Zymergen reports preliminary financial results for the first quarter of 2021

May 24, 2021, California, EMERYVILLE-Zymergen Inc. (hereinafter referred to as “Zymergen”), one of the world’s leading biomanufacturing companies, today reported preliminary financial results for the first quarter ending March 31, 2021.

Josh Hoffman, CEO of Zymergen, said: “I am proud of our team’s continued execution throughout the organization.” “Through biological manufacturing, we are committed to working with the natural world to make better products in a better way. Change all possibilities. I firmly believe that we have the ability to implement this year’s strategy of developing and selling quality products in multiple markets. Go beyond.”

Recent highlights

• The IPO was completed in April 2021, raising a total proceeds of US$575 million
• Strengthen leadership by appointing Aindrea Campbell as chief manufacturing officer, Aindrea Campbell is an experienced industry veteran who will play an important role in Zymergen’s production capacity expansion

Financial results for the first quarter of 2021

For the three months ended March 31, 2021, total revenue was US$3.7 million, all related to R&D service agreements and collaboration revenue. This is an increase of 26% over the same period in 2020, mainly due to the impact of new contracts and acquisition contracts.

Total operating expenses in the first quarter of 2021 were US$87.1 million, an increase of 32.8% from the US$65.6 million in the first quarter of 2020. This increase is due to the costs associated with becoming a public company driven by R&D activities to develop the Hyaline production process and other activities.

The net loss for the first quarter of 2021 was $84.6 million.

As of March 31, 2021, cash and cash equivalents were $121 million. After the end of the quarter, Zymergen completed its initial public offering in April 2021, raising approximately US$530 million in net proceeds.

Webcast information

Zymergen will hold a conference call to discuss the financial results for the first quarter of 2021 after the market closes on Monday, May 24, 2021, at 1:30 pm Pacific Time / 4:30 pm Eastern Time. The webcast of the conference call can be accessed at: https://investors.zymergen.com/. After the event, the webcast will be archived and rebroadcast for at least 90 days.

About Zimmergen

Zymergen is a bio-manufacturing company that uses biology to reshape the world. Zymergen collaborates with the natural world to design, develop and manufacture breakthrough bio-based products that can bring value to customers in many industries. The unique combination of biology, chemistry, software and automation enables the company to design and create new materials.

Forward-looking statement

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are based on the company’s beliefs and assumptions and information currently available on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the company’s actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements, including but not limited to our The statement about the statement. Timing and execution of strategies for developing and selling high-quality products in multiple markets this year and beyond. The company’s filings with the U.S. Securities and Exchange Commission (SEC) provide a more comprehensive description of these and other risks, including the April 23, 2021 prospectus filed with the company under Rule 424 of the Securities Act of 1933. The prospectus, and other documents subsequently submitted by the company to the US Securities and Exchange Commission from time to time, including the company’s quarterly report on Form 10-Q as of March 31, 2021, the company has no obligation to update such statements to reflect Events or circumstances that occurred after the date of occurrence.

Investor contact
Nila Javili
investors@zymergen.com

Media contact
Mike Doolin
mdulin@zymergen.com
502-777-2029

Concise consolidated operating statement
(In thousands, except for shares and per share amount)
(Unaudited)

		For the three months ended March 31,
		2021					2020 year
income		$	3,735				$	2,954
Operating expenses:
Service revenue cost		21,130					24,576
Research and development		39,811					21,802
Sales and marketing		6,872					5,541
General and administrative		19,331					13,693
Total operating expenses		87,144					65,612
Operating loss		(83,409		)			(62,658		)
Other income (expense):
Interest income		43					377
Interest and other expenses		(1,211		)			(3,166		)
Total other expenses		(1,168		)			(2,789		)
Loss before income tax		(84,577		)			(65,447		)
(Prepare) benefit from income tax		(8		)			107
Net loss		$	(84,585	)			$	(65,340	)
The net loss per share attributable to ordinary shareholders, basically		$	(6.51	)			$	(5.77	)
Net loss per share attributable to ordinary shareholders after dilution		$	(6.51	)			$	(5.77	)
The weighted average number of shares (basic) used when calculating the net loss per common share		12,996,344					11,322,626
Calculate the weighted average number of shares (after dilution) of the net loss per common share		13,340,457					11,322,626

Concise comprehensive balance sheet
(In thousands)
(Unaudited)

		As of March 31, 2021					As of December 31, 2020 year
assets
Current assets:
Cash and cash equivalents		$	121,035				$	210,205
Accounts receivable, billed and unbilled		4,116					4,175
stock		5,683					4,969
Other current assets		8,896					9,225
Total current assets		139,730					228,574
Property and equipment net		55,462					48,718
bona fide		11,604					11,604
Net intangible assets		4,443					4,790
Other assets		15,993					11,235
Total assets		$	227,232				$	304,921
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other liabilities		$	37,520				$	38,985
Net short-term debt		–					79,331
Other current liabilities		2,790					3,142
Total current liabilities		40,310					121,458
Net long-term debt		79,615					–
Warrant liabilities		11,952					14,231
Other long-term liabilities		15,490					12,170
Total liabilities		147,367					147,859
Convertible preferred stock		900,798					900,798
Total shareholder deficit		(820,933		)			(743,736		)
Total liabilities, redeemable convertible preferred shares and shareholder deficit		$	227,232				$	304,921