EVOLUTIONARY GENOMICS, INC. The following discussion and analysis should be read in conjunction with the Audited Financial Statements and related notes included elsewhere in this 10-K. The following discussion includes certain forward-looking statements. For a discussion of important factors which could cause actual results to differ materially from the results referred to in the forward-looking statements, see "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements".
Recent Highlights of
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During 2013,
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During 2019, we identified our FusR1 gene in bananas for disease resistance and filed a patent application.
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During 2020, WCIC completed a project for the Company to transform soybean plants using our EG261 and EG19 genes and to develop resulting plants through generation T2 seeds.
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During 2020, we entered into the DCA with Dole and a Research Agreement with WCIC for the development of the FusR1 gene and banana plants that are resistant to Panama Disease.
Consolidated Results of Operations:
Twelve Months Ended December 31,
2020 2019
Percent of Percent of
Amount Revenue Amount Revenue
Grant revenue $ 12,500 100.0 % $ 122,686 100.0 %
Research and development 1,793,145 14345.2 % 472,613 385.2 %
Salaries and benefits 495,518 3964.1 % 205,828 167.8 %
General and administrative 603,632 4829.1 % 219,070 178.6 %
Total operating expenses 2,892,295 23138.4 % 897,511 731.6 %
Operating loss (2,879,795 ) -23038.4 % (774,825 ) -631.6 %
Other income and (expenses) 180,559 1444.5 % 13,592 11.1 %
Income Taxes 987,353 7898.8 % (31,907 ) -26.0 %
Net loss $ (1,711,883 ) -13695.1 % $ (793,140 ) -646.5 %
Preferred stock dividend (285,567 ) -2284.5 % (269,379 ) -219.6 %
Net loss attributable to
common stockholders $ (1,997,450 ) -15979.6 % $ (1,062,519 ) -866.0 %
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Grant Revenue
Grant revenue decreased
Operating Expenses
Operating expenses increased
Research and Development
Research and development increased
Salaries and Benefits
Salaries and benefits increased
General and Administrative
General and administrative expenses increased
Other Income and (Expenses)
Total other income and (expenses) increased
Income Taxes
Income tax benefit increased
Net Loss
Net loss increased
Financial Condition
The Company's working capital increased
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Liquidity and Capital Resources
The Company has historically financed operations through cash flows from
operations and equity transactions. Net cash used in operating activities was
As of
To address these factors, management believes that it will secure additional funding to meet prospective cash requirements. Management believes the Company's existing cash balances along with funding from our agreement with Dole, prospective funding from marketing additional genes, and additional contributions from our largest shareholder will provide the necessary liquidity to meet our obligations as they come due over the next year. We expect that the funding from these sources will be more than enough to cover our obligations for the next twelve months. However, if the funding does not arrive, the Company may not be able to meet its obligations as they become due.
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements that have a material current effect, or that are reasonably likely to have a material future effect, on its financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources.
Contractual Obligations
The Company leases its operating facility on a month-to-month basis, with
monthly rental installments of
Critical Accounting Policies
For a review of our critical accounting policies, please refer to our audited financial statements.
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