Financial Performance - Total revenue for 2022 was $157,000, a significant decrease from $25,987,000 in 2021, representing a decline of approximately 99.4%[267]. - The company recorded stock-based compensation expenses totaling $3,998,000 in 2022, up from $2,090,000 in 2021, indicating an increase of about 91.5%[267]. - Interest expense decreased to $(75,000) in 2022 from $(1,431,000) in 2021, reflecting a reduction of approximately 94.8%[268]. - The company recognized a gain of $1.5 million from the forgiveness of a PPP loan in 2021, which positively impacted its financial position[268]. - As of December 31, 2022, Calyxt had $3.4 million in cash and cash equivalents, with a net loss of $16.9 million for the fiscal year 2022[161]. - Calyxt used $19.4 million in cash for operating activities during the fiscal year ended December 31, 2022[161]. Shareholder and Stock Information - As of June 30, 2022, the aggregate market value of shares of common stock held by non-affiliates was $5,446,012 based on a closing sale price of $0.24[135]. - The number of outstanding shares of common stock on March 1, 2023, was 49,376,160 shares[136]. - As of March 1, 2023, Cellectis holds 48.5% of the outstanding Common Stock, maintaining control over significant operational decisions[249]. - The estimated fair value of Common Warrants as of December 31, 2022, is $0.04, with an expected volatility of 85.0%[261]. - As of December 31, 2022, the company had 7,760,000 common warrants outstanding with an average exercise price of $1.41[280]. Operational Challenges - Calyxt has incurred significant expenses related to the proposed Transactions and may be obligated to pay a termination fee of up to $1.0 million if the merger is not completed[124]. - If the Transactions are not consummated, Calyxt's board may consider liquidation, which would likely result in minimal resources available for distribution to stockholders[125]. - Calyxt has implemented cost reduction measures, including headcount reductions, which may adversely affect its operations and ability to complete the merger[130]. - As of January 31, 2023, Calyxt had 28 full-time employees, with ten in administrative, legal, and finance functions, highlighting potential operational risks due to reduced personnel[132]. - The company faces challenges in securing additional funding and may struggle to find a new strategic partner if the current merger does not proceed[127]. - Calyxt's cost-focused measures may lead to weaknesses in infrastructure and operations, impacting customer acquisition and business development efforts[134]. - The company is focused on three key customer projects, none of which are expected to generate material revenue in the near term[166]. - The company has streamlined its operations to preserve cash sufficient for the merger closing[174]. - Calyxt's ability to continue as a going concern depends on obtaining additional financing if the merger is not completed[164]. Strategic Initiatives - Calyxt's management has focused on scaling production of its Plant Cell Matrix and licensing efforts, indicating a strategic pivot towards core technologies[131]. - The company is pursuing a merger with Cibus, which is expected to close in the second quarter of 2023, subject to various approvals[152]. - If the merger is completed, Cibus equity holders will own a substantial majority of the combined company's common stock, significantly diluting Calyxt's current stockholders[155]. - The Company’s strategy includes licensing its technology, but delays or failures by licensees could harm its financial results[202]. Intellectual Property and Regulatory Risks - The Company may face significant risks related to intellectual property, including inadequate protection of its patents and potential challenges in enforcement[206]. - The Company faces substantial costs and risks in enforcing its intellectual property rights, which may not yield significant commercial advantages[211]. - The uncertainty surrounding patent positions in biotechnology could adversely affect the Company's ability to protect its innovations[212]. - Competitors may exploit the Company's technologies in jurisdictions lacking strong patent protections, potentially undermining its market position[213]. - Changes in patent laws could limit the Company's ability to secure adequate intellectual property protection, impacting its competitive edge[214]. - The Company may face challenges regarding the ownership of intellectual property developed in collaboration with third parties, which could restrict its market potential[215]. - The U.S. government holds certain rights to the Company's government-funded technologies, which could adversely affect its business if exercised[216]. Market and Competitive Environment - The synthetic biology industry is highly competitive, with many competitors having greater resources, which may hinder the Company's market acceptance[185]. - The Company’s ability to attract customers is hampered by capital resource constraints and cost reduction efforts[187]. - The Company’s success in product development is dependent on customer collaborations, which are influenced by its market reputation and technical capabilities[192]. - Market skepticism regarding the viability of the PlantSpring technology platform could adversely affect the Company's ability to raise capital and the value of its common stock[181]. Compliance and Regulatory Environment - The regulatory environment for genetically modified products is uncertain, which could hinder the Company's ability to market its technologies effectively[229]. - The Company is exploring hemp product candidates, but increasing regulations could lead to higher compliance costs[231]. - The Company may face significant challenges in monitoring and controlling the distribution of its products, leading to potential regulatory issues[236]. - The Company is subject to numerous environmental, health, and safety laws, which may incur substantial compliance costs and liabilities[238]. - The regulatory environment in the United States is uncertain and evolving, potentially impacting customer willingness to utilize the Company's products[239]. - The Company anticipates that its customers will bear the costs associated with regulatory activities, which may significantly increase due to changes in regulations[240]. - If the Company fails to comply with Nasdaq's listing requirements, it may face delisting, adversely affecting its financial condition and stock liquidity[255]. Cost Management - Calyxt's management has implemented cost reduction measures, including headcount reductions and renegotiation of service agreements, to manage liquidity[163]. - The Company has suspended non-core activities, including the development of artificial intelligence and machine learning capabilities, to preserve cash[186]. - The Company expects to incur substantial costs in correcting any failures to meet customer specifications, which could adversely affect its business[241]. - Employee benefit plan expenses for the year ended December 31, 2022, were $259,000, a decrease from $274,000 in 2021[266].
Cibus(CBUS) - 2022 Q4 - Annual Report