Yield10 Bioscience, Inc.

Welcome to the third quarter 2021 financial results and business update conference call for Yield 10 Bioscience. During the call, all participants are 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. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Yield 10 Vice President of Planning and Corporate Communications, Lynn Frum.

Thank you, Devin, and good afternoon, everyone. Welcome to the YIELD 10 Bioscience Third Quarter 2021 Conference Call. Joining me on the call today are President and CEO, Dr. Ollie Peoples, Vice President of Research and Chief Science Officer, Dr. Christy Snell, and Chief Accounting Officer, Chuck Hazzard. Earlier this afternoon, YIELD 10 issued our Third Quarter 2021 financial results. This press release, as well as slides that accompany today's presentation, are available on the Investor Relations Event website at yield10bio.com. Let's now turn 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 statements that 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 certainties detailed in YieldTen's filings with the SEC. The company undertakes no obligation to update any forelooking statements in order to reflect events or circumstances that may arise after the date of this conference call. I'll turn the call over to Ollie.

Thanks, Lynn. Good afternoon, everyone, and thanks for joining our call. We've made strong progress during 2021 advancing YieldTen's business. Today, we'll provide an update on our recent accomplishments, review our target markets with an emphasis on biofuel feedstock oil, present the third quarter financials, and summarize key milestones. We will then open the call to questions. Now let's turn to slide three. Our innovation platform is centered around the oilseed camelina. We use our trade factory approach, applying the principles of synthetic biology to improve the performance of the crop. This includes taking more CO2 from the air to increase seed yield and oil content in the near term, and producing high-value proprietary seed products in the future. We believe that some of our varieties may also have the potential to sequester more carbon in the soil, as shown in the slide. Let's now turn to slide four. During this quarter, we continue to develop an Executor of Camelina business strategy, including outreach to potential partners in the areas of biofuel, food, and bioplastic to explore ways of working together to bring forward products produced in Camelina. We executed on our 2021 field test and stage scale-up activities and completed the harvest in the U.S. and Canada in third quarter. We're pleased to report that overall our plantings of camelina should show tolerance to heat in areas that experience weather challenges and that the trials were harvested for evaluation. As part of this program, we began scale-up of our two best camelina PHA lines. Because we prioritized seed analysis of these lines first, We are also pleased to report seed PHA levels consistent with the findings from our small scale planting last year. Successful completion of this seed scale up in 2021 enables acre scale planting in spring 2022. The data analysis from all of our other harvesting trials is still in progress and we expect to report additional findings in our plants for spring 2022 in the first quarter. As many of you know, we have also been developing winter varieties of camelina. We had a successful program last winter with good yields, and we have substantially completed planting for our 2021-2022 winter field testing and seed scale-up program in the U.S. and Canada. In our transition to an early commercial focus, we continued to add key hires, in particular to lead our seed operations and build out our commercial teams. In a quick recap of prior accomplishments this year, we expanded our trade portfolio with four new oil content trades using our grain platform, strengthened our balance sheet to extend our cash runway to achieve value building milestones into 2023, and extended our IP portfolio with four new patents awarded. Now let's turn to slide five. Although our technology development focus is on our camelina business, We'll try the results from our trades in camelina, not only adds value to camelina as a crop, but in addition allows us to create option value for our trades in other crops through trade licensing to major seed companies. Today, I'd like to focus on key accomplishments against the strategic goal to use camelina as a platform crop to produce feedstock oils in the near term, and I will provide an update on our EPA DHA omega-3 oils for food, as well as PHA bioplastics. Combined, we estimate a potential seed product revenue of over $4 billion by 2030. Let's turn to slide six. Our largest near-term opportunity is for supplying chamomile seed or oil into the growing renewable diesel market. Interest in renewable diesel or biodiesel remains high, as indicated by the large investment energy companies are making due to low carbon fuel regulations and the pressure to invest in cleaner technologies and reduce their carbon footprint due to climate concerns. Investments into biofuel production are creating a massive demand for vegetable oil feedstock, as shown on the chart. Renewable diesel biofuel production capacity is projected to grow to 5 billion gallons annually from an estimated 1 billion gallons this year. We believe Camelina represents a great solution to expand feedstock oil production in North America to support this demand. Let's turn to slide 7. Our commercial strategy in Elite Camelina is capital-like, one using contract farming, seed crushing, and customer offtake agreements. To establish a leadership position in Camelina, in the near term, we are prioritizing the development of Camelina lines with herbicide tolerance and disease resistance to enable large-scale acreage. Our performance traits for yield and oil will be stacked into these in the future. Developing Camelina for making pre-stocked oil for biofuel represents our best near-term commercial opportunity. I'll now turn it over to Christy to provide an update on our technical progress.