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

PASADENA, Texas , November 10, 2011 (press release) – Columbus on Schedule for Production in Second Half of 2012

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.

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.

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 ) -  

Net loss per share of Class B common stock, basic and diluted

  $ (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  

© 2017 Business Wire, Inc., All rights reserved.