Yield10 Bioscience, Inc.

Last week, we signed a letter of intent with Marathon Petroleum for an investment and off-take agreement for Camberlina production in a specific growing region. Discussions to finalize terms for definitive off-take and investment agreements are in place, or in progress, sorry. In exchange for a period of exclusivity for that region, Marathon paid yield 10, 1 million in the form of a contractual note. In first quarter, We announced the signing of an MOU with Mitsubishi to establish a partnership for supply, off-take and marketing of Camelina oil as a feedstock oil for biofuels, for sustainable aviation fuel, or SAF, and we continue to progress those off-date discussions. We also announced the signing of an MOU with American Airlines to collaborate to develop the value chain for Camelina, or SAF, and we are delighted with the efforts they are making to assist us. We look forward to continuing to work with Marathon, Mitsubishi, and American in the months ahead. Early in the year, we also signed an agreement with a privately owned integrated crusher biorefinery customer for offtake of camelina grain. This business is located in the key commercial launch growing region and provides a complete seed to biofuel value chain, allowing us to scale camelina. As 2023 progresses, we plan to continue discussions with additional partner prospects, with the goal of creating the option to establish a network of alliances to supply camelina feedstock oil to this market. In our role as a grain originator, we are continuing to scale up seed to enable contract growing in thousands of acres in the near term, with the ramp-up of acres accelerating with the introduction of herbicide-tolerant camelina varieties. Our herbicide-colored technology will provide multiple benefits to growers, and we believe this will lead to hundreds of thousands and then the first million acres of annual production. Our goal is to supply the best-in-class camelina varieties in the industry, providing ease of crop integration into current crop rotations and highest on-farm returns. Let's start at slide four, the camelina biofuel feedstock oil focus. Investments to convert refineries from petroleum to biofuels in the U.S. alone has created demand for an additional 6 billion gallons of feedstock oil in the near term. We believe this demand for renewable diesel as well as SAF could lead to the potential for at least 45 million acres of camelina production in North America. Over our last few investor calls, we have mentioned growing tailwinds, increasing vegetable oil production, or decarbonizing biofuels. Let's now turn to slide five. to recap two recent policy advancements that underscore the potential for Camelina for this market. First, the European Parliament last week reached an agreement named the Refuel EU Aviation Proposal. This agreement embodies a set of new rules to require aviation fuel suppliers to supply a minimum share of SAF at EU airports, starting at 2% of overall fuel. It's around 1 million gallons per day starting in 2024, and rising to 6% in 2030 and 70% in 2050. While this initiative steams towards EU members, it demonstrates global momentum behind decarbonizing transportation fuels and another potential source of demand for feedstock oils. And last week, the Canadian regulatory body, CFIA, published its long-awaited guidance on genome-edited crops. CFIA indicated that it will treat most gene-edited crops as non-regulated as long as the plant does not contain any foreign DNA. The new rule does note that for any new traits for herbicide tolerance, even if produced using gene editing, will need to be submitted for CFIA review, a stance that was anticipated by the ag community. Overall, another very positive announcement for crop innovators like YieldTan. Please start to slide six, oilseed cover crop development approaches. There are multiple new oilseed crops in commercial development for the biofuel market, including pennycress, cameronata, and camelina. The common technology has been accessed to public germplasm, lime selection, and breeding. We are committed to that approach. but have also invested significantly in developing proprietary advanced trait technologies to create a path to high-performance elite Tamalina germplasm. In addition to herbicide tolerance, our unique capabilities to identify and test new performance traits to stack traits, leveraging the improved regulatory environment in the U.S. and Canada, provide a path to further performance differentiation for our varieties. In the early days of ag biotech, a single gene trait was a large differentiator, and essential to remain in the commodity row crop seed business, as evidenced by the subsequent sector consolidation. The big five, Monsanto, DuPont, Bayer, Syngenta, and now Ag, then dominated the sector until the more recent consolidation, which created the top two, Cortiva and Bayer, with Syngenta in third, and BSF becoming the leader in canola. Today, elite germplasm with multiple gene stacks in corn and soybean provide high barriers to entry and are the key differentiators for the seed companies. So we believe we are uniquely positioned based on our advanced trait technologies to deliver continuous improvements, drive core revenue, and secure production acres over time. Now let's turn to slide seven, camelina-based biofuel feedstocks. Grower adoption of camelina as a seamless integral part of the crop rotation is key to making camelina a meaningful source of feedstock oil. Increasing harvest value of the grain to drive grower revenue is also critical. So we are placing strong emphasis on technology innovation to provide growers with continuous improvement in the crop. Finally, growers want to see that the value chain is in place to ensure the camelina grain has a clear path to market. Simply put, we plan to make it straightforward and profitable for our growers to produce camelina grain for yield time. Let's now turn to slide nine, establishing the Camelina value chain. There are three components of the biofuel value chain for Camelina. The first is high quality Camelina seed and contract farming. This is where yield 10 has the capabilities to build unique differentiation in our Camelina seed genetics. The second component is logistics and seed crushing. And the third is refining to produce renewable diesel or SAF. New customers such as American Airlines can also play a role as they commit to the use of sustainable fuels. Our vision for the business is to contract with growers for large-scale production and build a network of alliances for contracted offtake of the grain for biofuels with the meal going into animal feed. Our LOI with Marathon, as well as our MOUs with Mitsubishi and American, demonstrate the potential for establishing downstream alliances committed to accelerating the ramp-up of Camelene acres to supply the biofuel market and provide support to innovators like Yield 10. I will now pass the call over to Christy.

Thanks, Ollie, and good afternoon, everyone. Please turn to slide nine. We are executing on our early commercial activities in close cooperation with our growers with a focus on three camelina varieties. These include the genome-edited spring E3902 camelina variety, as well as two winter camelina varieties, WDH2 and WDH3, which were produced by our team using a plant breeding procedure. We are also using these three core camelina varieties as a chassis for deploying herbicide tolerance traits for weed control into spring and winter camelina. Please turn to slide 10. Our winter variety field testing program includes well over 20 sites denoted with the blue pins on the map of the U.S. and Canada. In our March call, we indicated that we obtained confirmation of the performance of our herbicide-tolerant spring camelina to application of an over-the-top broadleaf herbicide in U.S. contra-season trials performed at locations indicated by the yellow pins on the slide. Our winter program also includes agronomy trials with winter camelina. One such study involved planting winter camelina side-by-side with winter wheat, which is the benchmark crop for winter planting. The cold hardiness of our winter camelina was found to be better or equivalent to winter wheat in this trial. As the season progresses, we'll plan to post photos of our winter camelina fields on our website. Please turn to slide 11. We are conducting our spring 2023 field testing program at 13 sites in the US and Canada. The trials include additional field testing and seed scale-up of our lead spring herbicide-tolerant camelina line. In addition, we have generated candidate-stacked herbicide-tolerant camelina events for first field testing. We will evaluate the data from these camelina lines to enable the selection of lead and backup camelina lines for subsequent seed scale-up and field testing. We also remain encouraged by the performance of our yield traits and have included C3004 and C3007 in our 2023 field test. We are not only interested in what these novel traits can do to increase seed yield or oil content alone, but we also plan to evaluate these traits in stacked combinations. Let's turn to slide 12. There has been a profound change in the regulatory environment for crop innovations driven by the impact of gene editing and an appreciation for the safe deployment of new traits in crops for over 30 years. The deployment of herbicide tolerance in camelina will involve the completion of a series of performance, regulatory, and seed scale-up milestones to enable the commercial launch of these new varieties in the U.S. On this slide, we have identified the major development milestones and tracked these for spring herbicide-tolerance E3902 camelina as well as for our winter herbicide-tolerant lines based on WDH2 and WDH3. For our spring variety, we have checked the box for generating the herbicide-tolerance events and have selected our lead and backup camelina lines for seed scale-up. filed our RSR package for broadleaf herbicide tolerance to USDA ACES under the SECURE rule, a step we took last year in parallel with starting early development of herbicide-tolerant camelina. We have followed these activities with an application to EPA to request a label amendment for a broadleaf herbicide to allow its use on camelina. This application was submitted to EPA by a third-party manufacturer of the herbicide chemistry. We believe these applications at USDA and EPA will be reviewed during 2023 to early 2024. Finally, we will perform comparative analyses of seed from herbicide-tolerant camelina with those from conventional camelina to demonstrate compositional equivalency. This is necessary to sell the high-protein camelina meal remaining after crushing the seed into the animal feed market. Here we plan to sample and collect compositional data from seeds harvested from our 2023 spring trials. We plan to determine compositional equivalency of seed to allow sale of meal, first using a self-determination process, and then with a voluntary submission to FDA that is reviewed by the agency. I believe our team has a good handle on the process and the timeline to launch, which will be driven by the timing of completing regulatory reviews in conjunction with building sufficient seed inventory for launch. Let's turn to slide 13. We know that growers want broadleaf and grassy weed control for camelina. As you may recall from our field trial activities, we have successfully completed two cycles of testing our camelina for herbicide tolerance. This herbicide tolerant event is in our elite proprietary E3902 background. We also successfully tested our camelina for tolerance to cletidum, a product used to control grassy weeds. On the regulatory front, we filed an RSR package to USDA for deployment of a well-studied broadleaf herbicide trait in camelina in 2022. In the first quarter of 2023, we supported the submission of a label amendment to EPA by a third-party company to allow the use of its broadleaf herbicide on camelina. The response from both agencies is pending. This spring, we plan to conduct larger-scale field work for product development purposes for our herbicide-tolerant spring camelina and to collect data for compositional analysis of seed. We have also developed winter lines that have demonstrated broadleaf herbicide tolerance in greenhouse tests. In winter 2023-2024, we plan to conduct our first field test of these lines. Let's turn to slide 14. To tap into the large acreage potential of camelina, the crop needs to have tolerance to herbicide residues that may persist in the soil from previous applications on other crops. We continue to make solid progress on this goal. In the first quarter, we reported that we have developed multiple E3902 spring camelina lines with stacked herbicide tolerance traits, and that these plants showed tolerance not only to spray application of broadleaf herbicide, but also to Group 2 herbicides. Group 2 herbicides, such as IMEs and SUs, which can persist in soil for months following application, commonly used to control weeds and cereals and other crops. The photo on the slide shows an example greenhouse test in which a stacked herbicide tolerant event was healthy when treated with group 2 herbicides where the control line died with a similar treatment. Based on our proof-of-concept results, we are conducting our first research field test of stacked herbicide tolerant E3902 spring camelina in in our spring 2023 field test program. Our team is also making progress deploying stacked herbicide tolerance traits in our winter varieties. We anticipate our first research field test of stacked herbicide tolerant winter lines will begin in winter 2023. With our product development efforts moving ahead at a good pace, we filed an RSR for stacked herbicide tolerance camelina in the first quarter of 2023 to pave the way for commercial introduction of these stacked herbicide-tolerant varieties. As I wrap up, I'd like to acknowledge the efforts of the Yield10 R&D team to positioning Yield10 on the forefront of technology deployment in camelina. In the months ahead, we look forward to field testing of our best commercial quality herbicide-tolerant camelina lines advancing omega-3 oils, and securing regulatory clearances for our elite Camelina products. I'll now hand the call over to Chuck.

Thanks, Christy, and good afternoon, everyone. Let's turn to slide 17. We ended the first quarter of 2023 with $1.8 million in cash and cash equivalents. Earlier this month, we added to our cash position based on receiving $1 million from Marathon Petroleum in connection with an LOI and we raised approximately 2.7 million net proceeds from a registered direct offering. We expect that our cash on hand will support our operations into the third quarter of 2023. Our net operating cash used for operating activities was 2.7 million for the first quarter of 2023, as compared to 3.1 million for the first quarter of last year. For 2023, we expect total net cash usage in the range of 12.5 to 13 million to fund our operations. This represents a revision from our last call based on a recent review of our plans for 2023. Also in 2023, we expect to report our first camelina product revenue from camelina grain sales to our offtake customer. Now let's review the first quarter 2023 operating results. For the first quarter of 2023, the company reported a net loss after taxes of 3.8 million as compared to a net loss after taxes of 3.3 million for the first quarter of 2022. Total research grant revenues in the first quarter of 2023 were 0.1 million, and this was consistent with the first quarter of 2022. As of March 31st, we completed our work under the five-year subaward under the Michigan State DOE grant. And in the first quarter of 2023, R&D expenses were $2.2 million as compared to $1.8 million in the first quarter of 2022, and our G&A expenses were $1.7 million in the first quarter of this year, which was consistent with the first quarter of last year. For more details on our financial results, please refer to the earnings release. Ali, back to you.