Yield10 Bioscience, Inc.

Welcome to the third quarter 2022 financial results and business update conference call for Yield 10 Bioscience. During the call, participants will be in listen-only mode. The presenters will address questions from analysts today. To ask a question, simply press star then the number one on your telephone keypad. If anyone should require operator assistance during the conference, please press star zero. As 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, Lynn Brum.

Thank you, Regina, and good afternoon, everyone. Welcome to the YIELD 10 Bioscience Third Quarter 2022 Conference Call. Joining me on the call today are President and CEO, Dr. Oliver 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 2022 financial results. This press release, as well as slides that accompany today's presentation, are available on the investor relations events section of our website at yield10bio.com. Let's 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. Such forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results to materially differ from those anticipated. These risks include risks and uncertainties detailed in yield test 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 I'll now turn the call over to Ali.

Thanks, Lynn. Good afternoon, everyone. Thanks for joining our call. As 2022 is progressing, we are making solid progress operationalizing our commercial plan to launch Camelina as a platform crop with a near-term focus on the biofuel feedstock market. Today, we'll provide an update on our recent accomplishments. We'll also provide an update on our grown contracting and seed production, winter field trials with a focus on development of herbicide-tolerant camelina varieties, review key drivers in the biofuel pre-stock market, present the third quarter financials, and summarize key milestones. We will then open the call to questions. Let's turn to slide three, Yield 10's crop innovation platform. Our innovation platform, the trade factory centered around the oilseed camelina, to increase carbon capture and direct increased carbon to the seed to produce decarbonizing seed product. We are currently working to establish camelina as a new platform crop to produce low-carbon petroleum replacements and food products. Turn to slide four for Yield 10's vision of camelina. Enabling the large-scale production of camelina grain as a source of decarbonizing seed products requires us to build strong, long-term working relationships with farmers. They, not the oil companies, are the most important players in this new value chain. After all, they own the land. So, grass grower needs has developed a vision for this crop to enable seamless integration into current cropping and chemical rotations. An integrated herbicide trait package for camelina is our current key goal. This herbicide trait package will need to include robust tolerance of camelina to the over-the-top herbicides to maintain grass and broadleaf weed control, and tolerance to soil residues from previous crops to secure large acreage production. Lack of broadleaf weed control will not only impact camelina production, but can increase weed pressure for the next crop in that field. So this is very important to farmers. Camelina is naturally tolerant to clethodin, a grass herbicide, and some clethodin-containing products are already labeled for use in camelina production. As you will see later in this call, Chrissy and her team have made great progress developing broadleaf weed control and herbicide tolerance traits in camelina. In addition to herbicide tolerance, developing new varieties with increased cold tolerance for planting further north and west and early maturing varieties with short cycle times for integration into corn and soybean rotations in the Midwest are also going to be very important to expand rotations. As these traits are developed and commercialized over time, we plan to add in our proprietary traits for increased seed oil and seed yield and provide additional upside to growers and secure even more acres. Turn to slide 5, Yield 10's business model. Our business model is to develop elite camelina seed varieties, contract production of camelina grain with farmers, and supply customers with renewables and food space under off-take agreements. With our current elite varieties progressing towards commercialization and our two proprietary value-added camelina seed product traits in development, we are positioned to establish and grow a large seed products business. Our lead product is low-carbon feedstock oil to meet increased demand from the biofuel sector. Here we are at the early stage of commercial stage and working steadily on partner outreach to secure offtake agreements. We believe this will be followed by the launch of omega-3 camelias to produce omega-3 oils for nutrition and PHA bioplastic camelias to supply the growing demand for biodegradable, zero-waste plastic packaging. Combining these products represents a significant revenue opportunity. Let's turn to slide six, advancing the business. We're making solid progress executing our plan to launch our camelina seed products business. Our commercial team is engaging regularly with potential supply chain partners to form alliances that will support our capital light business model. During this third quarter, we secured multiple growers for contract planting of winter camelina for grain and seed production in areas of southern Canada and Idaho. The plots have been planted in ranging size from 3,260 acres. We are also ramping up commercial quality winter variety seed production in the winter season in the U.S. and Canada, as well as in country season in South America for our spring varieties to supply seed for future grain production contracts. As we build our business around camelina, our research team has done an outstanding job progressing new seed varieties and our pipeline of traits. In 2022, we have executed an intensive effort to field test herbicide tolerance and downy mildew resistance traits. Our elite herbicide-tolerant spring camelina lines are met our performance criteria, and we have selected lead lines for contra-season testing and seed scale-up. By the end of the third quarter, all of our spring field testing sites were harvested. The data is being collected and analyzed by our team, and this will allow us to generate further proof points in our traits and will allow us to identify camelina lines for commercial development. Our 2022-2023 winter field program is underway. The planting completed the growth sites in the U.S. Canada, Argentina, Uruguay, and Chile. This program is expected to provide us with important data on winter and spring varieties grown in a variety of geographies. Let's come to slide seven for an overview of our early germplasm. We are establishing our early commercial activities in close cooperation with our growers with a focus on three early commercial camelina lines, which currently do not have the herbicide tolerance trait package. These lines include the genomic spring line E392, and winterlings WDH2 and WDH3 that were produced using a breeding procedure. These will be replaced by herbicide-tolerant varieties once they are developed and approved. I'll note here that E3902 was recently designated as non-regulated by regulatory authorities in Chile. In the US and Argentina, it has previously been determined that E3902 does not meet the definition of a regulated article. We plan to apply for this designation for E3902 in Canada once the expected updated CFIA regulations go into effect, which is anticipated to happen soon. Please turn to slide 8 for our winter grain contracting and seed production. I'm pleased to say that we have successfully completed our grower contract activities for the winter 2022-2023. Our growers are clustered in the southern areas of Alberta and Manitoba provinces, with additional growers in Norland, Alberta and Idaho. If you recall, last year we conducted seed production of 17 acres on one farm located north of Saskatoon. This seed was cleaned, tested, and bagged, then delivered to the farm from mid-September through October. Admittedly, it was a very tight turnaround for our team. The plots we have contracted range from 30 acres to 160 acres, which represents a significant increase in acres from last year. I want to remind you all that we are still in the development stage where our key goal is to gain experience and build operating capability. We are working closely with the growers participating in our winter program and expect harvest to begin in late summer 2023. Some of the seed harvest is intended for toll crushing and some of it is earmarked for seed production to provide us with seed inventory for growers' contracts in 2023 and probably beyond that. In addition to work in seed production in the US and Canada, we also establish seed production relationships in Chile and are accessing in-season and contra-season seed production now. I will now pass the call over to Christy.