SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 24, 2021
(Exact Name of Registrant as Specified in Charter)
|(State or Other Jurisdiction of|
|(Commission File Number)||(IRS Employer Identification No.)|
5980 Horton Street, Suite 105
Emeryville CA 94608
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
|Title of each class||Trading Symbol||Name of each exchange on which registered|
|Common Stock, $0.001 par value per share||ZY||Nasdaq Global Select Market|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 24, 2021, Zymergen Inc. (the "Company") issued a press release announcing the Company’s financial results for its fiscal quarter ended March 31, 2021. A copy of this press release, titled “Zymergen Reports Preliminary First Quarter 2021 Financial Results”, is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(a) - (c) Not applicable.
The information in this report, including the exhibit hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ||Zymergen Inc..|
|Date: May 24, 2021||By:||/s/ Mina Kim|
| || ||Name: Mina Kim|
| || ||Title: Chief Legal Officer|
Zymergen Reports Preliminary First Quarter 2021 Financial Results
Emeryville, Calif., May 24, 2021– Zymergen Inc. (“Zymergen”), one of the world’s leading biofacturing companies, today reported preliminary financial results for the first quarter ended March 31, 2021.
“I am so proud of our team for their continued execution across our organization,” says Josh Hoffman, Zymergen CEO. “With biofacturing, we are committed to transforming what is possible by partnering with nature to make better products in a better way. I am confident that we are well positioned to execute on our strategy to develop and sell superior products across multiple markets, this year and beyond.”
•Completed initial public offering in April 2021, raising $575 million in gross proceeds
•Strengthened leadership by adding Aindrea Campbell as Chief Manufacturing Officer, a seasoned industry veteran who will be instrumental in the scaling of Zymergen’s production capabilities
First Quarter 2021 Financial Results
Total revenue was $3.7 million dollars for the three months ended March 31, 2021, all relating to R&D services agreements and Collaboration revenue. This represents a 26% increase over the same quarter in 2020, and was primarily driven by the impact of new and acquired contracts.
Total operating expenses for the first quarter of 2021 were $87.1 million dollars, a 32.8% increase from $65.6 million dollars in the first quarter of 2020. The increase was driven by an increase in R&D activities to develop Hyaline production processes, as well as the additional costs associated with becoming a public company.
Net loss in the first quarter of 2021 was $84.6 million dollars.
Cash and cash equivalents were $121.0 million as of March 31, 2021. Subsequent to quarter end, Zymergen completed its initial public offering in April 2021 raising approximately $530 million in net proceeds.
Zymergen will host a conference call to discuss the first quarter 2021 financial results after market close on Monday, May 24, 2021 at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at https://investors.zymergen.com/. The webcast will be archived and available for replay for at least 90 days after the event.
Zymergen is a biofacturing company using biology to reimagine the world. Zymergen partners with nature to design, develop and manufacture bio-based breakthrough products that deliver value to customers in a broad range of industries. A unique combination of biology, chemistry, software and automation enables the company to design and create new materials.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on the Company’s beliefs and assumptions and on information currently available to it on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements, including but not limited to statements regarding our timing and ability to execute on our strategy to develop and sell superior products across multiple markets, this year and beyond. These and other risks are described more fully in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s prospectus dated April 23, 2021 filed with the SEC pursuant to Rule 424 under the Securities Act of 1933, and other documents the Company subsequently files with the SEC from time to time, including the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
|Three Months Ended March 31,|
|Revenue||$||3,735 ||$||2,954 |
|Cost of service revenue||21,130 ||24,576 |
|Research and development||39,811 ||21,802 |
|Sales and marketing||6,872 ||5,541 |
|General and administrative||19,331 ||13,693 |
|Total operating expenses||87,144 ||65,612 |
|Loss from operations||(83,409)||(62,658)|
|Other income (expense):|
|Interest income||43 ||377 |
|Interest and other expense||(1,211)||(3,166)|
|Total other expense||(1,168)||(2,789)|
|Loss before income taxes||(84,577)||(65,447)|
|(Provision for) benefit from income taxes||(8)||107 |
|Net loss per share attributable to common stockholders, basic||$||(6.51)||$||(5.77)|
|Net loss per share attributable to common stockholders, diluted||$||(6.51)||$||(5.77)|
|Weighted-average shares used in computing net loss per share to common stockholders, basic||12,996,344 ||11,322,626 |
|Weighted-average shares used in computing net loss per share to common stockholders, diluted||13,340,457 ||11,322,626 |
CONDENSED CONSOLIDATED BALANCE SHEETS
|As of March 31, 2021||As of December 31, 2020|
|Cash and cash equivalents||$||121,035 ||$||210,205 |
|Accounts receivable, billed and unbilled||4,116 ||4,175 |
|Inventory||5,683 ||4,969 |
|Other current assets||8,896 ||9,225 |
|Total current assets||139,730 ||228,574 |
|Property and equipment, net||55,462 ||48,718 |
|Goodwill||11,604 ||11,604 |
|Intangible assets, net||4,443 ||4,790 |
|Other assets||15,993 ||11,235 |
|Total assets||$||227,232 ||$||304,921 |
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable, accrued and other liabilities||$||37,520 ||$||38,985 |
|Short-term debt, net||— ||79,331 |
|Other current liabilities||2,790 ||3,142 |
|Total current liabilities||40,310 ||121,458 |
|Long-term debt, net||79,615 ||— |
|Warrant liabilities||11,952 ||14,231 |
|Other long-term liabilities||15,490 ||12,170 |
|Total liabilities||147,367 ||147,859 |
|Convertible preferred stock||900,798 ||900,798 |
|Total stockholders' deficit||(820,933)||(743,736)|
|Total liabilities and redeemable convertible preferred stock and stockholders' deficit||$||227,232 ||$||304,921 |