BioAmber reports Q1 2015 financial results
By BioAmber Inc.
May 7, 2015 - BioAmber Inc., an industrial biotechnology company producing sustainable chemicals, recently announced its financial results for the quarter ending March 31, 2015.
By BioAmber Inc.
• The Sarnia, Ont., plant remains on track to begin commercial operations in Q3 2015, with project costs that continued to track within the US$125 million +/-10% estimate
• BioAmber entered into a technology license with Johnson Matthey Davy Technologies that provides demonstrated engineering for the production of BDO and THF from bio-succinic acid
• After the quarter end, BioAmber was chosen by Bayer MaterialScience as its supplier of bio-succinic acid for a new product line
• After the quarter end, BioAmber raised $35.1 million in gross proceeds through a public offering of common stock
“We have been able to execute effectively in Sarnia while reducing the risk associated with the next plant, and now we have the capital needed to undertake critical engineering and site related work on our next plant so that we don’t lose time,” said Jean-Francois Huc, BioAmber’s CEO. “On the commercial front, the recent Bayer MaterialScience announcement is a strong endorsement of BioAmber’s leadership position in bio-succinic acid and a clear signal of the growing demand for more sustainable chemicals.”
• Construction is expected to be substantially complete by the end of May 2015;
• Commissioning is on track and the plant is expected to be in commercial operation in Q3 2015.
Other business highlights
• BioAmber licensed technology from Johnson Matthey Davy Technologies (JM Davy), enabling the construction and operation of a 100,000 ton per year capacity plant that uses bio-succinic acid as the feedstock to produce 70,000 tons of bio-based 1,4-BDO and 30,000 tons of bio-based THF;
• BioAmber secured the right to license the JM Davy technology for two additional BDO/THF plants;
• BioAmber was chosen by Bayer MaterialScience, which is among the world’s largest polymer companies, to be the supplier of bio-succinic acid used to produce a new range of bio-based polyurethanes for textile applications that Bayer MaterialScience has begun commercializing.
• Net cash used in operating activities was below $2.0 million per month in Q1 2015;
• Cash on hand was $26.0 million as of March 31, 2015, with approximately $20.5 million of cash expected to be received in Q2 2015 from previously announced loans and grants for Sarnia;
• On May 1, 2015 the Company completed a public offering of 3,900,000 shares of common stock at a price of $9.00 per share, raising gross proceeds of $35.1 million.
Q1 2015 Financial Results
Revenues for the quarter ended March 31, 2015 increased to $367,000 from $351,000 for the same period in 2014. The increase was due to an increase in volume sold, partially offset by a decrease in average selling price.
Gross profit in the quarter ended March 31, 2015 was $57,000, compared to a gross profit of $71,000 for the same period in 2014. The decrease was primarily due to a decrease in the average selling price and an increase in the volume sold.
Research and development expenses for the quarter ended March 31, 2015 increased to $4.6 million from $3.3 million for the same period in 2014. The increase was primarily due to an increase in non-recurring expenses related to the commissioning and start-up of the Sarnia plant.
Sales and marketing expenses remained relatively stable at $1.2 million in the quarter ended March 31, 2015, compared to $1.1 million for the same period in 2014.
General and administrative expenses for the quarter ended March 31, 2015 decreased to $2.6 million from $2.9 million for the same period in 2014. The decrease was primarily due to a reduction in professional fees, which was partially offset by an increase in stock-option compensation expense resulting from the vesting of additional options.
Foreign currency losses in the quarter ended March 31, 2015 were $55,000, compared to a loss of $168,000 for the same period in 2014. The decrease stemmed from the reduction of our Canadian dollar exposure in BioAmber Inc. in the quarter ended March 31, 2015.
During the quarter ended March 31, 2015, the company incurred net financial charges of $431,000, compared to $12.4 million for the same period in 2014. The net financial charges in the quarter ended March 31, 2015 included a $320,000 non-cash gain related to changes in the fair market value of the warrants issued in connection with the Company’s initial public offering, compared to a charge of $11.6 million recorded in the same period of 2014. The warrants are revalued at each reporting period resulting in a non-cash amount being recorded in the statement of operations for as long as the warrants remain outstanding.
The company recorded a net loss attributable to BioAmber Inc. shareholders of $8.3 million, or a loss of $0.38 per share, for the quarter ended March 31, 2015, compared to a net loss of $19.9 million, or a loss of $1.07 per share, for the same period in 2014.
The adjusted net loss attributable to BioAmber Inc. shareholders for quarter ended March 31, 2015 was $8.6 million, or a loss of $0.39 per share, compared to an adjusted net loss attributable to BioAmber Inc. shareholders of $8.3 million, or a loss of $0.45 per share, for the same period in 2014. Adjusted net loss attributable to BioAmber Inc. shareholders is a non-GAAP financial metric that excludes, for the quarters ended March 31, 2015 and March 31, 2014, the impact of the change in fair value of the warrants issued in connection with the IPO. Please refer to Annex A: “Non-GAAP Financial Information—Adjusted Net Loss Attributable to BioAmber Inc. Shareholders” for more information regarding this non-GAAP financial metric.
BioAmber (NYSE: BIOA) is an industrial biotechnology company producing sustainable chemicals. Its proprietary technology platform combines industrial biotechnology and chemical catalysis to convert renewable feedstock into sustainable chemicals for use in a wide variety of everyday products including plastics, paints, food additives and personal care products. For more information visit www.bio-amber.com.
This press release contains forward-looking statements, including statements related to the projected capital costs and scheduled completion of the Sarnia facility under construction, the commissioning and start up schedule, the beginning of our commercial operations and future sales for our Bio-SA facility including sales to Bayer MaterialScience, and the future construction and operation of a second plant producing bio-based BDO and THF. All statements other than statements of historical fact contained in this press release are forward-looking statements. These statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “seek,” “will,” “may” or similar expressions. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond BioAmber’s control. BioAmber’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. For additional disclosure regarding these and other risks faced by BioAmber, see disclosures contained in BioAmber’s public filings with the SEC including, the “Risk Factors” section of BioAmber’s most recent Annual Report on Form 10-K.