- The Sarnia plant achieved mechanical completion in June 2015
- The final cost of the Sarnia plant is projected to be $141.5 million or $4.0 million above the high end of the estimate communicated at the onset of the project ($125 million +/- 10%)
- The company announced commercial collaborations in two targeted industry segments; with Bayer MaterialScience for textiles and with Flokser and DuPont Tate & Lyle for synthetic leather
- BioAmber raised $35.1 million in gross proceeds through a public offering of common stock
- Ongoing commissioning and start up activities progressed well during the quarter, with functioning utilities throughout the plant and sterility testing successfully completed
- An opening ceremony on August 6th 2015 is scheduled to include Ontario’s Deputy Premier, other elected officials and representatives of government agencies that supported Sarnia funding
- The plant remains on schedule to be in commercial operation in Q3 2015
Other Business Highlights
- Bayer MaterialScience, one of the world’s largest polymer companies, began commercializing a new range of polyurethanes for textiles that incorporated bio-succinic acid supplied by BioAmber
- Flokser, a global leader in leather and suede fabrics, launched an innovative synthetic leather fabric using bio-based materials supplied by DuPont Tate & Lyle BioProducts and BioAmber.
- Net cash burn for operating expenses continued to be below $2.0 million per month in Q2 2015, after excluding the one-time activities related to Sarnia commissioning
- Cash on hand was $48.7 million as of June 30,2015
- 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
- The Company achieved its Sarnia construction milestones as validated by an independent engineer and as a result received CDN$20 million in loan proceeds from a consortium of lenders including Export Development Canada, Farm Credit Corporation and Comerica Bank
Second Quarter 2015 Financial Results
Revenues for the quarter ended June 30, 2015 decreased to $342,000 from $415,000 for the same period in 2014. The decrease was primarily due to a reduction in average selling price partially offset by an increase in volume sold.
Gross loss in the quarter ended June 30, 2015 decreased to $410,000 from $1.8 million for the same period in 2014. This was driven primarily by a $1.3 million reduction in the inventory reserves taken this quarter compared to the same period last year.
Research and development expenses for the quarter ended June 30, 2015 increased to $5.0 million from $4.3 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. This was partially offset by stock-option compensation expenses related to stock option cancellations in the second quarter of 2014, which did not occur in 2015.
Sales and marketing expenses for the quarter ended June 30, 2015 decreased to $1.1 million from $1.7 million for the same period in 2014. This was driven by stock-option compensation expenses related to stock option cancellations in the second quarter of 2014, which did not occur in 2015.
General and administrative expenses for the quarter ended June 30, 2015 remained stable at $3.0 million compared to $2.9 million for the same period last year.
Other operating expenses increased $1.8 million for the quarter ended June 30, 2015 as compared to the same period in 2014. The Company disclosed in May 2015 that it had terminated its license agreement with DuPont following its decision to pursue BDO commercialization with technology it licensed from JM Davey. As a result, the Company recorded a non-cash write down of the intangible asset in the amount of $1.1 million. In addition the Company had $200,000 foreign exchange loss for the quarter ended June 30, 2015 as compared to a $400,000 gain for the same period in 2014. Financial charges were stable at $3.8 million compared to $3.9 million for the same period last year.
The Company recorded a net loss attributable to BioAmber Inc. shareholders of $14.0 million, or a loss of $0.58 per share for the quarter ended June 30, 2015, compared to a net loss of $14.0 million, or a loss of $0.75 per share, for the same period in 2014.
The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the quarter ended June 30, 2015 was $9.5 million, or a loss of $0.39 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $7.5 million, or a loss of $0.40 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 quarter ended June 30, 2015, the impact of the change in fair value of the warrants issued in connection with the IPO, the non-cash inventory reserve expense and the intangible asset impairment related to the termination of a technology license. The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2014, the impact of the change in fair value of the warrants issued in connection with the IPO, the non-cash inventory reserve expense and the non-cash expense resulting from the cancellation of certain employee stock options. 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.
Webcast and Conference Call Information
BioAmber will discuss these results on a live audio webcast, which will be available on the Internet to investors, members of the news media and the general public at 4:30 p.m. Eastern Time on August 4, 2015. To access the webcast of the conference call, go to the company’s website, www.bio-amber.com.
Audio of the teleconference is also available by dialing:
North American callers: +1 (888) 390-0546
International callers: (416) 764-8688
Teleconference replays will be available through August 11, 2015:
Passcode: 431208 #
A replay of the webcast will also be available approximately two hours after the conclusion of the live webcast on BioAmber’s website, for a period of 30 days.
BioAmber (NYSE: BIOA) is a renewable materials company. Its innovative technology platform combines biotechnology and catalysis to convert renewable feedstock into building block materials that are used in a wide variety of everyday products including plastics, paints, textiles, 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 of the Sarnia facility, 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 Flokser. 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.
BioAmber Investor Contact
Executive Vice President
514-844-8000 Ext. 120
See the attached .PDF for the entire version of the press release, with financial statements.