Calyxt Reports Financial Results for First Quarter 2018
Calyxt will host an investor call on May 8, 2018 at 8:00 am Eastern Time – 7:00 am Central Time to discuss its financial results and provide a general business update.
The live dial-in information for the conference call is:
US & Canada only: 877-407-9747
In addition, a replay of the call will be available until June 8, 2018 by calling 877-660-6853 (Toll Free US & Canada); 201-612-7415 (Toll Free International). The archived webcast of this event may be accessed through the Calyxt website.
Webcast URL (Archived for 6 months): https://bit.ly/2jCxFQI
“We continue to advance our mission to deliver good-for-you foods in a good-for-everyone way. We are proud of our progress towards evolving the nutrition of food to deliver high quality, trusted ingredients, that are traceably produced for complete transparency. We are transforming the Company, as we transition into a commercial entity with a powerful R&D engine that will expand once we move to our new state-of-the-art concept to fork facility. We have received USDA non-regulated status for seven products and prepared our first product for commercialization. We look forward to continued commercial and supply chain successes for the rest of 2018 while we continue to grow our capability to deliver healthier food to consumers,” said Federico Tripodi, Calyxt Chief Executive Officer.
Expansion of total acreage for high-oleic soybean product launch
Calyxt announced on April 5, 2018 that the Company has further expanded its total acreage with farmers across the northern United States for its high-oleic soybean variety. Calyxt has contracted over 16,000 acres with 75 farmers in the Midwest. Overall, these growers collectively farm over 200,000 acres, half of which are expected to produce soybeans. Around 17% of the soybeans that are anticipated to be planted consist of Calyxt’s high-oleic variety. Over 90% of farmers that planted Calyxt’s high-oleic soybeans in 2017 have renewed their Calyxt high-oleic soybeans contracts this year. Furthermore, on average, each repeat farmer is more than doubling his or her Calyxt acres year-over-year. Calyxt successfully launched a Brand Ambassador Program which enrolled progressive, high-quality growers to be early adopters and advocates of gene editing technology.
Planting of high-oleic soybeans
Farmers enrolled in the Calyxt high-oleic soybean program have started planting. The planting will pick up speed over coming weeks and likely to be completed by mid-June.
Calyxt’s high fiber wheat deemed non-regulated by USDA
Calyxt announced on March 21, 2018 that the Company’s high fiber wheat product has been declared 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). This is Calyxt’s first consumer-centric wheat product and second wheat product (following Calyxt’s powdery mildew resistant wheat, which received non-regulated status by the USDA in February 2016), and seventh product overall, to be given this designation. High fiber wheat may be the next product to market with anticipated commercialization as early as 2020-21.
Twenty small to large food company customers engaged across food services and food ingredient applications
Engagements with food company customers continue to grow. In the first quarter of 2018, Calyxt added 8 more customers taking the total number of customer engagements to 20. These customers are evaluating Calyxt high-oleic soybean oil for end-use applications such as frying potatoes (chips, french fries), meats, snacks (salty and healthy), baking, nut butter and vegan products.
New concept-to-fork facility in Roseville, Minn., on track for completion in the second quarter of 2018
Calyxt will soon open its nearly 40,000-square-foot concept-to-fork facility on an 11-acre site that will house a test kitchen, state-of-the-art research labs and the Company’s headquarters. The new facility is being constructed adjacent to Calyxt’s recently completed 11,000+square-foot greenhouse facility and existing outdoor demonstration plots.
Cash and cash equivalents were $50.7 million at March 31, 2018. We intend to continue to judiciously manage the use of cash and expect to have sufficient cash to fund the business for a significant portion of 2019. Cellectis remains our majority shareholder with 79.1% of our common stock as of March 31, 2018.
For the three months ended March 31, 2018, we incurred losses from operations of $4.4 million, and used net cash in operating activities of $6.6 million. Net decrease in cash for the first quarter was $6.0 million. The first quarter cash spend includes spending on high-oleic soybean seed production to support our expected Spring 2018 planting of high-oleic soybeans.
Looking forward for the rest of 2018, we anticipate that our operating cash spend will be in the range of $2.0 to $2.2 million per month excluding working capital for grain purchases in the later part of 2018. Cash will be used to expand our R&D team to advance key products in the portfolio and continue to build our commercial capabilities.
Condensed Balance Sheets
(Amounts in Thousands, Except Share Data and Per Share Data)
|Cash and cash equivalents||$ 50,703||$ 56,664|
|Trade accounts receivable||—||—|
|Due from related parties||47||167|
|Prepaid expenses and other current assets||2,080||626|
|Total current assets||52,830||57,457|
|Property and equipment, net||18,767||14,353|
|Other long-term assets||270||357|
|Total assets||$ 71,867||$ 72,167|
|Liabilities and stockholders’ equity|
|Due to related parties||$ 742||$ 1,350|
|Accrued salaries, wages, and other compensation||490||945|
|Current deferred revenue||43||43|
|Total current liabilities||2,972||4,254|
|Non-current deferred revenue||278||289|
|Finance lease obligations||14,757||10,148|
Common stock, $0.0001 par value; 275,000,000 shares authorized, 27,954,781 and
|Preferred stock, $0.0001 par value; 50,000,000 shares authorized, no shares
issued or outstanding as of March 31, 2018 and December 31, 2017 respectively
|Additional paid-in capital||112,775||112,021|
|Total stockholders’ equity||53,860||57,476|
|Total liabilities and stockholders’ equity||$ 71,867||$ 72,167|
Condensed Statements of Operations
(Amounts in Thousands except Shares Outstanding and Per Share Amounts)
|Three Months Ended
|Revenue||$ 11||$ 55|
|Cost of revenue||—||—|
|Research and development||1,093||1,266|
|Selling, general, and administrative||3,214||1,578|
|Total operating expenses||4,307||2,844|
|Loss from operations||(4,296)||(2,789)|
|Interest expense, net||(68)||(14)|
|Foreign currency transaction loss||(6)||(29)|
|Loss before income taxes||(4,370)||(2,832)|
|Income tax expense||—||—|
|Net loss||$ (4,370)||$ (2,832)|
|Basic and diluted loss per share||$ (0.16)||$ (0.14)|
|Weighted average shares outstanding—basic and diluted||27,851,162||19,600,000|
Condensed Statement of Stockholders’ Equity
(Amounts in Thousands except Shares Outstanding)
|Balances at December 31, 2017||27,718,780||$ 3||$ 112,021||$ (54,548)||$ 57,476|
Common shares issued upon
|Balances at March 31, 2018 (unaudited)||27,954,781||$ 3||$ 112,775||$ (58,918)||$ 53,860|
Condensed Statements of Cash Flows
(Amounts in Thousands)
|Three Months Ended
|Net loss||$ (4,370)||$ (2,832)|
Adjustments to reconcile net loss to net cash used in operating
|Unrealized transaction gain (loss) on related party activity||8||(27)|
|Changes in operating assets and liabilities:|
|Trade accounts receivable||—||110|
|Due to/from related parties||(496)||490|
|Prepaid expenses and other assets||(880)||(426)|
|Accrued salaries, wages, and other compensation||(456)||(89)|
|Net cash used in operating activities||(6,565)||(1,707)|
|Purchases of property and equipment||(41)||(312)|
|Net cash used in investing activities||(41)||(312)|
|Proceeds from the exercise of stock options||714||—|
|Net cash provided by financing activities||645||—|
|Net decrease in cash and cash equivalents||(5,961)||(2,019)|
|Cash and cash equivalents—beginning of period||56,664||5,026|
|Cash and cash equivalents—end of period||$ 50,703||$ 3,007|
|Supplemental cash flow information|
|Supplemental non-cash investing and financing transactions:|
|Property and equipment included in financing lease obligation||4,529||—|
|Deferred costs in accounts payable and accrued liabilities||417|
Calyxt, Inc. is a consumer-centric, food- and agriculture-focused company. Calyxt is pioneering a paradigm shift to deliver healthier food ingredients, such as healthier oils and high fiber wheat, for consumers and crop traits that benefit the environment and reduce pesticide applications, such as disease tolerance, for farmers. Calyxt develops non-transgenic crops leveraging processes that occur in nature by combining its leading gene-editing technology and technical expertise with its innovative commercial strategy. Calyxt is located in Minneapolis-St. Paul, MN, and is listed on the Nasdaq market (ticker: CLXT).
For further information please visit our website: www.calyxt.com
Calyxt™ and the corporate logo are trademarks owned by Calyxt, Inc.
TALEN® is a registered trademark owned by the Cellectis S.A.
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.
Jennifer Moore, 917-580-1088
KCSA Strategic Communications
Caitlin Kasunich, 212-896-1241
Nick Opich, 212-896-1206
Simon Harnest, 646-385-9008
VP Corporate Strategy and Finance