Executive Summary

Q1 2023 delivered minimal revenue ($0.06M) from grants and a wider net loss ($3.78M; $0.76/share), alongside a deliberate ramp of commercial Camelina initiatives; management lowered FY23 net cash usage guidance to $12.5–$13.0M from $13.0–$14.0M, extending runway with a $1.0M note tied to a Marathon LOI and ~$2.7M net equity proceeds .
Commercial catalysts strengthened: LOI with Marathon Petroleum (investment and offtake; $1.0M note), MOUs with Mitsubishi and American Airlines, and meeting spring grower contract targets; first Camelina grain revenue is anticipated in Q4 2023 .
Herbicide-tolerant (HT) Camelina progressed: stacked HT RSR filed with USDA-APHIS, EPA label amendment supported; management indicated earliest spring-2025 launch potential, framing 2023–2024 as “walk slow to run fast” pre-HT scaling .
Street consensus for Q1 2023 EPS and revenue was unavailable via S&P Global for YTEN; beat/miss cannot be assessed this quarter (attempted retrieval; mapping missing).

What Went Well and What Went Wrong

What Went Well

Met internal targets for contracted spring Camelina acres with U.S. and Canada growers; winter Camelina showed strong cold tolerance, with harvest of both crops expected in Q3 2023 .
Strengthened value-chain alliances: signed a non-binding LOI with Marathon for investment and offtake (accompanied by a $1.0M note), plus MOUs with Mitsubishi and American Airlines; management emphasized building a network to accelerate Camelina feedstock supply .
Clear timeline for initial product monetization: “We anticipate the first grain revenue from our Camelina products business in the fourth quarter of 2023” .

What Went Wrong

Cash compression and wider losses: unrestricted cash fell to $1.8M at Q1-end (from $4.3M at FY22), net loss widened to $3.78M, with grant revenue tapering as DOE/MSU sub-award ended .
Runway remains short despite capital actions: management expects cash on hand (including Marathon note and direct offering) to support operations only into Q3 2023, sustaining financing risk .
Execution hinges on regulatory approvals and seed scale-up for HT Camelina; EPA label amendment and USDA-APHIS RSR outcomes remain pending, constraining full-scale launch until earliest spring 2025 .

Financial Results

Metric	Q1 2022	Q4 2022	Q1 2023
Total Revenue ($USD Thousands)	149	87	60
Research & Development Expense ($USD Thousands)	1,763	1,888	2,162
General & Administrative Expense ($USD Thousands)	1,707	1,403	1,698
Total Expenses ($USD Thousands)	3,470	3,291	3,860
Net Loss ($USD Thousands)	(3,331)	(3,303)	(3,782)
Diluted EPS ($USD)	(0.68)	(0.67)	(0.76)
Cash and Cash Equivalents ($USD Thousands)	N/A	2,356	1,809

Notes:

Margins (EBITDA Margin %, Net Income Margin %) not meaningful given de minimis revenue and pre-commercial stage .
Operating cash used: $(2,667)K in Q1 2023 vs $(3,102)K in Q1 2022 .

Segment breakdown: Not applicable; revenue consists of research grants only, with product revenue expected to begin in Q4 2023 .

Key Performance Indicators (operational/financing):

KPI	Q1 2022	Q4 2022	Q1 2023
Unrestricted Cash ($USD Thousands)	N/A	4,300 (cash & investments)	1,800 (cash & equivalents)
Net Cash Used in Operating Activities ($USD Thousands)	(3,102)	N/A	(2,667)
Spring Grower Contracts Status	N/A	Building inventory & outreach	Target met; planting underway
Value-Chain Agreements	N/A	Crusher/refiner offtake; MOUs Mitsu/AAL	LOI Marathon ($1.0M note), MOUs Mitsu/AAL
Capital Actions	N/A	ATM usage not disclosed; FY cash into Q2’23	~$2.7M net proceeds RD offering; $1.0M note

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Net Cash Usage ($USD Millions)	FY 2023	$13.0–$14.0	$12.5–$13.0	Lowered
Cash Runway	CY 2023	Into Q2 2023	Into Q3 2023	Extended via capital actions
Camelina Product Revenue (Grain)	CY 2023	First product revenue in 2023	First grain revenue expected Q4 2023	Clarified timing
HT Camelina Launch	2025 (earliest)	N/A	Earliest spring 2025 (spring variety)	New timing disclosure

Earnings Call Themes & Trends

Topic	Q3 2022 (Q-2)	Q4 2022 (Q-1)	Q1 2023 (Current)	Trend
Biofuel partnerships & offtake	Engaging value-chain; capital-light model; in discussions	MOUs with Mitsubishi & American; regional crusher/refiner offtake	LOI with Marathon (investment + offtake; $1.0M note); definitive talks in progress	Strengthening alliances
Herbicide-tolerant Camelina	Broadleaf tolerance field tests; stacked Group 2 in development	Confirmed tolerance; RSR filed; seed scale-up underway	RSR filed for stacked HT; EPA label amendment; compositional analysis plan	Advancing toward regulatory clearance
Grower network & acres	Winter contracts 30–160 acres per grower	Expanding seed inventory and outreach	Spring target met; planting; harvest in Q3 2023	Building toward scale
Omega-3 Camelina (EPA)	Rothamsted collaboration extended	Prioritized EPA omega-3; seed transfer and scale-up planned	First field testing and seed scale-up planned to enable larger planting	Accelerating development
Cash/capital & runway	Cash $7.4M; runway into Q1 2023	Cash/investments $4.3M; runway into Q2 2023	Cash $1.8M; +$1.0M Marathon note + ~$2.7M net offering; runway into Q3 2023	Runway extended with financings
Regulatory path	Testing HT; planning regulatory initiation	RSR submitted; label amendments anticipated	RSR for stacked HT filed; EPA label amendment supported; USDA/EPA reviews in 2023–early 2024	Pending reviews

Management Commentary

“Commercial launch of our Camelina seed products business is underway, targeting the biofuel feedstock market. We are expecting our first grain revenue later in 2023” — Oliver Peoples (CEO) .
“We recently signed a non-binding LOI with Marathon Petroleum for an investment and offtake agreement… In connection with the execution of the LOI, Yield10 issued… a senior unsecured promissory note… $1.0 million” .
“We are rapidly advancing the next generation of elite Camelina varieties engineered for herbicide tolerance… conducting field tests at 13 sites… including broad leaf herbicide tolerance, stacked herbicide tolerance… seed yield and oil content” .
“We plan to walk slow so we can run fast… over the next 1 to 2 years… position us to accelerate the adoption of Camelina onto hundreds of thousands of acres as our new varieties with robust weed control become available” .

Q&A Highlights

HT launch and scaling: Earliest spring-2025 launch for spring HT Camelina; 2023–2024 focused on non-HT contract growing and seed scale-up before ramping acres with HT .
Offtake timing: Marathon definitive offtake agreement targeted within 3–4 months from May (indicative by ~September 2023) .
Revenue model: YTEN buys grain from growers and sells to crusher/refiner; initial Q4 2023 grain revenue expected .
Runway and cash usage: Cash supports operations into Q3 2023; guidance revised to $12.5–$13.0M for FY23; part of revision from cost management, not solely revenue inflows .
Field conditions: Winter Camelina robustness noted even without snow cover in Kansas (down to ~minus-30 weather) .

Estimates Context

Analyst consensus for Q1 2023 (EPS, revenue) via S&P Global was unavailable due to missing mapping for YTEN. Accordingly, we cannot assess beats/misses versus Street this quarter (GetEstimates attempt failed: missing CIQ mapping).

Key Takeaways for Investors

Commercial traction improved: LOI with Marathon and MOUs upstream/downstream de-risk feedstock routes; near-term catalyst is execution of definitive offtake/investment agreements .
Clear monetization milestone: First Camelina grain revenue expected in Q4 2023; watch Q3 harvest execution and offtake logistics alignment .
Regulatory path is gating factor: USDA-APHIS and EPA reviews (HT & label amendment) drive timing; spring-2025 earliest spring HT launch frames scale inflection beyond 2024 .
Liquidity remains tight: Despite $1.0M LOI note and ~$2.7M net financing, runway into Q3 2023 suggests additional capital or partner funding may be needed absent quick revenue scaling .
Cost discipline: FY23 net cash usage cut to $12.5–$13.0M; monitor OpEx mix and seed scale-up spend against alliance milestones .
Narrative evolution: From technology validation (Q3–Q4 2022) to early commercialization and alliance formation (Q1 2023); stock likely most sensitive to definitive agreements, regulatory milestones, and Q3 harvest outcomes .
Absence of Street estimates limits near-term beat/miss trading setups; focus on milestone cadence and funding updates for trading decisions (consensus unavailable this quarter).

Citations:
Press release and 8-K (Q1 2023):
Earnings call transcript (Q1 2023):
Prior quarter press releases/transcripts: Q4 2022 ; Q4 2022 call ; Q3 2022 ; Q3 2022 call
Registered direct offering 8-K:

YIELD10 BIOSCIENCE, INC. (YTEN)·Q1 2023 Earnings Summary