologies like artificial intelligence, machine learning and augmented reality to enhance its data analytics capabilities.
“The synergistic potential of combining NRGene’s genomic resources with our evolving predictive analytics program will give us a deeper understanding of the complex genomics of hemp and discover novel pathways to target,” said Travis Frey, chief technology officer at Calyxt. “Having access to NRGene’s technology helps jumpstart our ability to quickly identify gene targets of interest to optimize the hemp crop.”
“We are honored that Calyxt chose our technology solutions to speed up their trait discovery and integration in hemp,” said Dr. Gil Ronen, NRGene’s CEO and co-founder. “Hemp genome is still relatively unresearched territory and Calyxt is in a great position to lead the industry and develop new, disruptive varieties of hemp for diverse key commercial markets.”
NRGene is a genomics company that provides turn-key solutions. Relying on a vast proprietary database and AI-based technologies, we provide the largest seed and food companies in the world with the computational tools they need to maximize their crop yield, significantly saving them time and cost. NRGene’s tools have already been implemented by some of the leading agribiotech companies worldwide, as well as the most influential research teams in academia.
For more information please visit our website at www.nrgene.com.
For further information, please contact:
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
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,” “targets,” “intends,” “may,” “might,” “plans,” “potential,” “predicts,” “projects,” “should,” or “will,” the negative of these terms and other similar terminology. Forward-looking statements in this press release include statements about the potential impact of the COVID-19 pandemic on our business and operating results; our future financial performance; product pipeline and development; our business model and strategies for commercialization and sales of commercial products; regulatory progression; potential collaborations, partnerships and licensing arrangements and their contribution to our financial results, cash usage, and growth strategies; and anticipated trends in our business. These and other forward-looking statements are predictions and projections about future events and trends based on our current expectations, objectives and intentions and premised on current assumptions. Our 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 severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; the impact of increased competition, including with respect to enhanced quality alfalfa; disruptions at our or our collaborators’ key facilities; changes in customer preferences and market acceptance of our or our partners’ products, including hemp product candidates; competition for collaboration partners and licensees and the successful execution of collaborations and licensing agreements; the impact of adverse events during development, including unsuccessful field trials or development trials or disruptions in seed production; the impact of improper handling of our product candidates by unaffiliated third parties during development, such as the improper aerial spraying of our high fiber wheat product candidate; failures by third-party contractors; inaccurate demand forecasting, including with respect to sales projections used by Calyxt management in determining potential license revenues; the effectiveness of commercialization efforts by commercial partners or licensees; our ability to make grain sales on terms acceptable to us; the timing of our grain sales; our ability to collect accounts receivable; disruptions to supply chains, including transportation and storage functions; commodity price conditions; 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; dislocations in the capital markets; and other important factors discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K and subsequent filings on Form 10-Q or 8-K with the U.S. Securities and Exchange Commission. Any forward-looking statements made by us are based only on information currently available to us when, and speaks only as of the date, such statement is made. Except as otherwise required by securities and other applicable laws we do 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.
Execution of Commercial Agreement with S&W Seed Company on IQ™ Alfalfa Product, Marking Calyxt’s First Trait License Agreement
Significant Progress Achieved on Soybean Product Transition Plan
Third Quarter 2020 Revenue Increases 77% to $5.2 Million Year-On-Year
Cash Runway Extended into the Second Half of 2022
Management to Host Conference Call Today at 4:30 p.m. ET
Roseville, MN – November 5, 2020 –Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, has reported its financial results for the third quarter ended September 30, 2020.
Execution of commercial agreement with S&W Seed Company on IQ™ Alfalfa product, marking Calyxt’s first trait license agreement:
Based on long-term U.S. sales projections, the agreement could potentially generate more than $10M of license revenue over the life of the pending patent for the trait.
The enhanced trait gives farmers the opportunity to produce alfalfa forage for livestock with improved digestibility, which may lead to greater animal performance. The trait is designed to result in a higher value alfalfa produced on the same acre with the same inputs, putting greater profitability in the hands of the farmer.
IQ Alfalfa adds value to the market as a high-quality alfalfa with a strong yield that delivers benefits to growers as well as the dairy and cattle industries.
“As our first trait license agreement, this alfalfa launch represents a milestone in the execution of Calyxt’s three go-to-market strategies,” said Jim Blome, CEO of Calyxt. “It is a great demonstration of Calyxt’s ability to work collaboratively, choose traits to enhance value, do the research to make it happen, and support S&W Seed Company in bringing advanced plant science to market.”
Significant progress achieved on soybean product transition plan:
Executing on the advancement of our soybean products to a streamlined go-to-market strategy that was announced in August.
Staffing adjustments related to soybean processing and product sales, as well as the gradual exit of supply chain contractual commitments that are not associated with the ongoing seed go-to-market strategy, are progressing on schedule.
Contracted grain purchases, subsequent sales of grain, and the wind down of other contractual obligations are on-track to be completed in late 2021.
As of today, all current inventory of soybean oil and meal has been sold, and we are negotiating with large processors for the sale of all remaining grain inventories as well as the grain from our 2020 grower production contracts. The grain sales are projected to occur at then-current market prices.
Our revenue for the quarter increased 77% compared to the prior year third quarter to $5.2 million because of these selling activities, including the sale nearly all our 2019 grain crop during the quarter.
We intend to target seed sales to large grain processors, representing at least $3 million in projected 2021 revenue.
Additional Third Quarter 2020 and Subsequent Operational Highlights:
Appointed current board member Yves Ribeill, Ph.D., as Chairman, and Laurent Arthaud (Cellectis-nominated Board member) as Director.
Commenced execution on differentiated go-to-market strategies that are expected to optimize our TALEN® technology platform and accelerate our trajectory toward positive free cash flow. Our go-to-market strategies are as follows:
Seed Sale Arrangements: Through purchase agreements for the direct sale of seed, with such sales expected to generate revenue for Calyxt.
Trait and Product Licensing Arrangements: Through licensing agreements with downstream partners with respect to Calyxt-developed traits or products for negotiated upfront and milestone payments and potential royalties upon commercial sale of products.
TALEN® Licensing Arrangements: Through licensing agreements with third parties with respect to our technology for negotiated upfront and annual fees and potential royalties upon commercial sale of products.
Patent portfolio continues to grow with allowances across multiple families and geographies, including TALEN and CRISPR gene editing tools. Filed patent applications focus on gene editing enhancements as well as new technologies in hemp, pulses and oats.
Appointed Dan Voytas, Ph.D., to chair new scientific advisory board. The scientific advisory board is expected to address near-term pipeline opportunities, longer-term large-scale opportunities, and the development of Calyxt’s approach to ESG issues.
Appointed Sarah Reiter as Vice President of Business Development. Sarah is a plant-based technology and agribusiness leader who has focused on establishing world-class partnerships and value chains that lead to the successful commercialization of emerging technologies for companies of all sizes. Sarah will make a strong contribution to the overall commercial strategy for Calyxt’s future products, including the prioritization of markets, customers, and product types.
On October 20, 2020, completed a registered direct offering of 3.75 million shares of the company’s common stock at a purchase price of $4.00 per share, resulting in gross proceeds of $15 million; Cellectis S.A., Calyxt’s majority shareholder, purchased 1.25 million shares in the offering.
Third Quarter 2020 Development Pipeline:
During the third quarter we advanced four of the projects in the table below from Discovery to Phase I of our development process, and today we have eight projects at Phase 1 stage or later in development across alfalfa, hemp, oats, soybeans, and wheat. We are also exploring improved protein and flavor profile in pulse crops, with several options under consideration.
CROP
TRAIT
TARGET COMMERCIAL PLANTING YEAR
TARGET GO-TO-MARKET STRATEGY
Alfalfa
Improved Digestibility
2021
Trait
Wheat
High Fiber
2022
Seed
Soybean
High Oleic, Low Linolenic (HOLL)
2023
Seed
Hemp
Marketable Yield2
2023
Seed and Trait
Hemp
Low THC for Food, Fiber, & Therapeutics2
2024
Seed and Trait
Oat
Cold Tolerant2
2026
Seed and Trait
Soybean
Improved HOLL
2026
Seed
Soybean
High Saturated Fat2
2026
Seed and Trait
Pulse
Improved Protein Profile and Flavor
2027
Trait
1 The agronomic and functional quality of our product candidates and the timing of development are subject to a variety of factors and risks, which are described in our filings with the Securities and Exchange Commission.
2 These projects were advanced from Discovery to Phase I of our development process during the third quarter of 2020.
Calyxt is also actively negotiating agreements with potential partners with respect to specific opportunities for which development activity would only commence upon reaching a commercial agreement. These projects are not included in the preceding table.
CEO Summary
“The third quarter of 2020 was marked by two key milestones: an initial validation of our licensing business model with the execution of our agreement for Calyxt’s alfalfa product candidate and the continued transition of our soybean products to a seed go-to-market strategy,” said Jim Blome, Calyxt CEO. “We expect to continue selling grain in the fourth quarter, and the overall transition timeline remains on track.”
“We proved a gene edited food product could be developed and launched with commercial success, and now we have found a more optimal way for it to be monetized, in a business model that fits our company well. In terms of our go-to-market strategies to optimize the TALEN technology platform, we are focusing our R&D and business development efforts to provide our shareholders with the benefits of a less complex and highly accretive business model characterized by lower non-R&D funding needs and, over time, a higher margin recurring revenue stream that does not require significant capital investment to operate. We anticipate the structure of future agreements and the amount and timing of cash flows will vary depending upon several factors, including cost to develop, size of the opportunity, and the stage at which a partner or licensee enters the development process. Success here would propagate future projects and will further sharpen our gene-editing excellence and build on our successful track record and growing intellectual property portfolio.”
“We believe there is a significant market opportunity for products developed with our TALEN technology, including these major areas: first, developing crops that grow in a changing world – this is a large and close-in area of opportunity where we seek to address changes in consumer trends and preferences as well as sustainability challenges our potential partners are facing; and second, transforming farm economics – where we seek to deliver products that result in increased financial benefit, like providing cover crops that could be monetized as a second source of income off the same acre,” added Blome.
“Calyxt’s focus on disruptive innovation utilizing plant-based inputs has opened new doors during the third quarter and our continuing conversations with potential partners are progressing nicely. Through our streamlined business model with differentiated go-to-market strategies, we are targeting diverse revenue streams across multiple industries, a high double-digit margin profile, and an accelerated path to positive free cash flow. We believe the advancement of our soybean products, anticipated cash receipts from our product development efforts with partners, and new cash infusion extends our anticipated cash runway into the second half of 2022.”
“We look forward to sharing more on our developing story with respect to the key projects and business model during Calyxt’s Virtual Analyst Day on November 17, 2020,” concluded Blome.
Financial Results for the Three Months Ended September 30, 2020
Revenue increased by $2.3 million, or 77 percent, from the third quarter of 2019 to $5.2 million in the third quarter of 2020. The revenue growth was driven by 15 basis points of volume and 64 basis points of pricing, both partially offset by 2 basis points of unfavorable product mix as we sold more meal in 2020 as a percent of total revenue than the prior period. Most oil revenue in 2020 was from a single customer purchasing our oil to be used as a plant-based alternative to synthetic fluids, and we expect to fulfill their remaining orders in the fourth quarter of 2020.
Cost of goods sold increased by $3.5 million from the third quarter of 2019 to $7.1 million in the third quarter of 2020. The increase in cost of goods sold reflects the higher volume of product sold, the impact of lower costs associated with products sold in 2019 because $2.8 million of grain costs were previously expensed as R&D, $1.1 million of commodity derivative losses from hedging contracts sold to convert our fixed price grain inventories and fixed price Forward Purchase Contracts from fixed to floating prices, consistent with how we expect to sell the grain, and a $0.2 million increase in the net realizable value adjustment to period-end inventories. These increases were partially offset by lower product costs and the benefits resulting from the advancement of our soybean product line go-to-market strategy.
Gross margin was a negative $1.8 million, or a negative 35 percent, in the third quarter of 2020, a decrease of $1.2 million, or a negative 16 percent, from the third quarter of 2019. The decline in gross margin in the third quarter of 2020 reflects the impact of lower costs associated with products sold in 2019 because $2.8 million of grain costs were previously expensed as R&D, $1.1 million of commodity derivative losses from hedging contracts sold to convert our fixed price grain inventories and fixed price Forward Purchase Contracts from fixed to floating prices, consistent with how we expect to sell the grain, and a $0.2 million increase in the net realizable value adjustment to period-end inventories. These increases were partially offset by lower product costs and the benefits resulting from the advancement of our soybean product line go-to-market strategy.
Gross margin, as adjusted, was negative $1.3 million, or negative 24 percent, in the third quarter of 2020, as compared to negative $2.5 million, or negative 86 percent, in the third quarter of 2019. The improvement was driven by higher selling prices, lower product costs, and the benefits resulting from the advancement of our soybean product line go-to-market strategy.
See below under the heading “Use of Non-GAAP Financial Information” for a discussion of gross margin, as adjusted, and a reconciliation of gross margin, the most comparable GAAP measure, to gross margin, as adjusted.
Research and Development (R&D) expenses decreased by $1.4 million to $2.2 million, driven by a decrease in stock compensation expense of $0.5 million from the recapture of non-cash stock compensation expense from the forfeiture and modification of unvested stock awards. The same period in 2019 also included $0.5 million of expense to write off R&D tax credits that were no longer realizable.
Selling & Supply Chain expenses decreased by $0.9 million to $0.4 million, driven by a decrease in stock compensation expense of $0.6 million from the recapture of non-cash stock compensation expense from the forfeiture of unvested stock awards, partially offset by higher year-over-year compensation expenses.
General & Administrative expenses decreased by $0.7 million to $4.2 million, driven by a decrease in stock compensation expense of $1.0 million and lower personnel costs of $0.5 million, partially offset by an increase in insurance costs.
Restructuring costs include the impact of severance and other expenses resulting from the action we initiated in August 2020 to advance our soybean product line go-to-market strategy.
Net loss was $9.5 million in the third quarter of 2020, an improvement of $1.2 million from the third quarter of 2019. The improvement was driven by a reduction in non-cash stock compensation expenses of $2.1 million, partially offset by a decline in gross margins of $1.2 million, and $0.4 million of restructuring costs. The same period in 2019 also included $0.5 million of expense to write off R&D tax credits that were no longer realizable.
Adjusted net loss was $9.3 million in the third quarter of 2020, an improvement of $2.6 million from the third quarter of 2019, driven by the benefits resulting from the advancement of our soybean product line go-to-market strategy.
See below under the heading “Use of Non-GAAP Financial Information” for a discussion of adjusted net loss and a reconciliation of net loss, the most comparable GAAP measure, to adjusted net loss.
Net loss per share was $0.29 in the third quarter of 2020, an improvement of $0.03 per share from the third quarter of 2019, driven by the change in net loss.
Adjusted net loss per share was $0.28 in the third quarter of 2020, an improvement of $0.08 per share from the third quarter of 2019, driven by the change in adjusted net loss.
See below under the heading “Use of Non-GAAP Financial Information” for a discussion of adjusted net loss per share and a reconciliation of net loss per share, the most comparable GAAP measure, to adjusted net loss per share.
Adjusted EBITDA loss was $7.1 million in the third quarter of 2020, an improvement of $1.8 million from the third quarter of 2019.
See below under the heading “Use of Non-GAAP Financial Information” for a discussion of adjusted EBITDA and a reconciliation of net loss, the most comparable GAAP measure, to adjusted EBITDA.
Net cash used in the third quarter of 2020 improved by $4.2 million to $5.8 million, driven by a $4.6 million net decrease in cash flows used by operating assets and liabilities, primarily the result of the timing of cash payments to growers and changes in inventory balances year-over-year, and a $0.6 million reduction in purchases of land, buildings, and equipment, as the improvement in net loss of $1.2 million was driven by a $2.1 million decline in non-cash stock compensation expense.
Cash, cash equivalents, short-term investments, and restricted cash totaled $29.4 million as of September 30, 2020.
CFO Summary
“The third quarter of 2020 was highlighted by the significant progress we made on transitioning our soybean products to a streamlined go-to-market strategy. The sales of grain to a large processor resulted in 77% growth in our revenues to $5.2 million. We shed most of our freight leases and other soybean-related costs in the period,” said Bill Koschak, CFO of Calyxt. “We expect to sell the remaining grain we own or will purchase at market prices, and, to help protect the cash margins of those sales, we have utilized commodity derivatives to convert our fixed price exposures to market.”
“Our adjusted gross margin performance in the quarter was as expected based on the mix of product sold and following the announcement we made earlier in the quarter to advance our soybean products to a streamlined go-to-market strategy. We sold all our soybean oil and meal inventory in the quarter and have sold nearly all our 2019 grain inventory. These results demonstrate the on-track progress we are making toward completing the transition of the products on schedule.”
“We also signed a commercial license agreement early in the fourth quarter for our improved quality alfalfa trait. Following completion of remaining regulatory work, the agreement provides for royalty payments on seed sales, which we estimate could reach approximately $10 million over the life of the pending patent for the trait. This is one small but illustrative example of the earnings potential Calyxt has, which we expect to unlock with our future project launches executed with a similar go-to-market strategy,” said Koschak.
“After the closing of the third quarter Calyxt completed a capital raise with gross proceeds of $15.0 million, which together with the advancement of our soybean product and anticipated cash receipts from our product development efforts with partners extends our projected cash runway into the second half of 2022. Investors in the SEC-registered, direct capital raise included Cellectis, our largest shareholder, and new institutional investors. We believe the support of Cellectis and our new shareholders is a testament to our go-to-market strategies,” concluded Koschak.
Third Quarter 2020 Results Conference Call
Calyxt Chief Executive Officer Jim Blome and Chief Financial Officer Bill Koschak will host the conference call, 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 here.
To access the call, please use the following information:
Date:
Thursday, November 5, 2020
Time:
4:30 p.m. EST, 1:30 p.m. PST
Toll Free dial-in number:
1-877-407-0789
Toll/International dial-in number:
1-201-689-8562
Conference ID:
13711539
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please contact MZ Group at +1 (949) 491-8235.
A replay of the call will be available for one month following the conference.
Toll Free Replay Number:
1-844-512-2921
International Replay Number:
1-412-317-6671
Replay ID:
13711539
About Calyxt:
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a technology company with a mission to deliver plant-based innovations for a better world. Founded in 2010, Calyxt uses its proprietary TALEN® gene editing technology to work with world-class partners via technology licensing, product development, and seed sale arrangements to revolutionize the way the world uses plants to solve problems. For further information, please visit our website at www.calyxtdev.wpengine.com.
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
To supplement our audited financial results prepared in accordance with GAAP, we have 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 our 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 our business.
We present gross margin, as adjusted, a non-GAAP measure that includes the effects of grain costs expensed as R&D in a prior period, excludes the effects of commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed price Forward Purchase Contracts as the expected impact from these contracts will be fully offset when the underlying grain is sold, and excludes the impact of any net realizable value adjustments to inventories occurring in the period, which would otherwise have been recorded as an adjustment to value in a prior period or would have been recorded in a future period as the underlying products are sold.
We provide in the table below a reconciliation of gross margin, as adjusted, to gross margin, which is the most directly comparable GAAP financial measure. We provide gross margin, as adjusted because we believe that this non-GAAP financial metric provides investors with useful supplemental information at this stage of commercialization as the amounts being adjusted affect the period to period comparability of our gross margins and financial performance.
The table below presents a reconciliation of gross margin to gross margin, as adjusted:
Three Months Ended September 30,
Nine Months Ended September 30,
In Thousands
2020
2019
2020
2019
Gross margin (GAAP measure)
$(1,819)
$(561)
$(6,340)
$(332)
Gross margin percentage
(35)%
(19)%
(64)%
(9)%
Adjustments:
Grain costs expensed as R&D
—
(2,814)
—
(3,349)
Mark to market loss
1,107
—
1,107
—
Net realizable value adjustment to inventories
(555)
832
2,000
832
Gross margin, as adjusted
$(1,267)
$(2,543)
$(3,233)
$(2,849)
Gross margin percentage, as adjusted
(24)%
(86)%
(33)%
(81)%
We present adjusted net loss, a non-GAAP measure, and define it as net loss including the effects of grain costs expensed as R&D in a prior period, and excluding the effects of commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed price Forward Purchase Contracts as the expected impact from these contracts will be fully offset when the underlying grain is sold, any net realizable value adjustments to inventories occurring in the period, which would otherwise have been recorded as an adjustment to value in a prior period or would have been recorded in a future period as the underlying products are sold, Section 16 officer transition expenses, R&D payroll tax credits that are no longer realizable, restructuring costs, and the recapture of non-cash stock compensation expense from the forfeiture and modification of unvested stock awards associated with staffing adjustments made as part of the advancement of our soybean business model.
We provide in the table below a reconciliation of adjusted net loss to net loss, which is the most directly comparable GAAP financial measure. We provide adjusted net loss because we believe that this non-GAAP financial metric provides investors with useful supplemental information at this stage of commercialization as the amounts being adjusted affect the period to period comparability of our 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 Thousands
2020
2019
2020
2019
Net loss (GAAP measure)
$(9,476)
$(10,669)
$(31,441)
$(27,447)
Non-GAAP adjustments:
Grain Costs expensed as R&D
—
(2,814)
—
(3,349)
Mark to market loss
1,107
—
1,107
—
Net realizable value adjustment to inventories
(555)
832
2,000
832
Section 16 officer transition expenses
56
193
493
1,052
Research and development payroll tax credit
—
536
—
410
Restructuring costs
436
—
436
—
Recapture of non-cash stock compensation
(906)
—
(906)
—
Adjusted net loss
$(9,338)
$(11,922 )
$(28,311)
$(28,502)
We present adjusted net loss per share, a non-GAAP measure, and define it as net loss per share including the effects of grain costs expensed as R&D in a prior period, and excluding the effects of commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed price Forward Purchase Contracts as the expected impact from these contracts will be fully offset when the underlying grain is sold, any net realizable value adjustments to inventories occurring in the period, which would otherwise have been recorded as an adjustment to value in a prior period or would have been recorded in a future period as the underlying products are sold, Section 16 officer transition expenses, R&D payroll tax credits that are no longer realizable, restructuring costs, and the recapture of non-cash stock compensation expense from the forfeiture and modification of unvested stock awards associated with staffing adjustments made as part of the advancement of our soybean business model.
We provide in the table below a reconciliation of adjusted net loss per share to net loss per share, which is the most directly comparable GAAP financial measure. We provide adjusted net loss per share because we believe that this non-GAAP financial metric provides investors with useful supplemental information at this stage of commercialization as the amounts being adjusted affect the period to period comparability of our 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,
In Thousands
2020
2019
2020
2019
Net loss per share (GAAP measure)
$(0.29)
$(0.32)
$(0.95)
$(0.84)
Non-GAAP adjustments:
Grain Costs expensed as R&D
—
(0.09)
—
(0.10)
Mark to market loss
0.03
—
0.03
—
Net realizable value adjustment to inventories
(0.01)
0.03
0.06
0.03
Section 16 officer transition expenses
0.01
0.01
0.02
0.03
Research and development payroll tax credit
—
0.01
—
0.01
Restructuring costs
0.01
—
0.01
—
Recapture of non-cash stock compensation
(0.03)
—
(0.03)
—
Adjusted net loss per share
$(0.28)
$(0.36)
$(0.86)
$(0.87)
We present adjusted EBITDA, a non-GAAP measure, and define it as net loss excluding interest, net, income tax expense, depreciation and amortization expenses, stock-based compensation expenses, the effects of commodity derivatives entered into to hedge the change in value of fixed price grain inventories and fixed Forward Purchase Contracts as the expected impact from these contracts will be fully offset when the underlying grain is sold, any net realizable value adjustments to inventories occurring in the period, which would otherwise have been recorded as an adjustment to value in a prior period or would have been recorded in a future period as the underlying products are sold, Section 16 officer transition expenses, R&D payroll tax credits that are no longer realizable, restructuring costs; and including the effects of grain costs expensed as R&D in a prior period.
We provide in the table below a reconciliation of adjusted EBITDA to net loss, which is the most directly comparable GAAP financial measure. Because adjusted EBITDA excludes non-cash items and discrete or infrequently occurring items, we believe that adjusted EBITDA provides investors with useful supplemental information about the operational performance of our business and facilitates comparison of our financial results between periods where certain items may vary significantly independent of our business performance.
The table below presents a reconciliation of net loss to adjusted EBITDA:
Three Months Ended September 30,
Nine Months Ended September 30,
In Thousands
2020
2019
2020
2019
Net loss (GAAP measure)
$(9,476)
$(10,669)
$(31,441)
$(27,447)
Non-GAAP adjustments:
Interest, net
324
(32)
568
(296
Income tax expense
—
—
—
—
Depreciation and amortization
468
362
1,372
1,051
Stock-based compensation expenses
570
2,705
3,638
6,565
Grain Costs expensed as R&D
—
(2,814)
—
(3,349)
Mark to market loss
1,107
—
1,107
—
Net realizable value adjustment to inventories
(555)
832
2,000
832
Section 16 officer transition expenses
56
193
493
1,052
Research and development payroll tax credit
—
536
—
410
Restructuring costs
436
—
436
—
Adjusted EBITDA
$(7,070)
$(8,887)
$(21,827)
$(21,182)
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,” “targets,” “intends,” “may,” “might,” “plans,” “potential,” “predicts,” “projects,” “should,” or “will,” the negative of these terms and other similar terminology. Forward-looking statements in this press release include statements about the potential impact of the COVID-19 pandemic on our business and operating results; our future financial performance; product pipeline and development; our business model and strategies for commercialization and sales of commercial products; regulatory progression; potential collaborations, partnerships and licensing arrangements and their contribution to our financial results, cash usage, and growth strategies, including with respect to potential revenue from royalties relating to our improved quality alfalfa; and anticipated trends in our business. These and other forward-looking statements are predictions and projections about future events and trends based on our current expectations, objectives and intentions and premised on current assumptions. Our 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 severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; the impact of increased competition, including with respect to enhanced quality alfalfa; disruptions at our or our collaborators’ key facilities; changes in customer preferences and market acceptance of our or our partners’ products, including our improved quality alfalfa; competition for collaboration partners and licensees and the successful execution of collaborations and licensing agreements; the impact of adverse events during development, including unsuccessful field trials or development trials or disruptions in seed production; the impact of improper handling of our product candidates by unaffiliated third parties during development, such as the improper aerial spraying of our high fiber wheat product candidate; failures by third-party contractors; inaccurate demand forecasting, including with respect to sales projections used by Calyxt management in determining potential license revenues; the effectiveness of commercialization efforts by commercial partners or licensees; our ability to make grain sales on terms acceptable to us; the timing of our grain sales; our ability to collect accounts receivable; disruptions to supply chains, including transportation and storage functions; commodity price conditions; 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; dislocations in the capital markets; and other important factors discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K and subsequent filings on Form 10-Q or 8-K with the U.S. Securities and Exchange Commission. Any forward-looking statements made by us are based only on information currently available to us when, and speaks only as of the date, such statement is made. Except as otherwise required by securities and other applicable laws we do 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, 2020 (unaudited)
December 31, 2019
Assets
Current assets:
Cash and cash equivalents
$7,170
$58,610
Short-term investments
20,802
—
Restricted cash
393
388
Accounts receivable
2,432
1,122
Due from related parties
2
—
Inventory
5,953
2,594
Prepaid expenses and other current assets
1,515
808
Total current assets
38,267
63,522
Non-current restricted cash
1,041
1,040
Land, buildings, and equipment
22,823
23,212
Other non-current assets
347
324
Total assets
$62,478
$88,098
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$1,163
$1,077
Accrued expenses
4,261
2,544
Accrued compensation
1,609
2,181
Due to related parties
481
977
Current portion of financing lease obligations
361
356
Other current liabilities
44
61
Total current liabilities
7,919
7,196
Financing lease obligations
18,022
18,244
Long-term debt
1,518
—
Other non-current liabilities
123
150
Total liabilities
27,582
25,590
Stockholders’ equity:
Common stock, $0.0001 par value; 275,000,000 shares authorized; 33,343,313 shares issued and 33,243,161 shares outstanding as of September 30, 2020, and 33,033,689 shares issued and 32,951,329 shares outstanding as of December 31, 2019
3
3
Additional paid-in capital
189,437
185,588
Common stock in treasury, at cost; 100,152 shares as of September 30, 2020, and 82,360 shares as of December 31, 2019
(1,043)
(1,043)
Accumulated deficit
(153,498)
(122,057)
Accumulated other comprehensive income (loss)
(3)
17
Total stockholders’ equity
34,896
62,508
Total liabilities and stockholders’ equity
$62,478
$88,098
CALYXT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in Thousands Except Shares and Per Share Amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Revenue
$5,241
$2,967
$9,925
$3,533
Cost of goods sold
7,060
3,528
16,265
3,865
Gross margin
(1,819)
(561)
(6,340)
(332)
Operating expenses:
Research and development
2,204
3,579
7,816
8,536
Selling and supply chain
439
1,314
3,368
3,421
General and administrative
4,185
4,934
12,713
14,302
Management fees
68
305
172
1,117
Restructuring costs
436
—
436
—
Total operating expenses
7,332
10,132
24,505
27,376
Loss from operations
(9,151)
(10,693)
(30,845)
(27,708)
Interest, net
(324)
32
(568)
296)
Foreign currency transaction loss
(1)
(8)
(28)
(35)
Loss before income taxes
(9,476)
(10,669)
(31,441)
(27,447)
Income taxes
—
—
—
—
Net loss
$(9,476)
$(10,669)
$(31,441)
$(27,447)
Basic and diluted loss per share
$(0.29)
$(0.32)
$(0.95)
$(0.84)
Weighted average shares outstanding – basic and diluted
33,200,289
32,866,467
33,076,376
32,759,194
CALYXT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in Thousands)
Nine Months Ended September 30,
2020
2019
Operating activities
Net loss
$(31,441)
$(27,447)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization
1,372
1,051
Stock-based compensation
3,638
6,565
Changes in operating assets and liabilities:
Accounts receivable
(1,310)
(1,304)
Due to/from related parties
(498)
(1,223)
Inventory
(3,359)
(2,371)
Prepaid expenses and other current assets
(707)
192
Accounts payable
86
127
Accrued expenses
1,717
(49)
Accrued compensation
(572)
478
Other current liabilities
(64)
(743)
Other non-current assets
140
36
Net cash used by operating activities
(30,998)
(24,688)
Investing activities
Purchases of land, buildings, and equipment
(1,146)
(2,538)
Short-term investments
(20,802)
—
Net cash used by investing activities
(21,948)
(2,538)
Financing activities
Proceeds from Payroll Protection Program loan
1,518
—
Repayments of financing lease obligations
(217)
(195)
Proceeds from the exercise of stock options
211
314
Costs incurred related to shares withheld for net share settlement
—
(645)
Proceeds from the sale and leaseback of land, buildings, and equipment
—
414
Net cash provided (used) by financing activities
1,512
(112)
Net decrease in cash, cash equivalents and restricted cash
(51,434)
(27,338)
Cash, cash equivalents and restricted cash – beginning of period
60,038
95,288
Cash, cash equivalents and restricted cash – end of period
Agreement has the Potential to Generate More Than $10 Million of License Revenue from U.S. Sales
Roseville, MN – October 29, 2020 –Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, announced today that it has agreed to commercial terms with S&W Seed Company (Nasdaq: SANW), a global agricultural company headquartered in Longmont, Colorado for the exclusive license of an improved quality alfalfa seed in the U.S. and other select geographies. This marks the company’s first commercial trait license agreement and, based on U.S. sales projections, could potentially generate more than $10 million of license revenue over the life of the pending patent for the trait.
Calyxt worked in collaboration with S&W Seed Company to identify quality enhancing traits for a more sustainable alfalfa product with increased bioavailability for livestock. The enhanced trait gives farmers the opportunity to produce alfalfa forage for livestock with improved digestibility, which may lead to greater animal performance. The result is a higher value alfalfa produced on the same acre with the same inputs, putting greater profitability in the hands of the farmer. The new alfalfa seed will be sold as part of the S&W seed portfolio and branded IQ™ Alfalfa (IQA).
“This alfalfa launch represents an important milestone in the execution of Calyxt’s three go-to-market strategies,” said Jim Blome, CEO of Calyxt. “It is a great demonstration of Calyxt’s ability to work collaboratively, choose traits to enhance value, do the research to make it happen, and support S&W Seed Company in bringing advanced plant science to market.”
“S&W Seed Company and Calyxt have evaluated a series of traits in S&W’s industry leading alfalfa varieties that have the potential to bring higher yields, higher quality and broader utilization of the crop in animal diets,“ said S&W Seed Company CEO Mark Wong. “IQ Alfalfa adds unique value to the market as an alternative alfalfa product to the present available products – it’s a high-quality alfalfa with a strong yield that delivers benefits to growers as well as the dairy and cattle industries.”
S&W Seed Company will work with alfalfa researchers on yield and animal performance through proof of concept and field trials. There will also be demonstration trials in key regions in 2021 to show IQ Alfalfa’s attributes and value creation for growers.
S&W Seed Company’s Alfalfa Portfolio includes market leading proprietary alfalfa seed varieties: Multiple disease tolerance, High Yield, Salt Tolerance, Leafhopper Resistance, Stem Nematode Resistance, and Aphid Resistance. S&W Seed Company markets their alfalfa in the United States as Alfalfa Partners brand.
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a technology company with a mission to deliver plant-based innovations for a better world. Founded in 2010, Calyxt uses its proprietary TALEN® gene editing technology to work with world-class partners via technology licensing, product development, and seed sale arrangements to revolutionize the way the world uses plants to solve problems. For further information, please visit our website at www.calyxtdev.wpengine.com.
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,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “should,” “will,” or “continue,” the negative of these terms and other similar terminology. Forward-looking statements in this press release include statements about the performance of the new, improved quality alfalfa and the potential license revenue that Calyxt may receive from U.S. sales. These and other forward-looking statements are predictions and projections about future events and trends based on our current expectations, objectives and intentions and premised on current assumptions. Our 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 severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; the impact of increased competition—in particular, with respect to enhanced quality alfalfa; disruptions at our or S&W’s key facilities; changes in customer preferences and market acceptance of our or our partners’ products, including iQ Alfalfa; competition for collaboration partners and the successful execution of collaborations; the impact of adverse events during development, including unsuccessful field or development trials or disruptions in seed production; failures by third-party contractors; inaccurate demand forecasting, including with respect to iQ Alfalfa sales projections used by Calyxt management in determining potential license revenues; disruptions to supply chains, including transportation and storage functions; commodity price conditions; the impact of changes or increases in oversight and regulation; disputes or challenges regarding intellectual property, particularly with respect to the pending patent for Calyxt’s new, improved quality Alfalfa trait; proliferation and continuous evolution of new technologies; management changes; dislocations in the capital markets; and other important factors discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K and subsequent filings on Form 10-Q or 8-K with the U.S. Securities and Exchange Commission. We do 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, except as otherwise required by law.
For further information, please contact:
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
Roseville, MN – October 27, 2020 –Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, will host a Virtual Analyst Day on Tuesday, November 17, 2020 at 4:00 p.m. Eastern time.
The Virtual Analyst Day will be broadcasted via webcast and include a review of the company’s research and development pipeline and a business update from management followed by a Q&A session with the sell-side analyst community.
A telephone replay will be available approximately two hours after the call and will run through December 1st, 2020 by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13711360. The replay can also be viewed through the webinar webcast link above and the presentation utilized during the call will be available in the company’s investor relations section here.
For more information, please email your request to CLXT@mzgroup.us or call Chris Tyson at (949) 491-8235.
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a technology company with a mission to deliver plant-based innovations for a better world. Founded in 2010, Calyxt uses its proprietary TALEN® gene editing technology to work with world-class partners via technology licensing, product development, and seed sale arrangements to revolutionize the way the world uses plants to solve problems. For further information, please visit our website at www.calyxtdev.wpengine.com.
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
Roseville, MN – Oct. 20, 2020 – Calyxt, Inc. (NASDAQ: CLXT) (the “Company”), a plant-based technology company, today announced the closing of its previously announced registered direct offering of 3,750,000 shares of the Company’s common stock, at a purchase price of $4.00 per share. Cellectis S.A., the Company’s majority shareholder, purchased 1,250,000 shares in the offering.
H.C. Wainwright & Co. acted as the exclusive placement agent for the transaction.
The gross proceeds to the Company from this offering were $15 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes, including to advance its current product development pipeline, to continue to advance its TALEN® technology and its intellectual property portfolio, and to support the execution of its streamlined business model.
The shares of common stock were offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-233231) previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 27, 2019. The offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the shares of common stock offered were filed with the SEC on October 16, 2020. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained on the SEC’s website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (646) 975-6996 or e-mail at placements@hcwco.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a technology company with a mission to deliver plant-based innovations for a better world. Founded in 2010, Calyxt uses its proprietary TALEN® gene editing technology to work with world-class partners via technology licensing, product development, and seed sale arrangements to revolutionize the way the world uses plants to solve problems.
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 intended use of net proceeds from the registered direct offering. These and other forward-looking statements are predictions and projections about future events and trends based on our current expectations, objectives and intentions and premised on current assumptions. Actual results 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 those discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K and subsequent filings on Form 10-Q or 8-K with the U.S. Securities and Exchange Commission. All information set forth in this press release is as of the date hereof. We do 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, except as otherwise required by law.
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
Roseville, MN – Oct. 16, 2020 –Calyxt, Inc. (NASDAQ: CLXT) (the “Company”), a plant-based technology company, today announced that it has entered into definitive agreements with institutional investors for the purchase and sale of 3,750,000 shares of the Company’s common stock, at a purchase price of $4.00 per share, in a registered direct offering. Cellectis S.A., the Company’s majority shareholder, subscribed to purchase 1,250,000 shares in the offering. The closing of the offering is expected to occur on or about October 20, 2020, subject to the satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the transaction.
The gross proceeds to the Company from this offering are expected to be $15 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes, including to advance its current product development pipeline, to continue to advance its TALEN® technology and its intellectual property portfolio, and to support the execution of its streamlined business model.
The shares of common stock are being offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-233231) previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 27, 2019. The offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the shares of common stock being offered will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained on the SEC’s website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (646) 975-6996 or e-mail at placements@hcwco.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a technology company with a mission to deliver plant-based innovations for a better world. Founded in 2010, Calyxt uses its proprietary TALEN® gene editing technology to work with world-class partners via technology licensing, product development, and seed sale arrangements to revolutionize the way the world uses plants to solve problems.
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 completion of the registered direct offering, the satisfaction of customary closing conditions related to the registered direct offering and the intended use of net proceeds from the registered direct offering. These and other forward-looking statements are predictions and projections about future events and trends based on our current expectations, objectives and intentions and premised on current assumptions. Actual results 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 those discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K and subsequent filings on Form 10-Q or 8-K with the U.S. Securities and Exchange Commission. All information set forth in this press release is as of the date hereof. We do 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, except as otherwise required by law.
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
Expanded leadership team will drive new business opportunities to support the company’s go-to-market strategies
Roseville, MN – October 14, 2020 –Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, announced today that it has appointed Sarah Reiter as Vice President, Business Development. In this role, Ms. Reiter will drive new business opportunities at Calyxt to support the company’s recently announced go-to-market strategies.
Ms. Reiter is a plant-based technology and agribusiness leader focused on establishing world-class partnerships and value chains that lead to the successful commercialization of emerging technologies for start-up, early-stage and Fortune 500 companies. She will apply her expertise in international business development, acquisitions and product portfolio management in agribusiness to develop, refine and implement the overall commercial strategy for Calyxt’s future products, including the prioritization of markets, customers and product types.
“Calyxt continues to build momentum with our go-to-market strategies, and the addition of Sarah to the leadership team will help us to optimize and execute on these strategies going forward,” said Jim Blome, CEO of Calyxt. “Her proven success in the plant-based innovation sector is an ideal match for our technology, positioning us to be even more responsive to evolving consumer, sustainability and marketplace demands,” concluded Blome.
With more than 25 years of expertise in agribusiness, Ms. Reiter most recently served as the chief commercial officer of Arcadia Biosciences where she led the company’s commercial and product portfolio strategies and sales to consumer-packaged goods companies globally. Prior to Arcadia Biosciences, Ms. Reiter served as the CEO of Stockton U.S.A. with oversight of the U.S. division of the global multinational bio-ag company from inception to initial sales. She earned her Master’s Certificate in Business Analysis from the Villanova School of Continuing Education and her Bachelor’s degree from the University of California, Davis.
Kincannon & Reed, a leading executive search firm focused on the food, agribusiness, and biosciences sectors, assisted Calyxt in the recruitment of Sarah Reiter.
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a technology company with a mission to deliver plant-based innovations for a better world. Founded in 2010, Calyxt uses its proprietary TALEN® gene editing technology to work with world-class partners via technology licensing, product development, and seed sale arrangements to revolutionize the way the world uses plants to solve problems. For further information, please visit our website at www.calyxtdev.wpengine.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. In some cases, you can identify these statements by forward-looking words such as “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “should,” “will,” or “continue,” the negative of these terms and other similar terminology. Forward-looking statements in this press release include statements about the long term goals and future performance of our business. These and other forward-looking statements are predictions and projections about future events and trends based on our current expectations, objectives and intentions and premised on current assumptions. Our 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 severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; the impact of increased competition; disruptions at our key facilities; changes in customer preferences and market acceptance of our products; competition for collaboration partners and the successful execution of collaborations; the impact of adverse events during development, including unsuccessful field trials or disruptions in seed production; failures by third-party contractors; inaccurate demand forecasting; disruptions to supply chains, including transportation and storage functions; commodity price conditions; 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; dislocations in the capital markets; and other important factors discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K and subsequent filings on Form 10-Q or 8-K with the U.S. Securities and Exchange Commission. We do 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, except as otherwise required by law.
For further information, please contact:
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
Roseville, MN – October 13, 2020 –Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, will hold a conference call on Thursday, November 5, 2020 at 4:30 p.m. Eastern time to discuss its results for the third quarter ended September 30, 2020. A press release detailing these results will be issued prior to the call.
Calyxt Chief Executive Officer Jim Blome and Chief Financial Officer Bill Koschak will host the conference call, 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 the company’s website here.
To access the call, please use the following information:
Date:
Thursday, November 5, 2020
Time:
4:30 p.m. EST, 1:30 p.m. PST
Toll Free dial-in number:
1-877-407-0789
Toll/International dial-in number:
1-201-689-8562
Conference ID:
13711539
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please contact MZ Group at +1 (949) 491-8235.
A replay of the call will be available for one month following the conference.
Toll Free Replay Number:
1-844-512-2921
International Replay Number:
1-412-317-6671
Replay ID:
13711539
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a technology company with a mission to deliver plant-based innovations for a better world. Founded in 2010, Calyxt uses its proprietary TALEN® gene editing technology to work with world-class partners via technology licensing, product development, and seed sale arrangements to revolutionize the way the world uses plants to solve problems. For further information, please visit our website at www.calyxtdev.wpengine.com.
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
2019 Revenue of $7.3 Million and Expects 2020 Revenue to Nearly Double
Expanded Product Pipeline to Nine Crops and 14 Projects Under Development, Compared to Five Crops and Six Projects Under Development One Year Ago
Roseville, MN – March 5, 2020 – Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, has reported its financial results for the fourth quarter and full year ended December 31, 2019.
Key Fourth Quarter and 2019 Financial Highlights
Fourth quarter revenue increased to $3.8 million driven entirely by increased sales volumes of high oleic (HO) soybean oil and soybean meal.
Net cash used in the fourth quarter was $7.9 million, reflecting savings and efficiencies over previously announced financial guidance of $3.0 million to $3.25 million per month of net cash used.
Revenue for 2019 increased to $7.3 million driven by the launch of HO soybean oil and soybean meal. As of December 31, 2019, all the HO soybean meal produced from the 18,000 acres harvested in 2018 has been sold.
Net cash used in 2019 was $35.3 million, compared to $18.4 million in 2018 excluding the benefit from our May 2018 follow-on capital raise. The commercialization of our HO soybean products, including investment in personnel and purchases of grain, drove the increase in cash used year over year.
Cash and cash equivalents totaled $58.6 million as of December 31, 2019.
Operational savings reflect a cash runway into mid-2021.
Key Fourth Quarter 2019 and Early 2020 Operational Highlights
Fourth
quarter revenue increased to $3.8 million driven entirely by increased sales
volumes of high oleic (HO) soybean oil and soybean meal.
Net
cash used in the fourth quarter was $7.9 million, reflecting savings and
efficiencies over previously announced financial guidance of $3.0 million to
$3.25 million per month of net cash used.
Revenue
for 2019 increased to $7.3 million driven by the launch of HO soybean oil and soybean
meal. As of December 31, 2019, all the HO soybean meal produced from the 18,000
acres harvested in 2018 has been sold.
Net
cash used in 2019 was $35.3 million, compared to $18.4 million in 2018 excluding
the benefit from our May 2018 follow-on capital raise. The commercialization of
our HO soybean products, including investment in personnel and purchases of
grain, drove the increase in cash used year over year.
Cash
and cash equivalents totaled $58.6 million as of December 31, 2019.
Operational
savings reflect a cash runway into mid-2021.
Key Fourth Quarter 2019 and Early 2020 Operational Highlights
Product
Development and Intellectual Property
Product
development efforts are focused on:
People: health and wellness benefits including
better tasting plant proteins, gluten free alternatives, heart health, higher
fiber, and reduced allergens
Planet: sustainability benefits
including projects in alfalfa, hemp, potatoes, and soybeans
Expanded
R&D pipeline to 14 product candidates, comprised of three product
candidates in Phase 2 and eleven product candidates in Phase I or Discovery.
We
expect to launch at least six product candidates from now through 2024,
including our hemp product candidate in 2020, our alfalfa product in 2021
through our collaboration with S&W Seed Company (NASDAQ: SANW), our high
fiber wheat product candidate as early as 2022, and four additional product
candidates either via our integrated business model or in collaboration with
third parties.
The
first product from our new hemp breeding program is set for commercial launch
in the second quarter of 2020. This product leverages our plant breeding
expertise as no gene editing was required to make the valued crop
improvement.
Achieved
several R&D improvements including:
50 percent improvement in the assembly
time to make a new TALEN®
construct, improving our capacity to make new types of plant edits
Cut the cycle time necessary to develop
an edited plant in half, further accelerating development progress
Enhanced
robust patent estate to approximately 70 patent families comprised of approximately
300 patents and over 100 patent applications. These are comprised of owned and in-licensed
assets across gene editing tools, enabling technologies, product concepts, and
germplasm varieties.
Commercialization
Received
a series of purchase orders for future deliveries of our HO soybean oil to be
used as a plant-based alternative to synthetic fluids. These orders, which are
subject to industry-standard trading rules for soybean oil, are from a new, world-class
customer that operates in all four premium oil target market segments: foodservice,
food ingredients, industrial, and animal nutrition.
Added
another top-tier U.S. foodservice distributor, brought on multiple restaurant
chains, and expanded geographically in the Midwest and Southeast.
Expected
to have 25 percent share of all HO soybean acres in the United States in 2020, nearly
tripling planted acres from 2019 and exceeding goal of doubling acres annually.
Market share gains are driven by expansion of distribution into Iowa, Nebraska,
and Kansas, giving Calyxt access to 45 percent of the soybean acres in the
United States.
Team
Further
strengthened scientific and operations teams to support commercial growth
opportunities with the appointments of:
Agribusiness veteran Vince Restucci as
Vice President of Agronomy Services, and effective in early February 2020, he
also leads supply chain and commercial seed production
Scientific talent Bobby Williams,
Ph.D. as Director of Gene Editing to further expand innovation, product
pipeline, and trait discovery efforts as well as inform product advancement
decisions
Environmental,
Social & Governance (ESG)
We
established ESG guiding principles and, going forward, expect to develop and
report on our ESG accomplishments as much of our innovation is focused in this
area.
Full Year 2019 Operational Highlights
Built
and strengthened leadership, scientific, and operations teams to support
commercial growth opportunities with the appointments of:
Bill Koschak as Chief Financial Officer
Debra Frimerman as General Counsel
Travis Frey, Ph.D. as Chief Technology
Officer
Keith Blanks as Senior Vice President
of Sales and Marketing
Completed
end-to-end supply chain to enable soybean crushing at scale.
Management Commentary
“2019 was a transformative year for Calyxt centered
around four major achievements: first, we built the team to execute on our technology-focused
business plan; second, we transformed our R&D team and its work systems;
third, we established our soybean supply chain to support our growth trajectory
and our future wheat product launch; and fourth, we were the first company to
commercialize a gene edited food product focused on consumer health, right here
in the United States,” said Jim Blome, Chief Executive Officer of Calyxt.
“The commercialization of our HO soybean products serves
as proof of concept and sets the stage for future growth. We intend to introduce
new products leveraging a capital-light business model while monetizing multiple
collaboration projects. Collaboration revenues are expected to be highly
accretive to our current gross margins. We also intend to begin optimizing our
soybean gross margins in 2020. We have proven to the world that TALEN®
technology, which powers our innovation platform, is capable of improving
plants, enabling us to bring healthier and more sustainable products to market.”
“We have assembled an industry-leading team across
all our major functions. We have energized the organization and revitalized our
product pipeline, more than doubling the projects now under development compared
to this time a year ago. We are focused on delivering high value projects to
the market,” continued Blome.
“Our HO soybean oil has a robust sales funnel and is
being tested by multiple customers. The oil orders we received in early 2020 are
a validation of our HO soybean oil’s capability and performance. To meet the
expected demand for our oil, we nearly tripled our contracted soybean acreage compared
to 2019 planting and expect to have a 25 percent market share of all HO soybean
acres planted in the United States in 2020.”
“All of this sets the stage for a breakthrough 2020,
where we expect to power our R&D pipeline with new projects and tools as
well as enhanced processes, initiate consultations with regulatory authorities,
and continue to make stage advancements in our development process. We expect
to begin selling hemp plants we produced using traditional plant breeding
techniques. This will be the launch of our second product, and our first of
several expected innovations from Calyxt in hemp. What excites me most about
this launch is that our scientific team was presented with a challenge in hemp
and was able to develop a solution – including a strategy, tools, and work
processes – in just a few short months, demonstrating the power of our team. Specific
to our soybean products, we expect to expand our customer base across our
prioritized market segments, realize synergies in our supply chain, and improve
our gross margin profile. We also expect to develop metrics and report on our
ESG accomplishments, as much of our innovation is focused in this area as we aggressively
push our efforts to revolutionize agriculture.”
“I look forward to providing an update on our
technology and R&D pipeline during our upcoming analyst day in the second
quarter, and our CFO, Bill Koschak, will be sharing our story with
institutional investors at the upcoming 32nd Annual ROTH Conference
in Orange County, California on March 16th,” concluded Blome.
Fourth Quarter 2019 Financial Results
Revenue
increased to $3.8 million, entirely from increased sales volumes of HO soybean
oil and soybean meal. HO soybean oil revenue represented 32 percent of total revenue
in the period.
Cost
of goods sold increased to $5.4 million reflecting the cost of product sold in
the period.
Gross
margin as reported decreased $1.7 million reflecting the higher costs we have
experienced at this early stage of commercialization of our HO soybean
products. Gross margin, as adjusted, a non-GAAP measure, was negative $1.6
million, or 43 percent, as compared to negative $1.7 million, or 44 percent, as
reported under GAAP. See below under the heading “Use of Non-GAAP Financial
Information” for a discussion of gross margin, as adjusted, and a
reconciliation to gross margin, the most comparable GAAP measure.
R&D
expenses were $3.7 million, compared to $2.5 million in the fourth quarter of
2018. The increase in R&D expenses
is primarily due to $1.3 million of higher non-cash stock compensation
expenses, $0.3 million of additional personnel costs, and $0.2 million of
incremental lab supplies and outsourcing costs. These increases were partially
offset by a $1.2 million decrease in grain costs expensed as R&D in 2018.
Selling
and supply chain (S&SC) expenses were $1.7 million, compared to $0.7
million in the fourth quarter of 2018. The increase in S&SC expenses was driven
by $0.4 million of additional personnel costs, $0.3 million incremental
allocated expenses for facilities and information technology expenses, and $0.2
million of higher non-cash stock compensation expenses, all the result of our
commercialization and acreage expansion in 2019 and 2020.
General
and administrative (G&A) expenses were $4.7 million, compared to $5.1
million in the fourth quarter of 2018. The decrease was driven by $0.3 million
of lower non-cash stock compensation expenses and $0.3 million of lower Section
16 officer transition expenses. Other increases in personnel costs and
professional services expenses were partially offset by the benefit of
internalizing certain services previously provided by Cellectis, our majority
stockholder.
Net
cash used was $7.9 million, compared to $6.6 million in the fourth quarter of
2018, reflecting the increase in personnel year-over-year, higher non-cash
stock compensation expense, and the commercialization of HO soybean products.
Net
loss was $12.2 million, or $(0.37) per basic and diluted share, compared to a
net loss of $8.5 million, or $(0.27) per basic and diluted share for the fourth
quarter of 2018.
Adjusted
EBITDA, a non-GAAP measure, increased to a loss of $8.7 million in the fourth
quarter 2019 compared to a loss of $5.5 million in the fourth quarter of 2018
driven by increased personnel costs, as the costs of commercialization in 2019
were largely offset by reductions in grain costs expensed as R&D in 2018.
See below under the heading “Use of Non-GAAP Financial Information” for a
discussion of adjusted EBITDA and a reconciliation to net loss, the most
comparable GAAP measure.
Cash
and cash equivalents totaled $58.6 million as of December 31, 2019.
Full Year 2019 Financial Results
Revenue increased
to $7.3 million, entirely from increased sales volumes of HO soybean oil and
soybean meal following the commercialization of these products in early 2019. During
2019, Calyxt generated $1.7 million of HO soybean oil revenue. We sold all our HO
soybean meal production in the year, totaling $5.6 million in revenue.
Cost of goods
sold increased to $9.3 million reflecting the cost of product sold in the
period and an $869,000 valuation reserve against inventories.
Gross margin as
reported decreased $2.2 million reflecting the higher costs we have experienced
at this early stage of commercialization of our HO soybean products. Gross
margin, as adjusted, a non-GAAP measure, was negative $4.5 million, or 61
percent, as compared to negative $2.0 million, or 27 percent, as reported under
GAAP. See below under
the heading “Use of Non-GAAP Financial Information” for a discussion of gross
margin, as adjusted, and a reconciliation to gross margin, the most comparable
GAAP measure.
R&D expenses
were $12.2 million, compared to $10.4 million in 2018. The increase in R&D
expenses is primarily due to $1.6 million of higher non-cash stock compensation
expenses, $1.4 million of additional personnel costs, $0.7 million of
incremental lab supplies and outsourcing costs, and $0.6 million from the
reversal of payroll tax benefits that are no longer realizable. These increases
were partially offset by a $3.3 million decrease in grain costs expensed as
R&D in 2018.
S&SC
expenses were $5.2 million, compared to $2.4 million in 2018. The increase in
S&SC expenses was driven by $1.2 million of additional personnel costs, $0.9
million incremental allocated expenses for facilities and information
technology expenses, and $0.4 million of higher non-cash stock compensation expenses,
all the result of our commercialization and acreage expansion in 2019 and 2020.
G&A
expenses were $19.0 million, compared to $13.4 million in 2018. The increase
was driven by $2.9 million of higher non-cash stock compensation expenses, $2.6
million of additional personnel costs, and $1.0 million of incremental
professional services expenses. The increases in personnel costs and
professional services expenses are partially offset by the benefit of
internalizing certain services previously provided by Cellectis.
Net
cash used in 2019 was $35.3 million, compared to a use of $18.4 million in 2018
excluding the benefit from the May 2018 follow-on capital raise. The
commercialization of HO soybean products, including investment in personnel and
purchases of grain, drove the increase in cash used in the year.
Net
loss was $39.6 million, or $(1.21) per basic and diluted share, compared to a
net loss of $27.9 million, or $(0.91) per basic and diluted share, in 2018.
Adjusted EBITDA,
a non-GAAP measure, increased to a loss of $29.8 million in 2019 compared to a
loss of $18.9 million in 2018 driven by increased personnel costs, as the costs
of commercialization in 2019 were largely offset by reductions in grain costs
expensed as R&D in a prior period. See below under the heading “Use of
Non-GAAP Financial Information” for a discussion of adjusted EBITDA and a
reconciliation to net loss, the most comparable GAAP measure.
2020 Financial Guidance
Revenue:
growth of 90% to 110% year-over-year
Gross
margin, as adjusted: improvement of 3,000 to 3,500 basis points year-over-year
Net
cash used: expected range of $34.0 million to $38.0 million
“We
maintained our cash usage trajectory throughout 2019, while building out infrastructure
to support the robust growth in our soybean business,” added Bill Koschak, Chief
Financial Officer of Calyxt. “With investment in our corporate infrastructure,
we are set to scale operations in 2020 – both in terms of finalizing new collaborations
and increased sales volumes of our soybean products. Going forward we continue
to see high revenue growth and an improved margin profile as we continue to bring
new products to market leveraging our proprietary gene-editing technology.”
“Looking
forward into 2020, we expect to continue our cash usage rate in line with what
we delivered in 2019. I expect that our cash position will be sufficient to
fund operations into mid-2021,” concluded Koschak.
Fourth Quarter and Full Year 2019 Results Conference Call
The conference call will be available for replay on the investor section of the Company’s website for one month.
The presentation used in the conference call and webcast will be available for reference on the Company’s IR website at https://ir.calyxt.com/.
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota is a plant-based technology company. We partner with like-minded farmers and companies to deliver plant-based products with wellness and sustainability benefits. We use cutting edge plant breeding techniques to innovate and develop solutions to address unmet consumer and market demands. For further information, please visit our website at www.calyxt.com.
Use of Non-GAAP Financial Information
To supplement our audited financial results prepared in accordance with GAAP, we have 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 our 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 our business.
We provide gross margin, as adjusted, a non-GAAP measure that reflects the impact grain costs expensed as R&D and net realizable value adjustments to inventories have on our reported gross margins. Grain costs expensed as R&D before we commercialize a product have the effect of increasing our reported margins post-launch in periods when product with no associated cost were sold. Net realizable value adjustments to our inventories have the effect of decreasing gross margins in a current period that would have been recorded in the future when the underlying product was sold.
We provide in the tables below a reconciliation of gross margin, as adjusted to gross margin, which is the most directly comparable GAAP financial measure. We provide gross margin, as adjusted, because we believe that this non-GAAP financial metric provides investors with useful supplemental information at this early stage of commercialization as the amounts being adjusted affect the period to period comparability of our gross margins and financial performance.
We do not provide a reconciliation of gross margin, as adjusted, on a forward-looking basis as we are not able to determine this measure without unreasonable effort for future periods. The potential amount of net realizable value adjustments to our inventories at year end 2020 is unknown at this time. We are not able to determine that amount because it involves making assumptions about 2020 ending inventories from 2019 and 2020 plantings, 2021 margin expectations based on future selling prices and product costs and future changes in commodity futures markets prices for soybeans.
The tables below present a reconciliation of gross margin to gross margin, as adjusted:
Three months ended December 31
In Thousands
2019
2018
Gross margin (GAAP
measure)
$
(1,652
)
$
2
Gross margin
percentage
(44%
)
100%
Adjustments:
Net realizable value
adjustment to inventories
37
—
Gross margin, as
adjusted
$
(1,615
)
$
2
Gross margin, as
adjusted, percentage
(43%
)
100%
Year ended December 31
In Thousands
2019
2018
Gross margin (GAAP
measure)
$
(1,984
)
$
236
Gross margin
percentage
(27%
)
100%
Adjustments:
Grain costs expensed as R&D in a prior
period
(3,349
)
—
Net realizable value
adjustment to inventories
869
—
Gross margin, as
adjusted
$
(4,464
)
$
236
Gross margin, as
adjusted, percentage
(61%
)
100%
We present adjusted EBITDA and define it as net
loss excluding interest, net, income tax expense, depreciation and amortization
expenses, stock-based compensation expenses, Section 16 officer transition
expenses, R&D payroll tax credits that are no longer realizable, grain costs
expensed as R&D and net realizable value adjustments to inventories.
We provide in the tables below a reconciliation of adjusted EBITDA to net loss, which is the most directly comparable GAAP financial measure. Because adjusted EBITDA excludes non-cash items and discrete or infrequently occurring items, we believe that adjusted EBITDA provides investors with useful supplemental information about the operational performance of our business and facilitates comparison of our financial results between periods where certain items may vary significantly independent of our business performance.
The tables below present a reconciliation of net loss to adjusted EBITDA:
Three months ended December 31
In Thousands
2019
2018
Net loss (GAAP
measure)
$
(12,165
)
$
(8,468
)
Non-GAAP
adjustments:
Interest, net
186
(176
)
Income tax expense
—
—
Depreciation and amortization expenses
556
354
Stock-based compensation expenses
2,610
1,369
Section 16 officer transition expenses
117
336
Research and development payroll tax credit
—
(130
)
Grain costs expensed as R&D
—
1,230
Net realizable value adjustment to
inventories
37
—
Adjusted EBITDA
$
(8,659
)
$
(5,485
)
Year ended December 31
In Thousands
2019
2018
Net loss (GAAP
measure)
$
(39,612
)
$
(27,897
)
Non-GAAP
adjustments:
Interest, net
(110
)
(264
)
Income tax expense
—
—
Depreciation and amortization expenses
1,607
1,081
Stock-based compensation expenses
9,175
4,385
Section 16 officer transition expenses
1,169
740
Research and development payroll tax credit
411
(250
)
Grain costs expensed as R&D
(3,349
)
3,349
Net realizable value adjustment to
inventories
869
—
Adjusted EBITDA
$
(29,840
)
$
(18,856
)
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 “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are based on our current assumptions and expectations, are subject to risks and uncertainties. Forward-looking statements in this press release may include statements about our future financial performance, product pipeline and development, commercialization efforts, regulatory progression, potential collaborations and partnerships, growth strategies, and anticipated trends in our business. These statements are predictions based on our current expectations and projections about future events and trends. Our actual results could be materially different than those expressed, implied, or anticipated by forward-looking statements. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the caption entitled “Risk Factors” in our Annual Report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission. We do 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, except as otherwise required by law.
Calyxt Media Contact: Trina Lundblad, Director of Corporate Communications (612) 790-0514 media@calyxt.com
Calyxt Investor Relations Contact: Chris Tyson, Managing Director MZ Group – MZ North America (949) 491-8235 CLXT@mzgroup.us www.mzgroup.us
CALYXT, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Par Value and Share Amounts)
December 31
Assets
2019
2018
Current assets:
Cash and cash equivalents
$
58,610
$
93,794
Restricted cash
388
381
Trade accounts receivable
1,122
—
Due from related parties
—
46
Inventory
2,594
—
Prepaid expenses and other current assets
808
1,301
Total current assets
63,522
95,522
Non-current
restricted cash
1,040
1,113
Land, buildings and
equipment
23,212
21,850
Other non-current
assets
324
306
Total assets
$
88,098
$
118,791
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
1,077
$
818
Accrued expenses
2,544
2,007
Accrued compensation and benefits
2,181
1,305
Due to related parties
977
1,905
Current portion of financing lease
obligations
356
258
Other current liabilities
61
711
Total current
liabilities
7,196
7,004
Financing lease
obligations
18,244
18,227
Other non-current
liabilities
150
163
Total liabilities
25,590
25,394
Stockholders’ equity:
Common stock, $0.0001 par value; 275,000,000
shares authorized; 33,033,689 shares issued and 32,951,329 shares outstanding
as of December 31, 2019 and 32,664,429 shares issued and 32,648,893 shares
outstanding as of December 31, 2108
3
3
Additional paid-in capital
185,588
176,069
Common stock in treasury, at cost, shares of
82,360 as of December 31, 2019 and 15,536 as of December 31, 2018
(1,043
)
(230
)
Accumulated deficit
(122,057
)
(82,445
)
Accumulated other comprehensive income
17
—
Total stockholders’ equity
62,508
93,397
Total
liabilities and stockholders’ equity
$
88,098
$
118,791
CALYXT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands Except Shares and Per Share Amounts)
Year Ended December 31
2019
2018
Revenue
$
7,296
$
236
Costs of goods sold
9,280
—
Gross margin
(1,984)
236
Operating expenses:
Research and development
12,213
10,358
Selling and supply chain
5,172
2,352
General and administrative
18,966
13,356
Management fees
1,338
2,285
Total operating expenses
37,689
28,351
Loss from operations
(39,673
)
(28,115
)
Interest, net
110
264
Foreign currency
transaction (loss)
(49
)
(46
)
Loss before income
taxes
(39,612
)
(27,897
)
Income taxes
—
—
Net loss
$
(39,612
)
$
(27,897
)
Basic and diluted
loss per share
$
(1.21
)
$
(0.91
)
Weighted average shares outstanding – basic
and diluted
32,805,684
30,683,421
CALYXT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
Year Ended December 31
Operating activities
2019
2018
Net loss
$
(39,612
)
$
(27,897
)
Adjustments to reconcile net loss to net
cash used by
operating
activities:
Depreciation and amortization expenses
1,607
1,081
Loss on disposal of land, buildings and
equipment
—
23
Stock-based compensation
9,175
4,385
Unrealized foreign exchange gain loss
—
(12
)
Changes in operating assets and liabilities:
Trade accounts receivable
(1,122
)
—
Due to/from related parties
(882
)
676
Inventory
(2,594
)
—
Prepaid expenses and other assets
493
(726
)
Accounts payable
259
(118
)
Accrued expenses
537
985
Accrued compensation and benefits
876
360
Other accrued liabilities
(670
)
940
Other non-current assets
(18
)
51
Net
cash used by operating activities
(31,951
)
(20,252
)
Investing activities
Purchases of land, buildings and equipment
(2,969
)
(1,847
)
Other
—
50
Net
cash used by investing activities
(2,969
)
(1,797
)
Financing activities
Costs incurred related to the issuance of
stock
—
(665
)
Proceeds from common stock issuance
—
57,706
Repayments of financing lease obligations
(275
)
—
Advances from Cellectis
—
—
Repayment of advances from Cellectis
—
—
Proceeds from the exercise of stock options
344
2,622
Costs incurred related to shares withheld
for net settlement
(813
)
(230
)
Proceeds from sale and leaseback of land,
buildings and equipment
414
1,240
Net
cash (used) provided by financing activities
(330
)
60,673
Net (decrease)
increase in cash, cash equivalents and restricted cash
(35,250
)
38,624
Cash, cash
equivalents and restricted cash – beginning of period
95,288
56,664
Cash,
cash equivalents and restricted cash – end of period
ROSEVILLE, Minn.–(BUSINESS WIRE)– Calyxt, Inc. (NASDAQ:
CLXT), a plant-based technology company, will hold a conference call on
Thursday, March 5, 2020 at 8:30 a.m. Eastern time to discuss its results for
the fourth quarter and full year ended December 31, 2019. A press release
detailing these results will be issued prior to the call.
Calyxt Chief Executive Officer Jim Blome, Chief Financial
Officer Bill Koschak and Chief Science Officer Dan Voytas will host the
conference call, 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 the company’s website.
To access the call, please use the following information:
Date:
Thursday, March 5, 2020
Time:
8:30 a.m. EST, 5:30 a.m. PST
Toll Free dial-in number:
1-877-451-6152
Toll/International dial-in number:
1-201-389-0879
Conference ID:
13697762
Please call the conference telephone number 5-10 minutes
prior to the start time. An operator will register your name and organization.
If you have difficulty connecting with the conference call, please contact MZ
Group at +1 (949) 491-8235.
The conference call will be broadcast live and available for
replay at http://public.viavid.com/index.php?id=137490 and via the investor
relations section of the company’s website here.
A replay of the call will be available for one month
following the conference.
Toll Free Replay Number:
1-844-512-2921
International Replay Number:
1-412-317-6671
Replay ID:
13697762
About Calyxt
Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a
plant-based technology company that utilizes our patented breeding technology
to make the food you love a healthier choice. The care we take extends beyond
nutritional value. We partner with farmers and food companies to deliver
traceable plant-based products developed to be healthier and more sustainable
than their conventional counterparts. We use cutting edge plant breeding
techniques to develop products that help improve diets by reducing bad fats,
allergens and toxins. Today oil from our high oleic soybean plants has lower
saturated fats than commodity soybean oil. We are also developing high fiber
wheat designed to provide an excellent source of daily fiber when incorporated
into wheat-based foods. We continuously pursue innovation to deliver good food
that is good for you. For further information, please visit our website at
www.calyxt.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200210005043/en/
Calyxt Media Contact:
Trina Lundblad, Director of Corporate Communications
(612) 790-0514
media@calyxt.com
Calyxt Investor Relations Contact:
Chris Tyson
Managing Director
MZ Group – MZ North America
(949) 491-8235
IR@calyxt.com
www.mzgroup.us
Source: Calyxt, Inc.
Released February 10, 2020
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cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Cookie
Duration
Description
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Cookie
Duration
Description
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
Targeting/Advertisement cookies are used to deliver visitors with customized advertisements based on the pages they visited before and analyze the effectiveness of the ad campaign.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
