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YIELD10 BIOSCIENCE, INC. (YTEN)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 revenue was $0.3M (license), no grant revenue; net loss improved to $2.47M with diluted EPS of $-4.77 versus $-18.16 a year ago, reflecting cost reductions and initial recognition of Vision license revenue .
  • Operationally, the company earned $1.0M in milestone payments from Vision post-quarter, continues seed scale-up, and is prioritizing omega-3 Camelina commercialization for aquafeed and nutrition markets; EPA label amendment to include Camelina was approved, enabling glufosinate weed control in-field .
  • Liquidity remains constrained: cash and equivalents were $1.6M at March 31, 2024; management highlighted cash conservation efforts and proceeds from warrant exercises; deferments and Vision upfront payments helped offset burn .
  • Corporate actions and listing status are material catalysts: a 1-for-24 reverse split became effective May 2, 2024, and shares were subsequently delisted from Nasdaq and moved to OTC on May 16, 2024, which may affect investor base and liquidity .
  • No Q1 2024 earnings call transcript was available; strategic focus remains on omega-3 commercialization in 2025–2026 and licensing/R&D services for biofuels via Vision; S&P Global consensus estimates were unavailable for YTEN this quarter .

What Went Well and What Went Wrong

What Went Well

  • “Strategic decision to focus…on commercialization of Camelina products targeting the aquafeed and nutritional markets for omega-3 fatty acids,” with active seed inventory build and regulatory path planning (Chile aquafeed) .
  • Regulatory traction: EPA amended glufosinate INTERLINE herbicide label to include Camelina; USDA-APHIS previously cleared HT Camelina planting; patents on enhanced yield pathways and photosynthesis/branching (C3004) advanced IP moat .
  • Commercial progress: $1.0M milestone received from Vision in May and $2.0M upfront in February; $0.3M license revenue recognized in Q1 (straight-line through Sep-2025), validating fee-for-service/licensing model .

What Went Wrong

  • Continued operating losses and small revenue base: Q1 total revenue $0.3M versus $2.74M total expenses; operating loss $2.44M underscores dependency on external funding/licensing .
  • Listing risk manifested: despite reverse split aimed at compliance, Nasdaq ultimately delisted YTEN; transition to OTC may limit visibility and institutional participation .
  • Tight liquidity runway: $1.6M cash at quarter-end; while burn fell (net cash used in ops $0.9M), management continues to rely on milestone receipts and warrant exercises to fund near-term objectives .

Financial Results

Income Statement and EPS (USD Thousands except per-share)

MetricQ1 2023Q4 2023Q1 2024
Grant Revenue$60 $0 $0
License Revenue$0 $0 $300
Total Revenue$60 $0 $300
Research & Development Expense$2,162 $1,960 $1,366
General & Administrative Expense$1,698 $1,287 $1,374
Total Operating Expenses$3,860 $3,247 $2,740
Operating Income (Loss)$(3,800) $(3,247) $(2,440)
Net Income (Loss)$(3,782) $(3,266) $(2,472)
Diluted EPS$(18.16) $(0.27) $(4.77)
Shares (Diluted)208,323 11,980,392 518,534

Margins

MarginQ1 2023Q4 2023Q1 2024
Operating Margin %(3,800 / 60) = (6,333.3)% N/A (Rev=0) (2,440 / 300) = (813.3)%
Net Income Margin %(3,782 / 60) = (6,303.3)% N/A (Rev=0) (2,472 / 300) = (824.0)%

Balance Sheet and Liquidity KPIs

KPIQ1 2023 (Mar 31)FY 2023 (Dec 31)Q1 2024 (Mar 31)
Cash & EquivalentsN/A$1,068 $1,597
Total AssetsN/A$3,907 $4,243
Total LiabilitiesN/A$6,390 $7,556
Total Equity (Deficit)N/A$(2,483) $(3,313)
Deferred RevenueN/A$0 $1,700
Cash Used in Operating Activities (Quarter)$(2,667) N/A$(903)

Notes:

  • N/A indicates not disclosed in the cited period format or not applicable.
  • Margins computed using reported revenue and loss figures; citations refer to underlying period data .

Segment Breakdown

  • No reportable segments disclosed; revenues comprised of license revenue and no grant revenue in Q1 2024 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial (Revenue, EPS, Margins)Q2/QFY 2024None providedNone providedMaintained (no guidance)
Operational Milestones2024Focus on HT Camelina and biofuels; omega-3 scale-up underway (late 2023 commentary)Focus shifted primarily to omega-3 commercialization; build seed inventory; Chile aquafeed regulatory filing plannedRebalanced toward omega-3
Listing/Capital Markets2024Attempt to regain Nasdaq compliance1-for-24 reverse split; final delisting; move to OTCLowered (listing status)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2023)Previous Mentions (Q4 2023)Current Period (Q1 2024)Trend
Omega-3 commercializationExercised option for global license; LOI with BioMar; EPA8 scale-up in Chile; plan RSR filings Focus shifted primarily to omega-3; target commercialization 2025–2026; deliver samples; Chile aquafeed approval filing Prioritizing omega-3 in 2024; building seed inventory; engaging partners; Chile regulatory plan Accelerating execution; regulatory and business development progressing
Herbicide-tolerant (HT) CamelinaPositive field data; stacked HT lines development; awaiting USDA-APHIS/EPA USDA-APHIS cleared HT/stacked HT; EPA label addition expected; winter trials ongoing EPA amended label to include Camelina; continued seed scale-up and trait stack plans Regulatory pathway largely cleared; agronomy scale-up
Biofuels strategyClosed-loop seed-to-oil value chain; grower contracts; offtake discussions Revised strategy toward R&D services/licensing; Vision license in early 2024 Vision license revenue recognized; $1.0M near-term milestone post-quarter Monetization via licensing; de-emphasize capital-intensive biofuel ops
Regulatory/legalRSR filings for EPA/DHA traits; USDA-APHIS responses pending USDA-APHIS approvals; EPA label addition anticipated EPA label amended; patents granted/notice of allowance (C3004) Continued regulatory/IP momentum
Capital markets / listingSubstantial doubt; need funding; active capital raise efforts Cash supports into Q2 2024; raised $1.2M via warrant inducement Reverse split followed by Nasdaq delisting; OTC transition Deteriorated listing status; liquidity risk persists

Management Commentary

  • “In the first quarter of 2024, we made the strategic decision to focus our resources on the commercialization of Camelina products targeting the aquafeed and nutritional markets for omega-3 fatty acids.” — Oliver Peoples, President & CEO .
  • “We recently completed deliverables earning $1 million in milestone payments from Vision Bioenergy Oilseeds…allowing commercial planting of HT Camelina together with the use of glufosinate herbicide.” .
  • “We revised our strategy for biofuels to focus on providing R&D services to third parties…generating service and licensing revenues from our advanced Camelina technologies.” .
  • “We can scale to around 150,000 to 300,000 acres over the next 5 years, generating $150–$300 million of revenue with good margins…assumes commercial production sometime in ’25/’26.” .

Q&A Highlights

  • Shift toward omega-3 and status of biofuel partners: management remains in discussions; biofuel timing impacted by LCFS uncertainty and soybean oil surplus; prioritizing omega-3 near-term opportunity .
  • Vision payment timing: majority already received; remainder tied to near-term milestones (total $3.0M) .
  • Partnership economics: open to structures; preference for nondilutive funding but value from validation and strategic fit across aquafeed, pet, human nutrition, and pharma .
  • Funding runway: cash supports operations into Q2 2024; active efforts to secure additional financing .

Estimates Context

  • Wall Street consensus estimates via S&P Global for Q1 2024 EPS and revenue were unavailable for YTEN due to missing mapping; as a result, we cannot opine on a beat/miss versus consensus for the quarter [functions.GetEstimates error].
  • Given the micro-cap profile and transition to licensing, investors should anticipate limited or no formal consensus coverage and rely on company filings and 8-Ks for near-term comps .

Key Takeaways for Investors

  • Omega-3 commercialization is the core near-term value driver; seed scale-up is underway and regulatory pathway (USDA-APHIS) cleared, with Chile aquafeed filing planned, positioning initial revenues as early as 2025 .
  • Biofuels monetization pivoted to licensing/R&D services; Vision license validated the model and produced $0.3M recognized in Q1 plus $1.0M milestone post-quarter, with $3.0M total consideration tied to deliverables .
  • Liquidity remains tight despite reduced cash burn: $1.6M cash at quarter-end; ongoing funding remains a gating factor for execution velocity and scale .
  • Listing transition to OTC following May 16 Nasdaq delisting likely reduces visibility/liquidity and may pressure valuation; reverse split did not prevent delisting .
  • Regulatory/IP momentum continues: EPA label amended for glufosinate-tolerant Camelina; patents granted/notice of allowance enhance differentiation for yield and photosynthesis traits .
  • Operational focus on combining HT and omega-3 traits to improve agronomics/yield in new Camelina varieties supports grower adoption and margin potential in omega-3 products .
  • Near-term trading: watch for additional partner announcements (BioMar or others), Chile regulatory milestones, and financing updates; any strategic capital inflow or offtake agreement could be a catalyst .

Additional Relevant Q1 2024 Press Releases and Corporate Events

  • Global license to Vision for HT Camelina (biofuels) with $3.0M consideration; three-year exclusivity followed by non-exclusive license .
  • Omega-3 program update: contra-season EPA8 seed produced in Chile; active pursuit of Rothamsted global license finalization and BioMar collaboration .
  • 1-for-24 reverse stock split effective May 2, 2024; intended to regain compliance prior to delisting .
  • Nasdaq delisting notice with OTC market transition effective May 16, 2024 .