Yield10 Bioscience, Inc. (Nasdaq: YTEN), an agricultural bioscience company, released its financial results for Q1 2023, emphasizing its dedication to positioning Camelina as a low-carbon intensity feedstock for the biofuels market. In addition, Oliver Peoples, Ph.D., President and Chief Executive Officer of Yield10 Bioscience, announced the achievement of their 2023 target for contracted spring Camelina acres with growers in the U.S. and Canada.
The Company has made several critical strides since 2023 began. Yield10 has met its internal target for contracted spring Camelina acres due to strong interest from growers across the U.S. and Canada. The Company is dedicated to promoting the benefits of growing Camelina and is identifying growers for 2023/2024 winter Camelina contracts.
A significant recent development includes signing a non-binding LOI with MPC for potential investment and an offtake agreement for low-carbon intensity Camelina feedstock oil for renewable fuel production. Yield10 also recognizes the importance of weed control in large-scale Camelina production, and its researchers are implementing a program to introduce herbicide tolerance (HT) technology into Camelina. Filings were made with U.S. regulatory authorities for herbicide-tolerant Camelina in Q1 2023.
Furthermore, YTEN is advancing Camelina lines to produce the EPA component of omega-3, conducting field trials and seed scale-up activities. The Company anticipates engaging in commercial discussions with potential customers for this high-value specialty oil in 2023.
Financially, Yield10 ended the first quarter of 2023 with $1.8 million in unrestricted cash and cash equivalents, a net decrease of $2.5 million from the $4.3 million reported as of December 31, 2022. In addition, the Company used $2.7 million for operating activities in Q1 2023, reflecting the Company’s efforts to manage its cash resources carefully.
Yield10 has reduced its total net cash usage guidance for the year ending December 31, 2023, to $12.5 – $13.0 million. This move aligns better with its efforts to develop and commercialize its Camelina plant varieties for the biofuel, omega-3 food and feed, and PHA bioplastic markets.
In connection with the MPC LOI, YTEN issued a $1.0 million senior unsecured convertible note to an affiliate of MPC. Additionally, it closed on a $3.0 million offering of its common stock (or pre-funded warrants in lieu thereof) in a registered direct offering and concurrent private placement, receiving $2.7 million in cash proceeds after issuance costs.
Research grant revenue remained consistent at $0.1 million for the three months ending on March 31, 2023, and March 31, 2022. However, the Company’s five-year sub-award with Michigan State University in support of a U.S. Department of Energy-funded grant was completed with no additional grant revenue to be recognized. As a result, research and development expenses were $2.2 million during the first three months of 2023, up from $1.8 million during the same period in 2022.