Calyxt Announces Board Changes

Dr. André Choulika decides to retire from Calyxt’s Board to fully focus on Cellectis development

Yves Ribeill, Biotech Veteran and Member of Calyxt’s Board of Directors, to Chair the Board

Laurent Arthaud designated by Cellectis and appointed as a Director

Roseville, MN – July 6, 2020 – Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, announced the appointment of current board member Yves Ribeill, Ph.D., as Chairman. This appointment coincides with Dr. André Choulika’s decision to wholly focus his energy on Cellectis’ clinical development activities, and thus, retiring as Chairman of Calyxt’s Board. Additionally, Calyxt’s Board of Directors appointed Laurent Arthaud (Cellectis Board member) as Director. These changes are effective immediately.

“On behalf of the Calyxt Board of Directors, I would like to express my deep gratitude and appreciation for André’s guidance and commitment to Calyxt’s success over the past decade,” said Yves Ribeill. “Under André’s leadership over the last ten years, Calyxt has demonstrated its ability to invent, develop, market, and supply a gene-edited crop, starting with its first high oleic soybean. With the immense progress Calyxt has made, we are now uniquely positioned to use our leading-edge TALEN® technology to bring healthier, more sustainable products to market.  I’m honored and excited to guide Calyxt in its next development phase and hope we can continue the legacy André established for us.”

Yves Joseph Ribeill, Ph.D., founded SCYNEXIS, Inc (NASDAQ: SCYX) and served as President and CEO from 1999 to 2015. Dr. Ribeill has more than 35 years of experience in the healthcare industry, with an expertise in anti-infective diseases including bacterial, fungal, viral and parasiticidal and in microbiome-centric diseases. Prior to moving to the U.S. 23 years ago, Dr. Ribeill held several management positions during his international career with Rhône-Poulenc and Aventis in France and in the UK. Dr. Ribeill was a member of the Scientific Advisory Committee of the World Health Organization, the Medicines for Malaria Venture and is currently the CEO of Ribogenics, Inc., an early stage R&D company.

“As co-founder of Calyxt in 2010, I am so proud of this team and the incredible company that we have built. Calyxt is now a publicly listed company, with an impressive product pipeline, that commercialized for the very first time a healthier gene-edited food product to benefit consumers, and is at a pivotal stage.  Cellectis, from which Calyxt originally started as Cellectis Plant Sciences, is now at a turning point where it requires my utmost focus and attention. Therefore, I have decided that it is in the best interest of Cellectis to retire as Chairman of Calyxt’s Board of Directors. Under the leadership of Dr. Ribeill and CEO,  Jim Blome, I’m convinced the Calyxt management team and the Board of Directors will continue to make this company grow and provide plant-based solutions to the world. Thank you to the entire Calyxt team, the Board, and our investors for continuing to believe in this great business.”

“André has consistently made impactful contributions to Calyxt and has provided expert guidance to our company, especially in the area of research, strategic corporate and business development,” stated Jim Blome, CEO of Calyxt. “Yves’s appointment as Chairman comes at a very important time in the maturation of our company, as we advance our pipeline of novel high-value crops to address the world’s challenges,” continued Mr. Blome. “We are looking forward to Yves’s insightful contributions.”

In addition, the Calyxt Board of Directors appointed Laurent Arthaud, a member of Cellectis’ Board of Directors since 2011, as Director. Mr. Arthaud was designated to serve as a director by Cellectis, Calyxt’s parent company, pursuant to an existing  Stockholders Agreement between Calyxt and Cellectis.  Cellectis holds 68.9% of Calyxt shares as of December 31, 2019. Mr. Arthaud served as a member of Calyxt’s Board of Directors until May 2019 and is a member of Cellectis’ Board of Directors since 2011. Mr. Arthaud has been the Managing Director of Life Sciences and Ecotechnologies for Bpifrance Investissement (formerly CDC Enterprises, a subsidiary of Caisse des Dépôts) since 2012.

“I’m honored to join the Board of Directors at Calyxt and to support the impressive team that CEO Jim Blome has built. I’m confident the company will continue to build significant value for its stakeholders,” Laurent Arthaud added.

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.

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
(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’s High Oleic Low Linolenic Soybean Deemed Non-Regulated by USDA

Company Expands Product Portfolio with Next Generation Product Candidate Anticipated in 2022

Roseville, MN – June 3, 2020 – Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, announced today that its high oleic low linolenic (HOLL) soybean has been deemed a non-regulated article under the “Am I Regulated?” process by Biotechnology Regulatory Services of the Animal and Plant Health Inspection Service (APHIS), an agency of the United States Department of Agriculture (USDA).

Calyxt’s new HOLL soybean, developed using the company’s proprietary gene-editing technology TALEN®, is expected to launch as early as 2022 – a welcome addition to the company’s growing portfolio of commercial products, which includes hemp in 2020 and improved digestibility alfalfa in 2021.

“USDA confirmation that Calyxt’s high oleic low linolenic soybean is not a regulated article is an important next step in bringing this product to the market,” said Jim Blome, CEO of Calyxt. “We are excited to reach this milestone as we move toward commercializing our second-generation product that we expect will provide numerous product development benefits to our customers.”

The next generation heart healthy oil is expected to deliver formulation advantages, including improved stability, thereby helping broaden applications for use so that food manufacturers and chefs alike can offer healthier alternatives to consumers looking for value-added solutions.

Calyxt’s HOLL soybean is currently in the development process and is now part of a total of eight Calyxt products that have been deemed non-regulated articles by the USDA (under 7 CFR 340), including high fiber wheat, high oleic soybean, improved quality alfalfa, cold storable potato, and reduced browning potato.

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.

For further information, please contact:

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 Reports First Quarter 2020 Financial Results

First Quarter 2020 Revenue of $2.4 Million

Provides Update on COVID-19 Impact

Announces Extended Cash Runway and Revises 2020 Cash Usage Guidance to between $30 Million to $34 Million

Management to Host Conference Call Today at 8:30 a.m. EST

Roseville, MN – May 7, 2020 – Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, has reported its financial results for the first quarter ended March 31, 2020.

Management Commentary

“The COVID-19 pandemic has caused an unprecedented global crisis. I am very proud of the dedication and resilience of the Calyxt team and of the actions we have taken in response to the COVID-19 pandemic to protect our employees and our business,” said Jim Blome, Calyxt CEO. “Most of our laboratory workers remain onsite at our headquarters and all workers who are able to work remotely have done so since early in the crisis. Protecting our scientists and their projects is critical to our future, and thus far we have handled the transition without disruption. I appreciate the actions of our team to help ensure we stay safe and on track. While the immediate future is uncertain, what is crystal clear is that Calyxt must act judiciously and decisively to succeed during this situation and after it is resolved. We have taken several measures to respond to a dynamic environment that compels us to bolster our liquidity and rapidly adapt to extraordinary circumstances.”

“The first quarter of 2020 was initially marked by increasing demand for our high oleic soybean products, offset in the latter part of the quarter by the beginning of the COVID-19 pandemic, which has temporarily disrupted the agricultural and food supply chains globally and depressed food industry demand for premium oil. These negative effects increased throughout the quarter and remain with us today. We have responded to ongoing disruptions by pausing our crush schedule to preserve cash, while continuing our seed distribution activities for 2020 plantings, and continuing to ship high oleic soybean oil to our recently announced world-class oil customer. Looking forward at the macro-environment, we expect prices for both oil and meal to remain low, demand for oil to remain depressed and, depending on livestock herd sizes, meal demand may also be depressed. We also expect some of the oil and meal price pressure to be partially offset by lower grain purchase costs. Despite these headwinds, we continue to geographically expand our soybean meal customer base and continue to sample and test with large consumer packaged goods companies. I am confident that when the macro-environment stabilizes, we will emerge stronger than before.”

“On the technology front, we continue to build out and improve our gene editing technology suite. We licensed a new breakthrough from the University of Minnesota, invented in a lab run by Calyxt co-founder Dan Voytas, Ph.D., that will enable us to significantly reduce the time needed to develop traits in certain crops. I am pleased with the four product candidate advancements in our development process in the quarter, especially considering the unique nature of each. Our innovative technology, continuous improvement and robust scientific team are what allows us to maintain a competitive edge in the gene editing space,” continued Blome.

“In the near-term, we expect to launch our first hemp product – improved plants to address key problems facing hemp growers – marking the launch of our second commercial product. We expect the velocity of our revenue opportunities to accelerate as we build up a robust portfolio of commercial products addressing several different markets. For our efforts to secure new collaboration agreements with industry partners, we aim to sign multiple new agreements this year. We expect collaboration agreements to provide us with cash milestone payments to further support our liquidity and our vision that Calyxt is an innovation platform company.”

“In summary, despite increased headwinds and unprecedented global disruption, we continue to execute on our business initiatives, improve our gene editing platform, drive forward our R&D programs, and extend our cash runway. I am incredibly proud of our team and look forward to sharing more on our developing story at the upcoming BMO Global Farm to Market Virtual Conference on May 13,” concluded Blome.

Product Development and Intellectual Property

  • Continued to expand intellectual property portfolio with new U.S. patents granted and filing applications for new patent families.  Granted U.S. patents cover expansion of the core TALEN® patent family with claims directed to methods for generating gene edited plants as well as an additional soybean product concept. New provisional patent applications focus on expanding the portfolio of novel gene editing tools and enabling technologies, new product concepts in soybean and wheat, and additional germplasm varieties from its breeding program.
  • In the first quarter 2020, four projects in the R&D development process advanced to the next stage. As of March 31, 2020, there were 18 projects at the Discovery stage or later in development across alfalfa, canola, hemp, oats, potatoes, soybeans and wheat, with most projects in soybeans and hemp.
  • Early in the second quarter the first hemp project advanced to the commercialization phase.  Calyxt expects to launch the product for 2020 spring planting and complete the sale of all product available in the quarter. While not significant to revenue, the pilot is projected to deliver premium margins. To achieve these results, Calyxt worked with a partner’s germplasm to quickly purify and stabilize key varieties while leveraging Calyxt’s patent-pending production system and analytics capabilities. This success also enabled the gathering of valuable insights and data that will benefit the development of other hemp projects which are expected to launch beginning in 2023.

First Quarter 2020 Financial Results

  • Net cash used in the first quarter of 2020 was $12.6 million compared to $9.6 million in the first quarter of 2019, driven by the increase in net loss of $3.7 million partially offset by a net decrease in cash flows from operating assets and liabilities, primarily the result of the higher cash payments to suppliers and related parties in the first quarter of 2019.
  • Cash, cash equivalents, short-term investments and restricted cash totaled $47.4 million as of March 31, 2020.

COVID-19 Update

“Due to the COVID-19 crisis, we have observed changes in demand across the oil markets and declines in the exchange-traded prices for both oil and meal,” said Bill Koschak, Calyxt’s CFO. “As a result, we paused our crush and refining schedule and expect product sales efforts in the second quarter to shift to the second half of 2020. We are pursuing sources of cash through high margin collaboration agreements and licensing opportunities and are taking further action to increase financial flexibility and liquidity, including reviewing operating expenses, deferring purchases of grain in the fourth quarter to the following year, and postponing non-essential capital expenditures.”

“In April 2020, we received a $1.5 million loan under the Payroll Protection Program implemented as part of the CARES Act. After a thorough management review, we determined that the current economic uncertainty made the loan necessary to support our ongoing operations and allows us to continue employing our team members through this unprecedented time. As a result of these actions we expect our 2020 cash usage to be between $30 million and $34 million, lowered from our prior estimate of $34 million to $38 million. The lower use of cash in 2020, which we expect to continue into 2021, is expected to extend our cash runway into late 2021. We continue to evaluate additional strategies to further reduce our cash usage.”

“We also have sold out of seed for the 2020 crop, with seed distribution for 2020 spring planting underway. Deliveries of seed are on schedule and we continue to monitor the distribution network and to develop contingency plans for growers to receive their orders, including the five new varieties we are launching this spring,” concluded Koschak.

2020 Financial Guidance Revisions

On March 5, 2020, Calyxt issued 2020 financial guidance for revenue, adjusted gross margin, and cash usage, which did not take into account the impacts of the COVID-19 pandemic.  Due to the high degree of uncertainty created by the COVID-19 pandemic and the challenges of accurately predicting the specific extent or duration of the impact of COVID-19 on operations and financial results, Calyxt is withdrawing guidance for 2020 revenue and 2020 adjusted gross margin. In addition, taking into account anticipated reductions in cash expenditures, timing of grain purchases in the fourth quarter, and the proceeds from the Payroll Protection Program loan, Calyxt now expects cash usage in 2020 to be in the range of $30 million to $34 million, a reduction from previous 2020 cash usage guidance of $34 million to $38 million.

First Quarter 2020 Results Conference Call

Calyxt, Inc. will hold a conference call today at 8:30 a.m. Eastern time to discuss its results for the first quarter ended March 31, 2020. Calyxt Chief Executive Officer Jim Blome, Chief Financial Officer Bill Koschak, Chief Technology Officer Travis Frey, and Senior Vice President of Sales and Marketing Keith Blanks will host the conference call, which will be accompanied by a presentation and followed by a question and answer session.

To access the call, please use the following information:

Date:Thursday May 7, 2020
Time:8:30 a.m. EST, 5:30 a.m. PST
Toll Free dial-in number:1-877-407-0789
Toll/International dial-in number:            1-201-689-8562
Conference ID:13701507
Webcast:http://public.viavid.com/index.php?id=138971

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 via the investor relations section of Calyxt’s website here. The presentation used in the conference call and webcast will be available for reference on Calyxt’s IR website at 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:13701507

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.

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

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 a 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 in evaluating and making operational decisions regarding our business.

We present gross margin, as adjusted, a non-GAAP measure that includes the effects of high oleic soybean products sold with no associated cost of goods sold because those costs were expensed as R&D in a prior period and that also includes the impact of any net realizable value adjustments to our 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 gross margin, as adjusted, at this early 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 March 31,
In Thousands 2020  2019  
Gross margin (GAAP measure) $(1,507) $123  
Gross margin percentage  (63%)  78%  
Adjustments:         
Grain costs expensed as R&D     (149) 
Net realizable value adjustment to inventories  334     
Gross margin, as adjusted $(1,174) $(25) 
Gross margin percentage, as adjusted  (49%)  (16%) 

We present adjusted EBITDA, a non-GAAP measure defined as net loss excluding interest, net, income tax expense, depreciation and amortization expense, stock-based compensation expense, grain costs expensed as R&D,  net realizable value adjustments to inventories, Section 16 officer transition expenses, and research and development payroll tax credits no longer realizable.

We provide in the table below a reconciliation of net loss to adjusted EBITDA, 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 present a reconciliation of net loss to adjusted EBITDA:            

    Three months ended March 31, 
In Thousands 2020  2019  
Net Loss (GAAP measure) $(11,063) $(7,375) 
Non-GAAP adjustments:         
Interest, net  398   (172) 
Income tax expense       
Depreciation & amortization  452   342  
Stock-based compensation expenses  1,271   1,556  
Grain costs expensed as R&D     (149) 
Net realizable value adjustment to inventories  334     
Section 16 officer transition expenses  360   188  
Research and development payroll tax credit     (63) 
Adjusted EBITDA $(8,247) $(5,672) 

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 potential impact of the COVID-19 impact on our business and operating results, our future financial performance, product pipeline and development, commercialization efforts and sales of commercial products, regulatory progression, potential collaborations and partnerships and their contribution to our financial results, cash usage, 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; 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.

CALYXT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Par Value and Share Amounts)

 March 31, 2020 (unaudited) December 31, 2019 
Assets      
Current assets:      
Cash and cash equivalents$7,385 $58,610 
Short-term investments 38,620   
Restricted cash 388  388 
Accounts receivable 841  1,122 
Due from related parties 7   
Inventory 3,198  2,594 
Prepaid expenses and other current assets 1,594  808 
Total current assets 52,033  63,522 
Non-current restricted cash 1,045  1,040 
Land, buildings, and equipment 22,902  23,212 
Other non-current assets 441  324 
Total assets$76,421 $88,098 
Liabilities and stockholders’ equity      
Current liabilities:      
Accounts payable$1,085 $1,077 
Accrued expenses 2,093  2,544 
Accrued compensation 1,363  2,181 
Due to related parties 554  977 
Current portion of financing lease obligations 361  356 
Other current liabilities 94  61 
Total current liabilities 5,550  7,196 
Financing lease obligations 18,194  18,244 
Other non-current liabilities 141  150 
Total liabilities 23,885  25,590 
Stockholders’ equity:      
Common stock, $0.0001 par value; 275,000,000 shares authorized; 33,090,799 shares issued and 32,990,647 shares outstanding as of March 31, 2020, and 33,033,689 shares issued and 32,951,329 shares outstanding as of December 31, 2019 3  3 
Additional paid-in capital 186,859  185,588 
Common stock in treasury, at cost; shares of 100,152 as of March 31, 2020, and 82,360 as of December 31, 2019 (1,043) (1,043)
Accumulated deficit (133,120) (122,057)
Accumulated other comprehensive income (loss) (163) 17 
Total stockholders’ equity 52,536  62,508 
Total liabilities and stockholders’ equity$76,421 $88,098 

CALYXT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in Thousands Except Shares and Per Share Amounts)

 Three Months Ended March 31, 
 2020  2019 
Revenue$2,377  $157 
Cost of goods sold 3,884   34 
Gross margin (1,507)  123 
Operating expenses:       
Research and development 2,787   2,219 
Selling and supply chain 1,580   904 
General and administrative 4,720   4,162 
Management fees 62   361 
Total operating expenses 9,149   7,646 
Loss from operations (10,656)  (7,523)
Interest, net (398)  172 
Foreign currency transaction loss (9)  (24)
Loss before income taxes (11,063)  (7,375)
Income taxes     
Net loss$(11,063) $(7,375)
Basic and diluted loss per share$(0.34) $(0.23)
Weighted average shares outstanding – basic and diluted 32,988,141   32,677,944 

CALYXT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in Thousands)

 Three Months Ended March 31, 
 2020  2019 
Operating activities       
Net loss$(11,063) $(7,375)
Adjustments to reconcile net loss to net cash used by operating activities:       
Depreciation and amortization 452   342 
Stock-based compensation 1,271   1,556 
Changes in operating assets and liabilities:       
Accounts receivable 281   (124)
Due to/from related parties (430)  (1,114)
Inventory (604)  (379)
Prepaid expenses and other current assets (786)  (629)
Accounts payable 8   (94)
Accrued expenses (451)  (397)
Accrued compensation (818)  (418)
Other current liabilities (156)  (428)
Other non-current assets (120)  (216)
Net cash used by operating activities (12,416)  (9,276)
Investing activities       
Short-term investments (38,620)   
Purchases of land, buildings, and equipment (139)  (346)
Net cash used by investing activities (38,759)  (346)
Financing activities       
Repayments of financing lease obligations (45)  (59)
Proceeds from the exercise of stock options    125 
Net cash (used) provided by financing activities (45)  66 
Net decrease in cash, cash equivalents and restricted cash (51,220)  (9,556)
Cash, cash equivalents and restricted cash – beginning of period 60,038   95,288 
Cash, cash equivalents and restricted cash – end of period$8,818  $85,732 

Calyxt Launches Consumer E-Commerce Channel for Calyno® Premium Cooking Oil

Building on Our B2B Platform, Calyxt is Deploying a New Retail Option for Domestically Grown Cooking Oil Through New E-Commerce Website

Allergen and Gluten-Free, With Zero Grams Trans-Fat Per Serving

ROSEVILLE, Minn.–(BUSINESS WIRE)– Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, has launched a retail offering of Calyno® cooking oil, the company’s first commercial product, a premium, high-performing oil, through the company’s newly launched e-commerce website calyno.com.

Calyno delivers all the benefits of a heart healthy oil with the functional performance of a premium cooking oil. It is grown by Midwest farmers and produced in the United States. Calyno oil is allergen and gluten-free, with zero grams trans-fat per serving, 20% reduced saturated fat and comes with an FDA qualified heart health claim. Chefs appreciate the lower oil absorption of Calyno oil – which offers superior stability and performance in the kitchen along with an increased fry life compared to conventional vegetable oil.

Gallon containers of Calyno premium high oleic soybean oil will be available for purchase through the company’s new e-commence website calyno.com, starting Thursday, April 30, 2020.

“As a chef, we look for an oil that will give us the results we want; and for us, that is a good sear with great frying performance. Calyno oil provides this and more, even delivering a clean, non-greasy finish,” said Nettie Colón, Chef de Cuisine at The Lynhall Minneapolis. “Calyno premium cooking oil is great for us because we pride ourselves on putting out the best food.”

A recent survey published by the International Food Information Council and American Heart Foundation revealed that 43 percent of American consumers are always on the lookout for healthy options when shopping, and according to the U.S. Department of Agriculture, soybean oil had the highest level of consumption of any edible oil in the United States in 2019.

“Our e-commerce launch offers consumers a new option that is heart-healthy and highly functional,” said Jim Blome, CEO of Calyxt. “We are thrilled to provide consumers access to our premium oil – an incredible new offering for individuals and smaller dining establishments. We look forward to this exciting next step in our commercialization process,” concluded Blome.

For more information about Calyno premium cooking oil by Calyxt, please visit calyxt.com or visit the new eCommerce site at calyno.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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200430005234/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
CLXT@mzgroup.us
www.mzgroup.us

Source: Calyxt, Inc.

Released April 30, 2020

Calyxt to Host First Quarter 2020 Financial Results Conference Call on Thursday, May 7, 2020 at 8:30 a.m. Eastern Time

Previously Scheduled Virtual Analyst Day Postponed to Later Date

Roseville, MN – April 14, 2020 – Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, will hold a conference call on Thursday, May 7, 2020 at 8:30 a.m. Eastern time to discuss its results for the first quarter ended March 31, 2020. A press release detailing the first quarter 2020 results will be issued prior to the call.

Due to the extension of social distancing stemming from the COVID-19 crisis, the virtual analyst day previously scheduled for Thursday, May 7, 2020 immediately following the earnings call has been postponed to a later date in 2020 and will be formally announced via press release.

Calyxt Chief Executive Officer Jim Blome, Chief Financial Officer Bill Koschak, Chief Technology Officer Travis Frey, and Senior Vice President of Sales and Marketing Keith Blanks 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 earnings call and virtual analyst day presentation, please use the following information:

Date:Thursday, May 7, 2020
Time:8:30 a.m. EST, 5:30 a.m. PST
Toll Free dial-in number:1-877-407-0789
Toll/International dial-in number:             1-201-689-8562
Conference ID:13701507

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=138971 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:13701507

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.

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 Licenses New Enabling Technology from University of Minnesota for Greater Efficiency in Gene Edited Plants

Unique Technology Has Potential to Reduce Gene Edited Plant Production Timelines & Increase Speed to Market

Roseville, MN – April 7, 2020 – Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, has licensed a new method to help increase plant gene editing efficiency from the University of Minnesota. The method has the potential to reduce the time needed to edit plants from approximately one year to several months.

This breakthrough, co-invented by Dan Voytas, Ph.D., the co-founder of Calyxt and the University of Minnesota Professor of Genetics, Cell Biology and Development, is an example of  the opportunistic synergies that Calyxt has with the University of Minnesota to put into commercial practice some of the technical discoveries coming out of the University’s research programs.  This new technology could help Calyxt bring consumer-desired products, like better tasting plant proteins, to the market faster.

“It is extremely rewarding to see research performed at the University of Minnesota result in technologies that can be used by Calyxt to accelerate the production of gene edited crop varieties,” said Calyxt chief science officer, Dan Voytas.  

“Leveraging cutting-edge technology that enables new and faster ways to enhance the power of plants is our goal at Calyxt,” said Calyxt CEO, Jim Blome. “We’re committed to making a difference by developing plants that will improve health and sustainability for people and the planet, and our product pipeline reflects the opportunities that we hope to seize.”

The company expects to launch at least six product candidates from now through 2024, including a hemp product candidate in 2020, an alfalfa product in 2021 through its collaboration with S&W Seed Company (NASDAQ: SANW), a high fiber wheat product candidate as early as 2022, and four additional product candidates either via the company’s integrated business model or in collaboration with third parties.

For more information, please read the published article in Nature Biotechnology or visit 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.

For further information, please contact:

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 Launches New Website Showcasing the Power and Possibilities of Plants

Improved Navigation and Functionality Supports Increased Virtual Connectivity with Customers, Collaborators and Growers

Roseville, MN – March 24, 2020 – Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, has launched its new website to showcase how Calyxt is harnessing the ‘Power and Possibilities of Plants’.

Calyxt, pronounced [kay-lixt] is derived from the Latin term calyx, the sepals that surround, protect and support a plant bud and flower. The added “T” signifies how Calyxt is leveraging advanced technologies (like TALEN® technology) to bring healthier, more sustainable products to market.

Calyxt.com – has been redesigned to offer a more informative and user-friendly experience with improved navigation and functionality. The website showcases Calyxt’s products and solutions as well as its innovation product pipeline.

Calyxt is doing what farmers and plant breeders have been doing for hundreds of years: choosing the best crops and breeding them to make stronger, more sustainable plants. Leveraging proprietary TALEN technology, Calyxt has the ability to address market opportunities in food tech and agriculture, and the new website better reflects Calyxt’s position at the leading edge of accelerated plant breeding with a focus on wellness and sustainability. Calyxt’s proprietary technology produced the first gene-edited product sold in the United States, and its R&D pipeline contains additional product candidates to address challenges in multiple sectors.

“Our newly designed website reflects the breadth and depth of our R&D team with our expanded innovation pipeline to address unmet consumer, environmental, and marketplace demands,” said Calyxt CEO, Jim Blome. “The optimization of our website is one example of the steps we’ve taken to be more digitally engaged and connected to our core audiences including suppliers and buyers, CPGs, prospective collaborators and our strong grower network,” continued Blome.

“We’re gaining momentum and inviting collaborators to come to us with a challenge for our R&D team to solve. We’re committed to launching six projects by 2024 in four crops – soybean, wheat, alfalfa and hemp – and look forward to providing more updates on our initiatives throughout 2020,” concluded Blome.

The new site will allow Calyxt to engage with its audiences and improves the user experience. Visitors can also now access assets including sales sheets, seed variety technical specifications, as well as new videos and photos.

Please visit www.calyxt.com to explore the new site.

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.

For further information, please contact:

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) 491-8235CLXT@mzgroup.us
www.mzgroup.us

Calyxt Reports Record Fourth Quarter and Full Year 2019 Financial Results

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.

Toll Free Replay Number: 1-844-512-2921
International Replay Number: 1-412-317-6671
Replay ID: 13697762

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   $ 60,038     $ 95,288     

Calyxt to Host Fourth Quarter and Full Year 2019 Financial Results Conference Call on Thursday, March 5, 2020 at 8:30 a.m. Eastern Time

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

Calyxt Achieves 2020 Soybean Contracted Acreage Goal of 100,000 Acres

Contracted Acres for 2020 Triples 2019 Planted Acreage Footprint to Support Growing Demand for Calyxt High Oleic Soybean Oil

First Purchase Order for HO Soybean Oil in Industrial Segment from New Customer Operating in All Four of Calyxt’s Premium Oil Target Markets

ROSEVILLE, Minn.–(BUSINESS WIRE)– Calyxt, Inc. (NASDAQ: CLXT), a plant-based technology company, has achieved its 2020 contracted acreage target, successfully contracting 100,000 soybean acres with U.S. farmers.

The achievement of 100,000 contracted acres for 2020 represents 178% growth over Calyxt’s ~36,000 planted acres in 2019. This achievement surpasses the company’s stated goal of doubling its soybean acreage annually.

“We continue to strengthen Calyxt’s position as a leader in high oleic soybeans,” said Vince Restucci, vice president of agronomy services with Calyxt. “We are not only diversifying revenue options for American growers, but also providing our customers with an improved soybean oil product, driving opportunities for healthier everyday consumer choices.”

“I am proud of our commercial and agronomy teams for their efforts and achievement of our 2020 contracted acreage goals to support our continued growth,” said Jim Blome, chief executive officer of Calyxt. “The achievement of 100,000 contracted acres will support market demand for our high oleic soybean oil, which now includes expanded distribution through another top U.S. foodservice distributor and use in prominent restaurants on the East Coast.

“We also received our first purchase order from a world class customer that operates in all four of our premium oil target markets: foodservice, food ingredients, animal nutrition, and industrial. I look forward to an exciting 2020 and sharing more details about the year ahead on our upcoming yearend earnings call in March,” concluded Blome.

About Calyxt

Calyxt (NASDAQ: CLXT), based in Roseville, Minnesota, is a plant-based technology company that utilizes 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 can 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.

Calyxt 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 subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. 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 applicable laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200207005079/en/

Calyxt Media contact

Trina Lundblad

Director of Communications

+1 612-790-0514

media@calyxt.com

Investor Relations contact

Chris Tyson

Managing Director, MZ Group – MZ North America

(949) 491-8235

CLXT@mzgroup.us

www.mzgroup.us

Source: Calyxt, Inc.

Released February 7, 2020