Calyxt, Inc. (NASDAQ:CLXT), a consumer-centric, food- and agriculture-focused company, today announced its results for the three- and nine-month periods ended September 30, 2018.
Investor Call Details
Calyxt will host an investor call on November 14, 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
International: 412-902-0044
In addition, a replay of the call will be available until May 14, 2019 by calling 877-660-6853 (Toll Free US & Canada); 201-612-7415 (Toll Free International).
Webcast URL (Archived for 6 months): http://bit.ly/2DbCETf
“The third quarter of 2018 was an exciting and crucial time for Calyxt to take important steps towards the commercialization of our lead product candidate, a non-GMO, high oleic soybean variety, designed to yield soybean oil with over 80% oleic oil content that is completely trans-fat free. Our partnerships with American Natural Processors, which will crush and process our high-oleic soybeans, and KemX Global, which will refine our oil, will position us to grow significantly. On the farmer side, we are hitting the ground running with our upcoming high-oleic soybean growing season. I am pleased to announce that within the first few weeks of contracting for 2019, we have already surpassed Calyxt’s acreage for all of 2018. On the food customer front, we are in discussions with over 30 food companies, from small to multi-national. In summary, I can say that we are well on track to becoming a real commercial player,” said Jim Blome, newly appointed CEO of Calyxt. “Furthermore, I am beyond thrilled to be a part of such an amazing team at this very moment in time, ringing in a new era in the field of agriculture. Our TALEN®-technology platform, our world class scientists and lab facilities, our U.S. regulatory position and our extensive IP assets are just some of the reasons that enticed me to take on this new role. In addition, our product pipeline is well-suited for today’s consumer trends demanding healthier diets, food supply transparency, improved taste and the sustainability of food production by lowering inputs and waste.”
High Oleic Soybean Update:
Agreement with KemX Global, a leading provider of innovative organic processing of oils, to refine Calyxt’s high-oleic soybean oil. KemX Global’s organic, non-GMO-certified Iowa plant positions Calyxt to work with multiple crush plants in the Midwest region and positions Calyxt’s supply chain for the production of our food-grade high-oleic soybean oil.
Pipeline Update:
Corporate Update:
Financial Highlights
Cash and cash equivalents were $101.8 million at September 30, 2018. We intend to continue to judiciously manage the use of cash and expect to have sufficient cash to fund the business until late 2020.
For the three months ended September 30, 2018, we incurred losses from operations of $7.7 million and used net cash in operating activities of $4.8 million.
For the nine months ended September 30, 2018, we incurred losses from operations of $19.5 million and used net cash in operating activities of $13.6 million. Our cash spend for the first nine months of 2018 can be broken into 3 categories:
We anticipate that our operating cash spend will be in the range of $2.0 million per month on average in 2018.
Calyxt, Inc. | ||||||||
Condensed Balance Sheets | ||||||||
(Amounts in Thousands, Except Share Data and Per Share Data) | ||||||||
September 30, | December 31, | |||||||
2018 | 2017 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 101,796 | $ | 56,664 | ||||
Restricted cash | 50 | — | ||||||
Trade accounts receivable | — | — | ||||||
Due from related parties | 166 | 167 | ||||||
Prepaid expenses and other current assets | 967 | 626 | ||||||
Total current assets | 102,979 | 57,457 | ||||||
Property and equipment, net | 21,305 | 14,353 | ||||||
Other long-term assets | 341 | 357 | ||||||
Total assets | $ | 124,625 | $ | 72,167 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Due to related parties | $ | 1,937 | $ | 1,350 | ||||
Accounts payable | 1,240 | 1,023 | ||||||
Accrued salaries, wages, and other compensation | 1,016 | 945 | ||||||
Accrued liabilities | 2,669 | 893 | ||||||
Current deferred revenue | 7 | 43 | ||||||
Total current liabilities | 6,869 | 4,254 | ||||||
Non-current deferred revenue | 91 | 289 | ||||||
Finance lease obligations and other long term liabilities | 17,433 | 10,148 | ||||||
Total liabilities | 24,393 | 14,691 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.0001 par value; 275,000,000 shares authorized,
32,463,407 and 27,718,780 |
3 | 3 | ||||||
Preferred stock, $0.0001 par value; 50,000,000 shares authorized, no
shares issued or outstanding as of September 30, 2018 and December 31, 2017, respectively |
— | — | ||||||
Additional paid-in capital | 174,206 | 112,021 | ||||||
Accumulated deficit | (73,977 | ) | (54,548 | ) | ||||
Total stockholders’ equity | 100,232 | 57,476 | ||||||
Total liabilities and stockholders’ equity | $ | 124,625 | $ | 72,167 | ||||
Calyxt, Inc. | ||||||||||||||||
Condensed Statements of Operations | ||||||||||||||||
(Amounts in Thousands except Shares Outstanding and Per Share Amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue | $ | 27 | $ | 44 | $ | 234 | $ | 322 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue | — | — | — | — | ||||||||||||
Research and development | 3,307 | 6,438 | 7,493 | 9,157 | ||||||||||||
Selling, general, and administrative | 4,419 | 6,553 | 12,228 | 10,141 | ||||||||||||
Total operating expenses | 7,726 | 12,991 | 19,721 | 19,298 | ||||||||||||
Loss from operations | (7,699 | ) | (12,947 | ) | (19,487 | ) | (18,976 | ) | ||||||||
Interest income, net | 228 | 48 | 88 | 4 | ||||||||||||
Foreign currency transaction loss | (12 | ) | (5 | ) | (30 | ) | (159 | ) | ||||||||
Loss before income taxes | (7,483 | ) | (12,904 | ) | (19,429 | ) | (19,131 | ) | ||||||||
Income tax expense | — | — | — | — | ||||||||||||
Net loss | $ | (7,483 | ) | $ | (12,904 | ) | $ | (19,429 | ) | $ | (19,131 | ) | ||||
Basic and diluted loss per share | $ | (0.23 | ) | $ | (0.51 | ) | $ | (0.65 | ) | $ | (0.89 | ) | ||||
Weighted average shares outstanding—basic and diluted | $ | 32,381,010 | $ | 25,531,572 | $ | 30,040,926 | $ | 21,615,703 | ||||||||
Calyxt, Inc. | ||||||||||||||||
Condensed Statement of Stockholders’ Equity | ||||||||||||||||
(Amounts in Thousands except Shares Outstanding) | ||||||||||||||||
Shares |
Common |
Additional |
Accumulated |
Total |
||||||||||||
Balances at December 31, 2017 | 27,718,780 | $ | 3 | $ | 112,021 | $ | (54,548 | ) | $ | 57,476 | ||||||
Net loss | — | (19,429 | ) | (19,429 | ) | |||||||||||
Common shares issued upon exercise of options and other | 687,127 | 2,128 | 2,128 | |||||||||||||
Stock-based compensation | — | 3,016 | 3,016 | |||||||||||||
Issuance of common stock | 4,057,500 | 57,041 | 57,041 | |||||||||||||
Balances at September 30, 2018 (unaudited) | 32,463,407 | $ | 3 | $ | 174,206 | $ | (73,977 | ) | $ | 100,232 | ||||||
Calyxt, Inc. | |||||||||
Condensed Statements of Cash Flows | |||||||||
(Amounts in Thousands) | |||||||||
Nine Months Ended | |||||||||
September 30, | |||||||||
2018 | 2017 | ||||||||
(unaudited) | |||||||||
Operating activities | |||||||||
Net loss | $ | (19,429 | ) | $ | (19,131 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation | 727 | 414 | |||||||
Stock-based compensation | 3,016 | 9,980 | |||||||
Unrealized transaction gain (loss) on related party activity | 12 | (8 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||
Trade accounts receivable | — | 110 | |||||||
Due to/from related parties | 576 | 1,534 | |||||||
Prepaid expenses and other assets | (325 | ) | (260 | ) | |||||
Accounts payable | 217 | 205 | |||||||
Accrued salaries, wages, and other compensation | 70 | 160 | |||||||
Accrued liabilities | 1,770 | 1,250 | |||||||
Deferred revenue | (234 | ) | (222 | ) | |||||
Net cash used in operating activities | (13,600 | ) | (5,968 | ) | |||||
Investing activities | |||||||||
Purchases of property and equipment, net | (830 | ) | (1,614 | ) | |||||
Net cash used in investing activities | (830 | ) | (1,614 | ) | |||||
Financing activities | |||||||||
Advances from Cellectis | — | 3,000 | |||||||
Repayment of advances from Cellectis | — | (3,000 | ) | ||||||
Costs incurred related to the issuance of stock | (222 | ) | (3,330 | ) | |||||
Proceeds from common stock issuance | 57,706 | 61,292 | |||||||
Proceeds from the exercise of stock options | 2,128 | 182 | |||||||
Financing lease obligation | — | 6,957 | |||||||
Net cash provided by financing activities | 59,612 | 65,101 | |||||||
Net increase in cash, cash equivalents and restricted cash | 45,182 | 57,519 | |||||||
Cash, cash equivalents and restricted cash—beginning of period | 56,664 | 5,026 | |||||||
Cash, cash equivalents and restricted cash—end of period | $ | 101,846 | $ | 62,545 | |||||
Supplemental cash flow information | |||||||||
Interest paid | $ | 856 | $ | 44 | |||||
Supplemental non-cash investing and financing transactions: | |||||||||
Property and equipment included in financing lease obligations | $ | 6,849 | — | ||||||
Offering costs in accounts payable and accrued liabilities | $ | 443 | $ | 2,081 | |||||
The following presents cash, cash equivalents and restricted cash by category within the condensed balance sheet: |
|||||||||
Cash and cash equivalents | $ | 101,796 | $ | 62,545 | |||||
Restricted cash | 50 | — | |||||||
Total | $ | 101,846 | $ | 62,545 | |||||
About Calyxt
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.
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