Q2 2021 Yield10 Bioscience Inc Earnings Call

August 11, 2021

[music].

Welcome to the second quarter 2021 financial results and business update conference call for yield 10 Bioscience.

During the call participants will be in a listen only mode. The presenters will address questions from analysts today, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Reminder, this conference call is being recorded.

I would now like to turn the conference call over to your host yield 10, Vice President of planning and corporate Communications Lindbergh.

Please go ahead.

Thank you Maria and good afternoon, everyone. Welcome to yield 10, Bioscience second quarter 2021 conference call. Joining me on the call today are president and CEO, Dr. Oliver Peoples, Vice President of research and Chief Science Officer, Dr. Kristi, Snell, and Chief Accounting Officer, Chuck Hazard.

Earlier this afternoon yield 10 issued our second quarter 2021 financial results. This press release as.

As well as slides that accompany today's presentation are available on the Investor Relations events section of our website at El pen bio Dot com.

Turning to slide two please.

Please note that as part of our discussion today management will be making forward looking statements. These statements are not guarantees of future performance and therefore, you should not place undue reliance on them.

Investors are also cautioned that statements are not strictly historical constitute forward looking statements such forward looking statements are subject to a number of risks and uncertainties that could cause the actual results to differ materially from those anticipated.

These risks include risks and uncertainties detailed in yield ten's filings with the SEC.

The company undertakes no obligation to update any forward looking statements in order to reflect events or circumstances that may arise. After the date of this conference call now I'll turn the call over to Ali Thanks, Glenn.

Good afternoon, everyone and thanks for joining our call.

Since the start of 2021, we have made strong progress advancing yield ten's business.

Today I'll provide an update on our progress and Christie will highlight our recent R&D accomplishments I'll then.

In review of our target markets second quarter financials, and summarize key milestones with 2021 and beyond before we open the call to questions.

Now, let's turn to slide three yield trait factory and business model.

Is it generated from a trait factory field trials with Camelina enables two distinct revenue opportunities improve.

Improved Columbia, Lena varieties for Camelina product business and licensing to major seed companies for other crops.

Steve I'd like to focus on the key accomplishments against our strategic goals to use camelina as a platform crop to produce feedstock oils.

Plus DHA Omega three oils, phe, Bioplastics unquoted meal, or we estimate a combined product revenue potential of over $4 billion by 'twenty authority.

Let's now turn to slide four key accomplishments.

During this quarter, we continued to develop and execute our camelina business strategy.

This includes reaching out to potential partners in the areas of fuel foods as bioplastic to explore ways of working together to bring forward products produced in Camelina.

On the technology front, we are executing our field trial program, including field work in Argentina is a first step to access the market for Aqua feed in Chile.

These activities across the U S, Canada, and Argentina are progressing towards harvest.

To support our commercial efforts, we plan to build a network of contractors receipts scale up activities as well as for seed crushing to produce oil and meal for customer sampling.

We announced two new hires and regulatory affairs and in business analytics and operations in June we.

We will continue to add key hires in particular to lead our seed operations that build out our commercial team in the months ahead.

Our crop science team led by Kristy has expanded our portfolio with the discovery and initial testing of four new oil content traits using our <unk> platform.

In January we reported achieving a proof of concept milestone for producing PHA bioplastic infill growing camelina seed scale up of the best lines are ongoing as part of this year's field program.

In the first quarter, we strengthened our balance sheet to extend our cash runway and achieve value built building milestones into 2023.

U S patents have recently been the logo granted for to in license traits, including <unk> thousand seven oil concentrate on the Camelina Omega three DHA EPA oil trade.

In the U S patent Roche issues six.

Our synthetic biology straight was granted in July.

An update on our R&D priorities I will now turn the call over to Christie.

Thanks Ali.

Team is making good progress and can scale up and field testing, while continuing to deploy new traits into our camelina platform.

Let's turn to slide five.

Earlier this year, we engaged a leading U S seed company to perform seed scale up of our CRISPR edited <unk> 902 oil content line, our spring doubled accolade line and a disease resistant elite Camelina line.

From this work will enable additional feed scale up in our fall winter 2021.2022 growth season.

We are working to secure contracts for this further scale up of <unk>.

In July we announced that we had completed planning of our 2021 field trial program in the U S, Canada, and Argentina, we have a broad range of Camelina lines in the trials, including elite germplasm and yield in oil trades in PHA Camelina lines harvest is expected to occur in.

The weeks ahead.

Work to enhance our elite germplasm continues with progress recently made towards the goal of incorporating herbicide tolerance and disease resistance into our lines.

Our plan is to develop robust platform varieties for nutritional oils and PHA traits.

In April USDA, APHIS confirm that our new CRISPR edited T 3007, Camelina lines are exempt from regulation under seven CFR part 340, okay. The secure rule, a new crop regulatory framework in the U S.

We continue to support R&D at Roth instead instituted on Omega three camelina lines and support our partners evaluating traits and other commercial crops.

Finally, it is also a priority to retain our leadership in trait discovery.

Ill turn researchers have discovered for new oil content traits using the <unk> platform.

For more on this let's turn to slide six.

There is a lot of momentum around vegetable oils as there is increasing demand and rising prices for their use of food and fuel.

We used our grain platform to search for transcription factors RTL to.

To increase seed oil content in Camelina.

We mined data to create a ranked list of 211 transcription factors.

Using our methodology transcription factors known to impact oil <unk> yield such as W. R. I won an <unk> six.

We observed in the top spots of the ranking validating our approach.

We identified a series of novel gene, representing IP White space.

There were four transcription factors that we identified as the most relevant and lease.

Our work has shown that over expression of <unk> 3020 increases seed oil content by 10% in greenhouse studies.

Given this early but strong resolve we are moving forward with <unk> 3020 to produce pure yield growing seed in the 2021 field test program to enable further study of the tree.

In addition traits <unk> thousand 19, <unk> 3021, and <unk> 3022.

What's that CRISPR editing targets and work is underway to deploy and test the 3021 in camelina as well.

I want to thank the team for all their efforts in advancing us to meet our R&D objectives in 2021, I'll hand, the call back to Ali Ali. Thanks.

Thanks for the update Christie.

The team is doing excellent work, which we believe will enable our camelina to become the benchmark for the industry and a new industrial crop.

Let's turn to slide seven the opportunity to establish a new major crop today Camelina has grown on a small scale for lease obligations drivers in the oil markets have recently renewed interest in the crop we've been investing in this trough for over 10 years as a platform for evaluating tracer CTO on oil content.

As a result, we have identified traces approved <unk> oil content or both.

We believe there is a clear faster deploying herbicide tolerance in pest resistance to access large acreage in North America.

We also see the opportunity for using Camelina as a winter variety and is a covered crawl.

Therefore, we believe there are many distinguishing features to establish our camelina as a successful revenue generating industrial crop at a time when interest in biofuel feedstock is growing.

Now, let's turn to slide eight elite Camelina.

Strategy and current activities.

Our commercial strategy and elite Camelina as capital light one using contract farming seed crushing and customer off take agreements. We've made good progress towards developing I believe aligns with herbicide tolerance and disease resistance. For example, we are currently evaluating non GMO lines on a GMO herbicide tolerant lines of development.

We also acquired enough testing at the only mill do disease was camelina variety.

Now, let's turn to slide nine.

Elite Camelina for renewable diesel.

According to the Wall Street Journal production capacity for soybean oil in the U S is expected to grow to 935 million gallons in 2021.

Nearly double from where it was last year.

The growing demand for soybean oil as a renewable diesel feedstock is driven soybean oil prices. This decade highs and led to shortages in many areas of the world.

These challenges are felt across the entire supply chain.

There have been media reports, indicating that ADM cargo and the oil company Phillips 66 are investing in soybean crushing plants.

We believe in Phillips 66 case. This is the secured feedstock oils for biofuel.

With favorable tailwind in the renewable space, we see the potential for camelina to demonstrate its valued potential as a new feedstock oil to renewable diesel production.

Really crossing with soybeans could double of oil production per acre, creating the potential to provide oil for fuel and increased protein meal production per foot.

We are reaching out to fuel players in this space to engage in discussions around offtake agreements.

Now, let's turn to slide 10, Omega three oils from nutrition and sustainability.

We believe there is growing demand for Omega three oils, which are essential for human health and wellness and the corresponding need to produce these oils sustainably.

Camelina seed has been genetically program to produce a vegan official I'll replacement with combined EPA and DHA fatty acid levels over 20% in the oil.

Best Camelina lines will be successfully field tested in multiple geographies and multiple positive aqua feed and fuel efficient studies completed.

Yield 10 is supporting ongoing development work conducted by Roche instead, the developer of this technology and this is working on our strategies for regulatory approvals and commercialization.

Erica.

Now, let's turn to slide 11 opportunities and deficient <unk> III markets.

The graph on the left of the slide illustrates the ongoing rise in the price of fish oil as production volume for wealth caught fisherman's flat due to overfishing.

Hardly a day goes by without another report of massive Chinese fishing fleets illegally harvesting fish across the globe. So we believe this problem is only going to get worse.

<unk> production of Omega threes as a potential solution for this market.

The table on the right compares Camelina EPA, plus DHA Omega three product to the competitor products.

Two competitors are using canola as a platform to produce either DHA and EPA.

Not at the same time on the same plan. Although competitors are also producing Omega threes from allergy fermentation and approach that does produce both DHA AP EPA, but at a very high cost.

<unk> produced Omega three product is clear potential to be the best in class across quality and composition with around 20%, 20% combined DHA and EPA Omega threes, plus the third Omega three.

Ah represents a sustainable way to meet the growth of dissipated in this market.

Let's turn to slide 12, the Omega three business plan development.

Our market entry strategy for Omega three oil is focused on South America virtually has about 30% of global pharma salmon production on our goal to move to.

<unk> feet away from food.

Beef production away from harvest fish.

We are working with third parties with expertise and contacts related to contract farming in the salmon industry.

We are evaluating the use of elite camelina to provide the initial footprint and the aqua feed market based.

And using it as a precursor to launching an old legacy oil.

Which is ongoing to commercial partner prospects.

Let's turn to slide 13 land based Bioplastics.

As Christie mentioned, we are scaling up our current PHA camelina lines and this work will support product prototyping.

We are developing a regulatory strategy and identifying prospects for business development, along the value chain.

We are also continuing second generation line development with the goal of increasing seed bioplastic defense, 20% level.

We believe that this is a very attractive market and biodegradable PHA produced from plants may represent an excellent solution for compounds brand owners and consumers as well as the environment.

Now, let's turn to slide 14, establishing the value chain.

To access these markets released to establish an identity preserved value chain based on contracting seed production effect farming and seed processing into protein oil and bioplastic pellets.

Because of the end product areas, we see a variety of partner prospects seed companies biofuel companies plastics packaging brand owners and Bioplastics companies.

Now, let's turn to slide 15, the market opportunity for Camelina products.

We believe there is about 4 billion annual revenue potential through Camelina products by 2030 feedstock oils could be grown in half a million to 2 million acres with a market of $150 million going to $1 billion for oil and meal, depending on crop yields we believe the acreage for Omega three oil will be in the order of 300000 to 700.

Acres with a market potential of $180 million grew income over $600 million by 2030, assuming a 60% market share.

And for <unk>, we expect the crop of two to 4 million acres with 2013 revenue potential of $1 billion growing to over $3 billion based on sales of bioplastic feedstock oil and protein meal.

The PHA <unk> bioplastic opportunity is quite unique given the scale and growth of the petroleum plastic production.

Over half of this is being for single is being used for single use plastic items with a lifetime and use of less than six months.

Italy, and all too often after consumer use these plastics end up in an environment or just can persist for one hundreds of years.

Based on our history, we know that PHA bioplastics could functionally replace around 50% of the single use plastics used to date.

Estimated $200 billion market opportunity growing at 4% per year.

Goal is to develop PHA camelina as a disruptive technology offering costs in line with feedstock oils.

We are now taking the first critical steps towards commercial development, but it will still take some time.

Now, let's turn to slide 16 licensing opportunities.

Currently we have nonexclusive research license agreements in place with Bayer forage.

<unk> genetics is simpler.

Some of our traits in different crops.

This year, we are completing our initial fueled best with canola edited in our <unk> <unk> substrate based on achieving a 4% seed oil increase in greenhouse.

Going forward, we plan to seek partners for adjacent canola car to focus internal resources on Camelina development.

Now, let's turn to slide 17 financial results. We ended second quarter of 2021 with $26 million in cash cash equivalents and investments during.

During the first quarter of 2021, we raised net proceeds of $12 million from a public offering of common stock as well as a $3.9 million from the exercise of warrants better aligning our balance sheet with our business strategy.

We have no debt.

Net operating cash usage was $2.1 million for the second quarter of 2021.

We expect our cash on hand, together with expected revenue from our government grants to support our operations into early 'twenty three 2023.

We continue to estimate that our net operating cash usage for the full year of 'twenty or 'twenty, one will be within the range of $10 million to $11 million.

This includes estimates for our contracted your plans to scale up activities as well as on hires and other support and business development regulatory Affairs suite operations as we direct this investment towards executing our business plan.

Let's now review the second quarter 2021 operating results.

The company reported a net loss after taxes of $3.1 million for the second quarter of 2021 compared to a net loss after taxes of $1.8 million for the second quarter of 2020.

Total research grant revenue for the second quarter of 2021 were 170 horsepower versus 241000 in second quarter of 2020.

In the second quarter of 2021, R&D expenses were $1.7 million compared to $1.2 million in the second quarter of 2020 <unk>.

G&A expenses were $1.6 million from the second quarter of 2021 as compared to $1.2 million in second quarter of 2020.

For the six months ending June 32021, net loss after taxes was $5.7 million or $1.23 per share as compared to $5.4 million or $2.95 per share in 2021.

For more details on our financial results. Please refer to the earnings release.

Let's now turn to slide 18 upcoming milestones.

In 2021, we will continue to focus on the following milestones.

Executing our 2021 field testing in seed scale out program.

Responding Rohit Camelina germplasm collection with our own internal work as well as acquire rights to lines with desired performance profiles.

Testing the business plan for Camelina products.

Pudding advancing the commercial launch planned for Camelina Omega three oils in South America, where we have recently engaged to see service provider and business development support.

Broadening our commercial capabilities, particularly recede operations to complement our recent hires and regulatory affairs and business development.

As we increase the focus on the Camelina products' business, we see more opportunities to secure strategic industry collaborations from value chain partners.

Just on industry feedback, we believe there will be an increasing demand for <unk> gene target identification tools like a unique green.

<unk>.

As well as novel trait genes for genome editing in major crops.

Securing revenue based on generating commercial credit licensees and expanding our intellectual property portfolio, which is crucial for a small company and the three patent grants in 2021 are integral to this effort.

With that I'd like to turn the call back over to Lynn for questions.

Yes, Thank you Ali and Maria we're ready for questions.

Yeah.

Thanks.

At this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please while we poll for questions.

Yes.

Okay.

Our first question is from Anthony Vendetti with Maxim Group. Please proceed with your question.

Thank you.

Yes, Hi, I was wondering if you could talk or for Christie about the C 30.23.

A little bit more about that via your green platform and then.

Next steps for development and how does the.

10% increase in oil content compared to other available options on the market.

Yes, I'll take that so I can actually having not been directly involved in the science I mean hats off to the great team and.

Our science team led by Christy the literally using that platform, we're able to pool.

Q4 targets right out of the ether space as far as I can sell and so literally.

Sort of a computational analysis.

They are able to get to these targets switch in each case of the four b select of the selected and tested we're actually seeing an impact a positive impact for <unk> thousand 29% oil increase.

And just as a reminder, a 10% seed oil increase in canola. If you were to deploy that of course, crosslet canola acreage would be the equivalent of a 10% yield increase because of the higher value of the oil. So it's actually quite remarkable we didn't see any.

These deleterious effect on seed yield and the greenhouse, but obviously, we'll need to do field tests to confirm that type of thing. So I would say from what we've seen.

With <unk> hundred $9 two genome edited line of Camelina, which is already a regulatory approved we're seeing essentially a 4% to 5% and CTO will increase.

At <unk>, we've seen a 5% seed yield increase in seed oil increase.

So with this one this is the highest we've seen.

How it compares to other companies I am not sure we really at all.

Certainly it's impressive as this stage recognizing that it still has to be evaluated in field trials.

Sure sure Ali Thanks for providing also the the opportunity in each of the categories for Camelina platform Bioplastics oil in seats in seats, obviously, the largest potential 4 billion.

But by 2030, but as you look.

As you look out into <unk>.

Near term.

What do you believe is your most.

Immediate commercial opportunity.

Sure.

As we stand here today.

Yes, So I think it's I think I think we're seeing really two areas first of all I would say that.

The uptick in commodity prices.

We are definitely seeing them a lot more interest and activity around the companies for new traits.

We're also hearing that there is.

Very consistent steam in <unk>.

Some of our conversations with with some of these players which is if all invested very heavily in genome editing.

And they are actually running into that problem that actually we foresaw back when we started this which is a wonderful tool and actually has been terrific for yield 10, but ultimately it comes down to the target genes.

And I think the industry as a whole is still struggling with new gene targets and particularly what you would want to use combinations of genes to improve our boost yield.

Performance and so we're definitely seeing growing interest in that area.

We are definitely seeing interest and more interest in some of the traits that we already have in hand.

But the second area and I think mute.

Europe, Tam and it's one where we're being very judicious.

I would say conservative in our approach which is.

There is definitely good.

Growing demand for biofuel feedstock Theres no question about it.

I have a long history in this.

Louisville space and so I've seen these things come and go.

Our approach there is really to look for.

Partnerships with folks should be in the biofuel space I mean, Youll times don't want to become a biofuel.

We could be a feedstock supplier to that area from our camelina from a REIT camelina in the near term and in the longer term from the PHA Bioplastics Camelina, where the oil is actually a cool product from bioplastic production. So we're seeing a lot of activity there.

Again, there's no guarantees in any of this.

But there's a third thing that is beginning to kick in which is we're also seeing a lot more attention.

Probably based on political changes.

And also coming out of the sort of the Covid recession.

In various areas around essentially government funding.

For <unk> innovative technologies around improved.

Improving the sustainability of agriculture.

Producing new agricultural products, increasing the availability of feedstocks.

And all of it really targeted at reducing carbon emissions. So we feel we're probably at the time. He is a good time for <unk>.

We have a lot of proof points in hand, we have them.

Great team, we're now building the commercial organization, but thanks.

Next steps as it relates to begin to fly some of these out into into arrangements and agreements with third parties.

Okay, Great that was very helpful. Thank you I'll hop back in the queue.

Thanks, Anthony Thanks.

We have our next call.

<unk>.

Yes. Our next question is from Ben.

With Lake Street Capital markets. Please proceed with your question.

Alright, Thanks for taking my questions first one with regards to the research collaboration with forage genetics I'm wondering if you can kind of provide any detail on what we can potentially expect here.

That agreement here expires is there a date certain that we're expecting in exploration.

What really are we potentially can be getting out of out of this collaboration here and do we know kind of when roughly we're going to learn more about next steps.

What for genetics.

Yes, so Chris in particular.

One primary contact with forest genetics I do know they are moving forward with them.

Haven't we.

We do have a confidentiality agreement as part of that arrangement and so we can't really.

Go into any real details of outcome, we do know that the moving forward.

Also know that.

They are very interested in.

One particular.

We can't really share that information with anybody.

Okay and then if you can if you can't answer this that's fine, but then I guess then.

Regarding data is this a.

Correct me, if I'm wrong, what is like a two and a half year research collaboration I believe is there a date certain at this.

Expires in like October I believe it is.

Or is it kind of a moving target for when we can expect to maybe here.

Hearing from them.

Theyre all I got.

I would not specific to this arrangement.

The entire sector is experiencing no doubt experiencing some challenges around the weather conditions and growth conditions. This year.

What we won't do is prematurely.

Hi.

That relationship if you want to continue provided they are making good progress.

In achieving what they need to see to execute a commercial license so.

We will have a conversation with them.

Do what's right.

Terms of optimizing the value of the trade moving forward. Obviously, we're pleased that they've invested quite a lot in developing this in sorghum.

They have been very good in terms of reporting reporting to us. So we'll reciprocate because I think both parties want ultimately a successful.

Okay fair enough I'll stay tuned there and you actually kind of led into my next question here regarding field conditions, a couple of years ago trials in the upper Midwest.

In Canada, we're kind of a wash out for you as they were for everybody.

The opposite problems happening today can you talk about kind of the status of your field trials.

How comfortable you are with with growth in the field.

Just any any update.

Regarding the impact of weather, so far would be great.

Yes, so I would say I mean.

We won't really know that until such times as we finalize the harvest, but I guess I guess, what I can say is we are we are.

Integrated harvest.

Harvest. These various field trials are the most par in terms of water availability.

<unk> been using irrigated sites. So we can essentially mitigate that issue.

The one challenge I think that I think is going to be.

Still an unknown really is around heat.

The Pacific Northwest to not include Saskatchewan, Montana, Idaho.

It received very very high heat.

Levels this year Fortunately.

It does much floor earlier on the canola, we do know that at all or has had some real challenges this year.

I believe it does appear to be a much Harvey our plant with regard to that so we do believe we will be able to generate data.

We are planning to harvest, including our Idaho trials for the.

The scaled up PHA Camelina lines.

So we'll wait until we have the data and report on it but we do believe we're going to be.

Reporting data.

Okay perfect that's encouraging.

Great credit to the team for achieving this part easy.

Yes, no I'm sure that's true.

Good to hear that you do have access to to irrigated land for these trials.

Very good well taken there as well last one for me and then I'll get in queue regarding the <unk> 3020.

Im really curious kind of what your objective here is what this trade I mean are you looking to because you are focused on camelina with this trade specifically is this going to be something that you hope.

Basically the develop for your own internal.

Purposes here as you ramp your Camelina business or is this a trait that you are developing here to try to license out.

I wanted to see 3003, or 3004 et cetera.

Any help there would be great.

Then.

Actually it's both because one of the one of the interesting things about the platform is I mean these are things that the industry. In fact, the entire AG science community hasn't really moved up.

And so that's really contribute to the power of this great Greenfield so.

One of our so the way we've kind of structured a trait factory is.

If we get something that works in Camelina because of our focus on the Camelina products business is relevant to our business.

That's a big plus however, as we generate that data, particularly field data. We do believe there will be a licensing opportunities for those traits in other crops and we will obviously seek to do.

To do that and essentially get it into the hands of similar to the types of arrangements we have in place.

And we certainly have interest in some of our <unk> cost.

Got it thanks Ali.

Perfect I just wanted to talk about but that's I think that's a good place to leave it I'll jump back in queue. Thanks for taking my questions.

Yes, so Ben Thanks, good to talk to you guys. We know oil so good to hear your voice again on I appreciate the questions.

My pleasure.

Maria back to you.

As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.

One moment, please while we poll for questions.

Okay.

Maria will move right ahead then.

Okay, great Okay.

Okay. Thank you so Ali before we wrap up we have a question that came from a shareholder in <unk>.

Shareholders saw.

The article that you contributed to Biofuels Digest, which was published last week, indicating that yield 10 could make a good partner for an oil company and so here are the three questions shareholder asked I'll start with the first one is yield 10 strategic objective to align with major oil companies.

As a source of capital or funding, yes. So it was good to get these questions from the shareholders and obviously, we're pleased that he has been an investor in the company for some time.

Terms of our strategic objective is to build a very high volume high growth Camelina based products business.

One product of which will obviously be feedstock for the renewable diesel space.

That's our strategic goal as a company however, given the growth in interest in essentially feedstock oils and the involvement of many of the major oil companies in this space.

For the first time, particularly around biodiesel, we do feel that we represent a really interesting opportunity for one of these companies to essentially.

Secure production acres.

Given how far along are camelina platform as compared to others.

Given the proof points, we have already achieved in terms of oil content in yield in that particular crop. So we do think that we would make a good partner for the company, but we also as a company are going to be very.

Shall we say diligent about making sure that we don't underwrite in any way shape or form the development of our biofuel supplier for one of these oil companies. So yes, if we're going to do this and there was an opportunity and frankly, we believe there is a will have to involve essentially capital funding to the company. Okay. Thanks. The second one is what aspects of <unk>.

El pen technology with make it the right choice for this type of partner, yes. So when you look at.

Thank you.

Attention to the media in the last week have already begun to see the push back on the renewable or low carbon fuel standards from the from the grocery manufacturers Association, where they're complaining about the price of canola oil, our donuts and buy it and other things.

And this is only going to grow particularly in the season, where some of these crops are going to be compromised by weather. So do you think is really interesting is the fact that Europe.

Very advanced in Camelina and Kimberly has these unique attributes of being a potential second crop, which can actually produce in oil useful in those markets, but additionally produces more protein food and so it's really an exciting concept and we are pretty far along in the development of that so we do feel that that.

<unk> technology platform to improve the economics of oil production and ultimately to develop high value camelina for the farmers encompassing the PHA traits to open up new markets would be a very attractive proposition.

And then the third aspect of that question was are there any critical milestones that need to be achieved to validate yield Ten's gene editing solution set and biofuels.

Yes, so in terms of that I mean, mostly what we focus is.

<unk> is obviously on oil seed oil content, which really comes down to the cost of goods as a biofuel feedstock.

Haven't really targeted modifying the oil composition to make it more amenable renewed.

Renewable diesel for example, reducing the amount of a saturated groups in the oil.

And that will require less hydrogen in terms of the hydro treatment.

We haven't really got into that but in terms of.

Oil concentrates we are scaling up <unk> hundred 90, <unk>, because we've already got approval for it.

We've already got it.

Deregulated.

We've already demonstrated that it does produce up to 5% more oil in the seats. So that the new <unk> 2020, and <unk> thousand 700 rates all of which are progressing in camelina in other cases <unk> seven also Lola.

We believe is a pretty good foundation for us.

So with that I'd like to thank the shareholder who submitted these questions.

And I think.

Just like to move on to closing remarks, so I'd like to personally. Thank all of you for joining us on the call Tonight, and especially our shareholders for your continued support we're excited about opportunities ahead of us in the second half of 2021 and on into the future as we build our business.

Near term, we are focused on promising market opportunities for oil and meal from our elite Palomar leader as well as on progressing commercialization of EPA DHA Omega three oil product I want to thank everyone that yield 10 for keeping us on track to reach our goals in 2021 have a nice evening.

Thanks Maria for your help today.

Thanks, everyone you may now disconnect.

Okay.

Thank you.

[music].

Sure.

Okay.

[music].

Yes.

[music].

Welcome to the second quarter of 2021 financial results and business update conference call for yield 10 Bioscience.

A reminder, this conference call is being recorded I would now like to turn the conference call over to your host yield 10, Vice President of planning and corporate Communications Lindbergh. Please go ahead.

Earlier. This afternoon, you will kind of issued our second quarter 2021 financial results.

This press release as.

That's one of the slides that accompany today's presentation are available on the Investor Relations event section of our website at El pen bio Dot com.

Now turning to slide two please.

These risks include risks and uncertainties detailed in your pens filing with the SEC.

Thanks Glenn.

Afternoon, everyone and thanks for joining our call.

Since the start of 2021, we have made strong progress advancing yield ten's business did.

Today I'll provide an update on our progress and Christie will highlight our recent R&D accomplishments.

I will then review our target markets second quarter financials, and summarize key milestones for 2021 and beyond before we open the call to questions.

Now, let's turn to slide three yield trait factory and business model.

Is it generated from our <unk> field trials with Camelina enables two distinct revenue opportunities.

Improved calamity no varieties for Camelina product business, I'd say it licenses to major seed companies for auto Cross.

Steve I'd like to focus on the key accomplishments against our strategic goal to use camelina as a platform crops to produce feedstock oils.

Plus DHA Omega three oils, PHA, bioplastics and protein meal, or we estimate a combined product revenue potential of over $4 billion by 2030.

Let's now turn to slide four key accomplishments.

During this quarter, we continued to develop and execute our camelina business strategy. This.

This includes reaching out to potential partners in the areas of fuel foods as bioplastic to explore ways of working together to bring forward products produced in Camelina.

On the technology front, we are executing our field trial program, including field work in Argentina, as a first step to access the market for <unk> in Chile.

These activities across the U S, Canada, and Argentina are progressing towards harvest.

To support our commercial efforts, we plan to build a network of contractors for seed scale up activities as well as for seed crushing to produce oil and meal for customer sampling.

We announced two new hires and regulatory affairs and in business analytics and operations in June.

We will continue to add key hires in particular to.

To lead our seed operations and build out our commercial team in the months ahead.

Our crop science team led by Kristy has expanded our portfolio with the discovery and initial testing of four new oil content traits using our <unk> platform.

In January we reported achieving a proof of concept milestone for producing PHA bioplastic in field grown camelina seed scale up of the best lines are ongoing as part of this year's field program.

In the first quarter, we strengthened our balance sheet to extend our cash runway and achieve value building milestones into 2023.

U S patents have recently been allowed ROE granted for to in license traits, including <unk> thousand seven oil concentrate and the Camelina Omega three DHA EPA oil trade.

U S patent Roche series six.

Our synthetic biology straight was granted in July.

An update on our R&D priorities I'll now turn the call over to Christie.

Thanks Ali.

Team is making good progress in huge scale up in field testing, while continuing to deploy new traits into our Camelina platform.

Let's turn to slide five.

Earlier this year, we engaged a leading U S seed company to perform seed scale up of our CRISPR edited E..300, 902 oil content line, our spring doubled Apple outline and a disease resistant elite Camelina line.

From this work will enable additional feed scale up in our fall winter 2021.2022 growth season.

We are working to secure contracts for this further scale up of <unk>.

In July we announced that we had completed planning of our 2021 field trial program in the U S, Canada and Argentina.

We have a broad range of Camelina lines in the trials, including elite germplasm yield in oil traits in PHA Camelina lines.

This is expected to occur in the weeks ahead.

Work to enhance our elite germplasm continues with progress recently made towards the goal of incorporating herbicide tolerance and disease resistance into our lines.

Our plan is to develop robust platform varieties for nutritional oils and PHA traits.

In April USDA, APHIS confirm that our new CRISPR edited T 3007, Camelina lines are exempt from regulation under seven CFR part 340 under the secure rule, a new crop regulatory framework in the U S.

We continue to support R&D at Robinson Institute on Omega, three Camelina lines and support our partners evaluating traits and other commercial crops.

Finally, it is also a priority to retain our leadership in trade discovery.

10, researchers have discovered for new oil content traits using the green platform.

For more on this let's turn to slide six.

There is a lot of momentum around vegetable oils as there is increasing demand and rising prices for their use of <unk> food and fuel.

We used our grain platform to search for transcription factors or <unk> to increase seed oil content in camelina.

We mined data to create a ranked list of 211 transcription factors.

Using our methodology transcription factors known to impact oil <unk> yield such as W. R. I won an <unk> six.

Our observed in the top spots of the ranking validating our approach.

We identified a series of novel team, representing IP White space.

There were four transcription factors that we identified as the most relevant and lease studying.

Our work has shown that over expression of <unk> 3020 increases seed oil content by 10% in greenhouse studies.

Given this early but strong results we are moving forward with <unk> 3020 to produce pure yield growing seed in the 2021 field test program to enable further study of the trade.

In addition, trade E 3019, <unk> 3021, and <unk> thousand 22.

What's that CRISPR editing targets and work is underway to deploy and test the 3021 in camelina as well.

I wanted to thank the team for all their efforts in advancing us to meet our R&D objectives in 2021, I'll hand, the call back to Ali Ali. Thanks.

Thanks for the update Christie.

The team is doing excellent work, which we believe will enable our camelina to become the benchmark for the industry and a new industrial crop.

Now, let's turn to slide seven the opportunity to establish a new major crop today Camelina has grown on a small scale for lease obligations drivers in the oil markets have recently renewed interest in the crop.

Investing in this trial for over 10 years as a platform for evaluating traits with seed yield on oil content.

As a result, we have identified traces approved <unk> oil content or both.

We believe there is a clear path to deploying herbicide tolerance with best resistance to access large acreage in North America.

We also see the opportunity for using Camelina as a winter variety and is a covered call. Therefore, we believe there are many distinguishing features to establish our camelina as a successful revenue generating industrial crop at a time when interest in biofuel feedstock is drawing.

Now, let's turn to slide eight elite Camelina.

Strategy and current activities.

Our commercial strategy and the lead Camelina as capital light one using contract farming seed crushing and customer off take agreements. We've made good progress towards developing Abilene aligns with Harper safe tolerance and disease resistance. For example, we are currently evaluating non GMO lines and a GMO herbicide tolerant lines and development we are.

Also acquired enough testing at the only mill do disease Camelina variety.

Now, let's turn to slide nine.

E Commerce for renewable diesel.

According to the Wall Street Journal production capacity for soybean oil in the U S is expected to grow to 935 million gallons of 2021.

Nearly double from where it was last year.

The growing demand for soybean oil as a renewable diesel feedstock is driven soybean oil prices the decade highs and led to shortages in many areas of the world.

These challenges are felt across the entire supply chain.

There have been media reports, indicating that ADM cargo and the oil company Phillips 66 are investing in soybean crushing plants.

We believe in Phillips 66 case. This is the secured feedstock oils for biofuel.

With favorable tailwind in the renewable space, we see the potential for camelina to demonstrate its valued potential as a new feedstock oil for renewable diesel production.

Really crossing with soybeans could double oil production per acre, creating the potential to provide oil for fuel and increased protein meal production per foot.

We are reaching out to fewer players in the space to engage in discussions around off take agreements.

Now, let's turn to slide 10, Omega three oils from nutrition and sustainability.

We believe there is growing demand for Omega three oils, which are essential for human health and wellness and the corresponding need to produce these oil sustainably.

Camelina seed has been genetically program to produce a vegan fish oil replacement with combined EPA and DHA fatty acid levels over 20% in the oil.

Best Camelina lines will be successfully field tested in multiple geographies and multiple positive aquavit in human sufficient studies completed.

Yield 10 is supporting ongoing development work conducted by Roche instead, the developer of this technology and is working on our strategies for regulatory approvals and commercialization and South America.

Now, let's turn to slide 11 opportunities and deficient Isle enrollment in three markets.

The graph on the left of the slide illustrates the ongoing rise in the price official aisle as production volume for wildcard Fisherman's flat due to overfishing.

Hardly a day goes by without another report of massive Chinese fishing fleets illegally harvesting fish across the globe.

So we believe this problem is only going to get worse.

<unk> production of Omega threes as a potential solution for this market.

The table on the right compares Camelina EPA, plus DHA Omega three product to the competitor products.

Two competitors are using canola as a platform to produce either DHA and EPA.

Not at the same time in the same plant. Although competitors are also producing Omega threes from allergy fermentation and approach that does produce both DHA EPA.

But at a very high cost.

The <unk> produced Omega three product is clear potential to be the best in class across quality and composition with around 20%, 20% combined DHA and EPA Omega threes, plus the third Omega three.

Ah represents a sustainable way to meet the growth of dissipated in this market.

Now, let's turn to slide 12, the Omega three business plan development.

Our market entry strategy for Omega three oil is focused on South America virtually has about 30% of global pharma salmon production on our goal to move to peak move feet away from beef production away from harvested fish.

We are working with third parties with expertise and contacts related to contract farming and the salmon industry.

We're evaluating the use of elite camelina to provide the initial footprint and the accuracy of market based.

Using it as a precursor to launching an old legacy oil.

<unk> ongoing commercial partner prospects.

Let's turn to slide 13 plant based Bioplastics.

As Christie mentioned, we are scaling up our current PHA camelina lines and this work will support product prototyping.

We are developing a regulatory strategy and identifying prospects for business development, along the value chain.

We are also continuing second generation Lane development with the goal of increasing seed bioplastic to 10% to 20% level.

We believe that this is a very attractive market.

Biodegradable PHA producer plants may represent an excellent solution for compound <unk> brand owners and consumers as well as the environment.

Now, let's turn to slide 14, establishing the value chain.

To access these markets released to establish an identity preserved value chain based on contracting seed production in fact farming and seed processing into protein oil and bioplastic pellets.

Because of the end product areas, we see a variety of partner prospects seed companies biofuel companies plastics packaging brand owners and Bioplastics companies.

Now, let's turn to slide 15, the market opportunity for Camelina products.

We believe there is about $4 billion annual revenue potential for Camelina products by 2030 feedstock oil could be grown in half a million to 2 million acres with a market of $150 million going to $1 billion for oil and meal, depending on crop yields we believe that acreage for Omega three oils will be in the order of 300000 to 700.

Those acres with a market potential of $180 million grew at over $600 million by 2030, assuming a 60% market share.

For Bioplastic, we expect the crop of 2% to Formula makers with 2030 revenue potential of $1 billion growing to over $3 billion based on sales of Bioplastics feedstock oil and protein meal.

The PHA <unk> bioplastic opportunity is quite unique given the scale and growth of the petroleum plastic production.

Over half of this is being for singles is being used for single use plastic items with a lifetime and use of less than six months sadly and all too often after consumer use these plastics end up in an environment, where they can persist for hundreds of years.

Based on our history, we know that PHA bioplastics could functionally replace around 50% of the single use plastics used to date, an estimated $200 billion market opportunity growing at 4% per year.

Our goal is to develop PHA camelina as a disruptive technology offering costs in line with feedstock oils.

We are now taking the first critical steps towards commercial development, but it will still take some time.

Now, let's turn to slide 16.

Licensing opportunities.

Currently we have nonexclusive research license agreements in place with fur GDN forage genetics is simpler to set some of our traits in different crops.

This year, we are completing our initial field tests with canola edited in our 600000 southern trade based on achieving a 4% seed oil increase in greenhouse.

Going forward, we plan to seek partners for adjacent canola car to focus internal resources on Camelina development.

Now, let's turn to slide 17 financial results. We ended second quarter of 2021 with $26 million in cash cash equivalents and investments.

During the first quarter of 2021, we raised net proceeds of $12 million from a public offering of common stock as well as a $3.9 million from the exercise of warrants.

We're aligning our balance sheet with our business strategy.

We have no debt.

Net operating cash usage was $2.1 million for the second quarter of 2021.

We expect our cash on hand, together with expected revenue from our current government grant to support our operations into early 'twenty three 2023.

We continue to estimate that our net operating cash usage for the full year of 'twenty or 'twenty, one will be within the range of $10 million to $11 million.

This includes estimates for our contracted and plans to scale up activities as well as on hires and other support and business development regulatory affairs seed operations as we direct this investment towards executing our business plan.

Let's now review the second quarter 2021 operating results.

The company reported a net loss after taxes of $3.1 million for the second quarter of 2021 compared to a net loss after taxes of $1.8 million for the second quarter of 2020.

Total research grant revenues in the second quarter of 2021 were 170 horsepower versus 221 closing in the second quarter of 2020.

In the second quarter of 2021, R&D expenses were $1.7 million compared to $1.2 million in the second quarter of 2020 <unk>.

G&A expenses were $1.6 million in the second quarter of 2021 as compared to $1.2 million in second quarter of 2020.

For the six months ending June 32021 on net loss after taxes was $5.7 million or $1.23 per share as compared to $5.4 million or $2.95 per share in 2021.

For more details on our financial results. Please refer to the earnings release.

Let's now turn to slide 18 upcoming milestones.

In 2021, we will continue to focus on the following milestones.

By executing our 2021 field testing and <unk> scale out program.

Responding to Rohit Camelina germplasm collection with our own internal work as well as acquire rights to lines with desired performance profiles.

Progressing the business plan for Camelina products, including advancing the commercial launch plan for Camelina Omega three oils in South America, where we have recently engaged to see service provider and business development support.

Broadening our commercial capabilities, particularly recede operations to complement our recent hires and regulatory affairs and business development.

As we increase the focus on the accounting and our products business, we see more opportunities to secure strategic industry collaborations from value chain partners.

Based on industry feedback, we believe there will be an increasing demand for trait gene target identification tools like a unique green.

Platform.

As well as novel trait genes for genome editing in major crops.

Securing revenue based on generating commercial credit licensees and expanding our intellectual property portfolio, which is crucial for a small company.

Three patent grants in 2021 are integral to this effort with that I'd like to turn the call back over to Lynn for questions.

Yes, Thank you Ali and Maria we're ready for questions.

You May press star two if he would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

One moment, please while we poll for questions.

Okay.

Yes.

Our first question is from Anthony Vendetti with Maxim Group. Please proceed with your question.

Thank you.

Yes, hi, So I was wondering al if you could talk or Christie about the C 30.23.

A little bit more about that view your green platform and then.

Next steps for development and how does the.

10% increase in oil content compared to other available options on the market.

Yes, I'll take that so I can actually having not been directly involved in the science I mean hats off to the great team and the.

Our science team led by Christie.

They literally using that platform, we're able to pool toys.

We have four targets right out of the ether space as far as I can sell and so literally.

Sort of a computational analysis.

They are able to get to these targets switch in each case of the for the select of the selected invested we're actually seeing an impact a positive impact for <unk> thousand 29% oil and grease.

And just as a reminder, a 10% seed oil increase in controller. If you were to deploy that of course cross link the NOLA acreage would be the equivalent of a 10% yield increase because of the higher value of the oil. So it's actually quite remarkable we didn't see any.

Deleterious effect on <unk> and the greenhouse obviously, we'll need to do field test to confirm that type of thing. So I would say from what we've seen.

With the <unk> 902 genome edited line of Camelina, which is already regulatory approved we're seeing essentially a 4% to 5% in seed yield increase.

<unk> thousand you'll see the 5% seed yield increase and have received oil increase.

So with this one this is the highest we've seen.

How it compares to other companies I am not sure we really at all.

Certainly it's impressive.

This stage recognizing that it still has to be evaluated in field trials.

Sure Troy and thanks for providing also the the opportunity in each of the categories for Camelina platform Bioplastics oil in seeds and seed is obviously the largest potential $4 billion.

But by 2030, but as you look.

As you look out here in the near term.

What do you believe is your most immediate commercial opportunity.

As we stand here today.

Yes, So I think it's I think I think we're seeing really two areas first of all I would say that.

The uptick in commodity prices.

We are definitely seeing a lot more interest and activity around the companies for new trades. We're also hearing that there is a very consistent theme in some of our conversations with with some of these players which is if all invested very heavily in genome editing.

And they are actually running into the problem that actually we foresaw back when we started the switches.

Wonderful tool and actually it's been terrific for yield 10, but ultimately it comes down to the target genes.

And I think the industry as a whole is still struggling with new gene targets, and particularly what you'd want to use combinations of genes to improve our boost yield.

<unk> and so we are definitely seeing growing interest in that area.

We're definitely seeing interest and more interest in some of the traits that we already have in hand.

But the second area and I think.

In Europe Tammy <unk>.

There will be very very judicious.

I would say conservative in our approach which is.

There is definitely.

Growing demand for biofuel feedstock there is no question about it.

I have a long history in the renewable space and so I've seen these things come and go so our approach there is really to look for.

Partnerships with folks should be in the biofuel space I mean, Youll times don't want to become a biofuel.

We could be a feedstock supplier for that area from our Camelina from a REIT camelina in the near term and in the longer term from the PHA Bioplastics Camelina, where the oil is actually a core product for bioplastic production. So we're seeing a lot of activity there.

Again, there's no guarantees in any of this but there's a third thing thats beginning to kick in which is we're also seeing a lot more attention.

Probably based on political changes.

And also coming out of the sort of the Covid recession.

In various areas around essentially government funding.

<unk> innovative technologies around improved.

Improving the sustainability of agriculture.

Producing new agricultural products, increasing the availability of feedstocks.

And all of it really targeted at reducing carbon emissions. So we feel we're probably at the time. He is a good time for Covid Youll ton, we have a lot of proof points in hand.

We have a great team and we're now building the commercial organization, but.

Next steps as it relates to begin to fly some of these are into into arrangements and agreements with third parties.

Okay, Great that was very helpful. Thank you I'll hop back in the queue.

Thanks, Anthony Thanks, Jonathan.

Mario we have our next call next question.

Yes. Our next question is from Ben.

With Lake Street Capital markets. Please proceed with your question.

Alright, thanks for taking my questions.

First one with regards to the research collaboration with forage genetics I'm wondering if you can kind of provide any detail on what we can potentially expect here when that agreement here expires is there a date certain on that.

We're expecting an exploration.

What really are we potentially can be getting out of out of this collaboration here and do we know kind of when roughly we're going to learn more about next steps with.

<unk> genetics.

Yes, so Chris in particular as we did.

One primary cost out and as far as genetics I do know they are moving forward with them.

Haven't we.

We do have a confidentiality agreement as part of that arrangement and so we can't really.

Go into any real detail, but we do know that moving forward.

Also know that.

They're very interested in.

One particular week.

We can't really share that information with anybody.

Okay and then if you can if you can't answer this that's fine, but then I guess.

Regarding data is this a.

Correct me, if I'm wrong, it looks like a two and a half year research collaboration I believe is there a date certain that this that this.

Expires in October I believe it is.

Or is it kind of a moving target for when we can expect to maybe here.

Here does I don't know from them.

They are all I mean.

Got it.

Not specific to this arrangement.

Bob.

Entire AG sector is experiencing no doubt experiencing some challenges around the weather conditions and growth conditions. This year.

So what we wouldn't do is prematurely.

And that relationship if he wanted to continue provided they are making good progress.

In achieving what they need to see to execute a commercial license so.

We'll have a conversation with them and we will do what's right.

In terms of optimizing the value of the trade moving forward. Obviously, we are pleased that they have.

Quite a lot in developing this in sorghum.

They've been very good in terms of reporting reporting to us. So we'll reciprocate because I think both parties want ultimately a successful.

Okay Fair enough, we'll stay tuned there and you actually kind of led into my next question here regarding field conditions, a couple of years ago trials in the upper Midwest.

In Canada.

Kind of a wash out for you as they were for everybody.

The opposite problems happening today can you talk about kind of the status of your field trials.

And how comfortable you are with with growth in the field.

Just any any update.

Regarding the impact of weather, so far would be great.

So I would say.

We won't really know that until such times as we finalize the harvest, but I guess, that's what I can say is we are we are.

Integrated and harvest.

Ready to harvest these various field trials for the most part in terms of water availability.

Have been using irrigate each sites. So we can essentially mitigate that issue.

The one challenge I think that I think is going to be.

It's still an unknown really is around heat.

Because the Pacific Northwest and that includes Saskatchewan, Montana, Idaho.

But did receive very very high.

Levels this year.

Actually camelina does much floor earlier and canola, we do know that at Ola has had some real challenges this year.

I believe it does appear to be a much hardier applied with regard to that so we do believe we will be able to generate data.

We are planning to harvest, including our Idaho trials for the.

The scaled up PHA Camelina lines. So we'll wait until we have the data and report out, but we do believe we're going to be.

Reporting data.

Okay perfect that's encouraging.

Great credit to the team for achieving this part easy.

Yes, no I'm sure that's true in <unk>.

Good to hear that you do have access to to irrigated land for these trials.

Very good well fits in there as well last one from me and then I'll get in queue regarding a few 3020.

Basically the develop for your own internal.

Purposes here as you ramp your Camelina business or is this a trade that you are developing here to try to license out.

I wanted to see 3003, or 3004 et cetera.

Any help there would be great.

Then.

Actually it's both because one of the one of the interesting things about the platform is I mean these are things that the industry. In fact, the entire AG science community hasn't really moved up.

And so that's really attributed to the power of this great Greenfield so.

One of our so the way we've kind of structured a trait factory is.

If we get something that works in Camelina because of our focus on the Camelina products business is relevant to our business.

That's a big plus however, as we generate that data, particularly field data. We do believe there will be a licensing opportunities for those traits in other crops and we will obviously seek to.

To do that and essentially get it into the hands of similar to the types of arrangements we have in place.

Certainly have interest in some of our trades at all costs.

Got it thanks Ali.

Perfect I just wanted to talk about but that's I think that's a good place to leave it I'll jump back in queue. Thanks for taking my questions.

Yes, so Ben Thanks, guys. Good to talk to you guys. We know oil so good to hear your voice again on I appreciate the questions.

My pleasure.

Maria back to you.

As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.

One moment, please while we poll for questions.

Maria will move right ahead then.

Okay, great Okay.

Okay. Thank you so before we wrap up we have a question that came from a shareholder in <unk>.

The shareholders sought.

The article that you contributed to Biofuels Digest, it which was published last week, indicating that yield 10 could make a good partner for an oil company and so here are the three questions to shareholder asked I'll start with the first one is yield 10 strategic objective to align with major oil companies.

As a source of capital or funding, yes. So it was good to get these questions from the shareholder and obviously, we're pleased that he has been an investor in the company for some time.

Our strategic objective is to build a very high value high growth Camelina based products business, one product of which will obviously be feedstock for the renewable diesel space.

That's our strategic goal as a company however, given the growth in interest in essentially feedstock oils and the involvement of many of the major oil companies in this space.

For the first time, particularly around biodiesel, we do feel though that we represent a really interesting opportunity for one of these companies to essentially.

Secure production acres.

Given how far along are camelina platform as compared to others.

Shall we say diligent about making sure that we don't underwrite in any way shape or form the development of our biofuel supplier for one of these oil companies. So yes, if we're going to do this and there is an opportunity and frankly, we believe there is they will have to involve essentially capital funding to the company. Okay. Thanks. The second one is what asps.

<unk> <unk> technology with make it the right choice for this type of partner.

So when you look at it.

Interesting thing is paying attention to the media in the last week have already begun to see the push back on the renewable or low carbon fuel standards from the from the grocery manufacturers Association, who they're complaining about the price of canola oil, our donuts and buy it and other things.

And this is only going to grow particularly in a season, where some of these crops are going to be compromised by weather. So we think is really interesting is the fact that we are very advanced in Camelina and <unk> has this unique attributes of being a potential second crop, which can actually produce in oil useful in those markets, but additionally produces more protein.

For food and so it's really an exciting concept and we are pretty far along in the development of that so we do feel that our underlying technology platform to improve the economics of oil production and ultimately to develop high value camelina for the farmers that sell for Cigna PHA traits.

Put up new markets would be a very attractive proposition.

I would ask that question was are there any critical milestones that need to be achieved to validate yield Ten's gene editing solution set and biofuels.

Yes, so in terms of that I mean, mostly what we focus is.

As I say on oil cuts seed oil content, which really comes down to the cost of goods as a biofuel feedstock.

Haven't really targeted modifying the oil composition to make it more amenable.

<unk> diesel for example, reducing the amount of a saturated groups in the oil.

Where would that require less hydrogen in terms of the hydro treatment. So we havent really got into that but in terms of the oil content traits.

We are scaling up <unk> hundred 92, because we've already got approval for it.

We've already got it.

Deregulated.

And we've already demonstrated that it does produce up to 5% more oil in the seat so that the new <unk> 20, and <unk> thousand seven traits and all of which are progressing in camelina and in the cases of <unk> thousand seven also granola.

We believe there is a pretty good foundation for us.

So with that I'd like to thank the shareholder who submitted this question.

Yeah.

We'd just like to move on to closing remarks, so I'd like to personally. Thank all of you for joining us on the call Tonight, and especially our shareholders for your continued support we're excited about opportunities ahead of us in the second half of 2021 and on into the future as we build our business.

Near term, we are focused on promising market opportunities for oil and meal from our elite caliber leader as well as on progressing commercialization of EPA DHA Omega three oil product I want to thank everyone that yield 10 for keeping us on track to reach our goals in 2021 have a nice evening.

Thanks Maria for your help today.

Thanks, everyone you may now disconnect.

Q2 2021 Yield10 Bioscience Inc Earnings Call

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