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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

-OR-
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-34885

AMYRIS, INC.
(Exact name of registrant as specified in its charter) 
Delaware
55-0856151
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
Amyris, Inc.
5885 Hollis Street, Suite 100
Emeryville, CA 94608
(510) 450-0761
(Address and telephone number of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par value per shareAMRSThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No ☒

Shares outstanding of the Registrant's common stock:
Class
Outstanding as of May 3, 2022
Common Stock, $0.0001 par value per share
319,714,436




AMYRIS, INC.
TABLE OF CONTENTS
Page
PART I
Item 1.
Item 2.
Item 3.
Item 4.
PART II
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.







2



PART I
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
AMYRIS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except shares and per share amounts)March 31,
2022
December 31, 2021
Assets
Current assets:
Cash and cash equivalents$287,886 $483,462 
Restricted cash174 199 
Accounts receivable, net of allowance of $965 and $945, respectively
37,400 37,074 
Accounts receivable - related party, net of allowance of $0 and $0, respectively
7,279 5,667 
Contract assets3,883 4,227 
Contract assets - related party8,816  
Inventories82,296 75,070 
Prepaid expenses and other current assets43,202 33,513 
Total current assets470,936 639,212 
Property, plant and equipment, net125,264 72,835 
Restricted cash, noncurrent4,651 4,651 
Recoverable taxes from Brazilian government entities22,572 16,740 
Right-of-use assets under financing leases, net457 7,342 
Right-of-use assets under operating leases, net58,937 32,428 
Goodwill136,005 131,259 
Intangible assets, net56,094 39,265 
Other assets23,534 10,566 
Total assets$898,450 $954,298 
Liabilities, Mezzanine Equity and Stockholders' (Deficit) Equity
Current liabilities:
Accounts payable$88,292 $79,666 
Accrued and other current liabilities80,554 71,457 
Financing lease liabilities12 140 
Operating lease liabilities8,120 7,689 
Contract liabilities1,554 2,530 
Debt, current portion1,055 896 
Related party debt, current portion (includes instrument measured at fair value of $86,630 and $107,427, respectively)
86,630 107,427 
Total current liabilities266,217 269,805 
Long-term debt, net of current portion672,005 309,061 
Financing lease liabilities, net of current portion58 61 
Operating lease liabilities, net of current portion37,059 19,829 
Derivative liabilities5,247 7,062 
Acquisition-related contingent consideration (Note 3 and Note 7)40,251 64,762 
Other noncurrent liabilities3,490 4,510 
Total liabilities1,024,327 675,090 
Commitments and contingencies
Mezzanine equity:
Contingently redeemable common stock5,000 5,000 
Contingently redeemable noncontrolling interest31,437 28,520 
Stockholders’ (deficit) equity:
Preferred stock - $0.0001 par value, 5,000,000 shares authorized as of March 31, 2022 and December 31, 2021; zero shares issued and outstanding as of March 31, 2022 and December 31, 2021
  
Common stock - $0.0001 par value, 450,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 317,975,269 and 308,899,906 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
32 31 
Additional paid-in capital2,337,634 2,656,838 
Accumulated other comprehensive loss(37,483)(52,769)
Accumulated deficit(2,458,973)(2,357,661)
Total Amyris, Inc. stockholders’ (deficit) equity(158,790)246,439 
Noncontrolling interest(3,524)(751)
Total stockholders' (deficit) equity(162,314)245,688 
Total liabilities, mezzanine equity and stockholders' (deficit) equity$898,450 $954,298 

See the accompanying notes to the unaudited condensed consolidated financial statements.






3



AMYRIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
(In thousands, except shares and per share amounts)20222021
Revenue:
Renewable products (includes related party revenue of $4,412 and $1,662, respectively)
$43,465 $28,179 
Licenses and royalties (includes related party revenue of $8,816 and $143,612, respectively)
9,313 143,800 
Collaborations, grants and other (includes related party revenue of $2,000 and $2,000, respectively)
4,931 4,880 
Total revenue (includes related party revenue of $15,228 and $147,274, respectively)
57,709 176,859 
Cost and operating expenses:
Cost of products sold48,995 22,659 
Research and development26,358 23,332 
Sales, general and administrative106,916 37,922 
Total cost and operating expenses182,269 83,913 
(Loss) income from operations(124,560)92,946 
Other income (expense):
Interest expense(5,263)(5,813)
Gain (loss) from change in fair value of derivative instruments1,815 (22,745)
Gain (loss) from change in fair value of debt20,796 (326,785)
Loss upon extinguishment of debt (27,313)
Other expense, net(3,052)(678)
Total other income (expense), net14,296 (383,334)
Loss before income taxes and loss from investment in affiliate(110,264)(290,388)
Benefit from (provision for) income taxes820 (55)
(Loss) income from investment in affiliate(789)392 
Net loss(110,233)(290,051)
Loss (income) attributable to noncontrolling interest2,928 (1,200)
Net loss attributable to Amyris, Inc.(107,305)(291,251)
Less: loss allocated to participating securities 2,099 
Net loss attributable to Amyris, Inc. common stockholders, basic$(107,305)$(289,152)
Net loss per share attributable to common stockholders, basic$(0.34)$(1.08)
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic312,896,452 267,733,555 
Net loss per share attributable to common stockholders, diluted$(0.37)$(1.08)
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, diluted323,711,682 267,733,555 

See the accompanying notes to the unaudited condensed consolidated financial statements.






4




AMYRIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)

Three Months Ended March 31,
(In thousands)20222021
Comprehensive loss:
Net loss$(110,233)$(290,051)
Foreign currency translation adjustment15,286 (2,038)
Total comprehensive loss(94,947)(292,089)
Loss (income) attributable to noncontrolling interest2,928 (1,200)
Comprehensive loss attributable to Amyris, Inc.$(92,019)$(293,289)

See the accompanying notes to the unaudited condensed consolidated financial statements.






5



AMYRIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
AND MEZZANINE EQUITY
(Unaudited)

Preferred StockCommon Stock
(In thousands, except number of shares)SharesAmountSharesAmountAdditional Paid-in CapitalAccumulated Other Comprehensive LossAccumulated DeficitNoncontrolling InterestTotal Stockholders' DeficitMezzanine Equity - Contingently Redeemable Common Stock Mezzanine Equity - Contingently Redeemable Noncontrolling Interest
Balances at December 31, 2021 $ 308,899,906 $31 $2,656,838 $(52,769)$(2,357,661)$(751)$245,688 $5,000 $28,520 
Cumulative effect of change in accounting principle for ASU 2020-06 (see "Significant Accounting Policies" in Note 1)— — — — (367,974)— 5,993 — (361,981)— — 
Acquisitions— — — — — — — 155 155 — 2,917 
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock— — 528,704 — (3)— — — (3)— — 
Issuance of common stock as purchase consideration in business combinations— — 7,121,806 1 33,093 — — — 33,094 — — 
Issuance of common stock upon exercise of stock options— — 33,250 — 98 — — — 98 — — 
Issuance of common stock upon exercise of warrants— — 1,391,603 — 3,994 — — — 3,994 — — 
Stock-based compensation— — — — 11,588 — — — 11,588 — — 
Foreign currency translation adjustment— — — — — 15,286 — — 15,286 — — 
Net loss attributable to Amyris, Inc.— — — — — — (107,305)(2,928)(110,233)— — 
Balances as of March 31, 2022 $ $317,975,269 $32 $2,337,634 $(37,483)$(2,458,973)$(3,524)$(162,314)$5,000 $31,437 
Balances at December 31, 20208,280 $ 244,951,446 $24 1,957,224 $(47,375)$(2,086,692)$4,774 $(172,045)$5,000 $ 
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock— — 496,341 — (2)— — — (2)— — 
Issuance of common stock upon conversion of debt principal, net of 2,600,000 pre-delivery shares returned to Amyris
— — 5,827,164 1 110,574 — — — 110,575 — — 
Issuance of common stock upon exercise of stock options— — 377,542 — 1,920 — — — 1,920 — — 
Issuance of common stock upon exercise of warrants— — 15,557,480 2 32,217 — — — 32,219 — — 
Issuance of common stock upon exercise of warrants - related party— — 6,056,944 — — — — — — — — 
Stock-based compensation— — — — 4,281 — — — 4,281 — — 
Foreign currency translation adjustment— — — — (2,038)— — (2,038)— — 
Net loss attributable to Amyris, Inc.— — — — — $(291,251)$1,200 (290,051)— $— 
Balances at March 31, 20218,280 $ $273,266,917 $27 $2,106,214 $(49,413)$(2,377,943)$5,974 $(315,141)$5,000 $ 

See the accompanying notes to the unaudited condensed consolidated financial statements.






6



AMYRIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
(In thousands)20222021
Operating activities
Net loss$(110,233)$(290,051)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of debt discount962 713 
Amortization of intangible assets892  
Amortization of right-of-use assets under operating leases754 750 
Depreciation and amortization2,400 2,114 
(Gain) loss from change in fair value of debt(20,796)326,785 
(Gain) loss from change in fair value of derivative instruments(1,815)22,745 
Loss (gain) from investment in affiliate789 (392)
Loss on foreign currency exchange rates1,519 408 
Loss upon extinguishment of debt 27,313 
Stock-based compensation11,588 4,281 
Changes in assets and liabilities:
Accounts receivable(1,554)17,275 
Contract assets(8,472)(3,208)
Inventories(5,001)(5,686)
Deferred cost of products sold - related party 5,129 
Prepaid expenses and other assets(23,881)(8,207)
Accounts payable5,007 4,154 
Accrued and other liabilities6,026 4,011 
Lease liabilities(9,658)(1,185)
Contract liabilities(969)1,702 
Net cash provided by (used in) operating activities(152,442)108,651 
Investing activities
Purchases of property, plant and equipment(33,751)(2,493)
Acquisitions, net of cash acquired(13,535) 
Net cash used in investing activities(47,286)(2,493)
Financing activities
Issuance costs incurred in connection with debt modification (2,500)
Payment of minimum employee taxes withheld upon net share settlement of restricted stock units(3)(2)
Principal payments on debt (23,196)
Principal payments on financing leases(131)(912)
Proceeds from exercises of common stock options98 1,920 
Proceeds from exercises of warrants3,994 32,219 
Net cash provided by financing activities3,958 7,529 
Effect of exchange rate changes on cash, cash equivalents and restricted cash169 (44)
Net increase in cash, cash equivalents and restricted cash(195,601)113,643 
Cash, cash equivalents and restricted cash at beginning of period488,312 31,422 
Cash, cash equivalents and restricted cash at end of the period$292,711 $145,065 
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents$287,886 $143,821 
Restricted cash, current174 283 
Restricted cash, noncurrent4,651 961 
Total cash, cash equivalents and restricted cash$292,711 $145,065 

See the accompanying notes to the unaudited condensed consolidated financial statements.






7



AMYRIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, Continued
(Unaudited)
Three Months Ended March 31,
(In thousands)20222021
Supplemental disclosures of cash flow information:
Cash paid for interest$52 $3,275 
Supplemental disclosures of non-cash investing and financing activities:
Acquisition of intangible assets in connection with business combinations$18,417 $ 
Acquisition of right-of-use assets under operating leases$27,165 $ 
Common stock and warrants issued in exchange for debt principal and accrued interest reduction$ $110,575 
Common stock issued as purchase consideration in business combinations$33,094 $ 
Derecognition of derivative liabilities to equity upon extinguishment of debt$ $59 
Goodwill recorded in connection with business combinations$7,666 $ 
Noncontrolling interest recorded in connection with business combinations$3,072 $ 
Unpaid property, plant and equipment balances in accounts payable and accrued liabilities at end of period$4,995 $1,121 

See the accompanying notes to the unaudited condensed consolidated financial statements.






8



AMYRIS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1. Basis of Presentation and Summary of Significant Accounting Policies

Amyris, Inc. and subsidiaries (collectively, Amyris or the Company) is a biotechnology company delivering sustainable solutions for people and the planet. The Company creates, manufactures and commercializes consumer products and ingredients. Currently, the largest driver of the Company's revenue is derived from marketing and selling Clean Beauty, Personal Care and Health & Wellness consumer products through direct-to-consumer ecommerce platforms and a growing network of retail partners. The Company also sells sustainable ingredients to sector leaders that serve Flavor & Fragrance (F&F), Nutrition, Food & Beverage, and Clean Beauty & Personal Care end markets. The Company's ingredients and consumer products are powered by the Company's fermentation-based Lab-to-MarketTM technology platform, which leverages state-of-the-art machine learning, robotics and artificial intelligence, enabling the Company to rapidly bring new innovation to market.

The accompanying unaudited condensed consolidated financial statements of Amyris, Inc. should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the 2021 Form 10-K), from which the condensed consolidated balance sheet as of December 31, 2021 is derived. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the accompanying interim condensed consolidated financial statements do not include all the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year.

Significant Accounting Policies

Note 1, "Basis of Presentation and Summary of Significant Accounting Policies", to the audited consolidated financial statements in the 2021 Form 10-K includes a discussion of the significant accounting policies and estimates used in the preparation of the Company’s condensed consolidated financial statements. There have been no material changes to the Company's significant accounting policies and estimates during the three months ended March 31, 2022.

Use of Estimates and Judgements

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements. Significant estimates and judgements used in these consolidated financial statements are discussed in the relevant accounting policies below or specifically discussed in the Notes to Consolidated Financial Statements where such transactions are disclosed.






9




Accounting Update Recently Adopted

In the three months ended March 31, 2022, the Company adopted this accounting update:

Convertible Debt, and Derivatives and Hedging. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to improve financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. ASU 2020-06 became effective for the Company in the first quarter of 2022. Adoption of this standard on January 1, 2022 in connection with the 2026 Convertible Senior Notes (see Note 4, "Debt"), decreased additional paid-in capital by $368.0 million, increased debt by the same amount and decreased accumulated deficit by $6.0 million for debt discount accretion expense that was recorded prior to adoption.

Accounting Standards or Updates Not Yet Adopted

Credit Losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. ASU 2016-13 also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity's portfolio. Because the Company met the SEC definition of a smaller reporting company when ASU 2016-13 was issued, this new accounting standard will be effective for the Company in the first quarter of 2023. The Company is currently evaluating the impact this standard will have on its consolidated financial statements and related disclosures.

Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. This standard will be effective for the Company in the first quarter of 2023 and will be applied prospectively to business combinations occurring on or after the effective date of the standard. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the guidance and the impact on its consolidated financial statements and related disclosures.






10




2. Balance Sheet Details

Allowance for Doubtful Accounts
(In thousands)Balance at Beginning of PeriodProvisionsWrite-offs, NetBalance at End of Period
Three months ended March 31, 2022$945 $20 $ $965 
Three months ended March 31, 2021$137 $17 $ $154 

Inventories
(In thousands)March 31, 2022December 31, 2021
Raw materials$27,764 $25,733 
Work-in-process6,949 6,941 
Finished goods47,583 42,396 
Inventories$82,296 $75,070 

Prepaid Expenses and Other Current Assets
(In thousands)March 31, 2022December 31, 2021
Prepayments, advances and deposits$34,444 $25,140 
Non-inventory production supplies3,762 3,956 
Recoverable taxes from Brazilian government entities1,298 1,188 
Other3,698 3,229 
Total prepaid expenses and other current assets$43,202 $33,513 

Property, Plant and Equipment, Net
(In thousands)March 31, 2022December 31, 2021
Manufacturing facilities and equipment$69,126 $51,855 
Leasehold improvements48,483 45,780 
Computers and software9,481 9,174 
Furniture and office equipment, vehicles and land3,789 3,688 
Construction in progress89,656 48,032 
220,535 158,529 
Less: accumulated depreciation and amortization(95,271)(85,694)
Property, plant and equipment, net$125,264 $72,835 

During the three months ended March 31, 2022 and 2021, depreciation and amortization expense, including amortization of right-of-use assets under financing leases, was as follows:
Three Months Ended March 31,
(In thousands)20222021
Depreciation and amortization expense$2,400 $2,114 

Goodwill

The changes in the carrying amount of goodwill were as follows:
(In thousands)
March 31, 2022
Balance at beginning of year
$131,259 
Acquisitions
7,666 
Effect of currency translation adjustment(2,920)
Ending balance
$136,005 






11




Additions to goodwill during the three months ended March 31, 2022 related to acquisitions completed during the period. See Note 7, "Acquisitions".

Intangible Assets, Net

During the three months ended March 31, 2022, the Company recorded $18.4 million of intangible assets which related to customer relationships, trademarks and trade names, branded products, and software as a result of the acquisitions completed during the period. See Note 7, "Acquisitions".

The following table summarizes the components of intangible assets (in thousands, except estimated useful life):
March 31, 2022December 31, 2021
Amounts in thousandsEstimated Useful Life
(in Years)
GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Trademarks and trade names, and branded products10$25,704 $(953)$24,751 $11,484 $(496)$10,988 
Customer relationships
5 - 16
8,638 (474)8,164 8,197 (267)7,930 
Developed technology and software applications
5 - 12
23,003 (400)22,603 19,962 (200)19,762 
Patents17600 (24)576 600 (15)585 
Total intangible assets$57,945 $(1,851)$56,094 $40,243 $(978)$39,265 

Amortization expense for intangible assets was $0.9 million for the three months ended March 31, 2022 and is included in general and administrative expenses.

Total future amortization of intangible assets as of March 31, 2022 is as follows (in thousands):
Amounts in thousands
2022 (remainder)
$3,188 
2023
5,875 
2024
7,027 
2025
7,177 
20266,933 
Thereafter
25,894 
Total future amortization
$56,094 

Leases

Operating Leases

The Company has operating leases primarily for administrative offices, laboratory equipment and other facilities. The operating leases have remaining terms that range from 1 to 18 years, and often include one or more options to renew. These renewal terms can extend the lease term for an additional 1 to 5 years and are included in the lease term when it is reasonably certain that the Company will exercise the option. The operating leases are classified as ROU assets under operating leases on the Company's condensed consolidated balance sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make operating lease payments is included in "Lease liabilities" and "Lease liabilities, net of current portion" on the Company's condensed consolidated balance sheets. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company had $58.9 million and $32.4 million of right-of-use assets as of March 31, 2022 and December 31, 2021, respectively. Operating lease liabilities were $45.2 million and $27.5 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022 and 2021, respectively, the Company recorded $3.7 million and $1.8 million of operating lease amortization that was charged to expense, of which $0.3 million and $0.2 million was recorded to cost of products sold.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate and marketing which may contain lease and non-lease components which it has elected to treat as a single lease component.







12



Information related to the Company's right-of-use assets and related lease liabilities were as follows:

Three Months Ended March 31,
20222021
Cash paid for operating lease liabilities, in thousands$3,045$1,185
Right-of-use assets obtained in exchange for new operating lease obligations, in thousands$18,759$
Weighted-average remaining lease term8.72.7
Weighted-average discount rate19.0%18.0%

Financing Leases

The Company has financing leases primarily for laboratory equipment. Assets purchased under financing leases are included in "Right-of-use assets under financing leases, net" on the condensed consolidated balance sheets. For financing leases, the associated assets are depreciated or amortized over the shorter of the relevant useful life of each asset or the lease term. Accumulated amortization of assets under financing leases totaled $1.3 million and $6.8 million as of March 31, 2022 and December 31, 2021, respectively.

Maturities of Financing and Operating Leases

Maturities of lease liabilities as of March 31, 2022 were as follows:
Years ending December 31:
(In thousands)
Financing
Leases
Operating
Leases
Total Leases
2022 (Remaining Nine Months)$16 $10,038 $10,054 
202322 11,638 11,660 
202421 9,145 9,166 
202521 8,964 8,985 
202616 8,953 8,969 
Thereafter 51,221 51,221 
Total lease payments96 99,959 100,055 
Less: amount representing interest(26)(54,780)(54,806)
Total lease liability$70 $45,179 $45,249 
Current lease liability$12 $8,120 $8,132 
Noncurrent lease liability58 37,059 37,117 
Total lease liability$70 $45,179 $45,249 

Other Assets

(In thousands)March 31, 2022December 31, 2021
Investment in non-trade receivable(1)
$10,049 $ 
Equity-method investments in affiliates9,654 9,443 
Deposits447 129 
Other3,384 994 
Total other assets$23,534 $10,566 
______________
(1) In March 2022, the Company loaned a privately held company $10 million in exchange for a senior secured convertible promissory note (the Note) which matures in March 2025, unless earlier redeemed or converted into equity of the privately held company. The Note bears interest at 8% per annum and is convertible, at the Company's option, into equity of the privately held company upon maturity of the Note or in the event of an initial public offering, equity financing, or corporate transaction (such as a sale or merger), in each case, at a conversion price that is dependent on a variety of factors. In addition, the Note is redeemable prior to maturity, at the issuer's option, in the event of one or more equity or debt financings, one or more asset sales, or an initial public offering, in each case equal to or greater than $50 million in the aggregate. The Company concluded that the arrangement qualifies for accounting as a loan as required by ASC 310-10. The Company will periodically evaluate the collectibility of the loan, and an allowance for credit losses will be recorded when the Company concludes that all or a portion of the loan balance is no longer collectible.






13










14



Accrued and Other Current Liabilities
(In thousands)March 31, 2022December 31, 2021
Business acquisitions contingent consideration payable(1)
$24,872 $ 
Accrued interest12,957 9,572 
Payroll and related expenses11,178 9,151 
Liability in connection with acquisition of equity-method investment9,309 8,735 
Beauty Labs deferred consideration payable(2)
5,369 30,000 
Asset retirement obligation(3)
4,145 3,336 
Professional services3,057 2,447 
Contract termination fees1,407 1,345 
Tax-related liabilities1,233 988 
License fee payable1,050 1,050 
Other5,977 4,833 
Total accrued and other current liabilities$80,554 $71,457 
______________
(1)    Business acquisitions contingent consideration payable is the current portion of total acquisition-related contingent consideration.
(2)    Approximately $23.7 million of the $30.0 million of Beauty Labs deferred consideration was settled with Amyris common stock in March 2022.
(3)    The asset retirement obligation represents liabilities incurred but not yet discharged in connection with the Company's 2013 abandonment of a partially constructed facility in Pradópolis, Brazil.







15




3. Fair Value Measurement

Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The following tables summarize liabilities measured at fair value, and the respective fair value by input classification level within the fair value hierarchy:
(In thousands)March 31, 2022December 31, 2021
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Liabilities
Foris Convertible Note (LSA Amendment)$ $ $86,630 $86,630 $ $ $107,427 $107,427 
Freestanding derivative instruments issued in connection with debt and equity instruments  5,247 5,247   7,062 7,062 
Total liabilities measured and recorded at fair value$ $ $91,877 $91,877 $ $ $114,489 $114,489 

The Company did not hold any financial assets to be measured and recorded at fair value on a recurring basis as of March 31, 2022 and December 31, 2021. Also, there were no transfers between the levels during the three months ended March 31, 2022 or the year ended December 31, 2021.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgements and consider factors specific to the asset or liability. The method of determining the fair value of embedded derivative liabilities is described subsequently in this note. Market risk associated with embedded derivative liabilities relates to the potential reduction in fair value and negative impact to future earnings from a decrease in interest rates.

Changes in fair value of derivative liabilities are presented as gains or losses in the condensed consolidated statements of operations in the line captioned "Gain (loss) from change in fair value of derivative instruments".

Changes in the fair value of debt that is accounted for at fair value are presented as gains or losses in the condensed consolidated statements of operations in the line captioned "Gain (loss) from change in fair value of debt".

Fair Value of Debt — Foris Convertible Note

At March 31, 2022, the contractual outstanding principal of the Foris Convertible Note was $50.0 million, and fair value was $86.6 million. The Company remeasured the fair value of the Foris Convertible Note under a binomial lattice model (which is discussed in further detail below) using the following inputs: (i) $4.36 stock price, (ii) 21% discount yield, (iii) 0.52% risk free interest rate (iv) 45% equity volatility and (v) 5% probability of change in control. The Company assumed that if a change of control event were to occur, it would occur at the end of the calendar year. For the three months ended March 31, 2022, the Company recorded a gain of $20.8 million related to change in fair value of the Foris Convertible Note. The most sensitive input to the valuation model is the Company’s stock price in relation to the $3.00 conversion price.

Binomial Lattice Model

A binomial lattice model was used to determine whether the Foris Convertible Note would be converted, called or held at each decision point. Within the lattice model, the following assumptions are made: (i) the convertible note will be converted early if the conversion value is greater than the holding value and (ii) the convertible note will be called if the holding value is greater than both (a) redemption price and (b) the conversion value at the time. If the convertible note is called, the holder will maximize their value by finding the optimal decision between (1) redeeming at the redemption price and (2) converting the convertible note. Using this lattice method, the Company valued the Foris Convertible Note using the "with-and-without method", where the fair value of the Foris Convertible Note including the embedded features is defined as the "with," and the fair value of the Foris Convertible Note excluding the embedded features is defined as the "without." This method estimates the fair value of the Foris Convertible Note by considering the incremental value of the Foris Convertible Note with the embedded features. The lattice model uses the stock price, conversion price, maturity date, risk-free interest rate, estimated stock volatility, estimated credit spread and other instrument-specific assumptions. The Company remeasures the fair value of the Foris Convertible Note and records the change as a gain or loss from change in fair value of debt in the statement of operations for each reporting period.

Derivative Liabilities Recognized in Connection with the Issuance of Debt Instruments







16



The following table provides a reconciliation of the beginning and ending balances for the Company's derivative liabilities recognized in connection with the issuance of debt instruments, either freestanding or embedded, measured at fair value using significant unobservable inputs (Level 3):
(In thousands)Derivative Liability
Balance at December 31, 2021$7,062 
Change in fair value of derivative instruments(1,815)
Derecognition on settlement or extinguishment 
Balance at March 31, 2022$5,247 

Valuation Methodology and Approach to Measuring the Derivative Liabilities

The Company's outstanding derivative liabilities at March 31, 2022 and December 31, 2021 represent the fair value of a freestanding equity instrument. See Note 6, "Stockholders' Deficit" for further information regarding the host instrument. There is no current observable market for this type of derivative and, as such, the Company determined the fair value of the freestanding instrument using the Black-Scholes-Merton option pricing model, which is discussed in more detail below.

The Company used the Black-Scholes-Merton option pricing model to determine the fair value of its liability classified warrants as of March 31, 2022 and December 31, 2021. Input assumptions for the freestanding instrument are as follows:
Range for the Period
Input assumptions for liability classified warrants:March 31, 2022December 31, 2021
Fair value of common stock on issue date
$4.36
$5.41
Exercise price of warrants
$2.87
$2.87
Expected volatility
106%
107%
Risk-free interest rate
2.28%
0.07% – 0.28%
Expected term in years
2
2
Dividend yield0.0 %0.0 %

Changes in valuation assumptions can have a significant impact on the valuation of the freestanding derivative liabilities and debt that the Company elects to account for at fair value. For example, all other things being equal, generally, an increase in the Company’s stock price, change of control probability, risk-adjusted yields, term to maturity/conversion or stock price volatility increases the value of the derivative liability.

Acquisition related contingent consideration

The fair value of acquisition related contingent consideration (Earnout Payments) was determined using a Monte Carlo simulation to estimate the probability of the acquired business units achieving the relevant financial and operational milestones. The model results reflect the time value of money, non-performance risk within the required time frame and the risk due to uncertainty in the estimated cash flows. Key inputs to the Monte Carlo simulation for the MenoLabs acquisition were: Revenue Risk Adjustment of 6.2% and Annual Revenue Volatility of 35%. A significant decrease or increase in an acquired business unit’s financial performance and the timing of such changes could materially decrease or increase the fair value of contingent consideration period over period. Contingent consideration is recorded in other liabilities in the accompanying consolidated balance sheets.

The fair value of contingent consideration is classified as Level 3. The changes in fair value are as follows: