Yield10 Bioscience Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

Yield10 Bioscience (Nasdaq: YTEN) reported Q2 2024 financial results, highlighting a net loss of $3.2 million ($5.04 per share), compared to a $3.7 million loss in Q2 2023. The company announced a significant development: a Memorandum of Understanding and License Agreement with Nuseed Nutritional US Inc. (Nufarm's seed technologies platform) for Omega-3 Camelina intellectual property. This deal could bring Yield10 up to $5 million, with an initial $3 million payment received. Yield10 and Nufarm are in exclusive negotiations for the sale of Yield10's remaining assets, subject to shareholder approval. CEO Oliver Peoples emphasized that this transition is in the best interest of shareholders, partners, and employees, providing cash runway for the company.

Positive

• Signed License Agreement with Nuseed Nutritional US Inc. for Omega-3 Camelina IP, potentially worth up to $5 million
• Received initial $3 million payment from Nufarm deal
• Reduced net loss to $3.2 million in Q2 2024 from $3.7 million in Q2 2023

Negative

• Reported net loss of $3.2 million for Q2 2024
• Potential sale of substantially all remaining assets to Nufarm, subject to shareholder approval
• Uncertainty regarding shareholder approval for the asset sale

Insights

Financial Analyst

Yield10 Bioscience's Q2 2024 results reveal a narrowing net loss of $3.2 million ($5.04 per share), compared to $3.7 million ($15.42 per share) in Q2 2023. This 13.5% reduction in losses is noteworthy, but the company's financial health remains precarious. The strategic move to sell Omega-3 Camelina assets to Nufarm for up to $5 million provides a important lifeline. The initial $3 million payment bolsters short-term liquidity, potentially extending the cash runway. However, the pending shareholder vote on the full asset sale introduces uncertainty. Investors should closely monitor the outcome, as it will significantly impact Yield10's future trajectory and potential value.

Biotechnology Expert

The transition of Yield10's Omega-3 Camelina program to Nufarm marks a pivotal shift in the company's strategy. This move could accelerate the commercialization of Omega-3 Camelina, leveraging Nufarm's resources and market presence. The deal's structure, including milestone payments, aligns incentives for successful development. However, the potential sale of "substantially all" remaining assets raises questions about Yield10's future in agricultural bioscience. It's important to assess what intellectual property and research capabilities, if any, will remain with Yield10 post-transaction. The outcome will determine whether Yield10 can pivot to new opportunities or if this represents an effective wind-down of its operations.

Market Research Analyst

The potential asset sale to Nufarm reflects broader trends in the agbiotech sector, where larger companies are acquiring innovative technologies to enhance their product portfolios. This consolidation can accelerate the path to market for novel crop traits. For Yield10 shareholders, the deal presents a mixed outlook. While it provides immediate value and reduces ongoing cash burn, it also potentially limits future upside if Omega-3 Camelina proves highly successful. The market's reaction will likely hinge on the full terms of the asset purchase agreement and Yield10's plans post-transaction. Investors should weigh the short-term cash infusion against the long-term potential of Yield10's technology platform in assessing the company's value proposition.

WOBURN, Mass., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Yield10 Bioscience, Inc. (Nasdaq:YTEN) ("Yield10" or the "Company"), an agricultural bioscience company, today reported financial results for the second quarter ended June 30, 2024.

"We continue to work closely with the Nufarm team to finalize the asset purchase agreement announced in July,” said Oliver Peoples, Ph.D., President and Chief Executive Officer of Yield10. “We believe that the transition of our Omega-3 Camelina program to Nufarm is in the best interest of our shareholders, business partners, and employees. Receipt of the initial $3 million payment and progress toward earning an additional $2 million milestone payment is enabling us to manage key biological assets and regulatory requirements, while providing us with the cash runway to secure the vote from shareholders on the asset sale.”

On July 17, 2024, Yield10 announced that the Company had signed a Memorandum of Understanding and License Agreement with Nuseed Nutritional US Inc. (the seed technologies platform of Nufarm Limited), granting Nufarm a commercial license to certain Omega-3 intellectual property assets, materials and know-how for producing oil in Camelina. Under the License Agreement, Nufarm will pay Yield10 up to USD $5 million. Nufarm and Yield10 have additionally agreed to immediately negotiate exclusively with each other for the sale of substantially all of Yield10’s remaining assets to Nufarm. The asset sale will require an affirmative vote from the shareholders of Yield10, as to which no assurance can be given, and a special meeting of shareholders will be convened to seek that vote following execution of the asset purchase agreement.

Yield10 reported a net loss of $3.2 million for the three months ended June 30, 2024, or $5.04 per share, as compared to a net loss of $3.7 million, or $15.42 per share, for the three months ended June 30, 2023.

Please review Yield10’s second quarter 10-Q filed on August 14, 2024 with the Securities and Exchange Commission for further financial information and disclosures.

About Yield10 Bioscience
Yield10 Bioscience, Inc. ("Yield10" or the "Company") is an agricultural bioscience company that is leveraging advanced genetics to develop the oilseed Camelina sativa ("Camelina") as a platform crop for large-scale production of sustainable seed products. These seed products include feedstock oils for renewable diesel and sustainable aviation biofuels and omega-3 (EPA and DHA+EPA) oils for pharmaceutical, nutraceutical and aquafeed applications. Yield10 is headquartered in Woburn, MA and has a Canadian subsidiary, Yield10 Oilseeds Inc., located in Saskatoon, Canada.

For more information about the Company, please visit www.yield10bio.com, or follow the Company on X (formerly Twitter), Facebook and LinkedIn.

(YTEN-E)

Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, expectations regarding Yield10’s cash position, cash forecasts and runway, expectations related to the successful completion of the asset purchase agreement by Yield10 and Nufarm, including an affirmative vote by the Nufarm board of directors and Yield10 shareholders, the potential future commercialization, potential market opportunity, economic viability and further development of the omega-3 varieties of Camelina and the omega-3 oils produced therefrom, and value creation as well as the overall progress of Yield10, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, the Company’s ability to secure adequate funding in the near term to continue operations, as to which no assurance can be given, as well as the risks and uncertainties detailed in Yield10 Bioscience's filings with the Securities and Exchange Commission. Yield10 assumes no obligation to update any forward-looking information contained in this press release or with respect to the matters described herein.

SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE SOLICITATION OF PROXIES BY YIELD10 BIOSCIENCE FOR USE AT ITS SPECIAL MEETING WHEN AND IF THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING INFORMATION RELATING TO THE PARTICIPANTS IN ANY SUCH PROXY SOLICITATION. WHEN AND IF COMPLETED, A DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY WILL BE MAILED TO STOCKHOLDERS OF YIELD10 BIOSCIENCE AND WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION’S WEBSITE AT HTTP://WWW.SEC.GOV. INFORMATION RELATING TO THE PARTICIPANTS IN THE PROXY SOLICITATION WILL BE CONTAINED THEREIN.

Contact:

Yield10 Bioscience:
Lynne H. Brum, (617) 682-4693, LBrum@yield10bio.com

FAQ

What were Yield10 Bioscience's (YTEN) Q2 2024 financial results?

Yield10 Bioscience reported a net loss of $3.2 million, or $5.04 per share, for Q2 2024, compared to a net loss of $3.7 million, or $15.42 per share, in Q2 2023.

What major agreement did Yield10 Bioscience (YTEN) sign in July 2024?

Yield10 Bioscience signed a Memorandum of Understanding and License Agreement with Nuseed Nutritional US Inc., granting Nufarm a commercial license to certain Omega-3 intellectual property assets for producing oil in Camelina.

How much is the Nufarm deal potentially worth to Yield10 Bioscience (YTEN)?

The Nufarm deal could bring Yield10 Bioscience up to $5 million, with an initial $3 million payment already received.

What is the next step for Yield10 Bioscience (YTEN) regarding the potential asset sale to Nufarm?

Yield10 Bioscience will convene a special meeting of shareholders to seek approval for the sale of substantially all of the company's remaining assets to Nufarm, following the execution of an asset purchase agreement.