yten-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-33133

YIELD10 BIOSCIENCE, INC.


Delaware						04-3158289
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

19 Presidential Way Woburn, MA						01801
(Address of principal executive offices)						(Zip Code)

(617) 583-1700

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	YTEN	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” "accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	ý	Smaller reporting company	ý
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

The number of shares outstanding of the registrant’s common stock as of November 10, 2022 was 4,944,202.

Yield10 Bioscience, Inc.

Form 10-Q

For the Quarter Ended September 30, 2022

Table of Contents


		Page
Part I. Financial Information

Item
1.	Condensed Consolidated Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets at September 30, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021	6
	Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2022 and 2021	7
	Notes to the Condensed Consolidated Financial Statements	9
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
3.	Quantitative and Qualitative Disclosures About Market Risk	28
4.	Controls and Procedures	28

Part II. Other Information		28

Item
1.	Legal Proceedings	28
1A.	Risk Factors	28
2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
3.	Defaults Upon Senior Securities	29
4.	Mine Safety Disclosures	29
5.	Other Information	28
6.	Exhibits	29

SIGNATURES		30

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

UNAUDITED

(in thousands, except share and per share data)


	September 30, 2022		December 31, 2021
Assets
Current Assets:
Cash and cash equivalents	$	3,922	$	5,329
Short-term investments	3,483		10,661
Accounts receivable	37		164

Unbilled receivables	39		34
Prepaid expenses and other current assets	414		436

Total current assets	7,895		16,624

Restricted cash	264		264
Property and equipment, net	840		890
Right-of-use assets	2,063		2,354
Other assets	210		283
Total assets	$	11,272	$	20,415

Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	104	$	83
Accrued expenses	1,163		1,136
Current portion of lease liabilities	559		514
Total current liabilities	1,826		1,733
Lease liabilities, net of current portion	2,226		2,656


Total liabilities	4,052		4,389
Commitments and contingencies (Note 9)

Stockholders’ Equity:

Preferred stock ($0.01 par value per share); 5,000,000 shares authorized; no shares issued or outstanding	—		—
Common stock ($0.01 par value per share); 60,000,000 shares authorized at September 30, 2022 and December 31, 2021; 4,933,288 and 4,881,851 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	49		49
Additional paid-in capital	403,799		402,283
Accumulated other comprehensive loss	(234)		(175)
Accumulated deficit	(396,394)		(386,131)
Total stockholders’ equity	7,220		16,026
Total liabilities and stockholders’ equity	$	11,272	$	20,415

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED

(in thousands, except share and per share data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue:

Grant revenue	$	111	$	92	$	363	$	462


Total revenue	111		92		363		462

Expenses:

Research and development	2,083		1,636		5,862		4,603
General and administrative	1,518		1,547		4,748		4,583
Total expenses	3,601		3,183		10,610		9,186
Loss from operations	(3,490)		(3,091)		(10,247)		(8,724)

Other income (expense):
Gain on investment in related party	—		700		—		700
Other income (expense), net	10		(1)		11		(2)
Total other income (expense)	10		699		11		698
Loss from operations before income taxes	(3,480)		(2,392)		(10,236)		(8,026)
Income tax provision	(9)		(6)		(27)		(25)
Net loss	$	(3,489)	$	(2,398)	$	(10,263)	$	(8,051)

Basic and diluted net loss per share	$	(0.71)	$	(0.49)	$	(2.09)	$	(1.72)
Number of shares used in per share calculations:
Basic and diluted	4,924,606		4,873,248		4,904,737		4,681,292

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

UNAUDITED

(in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net loss:	$	(3,489)	$	(2,398)	$	(10,263)	$	(8,051)
Other comprehensive loss
Change in unrealized loss on investments	20		—		(2)		1
Change in foreign currency translation adjustment, net of income tax	(34)		(17)		(57)		(12)

Total other comprehensive loss	(14)		(17)		(59)		(11)
Comprehensive loss	$	(3,503)	$	(2,415)	$	(10,322)	$	(8,062)

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

(in thousands)


	Nine Months Ended September 30,
	2022		2021
Cash flows from operating activities
Net loss	$	(10,263)	$	(8,051)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	197		165



Charge for 401(k) company common stock match	111		100
Stock-based compensation	1,458		1,175
Non-cash lease expense	291		265
Deferred income tax provision	37		24
Changes in operating assets and liabilities:
Accounts receivable	127		62

Unbilled receivables	(5)		(19)
Prepaid expenses and other assets	52		60
Accounts payable	21		(15)
Accrued expenses	17		(192)
Lease liabilities	(385)		(342)

Net cash used in operating activities	(8,342)		(6,768)

Cash flows from investing activities
Purchase of property and equipment	(154)		(147)



Purchase of investments	(1,195)		(3,874)
Proceeds from the maturity of short-term investments	8,371		6,250
Net cash provided by investing activities	7,022		2,229

Cash flows from financing activities
Proceeds from warrants exercised	—		3,856


Proceeds from public offering, net of issuance costs	—		11,993

Taxes paid on employees' behalf related to vesting of stock awards	(37)		(103)
Net cash (used in) provided by financing activities	(37)		15,746

Effect of exchange rate changes on cash, cash equivalents and restricted cash	(50)		(12)

Net (decrease) increase in cash, cash equivalents and restricted cash	(1,407)		11,195
Cash, cash equivalents and restricted cash at beginning of period	5,593		3,687
Cash, cash equivalents and restricted cash at end of period	$	4,186	$	14,882

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements

YIELD10 BIOSCIENCE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

UNAUDITED

(In thousands, except share amounts)


	Three Months Ended September 30, 2022
	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)				Total Stockholders' Equity
	Shares	Par Value						Accumulated Deficit
Balance, June 30, 2022	4,901,246	$	49	$	403,347	$	(220)	$	(392,905)	$	10,271
Stock-based compensation expense	—	—		446		—		—		446
Issuance of common stock for 401(k) match	12,875	—		29		—		—		29

Issuance of common stock for restricted stock units	19,167	—		—		—		—		—
Taxes paid on employees' behalf related to vesting of stock awards	—	—		(23)		—		—		(23)

Effect of foreign currency translation and unrealized loss on investments	—	—		—		(14)		—		(14)
Net loss	—	—		—		—		(3,489)		(3,489)
Balance, September 30, 2022	4,933,288	$	49	$	403,799	$	(234)	$	(396,394)	$	7,220


	Three Months Ended September 30, 2021
	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)				Total Stockholders' Equity
	Shares	Par Value						Accumulated Deficit
Balance, June 30, 2021	4,868,466	$	49	$	401,319	$	(153)	$	(380,753)	$	20,462
Stock-based compensation expense	—	—		436		—		—		436
Issuance of common stock for 401(k) match	2,857	—		24		—		—		24
Issuance of common stock for restricted stock units	6,664	—		—		—		—		—
Taxes paid on employees' behalf related to vesting of stock awards	—	—		(19)		—		—		(19)
Effect of foreign currency translation and unrealized loss on investments	—	—		—		(17)		—		(17)
Net loss	—	—		—		—		(2,398)		(2,398)
Balance, September 30, 2021	4,877,987	$	49	$	401,760	$	(170)	$	(383,151)	$	18,488


	Nine Months Ended September 30, 2022
	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)				Total Stockholders' Equity
	Shares	Par Value						Accumulated Deficit
Balance, December 31, 2021	4,881,851	$	49	$	402,283	$	(175)	$	(386,131)	$	16,026
Stock-based compensation expense	—	—		1,458		—		—		1,458
Issuance of common stock for 401(k) match	25,792	—		95		—		—		95
Issuance of common stock for restricted stock units	25,645	—		—		—		—		—
Taxes paid on employees' behalf related to vesting of stock awards	—	—		(37)		—		—		(37)
Effect of foreign currency translation and unrealized loss on investments	—	—		—		(59)		—		(59)
Net loss	—	—		—		—		(10,263)		(10,263)
Balance, September 30, 2022	4,933,288	$	49	$	403,799	$	(234)	$	(396,394)	$	7,220


	Nine Months Ended September 30, 2021
	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)				Total Stockholders' Equity
	Shares	Par Value						Accumulated Deficit
Balance, December 31, 2020	3,334,048	$	33	$	384,758	$	(159)	$	(375,100)	$	9,532
Stock-based compensation expense	—	—		1,185		—		—		1,185
Issuance of common stock for 401(k) match	9,747	—		86		—		—		86
Issuance of common stock for warrant exercises	481,973	5		3,851		—		—		3,856
Issuance of common stock for restricted stock units	12,219	—		—		—		—		—
Taxes paid on employees' behalf related to vesting of stock awards	—	—		(102)		—		—		(102)
Issuance of common stock in connection with stock offering, net of offering costs	1,040,000	11		11,982		—		—		11,993
Effect of foreign currency translation and unrealized loss on investments	—	—		—		(11)		—		(11)
Net loss	—	—		—		—		(

SEC Form 10-Q filed by Yield10 Bioscience Inc.