AMRS engineers yeast to produce useful compounds that are considerably more expensive to extract from natural sources.
Partners contract AMRS to engineer yeast to make these compounds then pay 2x:
1) when the compound is produced
2) when the final product are sold
AMRS has advanced the process to the point where it programs robots to engineer the yeast. It is these robots that proved the competitive edge over other industrial biotechnology companies.
Products presently marketed are Vitamin E, Base oil lubricant, fragrances, Hemisqalene/squalene moisturizer & liquid rubber.
Pipeline products are vanillin, Reb M sweetener & vitamin A.
Revs grew 116% in 2017
The biggest negatives are debt and cash levels. AMRS as ~$165mn in debt and only $33.9mn in cash with a $23.7mn loan due in the current Q.
Worst case scenario is significant dilution. Shares outstanding could go from 50mn to more than 110mn shares outstanding in order to pay off debts and redeem warrants. At the present growth rates, equity may still be a good investment.
