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Intrexon Announces First Quarter Financial Results

Companies mentioned in this article: Intrexon Corporation

GERMANTOWN, Md., May 7, 2014 /PRNewswire/ -- Intrexon Corporation (NYSE: XON), a leader in synthetic biology, today announced its first quarter results for 2014.

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First Quarter Highlights
Highlights for the first quarter of 2014 include:

    --  Net income attributable to Intrexon of $4.1 million, or $0.04 per common
        share, for the quarter ended March 31, 2014 compared to net loss
        attributable to Intrexon of $36.3 million for the quarter ended March
        31, 2013;
    --  Adjusted EBITDA of $17.6 million, or $0.18 per common share, for the
        quarter ended March 31, 2014 compared to Adjusted EBITDA of ($7.0)
        million for the quarter ended March 31, 2013.  Total consideration
        received from collaborators for technology access fees and reimbursement
        of research and development services covered 210% and 57% of Intrexon's
        cash operating expenses (exclusive of operating expenses of
        majority-owned consolidated subsidiaries) for the quarters ended March
        31, 2014 and 2013, respectively.  Consideration received for research
        and development services covered 35% and 19% of Intrexon's cash
        operating expenses (exclusive of operating expenses of majority-owned
        consolidated subsidiaries) for the quarters ended March 31, 2014 and
        2013, respectively;
    --  Securing $75 million in financing in connection with the creation of
        Intrexon Energy Partners (IEP), an Exclusive Channel Collaborator that
        was created to optimize and scale-up Intrexon's gas-to-liquid (GTL)
        bioconversion platform for the production of fuels and lubricants. 
        Intrexon received a $25 million technology access fee from IEP, a joint
        venture established between Intrexon and a select group of external
        investors who contributed to IEP $25M and who will contribute up to an
        additional $25 million to defray one-half of the ongoing project costs,
        all for a 50% interest in IEP.  The external investors also purchased
        972,000 shares of Intrexon common stock at a price of $25.72 per share
        for $25 million in gross proceeds to Intrexon;
    --  Completing the acquisition of Medistem, Inc., a pioneer in the
        development of Endometrial Regenerative Cells (ERCs - universal
        adult-derived stem cells), to leverage Intrexon's suite of technologies
        to engineer ERCs for delivering novel genetically controlled therapies
        for the treatment of cancer and a number of other diseases; and
    --  Acquiring state-of-the-art laboratory assets, with a seasoned scientific
        team in place, in Budapest, Hungary, which will expand Intrexon's strain
        and protein development capabilities, as well as strengthen fermentation
        process optimization and scale-up.  Acquisition of the Budapest assets
        supports several partnered research programs, such as our collaboration
        with Johnson & Johnson.

"We continue to execute our plans to become a leader in the second generation of biotechnology by implementing, within a discipline of capital efficiency, our strategy of utilizing our technology to enable high-value products to be developed and commercialized by our collaborators," commented Randal J. Kirk, Chairman and Chief Executive Officer of Intrexon.

"Therefore, while our object is the creation of a valuable portfolio of participating economics in products across multiple industry sectors, including Health, Food, Consumer, Energy, and Environment, our discipline is to maximize that 'storage' while balancing our inputs to our outputs as we go. We showed in 1Q 2014 that we can do this effectively. Nevertheless, although we believe that our current deal pipeline is by far the best that we have had, our challenge throughout this year will be to equal and surpass our 1Q performance. While we are making steady progress in narrowing our gaps, we believe that we still are not yet the sort of managed enterprise to which we aspire."

Mr. Kirk concluded, "To have the sort of consistency that we desire, we need all of our Sectors performing and in this regard 1Q 2014 was a remarkable quarter. Joining Health and Food as contributing Sectors, now is Energy, which is intelligently prosecuting a joint venture project of global dimension and one in which Intrexon retains a 50% economic interest. With the advancement currently being made in the programs and in the deal queues within these three Sectors and with the start made by our Consumer Sector and the initiation of our Environment Sector, we are encouraged to think that 2014 should be an excellent year for Intrexon."

Recent Developments
Intrexon recently appointed James S. Turley, former Chief Executive Officer of Ernst & Young, to the Company's Board of Directors. Mr. Turley's effective direction of a global organization during some challenging economic times instilled the trust and confidence of key stakeholders, and Intrexon believes that his appointment to the Board as an independent director is in keeping with the best practices of corporate governance and providing guidance to the Company's team.

First Quarter 2014 Financial Results Compared to Prior Year Period
Total revenues were $7.9 million for the quarter ended March 31, 2014 compared to $3.9 million for the quarter ended March 31, 2013, an increase of $4.0 million, or 102.2 percent. The $4.0 million increase in collaboration revenue resulted primarily from the following: (i) recognition of deferred revenue for upfront payments received from 13 collaborations or expansions thereof signed by Intrexon between April 1, 2013 and March 31, 2014; (ii) recognition of research and development services performed by Intrexon pursuant to these new collaborations; and (iii) increased research and development services performed by Intrexon for collaborations in effect prior to March 31, 2013 as a result of the progression of current programs and the initiation of new programs with these collaborators.

Research and development expenses were $12.1 million for the quarter ended March 31, 2014 compared to $11.4 million for the quarter ended March 31, 2013. The $0.7 million increase in research and development expenses is primarily the result of research and development expenses for AquaBounty Technologies, Inc., a biotechnology company in which we hold a controlling interest that is focused on enhancing productivity in the aquaculture market, increasing $0.5 million due to the inclusion of a full quarter of AquaBounty's expenses in our consolidated results in the first quarter of 2014 compared to 16 days in the first quarter of 2013.

General and administrative expenses increased $7.2 million to $13.6 million for the quarter ended March 31, 2014 compared to $6.5 million for the quarter ended March 31, 2013. Of the $7.2 million increase, $3.0 million relates to salaries, benefits and other personnel expenses resulting from our hiring of additional employees needed to operate as a public company, stock-based compensation expenses for option grants we made to all employees in March 2014 and finally, the inclusion of a full quarter of expenses for AquaBounty employees in the first quarter of 2014. We also incurred stock-based compensation expense for options granted to our non-employee directors which increased $1.7 million due to changes in our director compensation plan which we adopted in conjunction with our transition to a public company. Legal expenses increased $0.7 million for the quarter ended March 31, 2014 compared to the quarter ended March 31, 2013 primarily due to costs associated with the Medistem acquisition and the formation of the Intrexon Energy Partners joint venture. The remaining increase in general and administrative expenses in 2014 results from the inclusion of a full quarter of AquaBounty's expenses in our consolidated results in the first quarter of 2014 compared to 16 days in 2013.

Total other income (expense) includes the unrealized changes in the fair value of equity securities we hold in our collaborators which appreciated $21.9 million for the quarter ended March 31, 2014 compared to depreciation of $(29.4) million for the three months ended March 31, 2013. Total other income (expense), net for the quarter ended March 31, 2013 includes a $7.4 million gain on our previously held equity interest in AquaBounty which arose as a result of our consolidation of AquaBounty effective March 15, 2013.

About Intrexon Corporation
Intrexon Corporation (NYSE: XON) is a leader in synthetic biology focused on collaborating with companies in Health, Food, Energy, Environment, and Consumer Sectors to create biologically-based products that improve the quality of life and the health of the planet. Through the company's proprietary UltraVector(®) platform, Intrexon provides its partners with industrial-scale design and development of complex biological systems. The UltraVector(®) platform delivers unprecedented control over the quality, function, and performance of living cells. We call our synthetic biology approach and integrated technologies Better DNA®, and we invite you to discover more at www.dna.com.

Non-GAAP Financial Measures
This press release presents Adjusted EBITDA and Pro Forma Adjusted EBITDA earnings per share, which are non-GAAP financial measures within the meaning of applicable rules and regulations of the Securities and Exchange Commission ("SEC"). For a reconciliation of Adjusted EBITDA to net loss attributable to Intrexon in accordance with generally accepted accounting principles and for a discussion of the reasons why the company believes that these non-GAAP financial measures provide information that is useful to investors see the tables below under "Reconciliation of GAAP to Non-GAAP Measures." Such information is provided as additional information, not as an alternative to Intrexon's consolidated financial statements presented in accordance with GAAP, and is intended to enhance an overall understanding of the Company's current financial performance.

Trademarks
Intrexon, UltraVector, RheoSwitch Therapeutic System, RTS, AttSite, mAbLogix, LEAP, and Better DNA are trademarks of Intrexon and/or its affiliates. Other names may be trademarks of their respective owners.

Safe Harbor Statement
Some of the statements made in this press release are forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon Intrexon's current expectations and projections about future events and generally relate to Intrexon's plans, objectives and expectations for the development of Intrexon's business. Although management believes that the plans and objectives reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties and actual future results may be materially different from the plans, objectives and expectations expressed in this press release. These risks and uncertainties include, but are not limited to, (i) Intrexon's current and future ECCs and joint ventures; (ii) developments concerning Intrexon's collaborators; (iii) Intrexon's ability to successfully enter new markets or develop additional products, whether with its collaborators or independently; (iv) competition from existing technologies and products or new technologies and products that may emerge; (v) actual or anticipated variations in Intrexon's operating results; (vi) actual or anticipated fluctuations in Intrexon's competitors' or its collaborators' operating results or changes in their respective growth rates; (vii) Intrexon's cash position; (viii) market conditions in Intrexon's industry; (ix) Intrexon's ability, and the ability of its collaborators, to protect Intrexon's intellectual property and other proprietary rights and technologies; (x) Intrexon's ability, and the ability of its collaborators, to adapt to changes in laws or regulations and policies; (xi) the ability of Intrexon's collaborators to secure any necessary regulatory approvals to commercialize any products developed under the ECCs; (xii) the rate and degree of market acceptance of any products developed by a collaborator under an ECC; (xiii) Intrexon's ability to retain and recruit key personnel; (xiv) Intrexon's expectations related to the use of proceeds from its initial public offering; (xv) Intrexon's estimates regarding expenses, future revenue, capital requirements and needs for additional financing; and (xvi) Intrexon's expectations relating to AquaBounty. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Intrexon's actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in Intrexon's Annual Report on Form 10-K, as well as discussions of potential risks, uncertainties, and other important factors in Intrexon's subsequent filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Intrexon undertakes no duty to update this information unless required by law.

For more information regarding Intrexon Corporation, contact:


    Corporate Contact:           Investor Contact:

    Marie Rossi                  The Ruth Group

    Corporate Communications     David Burke

    Intrexon Corporation         Tel: +1 (646) 536-7009

    Tel: +1 (301) 556-9944       dburke@theruthgroup.com

    publicrelations@intrexon.com


                                                             Intrexon Corporation and Subsidiaries

                                                                  Consolidated Balance Sheets

                                                                          (Unaudited)


    (Amounts in thousands)                             March 31,                                   December 31,

                                                            2014                                           2013
    ---                                                     ----                                           ----


    Assets

    Current assets

    Cash and cash equivalents                                                       $110,052                     $49,509

    Short-term investments                                                           112,755                     127,980

    Receivables

    Trade                                                                                695                         790

    Related parties                                                                    6,044                       5,285

    Other                                                                                680                       1,282

    Prepaid expenses and other                                                         2,706                       2,710
                                                                                       -----                       -----


    Total current assets                                                             232,932                     187,556

    Long-term investments                                                             40,212                      60,581

    Equity securities                                                                168,672                     141,525

    Property, plant and equipment, net                                                18,116                      16,629

    Intangible assets, net                                                            41,269                      41,956

    Goodwill                                                                          39,689                      13,823

    Investments in affiliates                                                          5,747                       6,284

    Other assets                                                                       1,171                       1,118
                                                                                       -----                       -----


    Total assets                                                                    $547,808                    $469,472


    Liabilities and Total Equity


    Current liabilities

         Accounts payable                                                             $1,973                      $1,057

    Accrued compensation and benefits                                                  2,761                       5,157

    Other accrued liabilities                                                          6,481                       4,217

    Deferred revenue                                                                  10,939                       7,793

         Related party payables                                                           58                       1,605
                                                                                         ---                       -----


                   Total current liabilities                                          22,212                      19,829

    Long term debt                                                                     1,784                       1,653

    Deferred revenue                                                                  91,041                      65,778

    Other long term liabilities                                                          873                         869
                                                                                         ---                         ---


                   Total liabilities                                                 115,910                      88,129


    Commitments and contingencies

    Total equity

         Common stock                                                                      -                           -

         Additional paid-in capital                                                  788,057                     743,084

         Accumulated deficit                                                        (372,299)                   (376,414)

         Accumulated other comprehensive
          income                                                                         144                          52
                                                                                         ---                         ---


                   Total Intrexon shareholders' equity                               415,902                     366,722

         Noncontrolling interests                                                     15,996                      14,621
                                                                                      ------                      ------


                   Total equity                                                      431,898                     381,343
                                                                                     -------                     -------


    Total liabilities and total equity                                              $547,808                    $469,472
    ----------------------------------                                              --------                    --------


                           Intrexon Corporation and Subsidiaries

                           Consolidated Statements of Operations

                                        (Unaudited)


                                              Three months ended

     (Amounts
     in
     thousands,
     except
     share
     and
     per
     share
     data)                                          March 31,
                                                    ---------

                                                          2014                2013
                                                          ----                ----


    Revenues

     Collaboration
     revenues                                           $7,837              $3,864

    Other revenues                                          17                  21
                                                           ---                 ---

    Total revenues                                       7,854               3,885


    Operating Expenses

    Research and
     development                                        12,091              11,411

    General and
     administrative                                     13,635               6,480
                                                        ------               -----

    Total operating
     expenses                                           25,726              17,891
                                                        ------              ------

    Operating loss                                     (17,872)            (14,006)
                                                       -------             -------


    Other Income (Expense)

    Unrealized
     appreciation
     (depreciation) in
     fair value of equity
     securities                                         21,922             (29,369)

    Gain on previously
     held equity
     investment                                -                  7,415

    Interest expense                                       (39)                (14)

    Investment income                                       88                   5

    Other expense                                           (8)                 (3)
                                                           ---                 ---

    Total other income
     (expense)                                          21,963             (21,966)

    Equity in net loss of
     affiliates                                           (536)               (390)
                                                          ----                ----

    Income (loss) before
     tax                                                 3,555             (36,362)

    Income tax expense                                    (306)                  -
                                                          ----                 ---

    Net
     income
     (loss)                                             $3,249            $(36,362)

    Net loss attributable
     to the noncontrolling
     interests                                             866                  51
                                                           ---                 ---

    Net
     income
     (loss)
     attributable
     to
     Intrexon                                           $4,115            $(36,311)
                                                        ------            --------

    Accretion of dividends
     on redeemable
     convertible preferred
     stock                                     -                 (6,405)
                                             ---                 ------

    Net
     income
     (loss)
     attributable
     to
     common
     shareholders                                       $4,115            $(42,716)
                                                        ------            --------

    Net
     income
     (loss)
     attributable
     to
     common
     shareholders
     per
     share,
     basic                                               $0.04              $(7.54)

    Net
     income
     (loss)
     attributable
     to
     common
     shareholders
     per
     share,
     diluted                                             $0.04              $(7.54)


    Weighted average
     shares outstanding,
     basic                                          97,325,729           5,661,741

    Weighted average
     shares outstanding,
     diluted                                        99,338,398           5,661,741

Intrexon Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)

Adjusted EBITDA. To supplement Intrexon's financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), Intrexon presents Adjusted EBITDA. A reconciliation of Adjusted EBITDA to Intrexon's net income or loss attributable to Intrexon under GAAP appears below. Adjusted EBITDA is a non-GAAP financial measure that Intrexon calculates as net income or loss attributable to Intrexon adjusted for income tax expense or benefit, interest expense, depreciation and amortization, stock-based compensation, contribution of services by shareholder, unrealized appreciation or depreciation in the fair value of equity securities, gain on previously held equity investment, equity in net loss of affiliate and the change in deferred revenue related to upfront and milestone payments. Adjusted EBITDA is a key metric for Intrexon's management and Board of Directors for evaluating the Company's financial and operating performance, generating future operating plans and making strategic decisions about the allocation of capital. Management and the Board of Directors believe that adjusted EBITDA is useful to understand the long-term performance of Intrexon's core business and facilitates comparisons of the Company's operating results over multiple reporting periods. Intrexon is providing this information to investors and others to assist them in understanding and evaluating the Company's operating results in the same manner as its management and board of directors. While Intrexon believes that this non-GAAP financial measure is useful in evaluating its business, and may be of use to investors, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared in accordance with GAAP. In addition, this non-GAAP financial measure may not be the same as non-GAAP financial measures presented by other companies. Adjusted EBITDA is not a measure of financial performance under GAAP, and is not intended to represent cash flows from operations under GAAP and should not be used as an alternative to net income or loss as an indicator of operating performance or to represent cash flows from operating, investing or financing activities as a measure of liquidity. Intrexon compensates for the limitations of Adjusted EBITDA by using it only to supplement the Company's GAAP results to provide a more complete understanding of the factors and trends affecting the Company's business. Adjusted EBITDA has its limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of Intrexon's results as reported under GAAP.

In addition to the reasons stated above, which are generally applicable to each of the items Intrexon excludes from its non-GAAP financial measure, Intrexon believes it is appropriate to exclude certain items for the following reasons:

    --  Interest expense may be subject to changes in interest rates which are
        beyond Intrexon's control;
    --  Depreciation of Intrexon's property and equipment and amortization of
        acquired identifiable intangibles can be affected by the timing and
        magnitude of business combinations and capital asset purchases;
    --  Stock-based compensation expense is a noncash expense and may vary
        significantly based on the timing, size and nature of awards granted and
        also because the value is determined using formulas which incorporate
        variables, such as market volatility;
    --  Contribution of services by shareholder is a noncash expense which we
        exclude in evaluating Intrexon's financial and operating performance;
    --  Unrealized appreciation or depreciation in the fair value of securities
        which Intrexon holds in its collaborators may be significantly impacted
        by market volatility and other factors which are outside of the
        Company's control in the short term and Intrexon intends to hold these
        securities over the long term;
    --  Equity in net loss of affiliate reflects Intrexon's proportionate share
        of the income or loss of entities over which the Company has significant
        influence, but not control, and accounts for using the equity method of
        accounting.  Gain on previously held equity investment occurred as a
        result of a step acquisition of AquaBounty Technologies, Inc. which was
        completed in the first quarter of 2013 which resulted in a controlling
        interest by Intrexon and the consolidation of the investment.  Intrexon
        believes excluding the impact of such losses or gains on these types of
        strategic investments from its operating results is important to
        facilitate comparisons between periods; and
    --  GAAP requires Intrexon to account for its collaborations as
        multiple-element arrangements.  As a result, the Company defers certain
        collaboration revenues because certain of its performance obligations
        cannot be separated and must be accounted for as one unit of accounting.
        The collaboration revenues that Intrexon so defers arise from upfront
        and milestone payments received from the Company's collaborators, which
        Intrexon recognizes over the future performance period even though the
        Company's right to such consideration is neither contingent on the
        results of Intrexon's future performance nor refundable in the event of
        nonperformance.  In order to evaluate Intrexon's operating performance,
        its management adjusts for the impact of the change in deferred revenue
        for these upfront and milestone payments in order to include them as a
        part of adjusted EBITDA when the transaction is initially recorded.  The
        adjustment for the change in deferred revenue removes the noncash
        revenue recognized during the period and includes the cash and stock
        received from collaborators for upfront and milestone payments during
        the period.  Intrexon believes that adjusting for the impact of the
        change in deferred revenue in this manner is important since it permits
        the Company to make quarterly and annual comparisons of the Company's
        ability to consummate new collaborations or to achieve significant
        milestones with existing collaborators.  Further, Intrexon believes it
        is useful when evaluating its financial and operating performance,
        generating future operating plans and making strategic decisions about
        the allocation of capital.

Pro forma adjusted EBITDA per share. Intrexon's calculations for pro forma adjusted EBITDA per share, basic and diluted, assumes, as of the end of the respective period, the conversion of all outstanding shares of Intrexon's redeemable convertible preferred stock plus all cumulative dividends payable thereon into shares of common stock as if such conversion had occurred as of the later of (i) the beginning of the period or (ii) the issuance date of those shares. Because all of Intrexon's shares of redeemable convertible preferred stock and all accrued and cumulative dividends thereon automatically converted into common shares upon the closing of the Company's initial public offering on August 13, 2013, Intrexon believes that the inclusion of such shares on an as-converted basis results in a useful metric for its investors, analysts and others when evaluating Intrexon's results on a comparable basis with other periods. While Intrexon's management and board of directors believe that this non-GAAP per share metric is useful in evaluating the Company's past adjusted EBITDA results, and may be of use to investors, analysts and others, this information should be considered supplemental in nature and is not meant as a substitute for the per share information prepared in accordance with GAAP. In addition, this non-GAAP per share metric may not be the same as non-GAAP per share metrics presented by other companies. Pro forma adjusted EBITDA per share is not a measure of financial performance under GAAP, and is not intended to represent cash flows per share from operations under GAAP and should not be used as an alternative to net income or loss per share as an indicator of operating performance or to represent cash flows from operating, investing or financing activities as a measure of liquidity. Intrexon compensates for the limitations of pro forma adjusted EBITDA per share by using it only to supplement the Company's GAAP results to provide a more complete understanding of the factors and trends affecting the Company's business. Pro forma adjusted EBITDA per share has its limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of Intrexon's results as reported under GAAP.

The following table presents a reconciliation of net income (loss) attributable to Intrexon to EBITDA and also to adjusted EBITDA for each of the periods indicated:


                                             Three months ended

                                                      March 31,
                                                      ---------

                                   2014                             2013

                                  (In thousands)

    Net income (loss)
     attributable to Intrexon    $4,115                         $(36,311)

    Interest expense                 23                               14

    Income tax expense              306                                -

    Depreciation and
     amortization                 1,774                            1,868
                                  -----                            -----


    EBITDA                       $6,218                         $(34,429)

    Stock-based compensation
     expense                      3,740                              396

    Contribution of services by
     shareholder                    470                              388

    Unrealized (appreciation)
     depreciation in fair value
     of equity securities       (21,922)                          29,369

    Gain on previously held
     equity investment                -                           (7,415)

    Equity in net loss of
     affiliates                     536                              390

    Impact of change in
     deferred revenue related
     to upfront and milestone
     payments                    28,543                            4,263
                                 ------                            -----


    Adjusted EBITDA             $17,585                          $(7,038)
    ---------------             -------                          -------

The following table presents the calculation of pro forma adjusted EBITDA per share, basic and diluted, for each of the periods indicated:


                                             Three months ended

                                                      March 31,
                                                      ---------

                                   2014                               2013

                   (In thousands, except share and per share
                                     data)

    Pro forma
     adjusted
     EBITDA per
     share:

    Numerator:

    Adjusted
     EBITDA                     $17,585                            $(7,038)


    Denominator
     (1):

    Pro forma
     weighted
     average
     common shares
     used in
     computing pro
     forma
     adjusted
     EBITDA per
     share, basic            97,325,729                         75,343,324

    Pro forma
     weighted
     average
     common shares
     used in
     computing pro
     forma
     adjusted
     EBITDA per
     share,
     diluted                 99,338,398                         75,343,324

    Pro forma
     adjusted
     EBITDA per
     share, basic                 $0.18                             $(0.09)

    Pro forma
     adjusted
     EBITDA per
     shares,
     diluted                      $0.18                             $(0.09)
    -----------                   -----                             ------


    (1)            Pro forma adjusted EBITDA per
                   share, basic and diluted have
                   been calculated for the three
                   month period ended March 31,
                   2013 after giving effect to
                   (i) the conversion of
                   112,906,464 shares of our
                   preferred stock outstanding on
                   January 1, 2013 into
                   64,517,977 shares of common
                   stock upon the completion of
                   our initial public offering;
                   (ii) the issuance of 8,178,964
                   shares of Series F preferred
                   stock issued between January
                   1, 2013 and March 31, 2013 and
                   the conversion of those shares
                   into 4,673,693 shares of our
                   common stock upon the
                   completion of our initial
                   public offering; and (iii) the
                   conversion upon the completion
                   of our initial public offering
                   of aggregate cumulative
                   dividends on the our preferred
                   stock of $56.9 million into
                   3,553,776 shares of our common
                   stock at the initial public
                   offering price of $16.00 per
                   share.

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SOURCE Intrexon Corporation