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 ...

Group 1 - Codexis, Inc. will report its financial results for Q2 2024 on August 8, 2024, after market close [1] - A conference call and webcast will be held at 4:30 pm Eastern Time to discuss the financial results and provide a business update [1] - Participants can access the live webcast on the Codexis Investor Relations website, which will be archived for at least 90 days [2] Group 2 - Codexis is a leading enzyme engineering company utilizing its proprietary CodeEvolver® technology platform to develop high-performance enzymes [3] - The company is developing the ECO Synthesis™ manufacturing platform to enable the scaled manufacture of RNAi therapeutics through an enzymatic route [3] - Codexis enzymes contribute to higher yields, reduced energy usage, waste generation, and improved efficiency in manufacturing [3]

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 ...

REDWOOD CITY, Calif., May 20, 2024 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced the Company will participate in a panel discussion titled, "Sustainable API Manufacturing" at the TD Cowen 2nd Annual Sustainability Week, being held virtually May 21-23, 2024. During the presentation, Management will highlight the potential benefits of an enzymatic route of synthesis in the manufacture of small molecule and siRNA therapeutics. Codexis is a leading enzym ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2024 were $17.1 million, a 32% increase from $13 million in the prior year [50] - Product revenues increased by 14% to $9.6 million in Q1 2024, compared to $8.4 million in Q1 2023 [50] - R&D revenues rose to $7.5 million in Q1 2024 from $4.6 million last year, driven by a $6 million license agreement with Roche [40] Business Line Data and Key Metrics Changes - Product gross margin improved to 49% in Q1 2024, up from 46% in Q1 2023 [40] - Approximately 5% of Q1 2024 product revenue came from enzyme supply and other commercially approved products, while 19% was from generics [59] - The concentration of product sales from the top three commercial pharma products decreased from 72% in Q1 2023 to 37% in Q1 2024, indicating progress in diversifying the revenue base [41][65] Market Data and Key Metrics Changes - The company is currently supplying enzymes for about 12 named programs in Phase 2 and Phase 3, and for 16 commercial drugs [65] - The company expects to recognize a large customized double-stranded RNA ligase order by the end of the year, contributing to future revenues [60] Company Strategy and Development Direction - The company is focused on expanding its customer base and filling its pipeline to sustain future annual double-digit product revenue growth throughout the decade [27] - Plans for the ECO Synthesis Innovation Lab are on track, expected to be largely built out by the end of the year, which will enhance manufacturing capabilities [11] - The company aims to offer a completely enzymatic process with enzymatically synthesized raw materials, supporting the transition to large-scale GMP manufacturing [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reiterating full-year 2024 guidance, expecting at least 10% year-on-year growth in product revenue [4] - The company anticipates Q2 to be the lowest quarter of the year, with a strong second half expected [52] - Management highlighted increasing customer interest in enzymatic approaches to reduce manufacturing costs and overcome challenges in synthesizing longer RNA constructs [35] Other Important Information - The company ended Q1 2024 with cash and cash equivalents of $85 million, expected to fund operations through positive cash flow anticipated around the end of 2026 [61] - R&D expenses for Q1 2024 were $11.2 million, down from $16.7 million last year, reflecting cost control measures [58] Q&A Session Summary Question: Progress of pharma manufacturing customers - The company is currently supplying enzymes for about 12 named programs in Phase 2 and Phase 3, with a goal to expand to around 67 customers [65] Question: Details on the double-stranded RNA ligase order - The order came from an existing customized program, and the customer found the company's ligation enzyme significantly better than their previous choice [92] Question: Updates on life science enzymes - The company is exploring potential out-licensing opportunities with remaining life science enzymes, with progress expected in the current quarter [63] Question: Expectations for the new ligase screening service - The screening service is designed to provide customers with superior enzymes, and the company anticipates it will lead to additional orders as customers scale up [110]

| --- | --- | --- | |------------------------------|-------|----------------------| | | | | | | | | | | | | | May 2, 2024 Q1 2024 Results | | | | | | We engineer enzymes | 1 Actual results could differ materially from Codexis' current expectations for a variety of reasons, including due to the factors set forth in Codexis' most recently filed periodic report, including under the caption "Risk Factors," and Codexis' other current and periodic reports filed with the SEC. If any of these risks or uncertainties ...