Benson Hill(US:BHIL)2022-03-27 16:00Financial Position - As of December 31, 2021, the company had cash and cash equivalents of $182.7 million and an accumulated deficit of $280.6 million, with a net loss of $126.2 million for the year[92]. - The company had total current assets of $283,358,000 as of December 31, 2021, compared to $140,449,000 in 2020, representing a growth of about 102%[364]. - Cash and cash equivalents increased significantly to $78,963,000 in 2021 from $9,743,000 in 2020, showing a growth of approximately 711%[364]. - Total assets reached $534,897,000 in 2021, up from $231,785,000 in 2020, indicating an increase of about 131%[366]. - The accumulated deficit as of December 31, 2021, was $(280,569,000), compared to $(154,322,000) in 2020, reflecting a worsening of the deficit by approximately 82%[366]. - The company had cash and cash equivalents of $78,963 and marketable securities of $103,689 as of December 31, 2021, requiring additional financing prior to becoming profitable[383]. - The combined cash and marketable securities position was $182,652 as of December 31, 2021, sufficient to meet capital and liquidity requirements for at least the next 12 months[384]. Operating Performance - The company incurred negative cash flows from operating activities amounting to $117.8 million[92]. - Total revenues for 2021 were $147,212,000, an increase from $114,348,000 in 2020, representing a growth of approximately 29%[368]. - The company reported a gross loss of $945,000 in 2021, compared to a gross profit of $11,918,000 in 2020, indicating a significant decline in profitability[368]. - Total operating expenses rose to $122,130,000 in 2021, up from $71,735,000 in 2020, marking an increase of about 70%[368]. - The net loss for 2021 was $126,247,000, compared to a net loss of $67,159,000 in 2020, which is an increase in losses of approximately 88%[370]. - The company reported a net cash used in operating activities of $117,750,000 in 2021, compared to $52,678,000 in 2020[374]. Research and Development - Research and development expenses were $40.6 million for the year ended December 31, 2021, compared to $29.5 million in 2020 and $24.8 million in 2019[110]. - Research and development expenses increased to $40,578,000 in 2021 from $29,457,000 in 2020, reflecting a rise of approximately 38%[368]. Competition and Market Risks - The company expects to face significant competition in the plant-based products market, which may impact its ability to achieve market acceptance for its products[102]. - The successful commercialization of products may be challenged by public perceptions and regulatory environments regarding gene-edited products[122][124]. - The company is exposed to fluctuations in agricultural commodity prices, which could impact financial performance[140]. - The company may experience fluctuations in agricultural commodity prices, affecting its costs for purchasing soybeans for processing[350]. Legal and Regulatory Risks - The company is subject to numerous environmental, health, and safety laws, which could be costly and time-consuming to comply with, potentially impairing research and development efforts[180]. - The company faces regulatory challenges that could arise from the inadvertent sale of products in jurisdictions where they are not approved for distribution, leading to significant expenses and management attention[176]. - The company is subject to food safety regulations, and failure to comply could result in substantial fines and penalties, adversely affecting financial condition and operations[181]. - The regulatory environment for the company's products is uncertain and evolving, which could increase development time and costs[171]. Management and Personnel - The company relies on key management personnel, and losing them could adversely affect business operations and growth[142]. - Competition for skilled employees in research and development is intense, and failure to attract and retain such talent could hinder growth[144]. - The company may face challenges in attracting and retaining qualified personnel due to increased compliance costs and regulatory requirements[148]. Financing and Capital Structure - The company expects to need to raise additional funding to achieve strategic goals and execute its business plan[92]. - The company anticipates that it may seek additional funds through public or private equity or debt financings, which could result in dilution to stockholders[96]. - The company borrowed $80 million under a new debt facility to finance the purchase price of the Creston acquisition, with the potential to access an additional $20 million if certain milestones are achieved[158]. - The Avenue Capital Loan amounts to an aggregate of $80 million, with an additional $20 million contingent on achieving certain milestones[212]. - The Loan Agreement requires maintaining a "remaining months liquidity" of at least six months[215]. - The company may issue additional securities for investments or acquisitions, which could lead to dilution for existing stockholders[241]. Acquisitions and Growth - The company acquired a food-grade white flake and soy flour manufacturing operation in Creston, Iowa, in December 2021, and a soy crushing facility in Seymour, Indiana, in September 2021[154]. - The merger with Star Peak Corp II was completed on September 29, 2021, enhancing the company's capital structure[379]. - The company raised $285,378,000 from merger and PIPE financing, net of transaction costs[374]. Internal Controls and Compliance - A material weakness in internal control over financial reporting was identified, which could lead to misstatements in financial statements[132]. - The company is implementing a remediation plan for identified material weaknesses, including hiring additional accounting personnel[138]. Future Outlook - Future profitability is dependent on obtaining adequate financing, building customer relationships, and executing business strategies[386]. - The company may not be able to fund its longer-term capital and liquidity needs based solely on current cash balances and operating cash flow[95]. - Failure to generate sufficient revenues or achieve planned gross margins may require the company to modify or abandon planned expansions[387].