KiOR's Q3 net loss widens to US$14.8M, from US$10.6M a year ago; company did not posted revenue in Q3 as it remained focused on building its Columbus, Mississippi, plant; R&D expenses up to US$8.3M
Tracy McDonald
PASADENA, Texas
,
November 10, 2011
(press release)
–
Columbus on Schedule for Production in Second Half of 2012 KiOR did not recognize revenue during the third quarter of 2011, as its activities remained focused on construction of its first commercial facility in Columbus, Mississippi and research and development (R&D) designed to improve production yields. R&D expenses were $8.3 million in the third quarter of 2011, an increase from $6.5 million for the same period in 2010, due primarily to the expansion of R&D staff and increased testing activities. General and administrative expenses for the third quarter of 2011 increased to $5.9 million from $2.8 million for the same period in 2010, primarily due to an increase in non-cash stock-based compensation expense of approximately $1.0 million, with the remaining increase the result of increased headcount and compliance related expenses. Depreciation and amortization expenses in the third quarter of 2011 increased to $0.6 million, from $0.5 million for the same period in 2010. Capital investment during the quarter was $53.4 million, substantially all of which related to KiOR's Columbus facility. “We have completed more than 40% of the construction of our initial-scale production facility in Columbus, Mississippi, with engineering and procurement work essentially complete,” said Fred Cannon, KiOR's President and Chief Executive Officer. "The Columbus plant is on track and, as previously communicated, we expect Columbus to commence production during the second half of 2012. We are focused on completing the construction and commissioning of our Columbus facility, investing in R&D and laying the groundwork for our next commercial production facility in Newton, Mississippi, including securing necessary financing,” concluded Cannon. As of September 30, 2011, KiOR had cash and cash equivalents of $152.2 million. This balance includes $11.2 million net proceeds received by the Company in July as a result of the issuance of 800,000 shares of Class A Common Stock pursuant to the partial exercise of the underwriters' over-allotment option in the initial public offering. About KiOR KiOR is a development stage next-generation renewable fuels company that has developed a unique two-step proprietary technology platform that converts abundant and sustainable non-food biomass into gasoline, diesel and fuel oil blendstocks that can be transported using the existing fuels distribution system for use in vehicles on the road today. KiOR strives to help ease dependence on foreign oil, reduce lifecycle greenhouse gas emissions and create high-quality jobs and economic benefit across rural communities. KiOR, Inc. Net loss per share of Class B common stock, basic and diluted
KiOR continues to expand research and development capabilities
KiOR, Inc. (NASDAQ: KiOR), a next-generation renewable fuels company, today announced financial results for the third quarter ended September 30, 2011. For the third quarter of 2011, KiOR reported a net loss of $14.8 million, or $0.15 per share, compared to $10.6 million, or $0.13 per share, for the third quarter of 2010. KiOR's third quarter 2011 loss includes $1.6 million of non-cash stock-based compensation expense.
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Operating expenses:
Research and development expenses
$
(8,269
)
$
(6,467
)
$
(23,251
)
$
(15,088
)
General and administrative expenses
(5,905
)
(2,821
)
(17,267
)
(6,169
)
Depreciation and amortization expenses
(598
)
(458
)
(1,684
)
(1,143
)
Loss from operations
(14,772
)
(9,746
)
(42,202
)
(22,400
)
Other income (expense), net:
Interest income
2
20
2
22
Beneficial conversion feature expense related to convertible promissory note
—
—
—
(10,000
)
Interest expense, net of amounts capitalized
—
(732
)
—
(1,454
)
Foreign currency gain (loss)
—
—
—
24
Loss from change in fair value of warrant liability
—
(159
)
(6,914
)
(2,449
)
Other expense, net
2
(871
)
(6,912
)
(13,857
)
Loss before income taxes
(14,770
)
(10,617
)
(49,114
)
(36,257
)
Income tax expense - current
—
—
—
—
Net loss
$
(14,770
)
$
(10,617
)
$
(49,114
)
$
(36,257
)
Deemed dividend related to the beneficial conversion feature of Series C convertible preferred stock
—
—
(19,669
)
—
Net loss attributable to stockholders
$
(14,770
)
$
(10,617
)
$
(68,783
)
$
(36,257
)
Net loss per share of Class A common stock, basic and diluted
$
(0.15
)
$
-
$
$
(0.73
)
-
$
(0.15
)
$
(0.13
)
$
$
(0.73
)
(0.51
)
Weighted-average Class A and B common shares outstanding, basic and diluted
101,724
15,580
46,096
15,315
KiOR, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September 30,
December 31,
2011
2010
Assets
Current assets:
Cash and cash equivalents
$
152,223
$
51,350
Restricted cash
100
100
Prepaid expenses and other current assets
1165
85
Total current assets
153,488
51,535
Property, plant and equipment, net
125,502
34,880
Intangible assets, net
2,281
2,426
Other assets
300
—
Total assets
$
281,571
$
88,841
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Current portion of long-term debt, net of discount
$
2,617
$
4,480
Accounts payable
3,408
3,207
Accrued liabilities
4,358
671
Convertible preferred stock warrants liability
—
3,185
Total current liabilities
10,383
11,543
Long-term debt, less current portion, net of discount
29,082
5,037
Total liabilities
39,465
16,580
Total convertible preferred stock
-
134,384
Total stockholders’ equity (deficit)
242,106
(62,123
)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)
$
281,571
$
88,841
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