Q1 2022 Yield10 Bioscience Inc Earnings Call

May 11, 2022

Yes.

Okay.

[music].

Welcome to the first quarter 2022 financial results and business update conference call for yield 10 Bioscience.

During the call all participants will be in listen only mode.

Centers, we'll address questions from analysts today, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference call is being recorded.

I would now like to turn the conference call over to your host Youll have the vice President of planning and corporate Communications Lynne Brum.

Thank you Stacey and good afternoon, everyone. Welcome to yield 10, Bioscience first quarter 2022 conference call. Joining me on the call today are president and CEO , Dr. Olly Peoples, Vice President of research and Chief Science Officer, Dr. Kristi, Snell, and Chief Accounting Officer, Chuck has or.

Earlier this afternoon <unk> issued our first quarter 2022 financial results. This press release as well as slides to accompany today's presentation are available on the Investor Relations events section of our website at <unk> Dot com.

Let's turn 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 these statements are not such statements are not strictly historical constitute forward looking statements and.

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.

They arise after the date of this conference call turn the call over to Ali. Thanks, Lynn Good afternoon, everyone and thank you for joining our call.

Near term commercial focus on the renewable diesel biofuel market.

Our robust R&D pipeline Camelina R&D pipeline.

Inefficient momentum as we progress in 2022.

I will provide an update on our recent accomplishments, including the kick off of our 2022 Springfield program review, our target markets with an emphasis on biofuel feedstock oil.

The first quarter financials, and summarize key milestones we will then open the call to questions.

Now, let's turn to slide three our crop innovation platform.

Our innovation platform trades victory is centered around the oilseed camelina.

We plan to establish a platform to produce low carbon petroleum replacements and good products.

Let's turn to slide four.

Our business model is to provide farmers with a new growth opportunity by building elite <unk> varieties to produce seed products for new markets.

Essentially we will use our elite camelina seed varieties to contract production of Camelina Green with farmers on the off take agreements to supply customers in the renewables and food space.

Depending on the product and the customer we will also contracts seed processing to produce these products.

With our current elite varieties progressing towards commercialization.

Proprietary value added east Kevin D to C products in development, we are positioned to establish and grow a large seed products business.

Lead product in the near term as low carbon feedstock oil to meet increased demand for the biofuel sector.

Yes, we are at the early commercial stage on working on partner outreach to secure off take agreements.

We believe this will be followed by the launch of Omega three Campbell you not to produce Omega three oils for the nutrition and Aqua feed markets.

Then phe Bioplastic <unk> currently in development to supply the growing demand for biodegradable zero waste plastic packaging.

Combined these products represent a very large revenue opportunity.

Let's now turn to slide five advancing the business.

With significant momentum entering 2022 were operationalized the commercial plan to launch a Avalon Abilene the seed products business are.

Commercial team is engaging with potential supply chain partners to form alliances that will support our capital light business model.

We welcomed our greenfield two our team Felipe seed operations in January .

<unk> has more than 25 years' experience in canola companies, including BSF Si.

Let's see this.

He's leading efforts by our commercial team to reach out to <unk>, where contract planting as we've worked through securing supply chain partners.

In support of this plan these using our lead spring and winter lead varieties for initial commercialization in the North American Biofuels market.

In April we named will Eagle as a special commercial and technical adviser believe previous previously served as VP market development global edible oils division at cargo.

He has extensive knowledge of the commercial landscape for commodity and specialty oils, including Omega three oils and we welcome relief to our team.

As we build our business around Camelina. Our research team has done an outstanding job developing ALLETE camelina lines to launch the business.

Pipeline of novel Gene traits.

In March we reported supportive and encouraging data generated in our 2021 Springfield program.

Our winter fill program is progressing on track and is expected to provide us with important data on winter and spring varieties Gordon a variety of geographies.

Steve will provide an update on our winter and spring programs.

As we continue to build our patent portfolio I am pleased to report that in early 2020 to two new patents are issued.

That was granted in Australia for <unk> thousand and seven are promising oil content boosting traits.

<unk> was granted in Canada or advanced technology for producing Omega three oils in Camelina.

I'll now pass the call over to Christie.

Thanks Ali and good afternoon, everyone on our March call. We described the results of our 2021 Greenfield.

And today I will provide an update on our ongoing winter program.

Well as described the scope of our 2022 Springfield program.

Let's turn to slide six.

Winter Camelina can be grown as the winter cover crop cycles from food production, providing greater access to acreage.

Paired with the summer season crops such itself.

Okay.

With winter Camelina the harvest in the late spring or early summer of 2022.

This included 17 acres of our cold tolerant winter Camelina line in Saskatchewan, Canada, and 0.2 acres early maturing line in Idaho.

We expect these activities will produce feed for further scale up in all of 2020 to begin to produce seed to get into the farmer's hands for commercial planning.

We also performed a small plot field evaluations of yield 10 points of Camelina lines as well as germplasm accessions that yield 10 obtained from third parties.

Sites in Idaho, Kansas, Minnesota, Iowa, Illinois, and Georgia.

These skilled evaluations will allow us to determine the range of suitable areas for growth of winter Camelina and identify differences in the germplasm varieties and different climates.

The trials are in different stages of growth depending on location and range from completion of seed harvest at sites in Georgia. The plants that have recently emerged from snow in Saskatchewan, Canada.

We expect to obtain agronomic data from these trials.

Let's turn to slide seven.

We are continuing to progress our elite Camelina germplasm development.

Our spring program will include more than 25 trials at 11 sites located in the U S and Canada.

Lighting for this spring program is substantially complete and in certain geographies planting has begun.

We expect planting at all fields to be completed in the weeks ahead and for harvest and the harvest to be completed by the end of the third quarter.

We have made good progress against our goal of producing proprietary camelina variety with herbicide tolerance and pest resistance.

In our 2022 field test program, we will evaluate candidates camelina lines for herbicide tolerance to identify lead and backup lines for commercial development and regulatory approval.

Once these lines are identified we plan to accelerate these candidates and to scale up and put them on the path to regulatory approval.

Events of Camelina E. <unk> 902, possessing herbicide tolerance will be evaluated in the program as we continue to develop this leading elite germplasm.

We will also test camelina lines for downy mildew resistant on fields known to hardware this fungal disease.

As part of the program, we will continue to see scale up activities for our prototype Camelina seed 3015 trade, which produces PHA.

This work will be conducted at acre scale.

We plan to extract PHA from the seed to support our business development activities.

Meanwhile, in R&D, we are working to optimize the PHA biopolymer stick tree to produce 10% to 20% DHA bioplastic in seed and to demonstrate PHA bioplastic co polymer production in Camelina.

We will also continue to progress our proprietary gene traits to produce the.

Seed oil content in seed yield, including more work with <unk> 3020.

We will also test canola seed 3007 lines to collect seed oil content and yield data for this promising trait.

Let's turn to slide eight.

The chart on this slide illustrates our camelina pipeline as well as our plan to launch sequence at the top of the chart. We start out with Camelina line E 300 to Washington to the biofuel market.

This will be followed with tolerance to broadleaf herbicide and residual soil herbicides.

We then plan to stack with trade for downy mildew resistance to produce a robust package of trade to enable growers to embrace planning camelina as a spring or winter crop.

We have plants in testing for each of these tree and planned to be in position to stack for combined traits in camelina to meet growing needs.

Our Camelina platform will also enable us to stack on new performance trades, as we identify them as well as PHA and Omega three product trades as our programs progress.

Based on preliminary discussions with regulators, we believe that the regulatory path for our trade development may be supported by the USDA APHIS has secure rule in the U S as well as the updated emerging <unk> regulations in Canada.

With over 25 years of safety experience with biotech crops in the U S. The science based approach coda fight in the secure rule enables the evaluation and confirmation of the regulatory status of wealth any trade deployed into new crops.

This framework also enables clarity around the regulatory path early in the development of new trades, enabling close alignment of the confirmation of regulatory status and timelines.

<unk> ramp up and commercial launch planning with that ill hand, the call back over to Ali.

Thanks, Christie and congrats to the team for their accomplishments around executing the winter program.

Putting up the Springfield testing program, which we expect will generate a broad range of data, including confirming harborside, Poland and Camelina lines.

Our strategy to build shareholder value is to commercialize camelina as a platform to reduce your renewable products, including feedstock oils renewable diesel in the near term and the leverage our advances in crop development to launch elite CT legacy Camelina and PSC carefully the biopsies PHA bioplastics in the future.

Let's turn to slide nine renewable diesel on establishing that kind of along the value chain.

Based on the non fuel industry investments the production of renewable diesel alone is projected to grow to 5 billion gallons annually from an estimated 1 billion gallons in 2021.

These investments are necessary to meet regulations, such as the California, low carbon fuel standard all CFS and similar Stan those extending to other states and Canada.

Selling diesel fuel in California requires producers to be the carbon standard either by lowering carbon.

Adding lower carbon renewable diesel petroleum diesel or purchasing carbon credits.

Increasing energy prices due to the crisis in Ukraine is another potential tailwind for biofuel demand.

As new demand will have to be met mostly from increased use of vegetable oil.

This in turn is placing further pressure on vegetable oil prices, resulting in the opportunities for new crops camelina to expand production.

Our commercial strategy for the Camelina is capital light one using contract farming seed crushing and customer off take agreements to manage cost of inventory risk in the early years of the business.

To establish a leadership position in the near term, we're prioritizing development of prioritizing the development of Camelina lines with herbicide tolerance and disease resistance to enable large acreage.

Function.

Performance fees were yields on oil will be stopped into these lines as we progress and.

In 2022 to 2023, we plan to execute scale up activities to enable planting in the range of a 1000 to 20000 acres.

We are moving forward with a nonregulated varieties.

Progressive regulatory path with new varieties as needed.

In addition to our R&D and commercial activities, we have ongoing business discussions with the key players in the value chain, including seed processors and biofuel companies.

As stated our goal is to secure offtake agreements.

Now, let's turn to slide 10, bio refineries and feedstock production locations.

This slide illustrates where in North America by refinery expansion investments have either been made or a plant.

We have circled areas, where we see the potential for gambling that production on indications the lately direction of tablet product for the primary market for low carbon biofuels in California.

Some of the production areas like the Pacific Northwest also up by refineries so products transported from growing regions could be in the form of green feedstock oil are finished biofuel.

Earlier on this call Christy presented the math, if somebody of our winter field trials.

The chart indicates how our development and commercial strategy links up with the production and market opportunity.

Let's turn to slide 11 for an update on PHA Bioplastics Omega three programs.

I appreciate bioplastic area. Our efforts are focused on optimizing the PHA treat to enable phe bioprocess production in time with the seats.

Our business model is the same as for biofuel free stall used contract growers to produce elite <unk> varieties, which can be processed to produce III products.

Bioplastics.

Feedstock oil and protein meal.

This will integrate future bioprocess production into large scale low cost agriculture with the potential for cost in the range of feedstock oils.

Thanks, Christy indicated our prototypes Camelina line you shake out on the line <unk> thousand 15 is being planted acre scale. This year to produce PHA for process development and business development.

The R&D team is continuing activities related to trade optimization.

We are pursuing collaborations with industry.

Specie Bioplastics subtraction with brand owners interested in biodegradable materials as a zero waste end of life solution for their products and packaging.

<unk> I believe <unk> represents a potentially disruptive technology. So we look forward to updating you on our progress throughout this year.

I'll now turn to the fish oil and Omega three markets <unk> Camelina has proven to be an excellent platform for producing DHA plus EPA Omega three oils and theres a large opportunity in normal just refresh on the market driven by reduced supply of oil from harvesting ocean fish and growing demand in agriculture and nutrition markets. We.

We believe the London based production of Omega threes as an important potential solution for this market.

In 2022, we plan to continue our work with <unk> to progress the obligatory traits.

The address third party business discussions.

Now, let's turn to slide 12 for an update on licensing opportunities.

Nonexclusive research license agreements in place with Bayer GBM large genetics and simpler to best our trades and various commercial crops.

Each company is evaluating our traits in the target trough with the option to negotiate a commercial license.

The arrows on the slide indicate the duration of these agreements.

We are following up on industry interest in oil content traits, including <unk> thousand southern for soybean and canola and.

And we are seeking partners first our traits in corn.

Green platform Ultra <unk> also represents a unique collaborative opportunity driven by interest into identifying novel performance rates I will now turn the call over to Chuck to discuss the first quarter results.

Good afternoon, everyone, let's move to slide 13.

We ended the first quarter with $12 7 million in cash cash equivalents and investments and we expect that our cash on hand, together with expected revenue from our current government grants will support our operations into the first quarter of 2023.

To have no debt on our balance sheet.

Our net operating cash usage was $3 1 million for the first quarter of 2022 as compared to $2 6 million for the first quarter of 2021.

For the full year of 2022, we're estimating a net <unk>.

Cash usage of 12 to 12 5 million the increase over 2021.

This is warner transition of commercial activities, including seed operations, the Bolivar accelerated goal achievement and R&D.

Let's now review the first quarter 2022 operating results.

For the first quarter of 2022, the company reported a net loss after taxes of $3 3 million as compared to a net loss after taxes of $2 6 million for the first quarter of last year.

So research grant revenues in the first quarter of 2022 or 149000 versus 196000 in the first quarter of 2021, and the decrease stems from our receipt and recognition of a small Canadian grant of 39000 during the first quarter of last year.

In the first quarter of 2022, R&D expenses were $1 8 million compared to $1 3 million in the first quarter of 2021, and G&A expenses were $1 7 million in the first quarter of this year in comparison to $1 4 million in the first quarter of last year.

More details on our financial results.

The earnings release thanks.

Thanks, Chuck let's turn the slides.

Slide 14 upcoming milestones.

Upcoming milestones.

On slide 22, we will continue to focus on the following milestones expanding our commercial activities targeting the renewable diesel market.

We need to build a differentiated elite hi, gentlemen, Camelina germplasm collection.

Our 2022 field testing in seed scale up program advancing the optimization of our POC <unk> and progressing the commercial launch for <unk> DHA, plus EPA Omega three oils.

So plan to secure revenue generating strategic industry collaborations and expand our intellectual property portfolio with that I'd like to turn the call over to Lynn for questions.

Thanks Ali.

Stacy we're ready for questions.

Yes.

Thank you we will now 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 and may be necessary pick up your handset before pressing the star can you.

Your first question comes from Bank Levy with Lake Street. Please go ahead.

Alright, thanks for taking my questions.

The first question Ali you mentioned in your prepared comments efforts to scale up seed inventory to be in the <unk>.

20000 acre range during 'twenty two 'twenty three so is your expectation here that youre going to be at that level of inventory.

After the harvest in the fall of 'twenty three is that correct.

I would say the plan is to obviously, there's a lot going on currently in agriculture, but basically what we'd like to do is via the position to be able to plant.

Fairly large acreage.

As we move from 23% to 24 as well.

And the way this works with Camelina as the seed multiplier effect as you know one acre of.

All production seat will allow you to plant up to 200 acres of greater if you like and so that's a very nice multiplier that camelina highs and so as we move into this year.

I'd start to scale up the goal is to be able to get obviously thousands of acres.

Tens of thousands hundreds of thousands that can move forward here.

One piece of information I would say is we I think we've been clear that we feel that harvest tight tolerance is going to be pretty important as we get.

Particularly it's about 50 100000 500000 acres, obviously thats a key a key goal for us going forward is to get that in place.

Got it okay.

And then on the.

Unrelated note to kind of seed scale up activities.

As you speak with these potential offtake partners Offtake partners in the biofuel.

And market.

Is there a do you sense that there is a kind of a minimum level of scale that that those partners are requiring before being able to formalize an agreement with you.

So.

As a real mixture and I think when you when you look at where our yield 10 is out today I mean, there's really there's really there's two quite different challenges.

Kind of like to break them down into.

Was that anything up to 25000 tons of seed production, and then 25000 tons and beyond.

On the large or the reason for that is the most of the most of the larger scale.

I would say seed crushing opportunities for Camelina really in switch what they call switch plants. These are plants that are designed to be flexible on the seed that they crush usually things like camelina sunflower canola.

<unk> for example, so she has a dedicated Midwest soybean crusher and so when you get into switch plants. The equipment has to be reset and there seems to be a sort of a minimum volume that you need to get that to make it worthwhile, making those changes and so although there are switched plans out there I think somewhere around 25000 tons is probably <unk>.

Great going in that's probably that kind of ballpark number unique.

Really based on conversations we've had with some of the major crushers. So there is this kind of gap between here and there obviously.

One of the things we're working on is identifying players who can crush smaller volumes or who are willing to enter into agreements that would result in them crushing with smaller volumes, while we build up the acreage so those those.

Discussions are ongoing.

I will say that there is other folks in our space for what they really want is they want you to start delivering.

<unk> trade in cars of oil pretty much next week.

So it's a wide range of sort of interest everyone knows I think in this space that really securing long term supply of feedstock oil.

There's going to be pretty important for their business.

And certainly we're talking to folks are sort of everywhere from needed today to look into secure.

Hundreds of thousands of acres of supply.

Four five years out so there's just a wide range of potential partnering options here.

As we go forward as Youll, Taiwan, obviously, we brought someone on to head up seed operations through the reason for that is is when you start.

For <unk> as it was.

Prior to 2021 really focus on the R&D side.

Can pretty much managed with an R&D team, but when you start to think about planting seed on thousands and tens of.

Thousands of acres that you really want to be planting high quality.

Ultimately pedigreed seed and so theres a whole seed scale up in production.

Trading us to go along with that and obviously dollar and as the Guy who is heading all that off.

So we are kind of.

Having to do both at the moment.

As we get ourselves to the physicians the trends transition over to what would be a more normal sort of set of operating routines.

No.

We have a lot going on.

We are scaling up this year, we have plans to scale up this year.

Both spring and what varieties.

And then of course.

We'll provide a lot more color on where Rhode Island this as things come into place.

And those agreements come out at a place yet.

Okay got it yes, you certainly do have plenty going on I was.

Did not appreciate.

Of your trials, where I was.

Pleasantly surprised to see how really how robust that activity is this yourself.

Plenty going on best of luck navigating all of that.

Next question on the offtake agreements with potential partners for offtake agreements do you sense that either on the crusher on the on the.

Biofuel side that these potential partners have a bias towards camelina as a summer recover crop I mean do they do they do.

Do they think that the kind of secondary benefits of Camelina as a cover crop.

Are important to them or are they pretty indifferent and they just want the oil.

Yes, so so I think so.

And of a double edged sword.

In the first case I think what we want the crushers wants it just crushed and get the oil margin <unk>.

Biofuel players however, one access to that carbon intensity score.

Obviously, I think we and I think some of the players in the biofuel space.

Really feel that the winter varieties in particular.

But youre really reusing the land as well as getting the environmental benefits of covered cropping that may have a better score. This is something that we obviously have to measure and determine but clearly when you look at the value of the biofuel the carbon intensity of the feedstock is a key driver of that value.

Obviously as you can imagine there's all kinds of positioning posturing in negotiating around to capture that value and certainly yields 10, we'd like to get a piece of it.

Got it got it okay, perfect and one more from me and then I'll get back in queue.

You mentioned that Darren has been.

It's been going out to the farmers to try to.

<unk>.

Kind of secure secure growers here for the spring, especially in the context of that really wide ranging map I mean can you talk about.

The successes and challenges that he's had in doing so.

Yes.

It's a big it's a big operation for them.

Yes, let's not get too far over our skis on that Darren came on board.

Basically back in January .

And really is getting.

Getting used to what we have available in Camelina and obviously, we've got a lot more scale up work to do before we have a what we call a professional.

Seed operations underway. So he is really.

I would say.

He is getting the learning under his belt.

The lines that we have.

We are the fifth where the growers interests are.

You can see quite openly.

Right now.

Probably because of the problems last year.

And it all in particular.

I would say there is a lot more interest in Windsor camelina than there was in spring.

Certainly obviously, we are scaling up the WCS to <unk>, but we get these three lines accordingly.

I think thats a trend over the long term is likely to remain.

I just think that there is some less competition for land at that time of the year.

That's really where camelina just has a very unique fit no I will say that doesn't.

Meaning that there's not a lot of interest in.

Spring, commenting that there is.

It's just that farmers are typically making their planting decisions.

November area, and so as we get get.

This year under our belt get us positioned.

We expect to be ultimately be planting spring on winter.

<unk>.

Next question comes from Anthony Vendetti with Maxim Group. Please go ahead.

Thanks.

Ali.

So just to follow up on this.

The spring planting season.

C 30 20 million.

And see.

<unk> user centered.

Produced increases in seed oil content I know you're supposed to do additional field testing.

In spring 2022.

Are you, saying that is that does that.

Being pushed out a little bit.

Or can you give us an update on where those those two are.

Yes. So we saw in 2021 trials, we saw increases in oil for both.

3020 in Camelina in 2007, and canola and so we're replicating those results. This year were doing extensive testing in multiple sites.

Sure.

Again try this trade out at multiple sites under different conditions, but so far we're very pleased with both St.

Yes, so theres not been any step in back or not.

Being pushed forward I mean, I think we had originally meant to defer.

Doing further work in canola, but obviously, we liked what we saw.

When you look at this.

I'd say demand for biofuel.

Lease rates that can impact oilseed yields whether it's canola Campbell as our soybean.

Seed oil content.

Really.

Potential value capture there.

Well of the end of this and so we are testing <unk> seven again this year.

Obviously, we're looking for opportunities to license or things.

Right. Okay. That's moving according to plan, Okay. That's good to hear.

And.

And then the you completed also in 'twenty, one the field work.

To begin to scale up for the.

Prototype.

PHA.

<unk> Camelina lines.

Are those are those moving along.

At acre scale in 'twenty, two as well.

Yes, we do have a scale up this year about three acres that we're planting.

So we're very excited about that.

That activity.

I am very much looking forward to spending in that field.

Which is a really long time.

Yes.

I'm very much looking forward to that and obviously a credit to the team that they are getting all these trials.

That said over the winter I mean, thats sort of the market will go by that group.

Obviously as we continue to grow the organization.

We look forward to doing more of that but we will ultimately focus on key areas.

Particularly as we as we secure offtake arrangements, we will try to match the activity of the off take agreements to really to optimize the value of what we do.

Now of course is driven in part by the covenant density of the oil.

Okay great.

Just lastly, just I know you haven't bought the negotiations and lots of discussions about about potential partners.

Contracts and so forth.

Is that is that continuing.

Progress.

On multiple fronts.

Any any any color.

That would be helpful. Thank you.

So I would say in general I would say across the board, yes, but I would say is if anything there was an uptick in the biofuel space I mean, it's not surprising.

If you look at some of these players out there who are making investments and if you look at the.

Chevron recently just.

It has been in Chevron and basically just signed up with <unk>, who is tied up with.

Albert <unk>, which is an alternative oilseed recovered cropping as a source of oil.

To be essentially the processor of other thing they produce and.

And then of course global clean Energy Holdings.

In California, who is tied up with Exxon. We also invested in sustainable oils, which is owned by global energy also trying to secure new crops that can deliver feedstock oils for the refineries and also I think these partnerships are all I think there is another one with new seats and BB.

Focused in the southern states. So we're well positioned we are having a lot of conversations I would say there is more conversations on the biofuel space.

Anything else.

Surprising.

The investments are going in so obviously, it's up to us to get one of those secured.

<unk>.

Or more and so that's what we're working on.

Okay I appreciate it I'll jump back in the queue. Thank you.

Thanks Anthony.

Next question, Michael <unk> with <unk> Securities. Please go ahead.

Hi.

My first question in regards to the ongoing situation in Ukraine, causing some logistical issues are hard sometimes to political column.

And so anytime the long term.

The situation, but as far as short term.

Logistical issues have you had any.

Yes.

In bound calls and just the partnerships because of those issues all.

The rates on vessels.

Hey, Jonathan.

Say, we haven't had any calls directly related to Ukraine, I think one of the things that I think we all need to keep in mind as you know I think.

You're a trained produces about one <unk> the world's grain a large very large producers maybe a quarter of the week.

It's also a major producer of sunflower for sunflower oil, which goes into into food. So obviously, that's going to tighten further tightened markets for some of these commodities and we do believe it's going to impact planting decisions made by growers, particularly for spring spring varieties.

There are definitely going to be knock on effects into the agricultural markets from that part of the big unknown of course is Belarus with the other half of the world's potash production.

And obviously they are not in that situation, yet, but that is not clear that they are not going to be so there's a lot of uncertainty around agriculture and those areas.

If anything I think what it's doing is it's probably stimulating.

More interest in securing supply from North America, and South America.

Okay.

Some ongoing influence within the UK government about introducing.

Some new regulations regarding GMO foods in particular.

Obviously not.

Introduce any foreign genes into the plant and so that's kind of also.

The partnership ideas from Nicole So looking at your wells have you guys do not do anything.

Yes.

Yes. Those regulations are initially focused on LNG defining defining gene Ed genome editing.

Essentially just.

It's just a more tailored directed scientific method of doing essentially meetings. So thats what it is until the dust.

Moving to deregulate that.

And obviously that's of interest to US we do work with our OSM. So this acute in the U K.

They are often status issue is the oldest agricultural institute in the world.

One of the founding but one of the inventors of a thing called stabilizer.

Strangely enough, obviously is working primarily on the Omega three oils, but obviously they have a lot of land are they have a lot of capability, we had a good working relationship with them.

And as these rules in the UK continues to evolve we'll be pretty open to finding ways to leverage that and so.

I think thats generally a trend I would say something else I was in the Starbucks the other day.

Noticed they have the impossible breakfast sandwich.

And I think it would definitely be impossible to get me to EBIT.

Now impossible breakfast Sandwich contains a GMO products are non GMO products also launched in the UK and Burger King.

So I think there has been.

I think theres been a major shift.

And the perception of how important gene technology is to society, a large part of that's driven by essentially the whole.

Obviously COVID-19 situation.

And I think the incredible success of these.

I'd say gene based vaccines and so.

Think there is a shift now mainland Europe .

I wouldn't pay on that.

I don't know how to explain Europe other than just protectionism.

I see tremendous opportunities for this but it's really good to see the UK moving in that direction. The Canadians are.

Indicating they're going to do something along the same lines.

The new U S secure role.

But we haven't actually released that information yet as to how they are going to do that and then I think what youre seeing is a lot more sort of approval of GM products in China. So I think youre going to see a lot more GM in products in China, India.

All the parts of the World I think the UK is going to be the same.

Germany, and France, So I'll leave that to you to figure out your way smarter than me.

Yeah.

Okay.

Further when you've seen.

Still growing north medical but also understanding that youre working with Macquarie.

America and Australia. So I'm just wondering if there's any update.

Yes.

Yes. So we continue to do work in South America, maybe haven't spoken specifically about it but we still have we have worked.

Ongoing Ghana and <unk>.

Obviously, we are looking other parts of the of the world as well.

America is pretty attractive I think western Australia, it looks pretty attractive or something so we are looking at really globally with us one of the cool things about that Matt.

We're doing trials that.

<unk> was I mean, that's pretty much from northern Saskatchewan, all the way down to the health of Florida.

And timeliness seems to have.

Obviously capability across a range, but obviously in the winter season, and so it's a pretty robust plan on its obviously, we believe it has a very high upside potential.

Okay.

Towards the key okay, Google clinical timeline, we can expect all tied up that we currently have that 25 is there any time, we want to be.

You pushed up on one of the reasons for it.

So right now we're sort of focusing I would say in terms of commercialization of the issue. It's really more focused on the commercialization activities is really focused on partner outreach, but we're a pretty small company.

We have a very full plate dealing with potential.

However, our prospects in the probably in the sort of biofuel space and so our bandwidth is pretty limited.

The work on all those things however, again Christine our team we do have the first eco scale PHA trial out there this year.

We expect to be planting those soon.

We're very much looking forward to that.

We will give us.

I was an appalling the seat to begin doing some some.

Some process work levels up and alive, the other day and they are crushed.

Crushing and kind of a leader in a new small scale crusher. So obviously it was nice to see actual oils coming out of that and obviously that will heat the downswing.

Sarah Barnett, but but the point is I think.

We're really looking forward to getting real quantities of PHA camelina seed in hand to begin looking at the processing.

All of that product.

One other things Thats really neat about three products seed is is the added value you get on the oil component.

Because of the ability to use the the carbon negative PHA bioplastic as a way to further reduce the carbon intensity of the oil. So we've put out a white paper on that is on our website.

It's a really interesting.

Set of synergies between those two products and then of course, we still get protein meal, which is pretty important for food.

My last question is I will be testing for the level of emissions.

Comparing year renewable diesel to be carbon neutral.

Yes, so the way that works in terms of how that goes if you look at petroleum diesel I mean, he's got a carbon intensity of around 100.

I think if you use soybean oil based biofuel.

And all of them used oil biofuel, you've got us carbon intensity around 50.

I think what we've seen so far and again, we are still early days, but others in this space like global clean energy.

<unk> indicated that carbon intensity of around somewhere between 18 and 25 four camelina oil obviously as you further improve the productivity of the crop.

Further improve the <unk>.

Seed oil content than I think theres definitely opportunities to improve that.

And then of course, we.

It remains to be defined but I think we're pretty optimistic about the potential of having an even lower carbon intensity score.

With the with the winter pipes, but that remains to be measured.

And then as I said when you get into the future what we see as the future of the.

Petroleum a patient's replacement market.

And that will be the PHA camelina, producing oil, which will have a variable essentially negative carbon intensity. The bioplastics and then of course, the protein meal for feed and food.

Okay.

Sure.

Michael was that your last question.

Questions.

Thanks, Michael Greg Mitcham.

Thank you Susan.

I will now hand, the call back to Ed.

Yeah, Thanks, Stacy and I will turn the call back to Ali for closing remarks, I would like to thank everyone for joining us on the call Tonight on especially our shareholders for your continued support. This is an exciting time for yield ton as we focus on the opportunities ahead in 2022 and beyond in.

In the near term we are focused on preparing for the launch of Camelina for renewable diesel as well as in advancing our ticket activities in future <unk> oil products in development.

I think everyone at yields done for keeping us on track to reach our goals in 2020 to have a nice evening.

Thanks, everyone you may now disconnect.

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Welcome to the first quarter 2022 financial results and business update conference call for yield 10 Bioscience.

During the call all participants will be in listen only mode. The presenters will address questions from analysts today.

Once you require operator assistance during the conference. Please press star zero on your telephone keypad.

Remind you this conference call is being recorded.

I would now like to turn the conference call over to your host yields <unk>, Vice President of planning and corporate Communications Lynne Brum.

Earlier this afternoon yield 10 issued our first quarter 2022 financial results.

This release as well as slides to accompany today's presentation are available on the Investor Relations events section of our website at <unk> Dot com.

Turning to slide two.

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 these statements are not statements are not strictly historical constitute forward looking statements and.

May arise after the date of this conference call turn the call over to Ali. Thanks, Lynn Good afternoon, everyone and thanks for joining our call.

Near term commercial focus on the renewable diesel biofuel market.

Our robust R&D pipeline Camelina R&D pipeline with <unk>.

<unk> momentum as we progress in 2022.

I will provide an update on our recent accomplishments, including the kick off of our 2022 Springfield program review, our target markets with an emphasis on biofuel feedstock oil.

The first quarter financials, and summarize key milestones we will then open the call to questions.

Now, let's turn to slide three our crop innovation platform <unk>.

Innovation platform trade factory is centered around the oilseed camelina.

We plan to establish a platform crop to produce low carbon petroleum replacements and food products.

Let's turn to slide four.

Our business model is to provide farmers with a new growing opportunity by building elite <unk> varieties to produce seed products for new markets.

Essentially we will use our lead timeliness seed varieties to contract production of Camelina Green with farmers on the off take agreements to supply customers in the renewables and food space.

Depending on the product and the customer we will also contract seed processing to produce these products.

With our current elite varieties progressing towards commercialization.

<unk> proprietary value add is to carefully to see products in development, we are positioned to establish and grow a large seed products business.

Lead product in the near term as low carbon feedstock oil to meet increased demand for the biofuel sector.

Here, we are at the early commercial stage on working on partner outreach to secure off take agreements.

We believe this will be followed by the launch of Omega three camera to produce Omega three oils for the nutrition and Aqua feed markets.

And then the Phe Bioplastics family currently in development to supply the growing demand for biodegradable zero waste plastic packaging.

Combined these products represent a very large revenue opportunity.

Let's now turn to slide five advancing the business.

With significant momentum entering 2022 were operationalized the commercial plan to launch our chemlawn assembling the seed products business. Our commercial team is engaging with potential supply chain partners to form alliances that will support our capital light business model.

We welcomed our greenfield to our team to lead to seed operations in January .

John has more than 25 years' experience in canola companies, including BSF sites.

Let's see this.

He's leading efforts by our commercial team to reach out to <unk> for contract planting as we've worked through securing supply chain partners.

The support of this plan means using our lead spring and winter family of varieties for initial commercialization in the North American Biofuels market.

In April we named really though as a special commercial and technical adviser.

I believe previous previously served as VP market development global edible oils division at cargo.

His extensive knowledge of the commercial landscape for commodity and specialty oils, including Omega three oils and we welcome relief to our team.

As we build our business around Camelina. Our research team has done an outstanding job developing ALLETE camelina lines to launch the business and our pipeline of novel gene traits.

In March we reported supportive and encouraging data generated in our 2021 Springfield program.

Our winter fill program is progressing on track and is expected to provide us with important data on winter and spring variety score in a variety of geographies.

Christy we will provide an update on our winter to spring programs.

As we continue to build our patent portfolio I am pleased to report that in early 2020 to two new patents are issued.

Our patent was granted in Australia for <unk>, seven a promising oil content boosting traits.

<unk> was granted in Canada, our advanced technology for producing Omega three oils in Camelina.

I will now pass the call over to Christie.

Ali and good afternoon, everyone.

On our March call. We described the results of our 2021 Greenfield.

Today, I will provide an update on our ongoing winter program as well as describe the scope of our 2022 Springfield program.

Let's turn to slide six.

Winter Camelina can be grown as a winter cover crops.

<unk> from food production, providing greater access to acreage paired with the summer season crops such itself.

Okay.

With winter Camelina harvest in the late spring or early summer of 2022.

This included 17 acres of our cold tolerant winter Camelina line.

Sketch on Canada, and 0.2 acres early maturing line in Idaho, we.

We expect these activities will produce scene for further scale up in fall of 2020 to begin to produce seed to get into the farmer's hands for commercial planning.

We also perform small plot field evaluations of yield 10 winter Camelina lines as well as chairman Plaza accessions that yield 10 obtained from third parties.

<unk>, and Idaho, Kansas, Minnesota, Iowa, Illinois, and Georgia.

The valuations will allow us to determine the range at suitable areas for growth in winter Camelina and identify differences in the term PRASM varieties and different climates.

The trials are in different stages of growth depending on location and.

Can range from completion of seed harvest at sites in Georgia to plants that have recently emerged Snelling, Saskatchewan, Canada, we expect to obtain agronomic data from these trials.

Let's turn to slide seven.

We are continuing to progress our elite Camelina Germplasm development. Our spring program will include more than 25 trials at 11 sites located in the U S and Canada.

<unk> for the spring program is substantially complete and in certain geographies planting has begun.

We expect planting at all fields to be completed in the weeks ahead and for harvest and the harvest to be completed by the end of the third quarter.

We have made good progress against our goal of producing proprietary camelina variety with herbicide tolerance and pets resistance.

And our 2022 field test program, we will evaluate candidates camelina lines or herbicide tolerance to identify lead and backup lines of commercial development and regulatory approval.

Once these lines are identified we plan to accelerate these candidates intercede scale up and put them on the path to regulatory approval.

Events of Camelina E. <unk> 902, assessing herbicide tolerance will be evaluated in the program as we continue to develop this leading elite germplasm.

We'll also test camelina lines for downy mildew resistant on yields and now into hardware this fungal diseases.

As part of the program, we will continue to see scale up activities for our prototype Camelina C 3015 trade, which produces PHA.

This work will be conducted at acre scale.

We plan to extract PHA from the seed.

Our business development activities.

Meanwhile, in R&D, we are working to optimize the PHA bio path dictate it produced 10%, 20% PHA bioplastic in the scene and to demonstrate PHA bioplastic co polymer production in Camelina.

We will also continue to progress our proprietary gene traits to PD.

The seed oil content in seed yield, including more work with <unk> thousand 20.

We will also test canola seed 3007 lines to collect seed oil content and yield data for this promising trait.

Let's turn to slide eight.

The chart on this slide illustrates our camelina pipeline as well as our plan to launch sequence at the top of the chart. We start out with Camelina line <unk> hundred <unk> launched into the biofuel market. This.

This will be followed with tolerance to broadleaf herbicide and residual soil herbicide.

We then plan to stack the trade for downy mildew resistant to produce a robust package of trade to enable growers to embrace planning camelina as a spring or winter crop.

We have plants in testing for each of these trains and plan to be in position to stack, our combined traits in camelina to meet current needs.

Our Camelina platform will also enable us to stack on new performance traits as we identify them as well as PHA Mega three product <unk> as our programs progress.

With over 25 years of safety experience with biotech crops in the U S. The science based approach codify into secure role enables the evaluation and confirmation of the regulatory status of wealth any trade deployed into new crops.

This framework also enables clarity around the regulatory path early in the development of new traits, enabling close alignment of the confirmation of regulatory status and timelines key production ramp up and commercial launch planning with that ill hand, the call back over to Ali.

Thanks, Christie and congrats to the team for their accomplishments around executing the winter program.

Turning up the Springfield testing program, which we expect will generate a broad range of data, including confirming herbicide tolerance in camelina lines.

Our strategy is to build shareholder value is to commercialize camelina as a platform to reduce your renewable products, including feedstock oils renewable diesel in the near term and to leverage our advantages and crop development to launch elite Puma II.

PHA can really the biopsies PHA bioplastics in the future.

Let's turn to slide nine renewable diesel on establishing that come within the value chain.

Based on announced fuel industry investments the production of renewable diesel alone is projected to grow to 5 billion gallons annually from an estimated 1 billion gallons in 2021.

These investments are necessary to meet regulations, such as the California, low carbon fuel standard all CFS and similar Stan those extending to other states and Canada.

Selling diesel fuel in California requires producers to be the carbon standard either by lowering carbon.

By adding lower carbon renewable diesel and petroleum diesel or purchasing carbon credits.

Increasing energy prices due to the crisis in Ukraine is another potential tailwind for biofuel demand.

This new demand, we will have to be met mostly from increased use of vegetable oil.

This in turn is placing further pressure on vegetable oil prices, resulting in opportunities for new crops camelina to expand production.

Our commercial strategy for the Camelina as capital light, one using contract farming seed crushing and customer off take agreements to manage cost of inventory risks in the early years of the business.

To establish a leadership position in the near term we are prioritizing development of prioritizing the development of Camelina lines with herbicide tolerance and disease resistance to enable large acreage.

Function.

Our performance rates, where yields are oil will be stacked into these lines as we progress.

In 2022 to 2023, we plan to execute scale up activities to enable planting in the range of 1000 to 20000 acres.

We are moving forward with a nonregulated varieties and will progress to the regulatory path for new varieties as needed.

In addition to our R&D and commercial activities, we have ongoing business discussions with the key players in the value chain.

<unk> six processors and biofuel companies.

As stated our goal is to secure offtake agreements.

Now, let's turn to slide 10, Biorefineries and feedstock production locations.

This slide illustrates very North America by refinery expansion investments have either been made or a plant.

We have circled areas, where we see the potential for gambling the production on indications the lately direction of Camelina product for the primary market for low carbon biofuels in California.

Some of the production areas like the Pacific Northwest also by our Heinrich so products transported from growing regions could be in the form of green feedstock oil or finished biofuel.

Earlier on this call Christy presented the math, if somebody of our winter field trials.

The chart indicates how our development and commercial strategy links up with the production and market opportunity.

Let's turn to slide 11 for an update on PHA bioplastic in Omega three programs.

<unk> bio plastic area. Our efforts are focused on optimizing the PHA street to enable phe bioplastic production time, we the seats.

Our business model is the same as for biofuel feedstocks used contract growers to produce elite <unk> varieties, which can be processed to produce III products.

Bioplastic biofuel feedstock oil and protein meal.

This will integrate <unk> bioprocess production into large scale low cost agriculture with the potential for costs in the range of feedstock oils.

As Christie indicated our prototypes Camelina line Camelina line <unk> thousand 15 is being planted acre scale. This year to produce PHA for process development and business development.

The R&D team is continuing activities related to trade optimization.

We are pursuing collaborations with industry.

Specie Bioplastics subtraction with brand owners interested in biodegradable materials as a zero waste end of life solution for their products and packaging.

Vijay <unk>.

Ah represents a potentially disruptive technology. So we look forward to updating you on our progress throughout this year.

I'll now turn to the official enrollment gets free markets. Pamela Camelina has proven to be an excellent platform for producing DHA plus EPA Omega three oils and theres, a large opportunity in Omega three fish oil market driven by reduced supply of oil from harvesting ocean fish and growing demand in agricultural feed and nutrition markets.

We believe the land based production with what we get fees as an important potential solution for this market.

In 2022, we plan to continue our work with <unk> to progress the obligate Street rates.

Progress third party business discussions.

And let's start to slide 12 for an update on licensing opportunities.

Nonexclusive research license agreements in place with Behr, GBM barge genetics and simpler to test their trades and various commercial crops.

Each company is evaluating our traits in the target trough with the auction to negotiated commercial license.

The arrows on this slide indicate the duration of these agreements.

We are following up on industry interest in oil content traits, including <unk> thousand seven for soybean and canola and.

And we are seeking partners best of traits in corn.

The Green bar for offshore also represents a unique collaborative opportunity driven by interest into identifying novel performance traits I will now turn the call over to Chuck to discuss the first quarter results.

Good afternoon, everyone, let's move to slide 13.

To have no debt on our balance sheet.

Our net operating cash usage was $3 1 million for the first quarter of 2022 as compared to $2 6 million for the first quarter of 2021.

For the full year of 2022, we're estimating a net total cash usage of 12 to $12 5 million increase over 2021 spending this is warner transition of commercial activities, including seed operations the balls of our accelerated goal achievement and R&D.

Let's now review the first quarter of 2022 operating results.

For the first quarter of 2022, the company reported a net loss after taxes of $3 3 million as compared to a net loss after taxes of $2 6 million for the first quarter of last year.

Total research grant revenues in the first quarter of 2022 were 149000 versus 196000 in the first quarter of 2021, and the decrease stems from a receipt and recognition of a small Canadian grant of 39000 during the first quarter of last year.

For more details on the financial results.

Prior to the earnings release.

Thanks, Chuck, let's turn to slide 14 and upcoming milestones.

Upcoming milestones.

On slide 22, we will continue to focus on the following milestones expanding our commercial activities targeting the renewable diesel market.

We need to build a differentiated elite touch Camelina germplasm collection.

Our 2022 field testing in seed scale up program advancing the optimization of our POC bioplastic trade and progressing the commercial launch for <unk> DHA, plus EPA Omega three oils.

So plants of secure revenue generating strategic industry collaborations and expand our intellectual property portfolio without I'd like to turn the call over to Lynn for questions.

Thanks Ali.

Stacy we're ready for questions.

Thank you we will now be conducting a question and answer session.

To ask a question. Please press star one on your telephone keypad.

Todd 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 key.

Your first question comes from Bank Levy with Lake Street. Please go ahead.

Alright, thanks for taking my questions.

The first question Ali you mentioned in your prepared comments efforts to scale up seed inventory to be in the <unk>.

The 20000 acre range kind of during 'twenty two 'twenty three so is your expectation here that youre going to be at that level of inventory.

After the harvest in the fall of 'twenty three is that correct.

I would say the plan is.

Obviously, there's a lot going on currently in agriculture, but basically what we'd like to do is via the position to be able to plant.

Fairly large acreage.

As we move from 23 into 24 as well.

And the way this works with Camelina as the seed multiplier effect as you know one acre of production seat will allow you to plant up to 200 acres.

Great and if you like and so that's a very nice multiplier that camelina highs and so as we move into this year.

I'd start to scale up the goal is to be able to get the obviously thousands of acres.

Tens of thousands hundreds of thousands that can move forward here.

Piece of information I would say is we I think we've been clear that we feel that harvest site tolerance is going to be pretty important as we get particularly.

Particularly it's about 500000 500000 acres and obviously, that's a key a key goal for us going forward is to get that in place.

Got it okay.

And then on the.

Unrelated to kind of seed scale up activities.

As you as you speak with these potential offtake partners off take partners in the biofuel.

And market.

Is there a do you sense that there is a kind of a minimum level of scale that that those partners are requiring before being able to formalize an agreement with you.

So it's a real mixture and I think when you when you look at where our yield 10 is out today I mean, there's really there's really there's two quite different challenges.

I kind of like to break them down into.

Anything up to 25000 tons of seed production, and then 25000 tons and beyond.

Large part of the reason for that is the most of the most of the larger scale.

Canola for example, Russia as a dedicated Midwest soybean crusher and so when you get into switch plants. The equipment has to be reset and there seems to be a sort of a minimum volume that you need to get that to make it worthwhile, making those changes.

Although there are switched plans out there I think somewhere around 25000 tons is probably of grain going in that's probably that.

Kind of a ballpark number of unique and Thats really based on conversations we've had with some of the major crushers.

Is this kind of gap between here and there obviously.

Discussions are ongoing I will say that there's other folks in our space for what they really want is they want you to start delivering.

So when they trade in cars of oil pretty much next week.

So it's a wide range of sort of interest everyone knows I think in this space that really securing long term supply of feedstock oil.

There's going to be pretty important for their business.

And certainly we're talking to folks are sort of everywhere from needed today to look into a secure.

Hundreds of thousands of acres of supply.

Four five years out so there's just a wide range of potential partnering options here.

As we go forward as yield 10, and obviously, we brought someone on to head up seed operations through the <unk>.

Isn't for that is is when you start.

For <unk> as it was.

Prior to 2021 really focus on the R&D side that you can pretty much manage with an R&D team, but when you start to think about planting seed on thousands and tens of.

Thousands of acres that you really want to be planting high quality.

Ultimately pedigreed seed and so theres a whole seed scale up in production trade.

Trading loss to go along with that and obviously dollar and there is the guy who is heading all at all.

So we are kind of.

Having to do both at the moment.

As we get ourselves in a position to trends transition over to what would be a more normal sort of set of operating routines.

No.

We have a lot going on.

We are scaling up this year, we have plans to scale up this year.

Both spring and what varieties.

And then of course.

We'll provide a little more color on wearable elements of things come into place.

And those agreements come out at a place yet.

Okay got it yes, you certainly do have plenty going on I was.

Did not appreciate how extensive your trials, where I was I was puzzled.

Pleasantly surprised to see how really how robust that activity is this yourself.

You've got plenty going on best of luck navigating all of that.

Next question on the offtake agreements.

With potential partners for offtake agreements.

Do you sense that either on the crush or on the on the.

Biofuel side that these potential partners have a bias towards camelina as a summer cover crops I mean do they do they do.

Do they think that the kind of secondary benefits of Camelina as a cover crop.

Are important to them or are they pretty indifferent and they just want the oil.

Yes, so I think so.

Kind of a double edged sword.

In the first case I think worthy won the crushers wants to just crushed and get the oil margin. The biofuel players however want access to that carbon intensity score.

Obviously, I think we and I think some of the players in the biofuel space.

I really feel that winter varieties in particular.

So youre really reusing the land as well as getting the environmental benefits of cover cropping that may have a better score. This is something that we obviously have to measure and determine but clearly when you look at the value of the biofuel the carbon intensity of the feedstock is a key driver of that value and all.

As you can imagine there's all kinds of positioning posturing in negotiating around to capture that value and certainly yields tightened we'd like to get a piece of it.

Yes.

Got it got it okay, perfect and one more from me and then I'll get back in queue.

And that Darren has been.

It's been going out to the farmers to try to.

<unk>.

Kind of secure secure growers here for the spring.

Especially in the context of that really wide ranging map I mean can you talk about.

Youll successes and challenges that he's had in doing so.

Because that's a big it's a big big operation for them.

Let's not get too far over our skis on that Darren came on board.

Basically back in January .

Really getting used to what we have available in Camelina and obviously, we've got a lot more scale up work to do before we have a what we call a professional.

Seed operations underway, so he's really.

I would say.

Getting is getting the learning under his belt as to regards to the lines that we have.

Fifth we are the growers that just saw I can't see quite openly.

Right now.

Primarily because of the problems last year.

And <unk> in particular.

I would say there is a lot more interest in winter camelina than there was in spring and summer.

Obviously, we are scaling up the wds too, but we get the three lines accordingly.

That's a trend over the long term is likely to remain.

I just think that there is some less competition for land at that time of the year and Thats really who are calculated just has a very unique fit.

I will say that doesn't.

Meaning that there's not a lot of interest in springtime window there is.

It's just that farmers are typically making their planting decisions openness of October November area, and so as we get.

This year under our belt to get us positioned we expect to.

We ultimately be planting spring and winter at scale.

Next question comes from Anthony Vendetti with Maxim Group. Please go ahead.

Thanks.

Hi Ali.

Just to follow up on the on the spring planting season.

C 30 $20 million.

And the 3007.

Produced increases in seed oil content I know you're supposed to do additional field testing first.

In spring 2022.

Are you, saying that is that is that.

Being pushed out a little bit.

Or can you give us an update on where those those two are.

Yes. So we saw in 2021 trials, we saw increases in oil for both.

3020 in Camelina in 2007 and canola.

And we're replicating those results this year were doing extensive testing in multiple sites.

<unk>.

Again try this trade out at multiple sites under different conditions, but so far we're very pleased with poetry.

Yes, so theres not been any step in back on that but those are being pushed forward I mean, I think we had originally mentioned defer.

Doing further working could all of that obviously, we liked what we saw.

When you look at this.

I'd say demand for biofuel.

Lease rates that can impact oilseed yields whether it's canola Campbell as our soybean.

Seed oil content.

Really.

Potential value capture there.

Well of the era of this and so we are testing <unk> seven again this year.

Obviously, we're looking for opportunities to license or things.

Alright, okay.

Moving according to plan, Okay, that's good to hear.

And.

And then you can pull.

We did also in 'twenty, one the field work.

To begin to scale up for the.

Prototypes.

Spring Camelina lines.

Are those are those moving along at acre scale in 'twenty two as well.

Yes, we do have a scale up this year.

Three acres that we're planting.

We're very excited about.

That activity.

Very much looking forward to spending in that field.

Which is a really long time.

I'm very much looking forward to that and obviously a credit to the team that they're getting all these trials on that side over the winter I mean, that's sort of the market will go by that group.

And obviously as we continue to grow the organization.

We look forward to doing more of that but we will ultimately focus on key areas.

Particularly as we as we secure offtake arrangements, we will try to match the activity of the off take agreement so really to optimize the value of what we do.

Now of course is driven in part by the carbon intensity of the oil.

Okay great.

And then just lastly, just I know you haven't bought the negotiations and lots of discussions about about potential partners.

Contracts and so forth.

Is that is that continuing.

Progress.

On multiple fronts.

Any any any color on.

That would be helpful. Thank you, yes, so I would say in general I would say across the board, yes, but I would say is if anything there's an uptick in the biofuel space I mean, it's not surprising.

If you look at some of these players out there who are making investments and if you look at.

Chevron recently just.

Who has been in Chevron and basically just signed up with <unk>, who is tied up with.

Cover crest, which is an alternative oilseed recover cropping as a source of oil.

To be essentially the processor of everything they produce.

And then of course global clean Energy Holdings.

Our focus in the southern states. So we're well positioned we are having a lot of conversations I would say there is more conversations on the biofuel space.

Non non anything else.

Surprising.

The investments that we're doing in so obviously, it's up to us to get one of those secured.

And.

Or more and so that's what we're working on.

Okay I appreciate it I'll jump back in the queue. Thank you.

Thanks Anthony.

Next question, Michael <unk> with <unk> Securities. Please go ahead.

Alright.

My first question in regards to the ongoing situation in Ukraine, causing some logistical issues heartland political column.

And so there isn't any kind of long term yes.

<unk> situation, but as far as short term.

Just two questions have you had any.

Sure.

Inbound calls and interest in partnerships because of dose.

The rates on this situation.

I would say, we haven't had any calls directly related to create and I think one of the things that I think we all need to keep in mind as you know I think you.

Ukraine produces about one <unk> the world's grain a large very large fee producers, maybe a quarter of the week.

Also a major producer of sunflower for sunflower oil, which goes into into food. So obviously, that's going to tightened further tightened markets for some of these commodities and we do believe it's going to impact planting decisions made by drawers, particularly for spring spring varieties and so there are definitely going to be knock on effects into.

The agricultural markets from that part of the Big unknown of course is Belarus with the other half of the world's potash production.

Obviously, they are not in that situation, yet, but that's not clear that they are not going to be so there's a lot of uncertainty around agriculture and those areas.

If anything I think what it's doing is it's probably stimulating.

More interest in securing supply from North America, and South America.

Okay.

There's been some ongoing influence within the UK government about introducing.

Some new regulations regarding GMO foods in particular.

<unk>.

Introduce any foreign genes into the plant and so that's kind of also.

Thanks.

Partnership ideas from Nicole So looking at your since you guys do not do anything.

Yes.

Yes. Those regulations are initially focused on LNG defining defining gene Ed genome editing.

Essentially just.

It's just a more tailored directed scientific method of doing essentially.

Greetings and so thats what it is.

Definitely moving to deregulate that.

And obviously that's of interest to US we do work with their awesome service suite in the U K.

They are often status issue is the oldest agricultural institute in the world one of the funding, but one of the inventors of a thing called fertilizer.

Strangely enough, obviously is working primarily on the Omega three oils, but obviously.

Have a lot of land are they have a lot of capability, we've had a good working relationship with them.

As these rules in the UK continues to evolve we'll be pretty open to finding ways to leverage that and so.

I think thats generally a trend I would say something else I was in <unk>.

<unk> the other day and I noticed they have the impossible breakfast sandwich.

And I think it would definitely be impossible to get me to EBIT.

The unprofitable breakfast sandwich contains a GMO product not GMO products also launched in the UK and Burger King and so I think there's been I think theres been a major shift.

In the perception of how important technology is to society, a large part of that's driven by essentially the whole.

Obviously COVID-19 situation.

Think incredible success of these.

I would say gene based vaccines and so I think there is a shift in mainland.

Mainland Europe .

I wouldn't tell on that.

I don't know how to explain Europe all of them.

Protectionism.

So I see tremendous opportunities for us, but it's really good to see the UK moving in that direction the Canadians.

<unk> indicated that they're going to do something along the same lines as the new U S secure rule.

But we haven't actually released that information yet as to how theyre going to do that.

I think what Youre seeing is a lot more sort of approval of GM products in China. So I think youre going to see a lot more GM in products in China, India.

All of the parts of the World I think the UK is going to be the same.

Germany, and France, So I'll leave that to you to figure out your way smarter than me.

Okay.

Uh huh.

When you're saying.

Still growing north medical but also understanding that youre working with Macquarie in South America, and Australia. So I was wondering if there is any update.

Yes. So we continue to do work in South America, maybe haven't spoken specifically about it maybe still have we have.

I'm going down there.

And obviously, we're looking at other parts of the of the world as well.

South America is pretty attractive I think western Australia, it looks pretty attractive or something so we are looking fairly globally with us one of the cool things about that Matt.

Where we're doing trials.

<unk> was I mean, that's pretty much from northern Saskatchewan, all the way down to the health of Florida.

Timeliness seems to have.

Obviously capability across that range, but obviously in the winter season.

So it's a pretty robust plan. That's obviously, we believe it is a very high upside potential.

Okay.

Towards the key okay, Google chrome or a timeline, we can expect all tied up.

We currently have that 25 is there any tighter.

Can be pushed up on one of the reasons for it.

So right now we're sort of focusing I would say in terms of commercialization of <unk>.

Really more focused on the <unk>.

<unk> activity is really focused on partner outreach, but we're a pretty small company.

And we have a very full plate dealing with potential <unk>.

Our prospects in the probably in the sort of biofuel space.

So our bandwidth is pretty limited.

Just to work on all those things, however, again, Christy and our team we do have the first acre scale PHA trial out there. This year, we expect to be piloting those soon.

We're very much looking forward to that.

That will give us.

Obviously as Apollo has a seat to begin doing some.

Some process work and I was I was hoping to allow the other day and they are crushed.

Crushing camelina and our new small scale crusher. So obviously it was nice to see actual oils coming out of that not only did over heat the downswing.

Sarah Barnett, but but the point is I think.

We're really looking forward to getting real quantities of PHA camelina seed in hand to begin looking at the processing to recover that product.

One of the things that's really neat about three products seed is is the added value you get on the oil component.

Because of the ability to use the.

Carbon negative PHA bioplastic as a way to further reduce the carbon intensity of the oil so.

<unk> put out a white paper on that is on our website.

Really interesting.

The synergies between those two products and that of course, we still get protein meals, which is pretty important for food.

My last question is I will be testing for the level of emissions.

Renewable diesel to be carbon neutral.

Yes, so the way that works in terms of how that goes if you look at petroleum diesel I mean, it's got a covenant test of around 100.

I think if you use soybean oil based biofuel.

And all of used oil biofuel, you've got us carbon intensity around 50, and then I think what we've seen so far and again, we are still early days, but others in this space like global clean energy have indicated the carbon intensity of around somewhere between 18 and 25 for Camelina oil now.

Obviously as you further improve the productivity of the crop and further improve the.

Seed oil content than I think theres definitely opportunities to improve that.

And then of course, we.

It remains to be defined but I think we're pretty optimistic about the potential of having an even lower carbon intensity score.

With the with the winter pipes, but that remains to be measured.

And then as I said when you get into the future what we see as the future of the.

Petroleum of patients replacement market.

Tamblyn there'll be the PHA camelina, producing oil, which will have a variable essentially negative carbon intensity. The bioplastics and then of course, the protein meal feed and food.

Okay.

Michael was that your last question.

Questions.

Michael It's Greg Mitchell.

Thank you.

I will now hand, the call back to Ed.

Yeah, Thanks, Stacy and I will turn the call back to Ali for closing remarks, So I would like to thank everyone for joining us on the call Tonight on especially our shareholders for your continued support.

Is an exciting time for <unk> as we focus on the opportunities ahead in 2022 and beyond and.

In the near term we are focused on preparing for the launch of Camelina for renewable diesel as well as in advancing our ticket activities on <unk> and on the oil products in development.

To thank everyone at yield tons, we're keeping us on track to reach our goals in 2020 to have a nice evening.

Thanks to everyone you may now disconnect.

Q1 2022 Yield10 Bioscience Inc Earnings Call

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