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Sep 30, 2022
Cibus Q3 2022 Earnings Report
Calyxt reported results for the third quarter of 2022, focusing on progress in customer acquisition, technology development, and strategic evaluations.
Key Takeaways
Calyxt reported nominal revenue for Q3 2022, a decrease from $7.8 million in Q3 2021, and a net loss of $6.0 million, which is an improvement compared to a net loss of $7.3 million in the same quarter of the previous year. The company highlighted successful squalene production and continued customer acquisition activities. They are also evaluating strategic alternatives to maximize shareholder value.
Successfully produced squalene using a Calyxt-engineered Plant Cell Matrix.
Continued to progress customer acquisition activities, evaluating 37 customer chemistries.
Signed agreement with Evologic Technologies to develop and scale its Plant Cell Matrix™ technology platform.
Board-level evaluation of strategic alternatives to maximize shareholder value is ongoing.
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Forward Guidance
Calyxt anticipates sending a PCM that will produce squalene to Evologic for scaling in the fourth quarter of 2022. Calyxt expects to achieve the first $100 thousand milestone payment as early as the fourth quarter of 2022, with the overall project scheduled for completion in the first quarter of 2024, at which time the second milestone payment of $100 thousand would be due.
Positive Outlook
- Delivery of plant-based chemistry expected in early 2023, potentially leading to a development agreement.
- First $100k milestone payment expected as early as Q4 2022 for soybean-based palm oil alternative plant trait.
- Agreement with Evologic Technologies supports build-out of plant-based synthetic biology capabilities.
- Membership in BioMADE enables application for government grants for research in plant-based biomanufacturing.
- Legal settlement provides cash runway into the second quarter of 2023.
Challenges Ahead
- Liquidity challenges and market headwinds necessitate cost reduction measures.
- Strategic alternatives evaluation indicates potential business model or operational changes.
- Nominal revenue in Q3 2022 compared to $7.8 million in Q3 2021 due to wind-down of soybean product line.
- Uncertainty regarding ability to identify and consummate an acceptable strategic alternative.
- Risk of adverse impact from cost reduction measures on relationships with employees and third parties.