METABOLIX, INC. (MBLX, Financial) filed Quarterly Report for the period ended 2009-03-31.
Metabolix Inc. is developing and commercializing environmentally sustainable and totally biodegradable Natural Plastic as a clean alternative to petroleum-based plastics. The Company is taking a systems approach from gene to end product to integrate sophisticated biotechnology with current industrial practice to produce plastics fuels and chemicals from renewable resources. In addition to its microbial fermentation platform for production of Natural Plastic Metabolix is also developing a proprietary platform technology for co-producing in non-food plant crops such as switchgrass Natural Plastic and biomass for biofuels such as ethanol and for chemical products. METABOLIX, INC. has a market cap of $175.3 million; its shares were traded at around $7.63 with and P/S ratio of 112.8.
Research and development expenses were $6,008 and $5,934 for the three months ended March 31, 2009 and 2008, respectively. The increase of $74 was primarily due to the addition of new employees and related benefit expenses offset by a reduction in pre-commercial manufacturing costs. Employee and benefit related costs were $2,879 for the three months ended March 31, 2009 compared to $2,175 for the respective period in 2008. The increase of $704 in payroll and benefits was primarily a result of hiring personnel needed to support our pre-commercial manufacturing process and microbial and plant research programs. Pre-commercial manufacturing expense decreased to $1,050 from $1,944 for the three months
Selling, general, and administrative expenses were $3,714 and $4,097 for the three months ended March 31, 2009 and 2008, respectively. The decrease of $383 was primarily due to reduced consulting expenses and a decrease in employee compensation and related benefit expense. Consulting related expenses decreased to $179 from $297 for the three months ended March 31, 2009 and 2008, respectively. The decrease of $118 was primarily due to decreased use of consultants to support administrative activities such as employee compensation reviews and accounting compliance. Payroll and benefits related expenses decreased to $2,213 from $2,233 for the three months ended March 31, 2009 and 2008, respectively. Included in payroll and benefits is stock-based compensation expense, which decreased to $639 for the three months, ended March 31, 2009 from $856 for the respective period in 2008. Stock-based compensation expense decreased mainly as a result of the completion, in May 2008, of the vesting period for options granted to our board of directors and an officer of the company.
Other income (net) was $352 and $1,179 for the three months ended March 31, 2009 and 2008, respectively. Other income (net) during both periods consisted of investment income. The decrease of $827 during the three months ended March 31, 2009 was primarily due to a market decline in investment yields during the period, our decision to convert a majority of our investment portfolio to lower risk/lower yield U.S. Federal Treasury Notes and government -backed Federal Agency Notes and a decrease in average cash and short-term investments held during the comparative three month periods.
Currently our products are in the pre-commercial stage of development, and large-scale commercial sales have not begun. In addition, we have incurred significant expenses relating to our research and development efforts. As a result, we have incurred net losses since our inception. As of March 31, 2009, we had an accumulated deficit of $139,226. Our total unrestricted cash, cash equivalents and short-term investments as of March 31, 2009 were $82,257 as compared to $91,096 at December 31, 2008. As of March 31, 2009, we had no outstanding debt.
Net cash used in operating activities increased by $4,162 to $8,626 during the three months ended March 31, 2009 from $4,464 during the three months ended March 31, 2008. Net cash used during the three months ended March 31, 2009 primarily reflects the net loss for the period partially offset by non-cash expenses, including stock-based compensation expense of $1,019, depreciation expense of $629 and the Companys 401(k) matching stock contribution of $160. The increase in cash used for operating activities during the three months ended March 31, 2009 as compared to the respective period in 2008 was primarily due to the timing of quarterly support and pre-commercial cost sharing payments we receive from ADM. We received $2,500 from ADM during the three months ended March 31, 2008 and received no payments during the three months ended March 31, 2009. We also received $798 less in funds from investment income during the three months ended March 31, 2009 than the same period of the prior year as a result of lower market yields and our lower avera
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Metabolix Inc. is developing and commercializing environmentally sustainable and totally biodegradable Natural Plastic as a clean alternative to petroleum-based plastics. The Company is taking a systems approach from gene to end product to integrate sophisticated biotechnology with current industrial practice to produce plastics fuels and chemicals from renewable resources. In addition to its microbial fermentation platform for production of Natural Plastic Metabolix is also developing a proprietary platform technology for co-producing in non-food plant crops such as switchgrass Natural Plastic and biomass for biofuels such as ethanol and for chemical products. METABOLIX, INC. has a market cap of $175.3 million; its shares were traded at around $7.63 with and P/S ratio of 112.8.
Highlight of Business Operations:
Total revenue was $261 and $404 for the three months ended March 31 2009 and 2008, respectively. During the three months ended March 31, 2009 we recognized $6 of research and development revenue compared to $68 for the respective period in 2008. Research and development revenue is derived from research and development services and delivery of sample product produced from research and development services. Grant revenue decreased during the three months ended March 31, 2009 to $230 from $301 during the three months ended March 31, 2008, primarily as a result of a decrease in billable activity related to the Strategic Environmental Research Development Program grant.Research and development expenses were $6,008 and $5,934 for the three months ended March 31, 2009 and 2008, respectively. The increase of $74 was primarily due to the addition of new employees and related benefit expenses offset by a reduction in pre-commercial manufacturing costs. Employee and benefit related costs were $2,879 for the three months ended March 31, 2009 compared to $2,175 for the respective period in 2008. The increase of $704 in payroll and benefits was primarily a result of hiring personnel needed to support our pre-commercial manufacturing process and microbial and plant research programs. Pre-commercial manufacturing expense decreased to $1,050 from $1,944 for the three months
Selling, general, and administrative expenses were $3,714 and $4,097 for the three months ended March 31, 2009 and 2008, respectively. The decrease of $383 was primarily due to reduced consulting expenses and a decrease in employee compensation and related benefit expense. Consulting related expenses decreased to $179 from $297 for the three months ended March 31, 2009 and 2008, respectively. The decrease of $118 was primarily due to decreased use of consultants to support administrative activities such as employee compensation reviews and accounting compliance. Payroll and benefits related expenses decreased to $2,213 from $2,233 for the three months ended March 31, 2009 and 2008, respectively. Included in payroll and benefits is stock-based compensation expense, which decreased to $639 for the three months, ended March 31, 2009 from $856 for the respective period in 2008. Stock-based compensation expense decreased mainly as a result of the completion, in May 2008, of the vesting period for options granted to our board of directors and an officer of the company.
Other income (net) was $352 and $1,179 for the three months ended March 31, 2009 and 2008, respectively. Other income (net) during both periods consisted of investment income. The decrease of $827 during the three months ended March 31, 2009 was primarily due to a market decline in investment yields during the period, our decision to convert a majority of our investment portfolio to lower risk/lower yield U.S. Federal Treasury Notes and government -backed Federal Agency Notes and a decrease in average cash and short-term investments held during the comparative three month periods.
Currently our products are in the pre-commercial stage of development, and large-scale commercial sales have not begun. In addition, we have incurred significant expenses relating to our research and development efforts. As a result, we have incurred net losses since our inception. As of March 31, 2009, we had an accumulated deficit of $139,226. Our total unrestricted cash, cash equivalents and short-term investments as of March 31, 2009 were $82,257 as compared to $91,096 at December 31, 2008. As of March 31, 2009, we had no outstanding debt.
Net cash used in operating activities increased by $4,162 to $8,626 during the three months ended March 31, 2009 from $4,464 during the three months ended March 31, 2008. Net cash used during the three months ended March 31, 2009 primarily reflects the net loss for the period partially offset by non-cash expenses, including stock-based compensation expense of $1,019, depreciation expense of $629 and the Companys 401(k) matching stock contribution of $160. The increase in cash used for operating activities during the three months ended March 31, 2009 as compared to the respective period in 2008 was primarily due to the timing of quarterly support and pre-commercial cost sharing payments we receive from ADM. We received $2,500 from ADM during the three months ended March 31, 2008 and received no payments during the three months ended March 31, 2009. We also received $798 less in funds from investment income during the three months ended March 31, 2009 than the same period of the prior year as a result of lower market yields and our lower avera
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