REDWOOD CITY, Calif., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced the publication of its inaugural sustainability disclosures detailing the Company's environmental, social, and governance ("ESG") performance for the fiscal year ended December 31, 2023. The disclosures are aligned with guidance provided by the International Financial Reporting Standards' ("IFRS") Sustainability Accounting Standards Board ("SASB"). This marks an importa ...

Financial Data and Key Metrics - Q2 2024 total revenues were $8 million, including $6.3 million in product revenues and $1.7 million in R&D revenues, down compared to Q2 2023 [23] - Product gross margin was 45% in Q2 2024, down from Q2 2023 due to product mix [23] - R&D expenses decreased by 34% year-over-year to $11.4 million in Q2 2024, reflecting cost-saving measures [24] - SG&A expenses were $15.7 million in Q2 2024, including a one-time $2 million stock-based compensation charge [24] - The company ended Q2 with $73.2 million in cash, cash equivalents, and investments, sufficient to fund operations through positive cash flow expected by the end of 2026 [28] Business Line Performance - The pharma manufacturing business is expected to drive strong product revenue growth in the second half of 2024, supported by existing and expected orders [6][26] - The ECO Synthesis platform has accelerated commercial momentum, with the company now engaging with major players in the siRNA manufacturing space [7] - The double-stranded RNA ligase program is gaining traction, with a large pharma customer testing the technology for a Phase 2 asset moving into Phase 3 [13] Market and Strategic Focus - The company is focused on growing its pharmaceutical manufacturing business and enabling siRNA therapeutics through the ECO Synthesis platform [4] - The ECO Synthesis platform has demonstrated the ability to synthesize full-length oligonucleotides and achieve coupling efficiency of over 98%, comparable to traditional chemical methods [8][10] - The company is targeting a stepwise approach to becoming a direct producer of GMP-grade siRNA, with plans to produce GLP-grade material in 2025 [7][18] Management Commentary on Outlook - Management reiterated full-year 2024 guidance, expecting double-digit product revenue growth and a strong second half of the year [4][22] - The company is confident in its path to positive cash flow by the end of 2026, driven by growth in the pharma manufacturing pipeline and double-stranded RNA ligase orders [28][29] - The ECO Innovation Lab and potential GMP facility are seen as key drivers of future growth and value creation [19][21] Q&A Session Summary Question: How can the ECO Synthesis platform be leveraged for drugs in clinical testing? - The platform is applicable to drugs in development or on the market, with companies showing interest in the margin improvements it offers [31][32] - The double-stranded RNA ligase provides immediate cost savings for products in clinical trials, while the full ECO Synthesis platform can be applied for sequential synthesis and ligation [33] Question: What technical milestones remain for the ECO Synthesis platform? - Key priorities include reducing cycle time for iterative additions and developing an enzymatic route for critical reagents [36] - The company is ahead of schedule, with progress in delivering constructs for proof-of-concept comparisons with traditional chemical methods [37] Question: What is the demand for the ligase optimization service? - Customers are increasingly opting for in-house optimization services, which are faster and more efficient [38] - The service has expanded the pipeline of potential candidates, with confidence in securing additional ligase orders and attracting new customers [39] Question: What is the rationale for hiring Britton Jimenez as SVP of Commercial Operations? - Britton brings 20+ years of CDMO experience, addressing a skills gap as the company enters its next growth phase [41] Question: How is the funding environment impacting customer behavior? - The funding environment has improved, with no significant pushback on innovation budgets, and customers are eager to fund projects in the siRNA space [45][46]

| --- | --- | --- | |---------------------------------|-------|----------------------| | | | | | | | | | | | | | August 8, 2024 Q2 2024 Results | | | | | | We engineer enzymes | Forward Looking Statements 1 These slides contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results or levels of activity, ...

Codexis (CDXS) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.26. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -23.08%. A quarter ago, it was expected that this producer of custom industrial enzymes would post a loss of $0.17 per share when it actually produced a loss of $0.16, delivering a surprise of 5.88%. Over the last four quarters, ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=2&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended June 30, 2024, highlighting key financial performance and position [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2024, reflects a slight decrease in total assets and an increase in total liabilities driven by new long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $18,595 | $65,116 | | Short-term investments | $54,604 | $0 | | Total current assets | $91,398 | $93,466 | | Total assets | $132,006 | $136,561 | | **Liabilities & Equity** | | | | Total current liabilities | $30,539 | $35,830 | | Long-term debt | $28,365 | $0 | | Total liabilities | $70,559 | $49,946 | | Total stockholders' equity | $61,447 | $86,615 | | Total liabilities and stockholders' equity | $132,006 | $136,561 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations show a significant decrease in total revenues for both the three and six-month periods, resulting in continued net losses Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $7,979 | $21,323 | $25,052 | $34,305 | | Loss from operations | $(22,732) | $(12,626) | $(34,620) | $(36,291) | | Net loss | $(22,755) | $(11,523) | $(34,260) | $(34,140) | | Net loss per share | $(0.32) | $(0.17) | $(0.49) | $(0.51) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow analysis for the first half of 2024 indicates improved operating cash usage, increased investing activities for short-term investments, and higher financing cash from new debt Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(19,957) | $(25,299) | | Net cash used in investing activities | $(55,650) | $(4,855) | | Net cash provided by financing activities | $29,084 | $8,275 | | **Net decrease in cash** | **$(46,523)** | **$(21,879)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, revenue recognition, debt agreements, and segment information, including recent business restructuring and financing changes - Effective October 1, 2023, the company consolidated its Performance Enzymes and Novel Biotherapeutics segments into a single reportable segment due to business restructuring[22](index=22&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - On February 13, 2024, the company entered into a five-year term loan agreement with Innovatus for up to **$40.0 million**, with an initial tranche of **$30.0 million** funded[77](index=77&type=chunk) - In May 2024, the company entered into a new Controlled Equity Offering Sales Agreement with Cantor Fitzgerald to sell up to **$75.0 million** of common stock, after terminating a prior agreement with Piper Sandler[68](index=68&type=chunk)[69](index=69&type=chunk) Significant Customer Revenue Concentration (Six Months Ended June 30) | Customer | 2024 (% of Total Revenue) | 2023 (% of Total Revenue) | | :--- | :--- | :--- | | Customer A | 16% | 11% | | Customer H | 24% | * | | Customer E | * | 17% | | Customer F | * | 11% | | Customer I | * | 10% | *Percentage was less than 10% [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section details the company's strategic focus on pharmaceutical manufacturing and ECO Synthesis™ platform, analyzing financial performance, and assessing liquidity and capital resources [Business Overview and Recent Developments](index=23&type=section&id=Business%20Overview%20and%20Recent%20Developments) Codexis's business overview highlights its strategic shift towards pharmaceutical manufacturing and the ECO Synthesis™ platform, including recent asset divestitures and a new Roche licensing agreement - The company's strategic focus is on its revenue-generating pharmaceutical manufacturing business and the development of its Enzyme-Catalyzed Oligonucleotide (ECO) Synthesis™ manufacturing platform[91](index=91&type=chunk)[92](index=92&type=chunk) - In 2024, the company entered into asset purchase agreements to divest its investigational Fabry, Pompe, homocystinuria, and other biotherapeutics programs, retaining rights to potential future milestone and royalty payments[93](index=93&type=chunk)[94](index=94&type=chunk) - In February 2024, Codexis entered an exclusive global license agreement with Roche for its newly engineered dsDNA ligase, recognizing **$6.0 million** in research and development revenue in Q1 2024[100](index=100&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Results of operations for the first half of 2024 show a significant decrease in total revenues, driven by lower product and R&D revenue, partially offset by reduced operating expenses Revenue and Expense Changes (Six Months Ended June 30, 2024 vs 2023) | Item | Change ($M) | Change (%) | Reason | | :--- | :--- | :--- | :--- | | Total Revenues | $(9.3) | (27)% | Lower product and R&D revenue | | Product Revenue | $(3.6) | (19)% | Lower sales of branded pharmaceutical products | | R&D Revenue | $(5.7) | (38)% | Non-recurrence of Pfizer revenue, offset by new Roche revenue | | R&D Expenses | $(11.3) | (33)% | Lower headcount and outside service costs from restructuring | | SG&A Expenses | $(0.2) | (1)% | Lower headcount costs offset by higher stock compensation and legal fees | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position as of June 30, 2024, is strengthened by new debt and equity financing, with management confident in sufficient capital for the next 12 months Liquidity Position (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $18,595 | $65,116 | | Short-term investments | $54,604 | $0 | | Working capital | $60,859 | $57,636 | - In February 2024, the company borrowed **$30.0 million** under a new five-year term loan agreement with Innovatus[122](index=122&type=chunk)[126](index=126&type=chunk) - Management believes that existing cash, combined with expected revenues and expense management, will provide adequate funds for at least the next 12 months[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from interest rates, foreign currency exchange rates, and non-marketable investments, with potential impacts on its financial performance - The company is exposed to interest rate risk on its **$73.2 million** of cash and investments and its **$30.0 million** floating-rate loan; an immediate **10%** change in the prime interest rate would result in a **$0.3 million** impact on its results of operations over the next twelve months[138](index=138&type=chunk)[139](index=139&type=chunk) - Foreign currency risk is not significant; a hypothetical **10%** unfavorable change in exchange rates would result in a potential loss of approximately **$41 thousand**[140](index=140&type=chunk) - The company holds investments in non-marketable equity securities, which are inherently risky, difficult to value, and subject to impairment[141](index=141&type=chunk)[192](index=192&type=chunk) [Controls and Procedures](index=33&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of June 30, 2024[144](index=144&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter ended June 30, 2024[145](index=145&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=34&type=section&id=ITEM%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any material pending litigation or other material legal proceedings - The company is not currently a party to any material legal proceedings[148](index=148&type=chunk) [Risk Factors](index=34&type=section&id=ITEM%201A.%20Risk%20Factors) This section outlines significant risks to the company's business and strategy, including a history of net losses, customer and manufacturer dependence, technology development challenges, and loan agreement covenants - The company has a history of net losses, including **$34.3 million** for the six months ended June 30, 2024, and may not achieve or maintain profitability[157](index=157&type=chunk) - Codexis is dependent on a limited number of customers, with **40%** of total revenues in the first half of 2024 coming from customers that each contributed **10%** or more[163](index=163&type=chunk) - The company relies on a limited number of contract manufacturers for large-scale production of its enzymes, creating risks related to capacity, performance, and supply interruptions[169](index=169&type=chunk) - The ECO Synthesis™ manufacturing platform is a novel, largely unproven technology facing an unknown regulatory path and competition from the established industry standard[179](index=179&type=chunk)[180](index=180&type=chunk) - The Loan Agreement with Innovatus contains restrictive covenants that limit the company's ability to incur additional debt, sell assets, and make certain investments, and a default could lead to foreclosure on substantially all company assets[208](index=208&type=chunk)[210](index=210&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period - None reported for the period[291](index=291&type=chunk) [Other Information](index=62&type=section&id=ITEM%205.%20Other%20Information) During the three months ended June 30, 2024, no directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement - During the three months ended June 30, 2024, no directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement[291](index=291&type=chunk) [Exhibits](index=63&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including corporate governance documents, certifications by officers, and Inline XBRL data files - Lists filed exhibits, including corporate governance documents, officer certifications required under the Securities Exchange Act of 1934, and iXBRL data files[293](index=293&type=chunk)

Exhibit 99.1 Codexis Reports Second Quarter 2024 Financial Results Company Reiterates Full-year Financial Guidance; On Track to Achieve Product Revenue Growth of at Least 10% vs. FY2023 Excluding Enzyme Sales Related to PAXLOVID™ Anticipate Entering First Technical Collaboration for ECO Synthesis™ Manufacturing Platform by End of Year REDWOOD CITY, Calif., August 8, 2024 -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced financial results for the second quarter ended June ...

REDWOOD CITY, Calif., July 18, 2024 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced that it will report its financial results for the second quarter of 2024 on Thursday, August 8, 2024, following the close of market. Codexis management will host a conference call and webcast at 4:30 pm Eastern Time to discuss the Company's financial results and provide a business update. Participants may access the live webcast on the Codexis Investor Relations website ...

About Codexis REDWOOD CITY, Calif., July 18, 2024 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced that it will report its financial results for the second quarter of 2024 on Thursday, August 8, 2024, following the close of market. Codexis management will host a conference call and webcast at 4:30 pm Eastern Time to discuss the Company's financial results and provide a business update. Codexis is a leading enzyme engineering company leveraging its propr ...

REDWOOD CITY, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced the Company will attend the Jefferies Global Healthcare Conference, being held June 5-6, 2024, in New York, New York. Management will participate in a fireside chat on Wednesday, June 5, 2024, at 11:30 am ET. A live webcast of the event will be available here and in the Investor Relations section of the Company's website, http://ir.codexis.com. A replay will be archived ...

For More Information The panel will take place on Wednesday, May 22, 2024, at 4:25 pm ET. A live webcast of the event will be available here and in the Investor Relations section of the Company's website, https://www.codexis.com/investors. A replay will be archived for 90 days following the event. About Codexis Codexis is a leading enzyme engineering company leveraging its proprietary CodeEvolver® technology platform to discover, develop and enhance novel, high-performance enzymes and other classes of prote ...