KiOR Reports Third Quarter 2012 Results

KiOR Reports Third Quarter 2012 Results

                  Columbus Facility Producing Renewable Oil

           Proprietary BFCC Technology Working at Commercial Scale

              Continued Progress in R&D Supports Yield Increases

PASADENA, Texas, Nov. 8, 2012 (GLOBE NEWSWIRE) -- KiOR, Inc. (Nasdaq:KiOR), a
next-generation renewable fuels company, today announced its financial results
for the third quarter ended September 30, 2012.

"I am pleased to announce that we have commenced operations at the Columbus
facility and have produced a high quality oil that is in line with our
specifications for upgrading into cellulosic gasoline and diesel," said Fred
Cannon, KiOR's President and Chief Executive Officer. "More importantly, we
believe the high quality of the oil from the Columbus facility validates
KiOR's proprietary biomass fluid catalytic cracking, or BFCC, technology at
commercial scale. The facility's performance to date not only meets our
expectations based on our experience at our pilot and demonstration scale
facilities, but also gives me confidence that we remain on track to upgrade
our oil in order to ship America's first truly sustainable cellulosic gasoline
and diesel for American vehicles."

"Furthermore, our research and development efforts continue to make progress
increasing our yields and reducing our capital intensity. Our work continues
on our next generation catalyst platform, which we believe can produce a yield
of 72 gallons per bone dry ton of biomass when implemented at our full scale
commercial facility in Natchez. Moreover, we believe that this catalyst
platform will reduce the amount of coke made in our process by up to 25
percent, which would enhance the capital efficiency of our commercial
facilities by giving us the ability to process up to 25 percent more feedstock
without significant additional capital," Cannon concluded.

Financial Results

Third quarter 2012 net loss was $27.0 million, or $0.26 per share, compared to
a net loss of $23.0 million, or $0.22 per share, for the second quarter of
2012. Net loss for the third quarter of 2011 totaled $14.8 million, or $0.15
per share.

KiOR did not recognize revenue during the third quarter of 2012; its
activities remained focused on commissioning and start-up of its first
commercial facility in Columbus, research and development (R&D) designed to
improve production yields, and obtaining necessary financing for its expansion

Research and development expenses for the third quarter of 2012 totaled $8.7
million, a $0.1 million increase from the $8.6 million recorded in the second
quarter of 2012 primarily as a result of higher stock-based compensation
expense. Third quarter 2012 R&D expenses increased $0.4 million from third
quarter 2011, also due to higher stock-based compensation expense.

General and administrative (G&A) expenses for the third quarter of 2012
were$17.4 million, an increase of $3.7 million from the second quarter of
2012, primarily due to commissioning and start-up activities related to the
Columbus facility. Year-over-year expenses increased $11.5 millionfrom the
third quarter of 2011, mainly driven by $9.5 million higher Columbus related
expenses, $1.6 million higher non-cash stock-based compensation expense, and
higher consulting expenses.

Depreciation and amortization expenses for the third quarter of 2012 were $0.8
million, $0.1 million higher than depreciation and amortization expenses
recorded in the second quarter of 2012 and $0.2 million higher than the third
quarter of 2011.

Capital investment during the third quarter was$7.6 million, primarily
related to KiOR'sinitial-scale commercial production facility in Columbus.

KiORhad cash and cash equivalents of$74.3 million at September 30, 2012,
which represents a$57.3 milliondecrease from the December 31, 2011 balance.
This decrease was primarily driven by capital expenditures, operating uses of
cash, and paying off previous business loans, partially offset by funding from
the $75.0 million 4-year-term loan announced earlier this year. Net long-term
debt stood at $112.5 million as of quarter-end.

Conference Call Information

The Company will discuss these results on a conference call scheduled for
today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). Participants may
join the conference call by dialing (877) 468-8808 (for U.S. and Canada) or
(832) 412-2302 (International). The conference access code is 40025850 for all
participants. To listen via live webcast, please visit the investor relations
section of the Company's website: An
audio replay of the conference call will be available approximately two hours
after the conclusion of the call and remain available until Thursday, November
15, 2012at 11:59 p.m. Eastern Time (10:59 p.m. Central Time) and can be
accessed by dialing (855) 859-2056 (for U.S. and Canada) or (404) 537-3406
(International). The conference call replay access code is 40025850 for all
participants.A replay of the webcast will also be available in the investor
relations section of the Company's website approximately two hours after the
conclusion of the call and remain available for approximately 90 calendar

About KiOR

KiOR is a development stage, next-generation renewable fuels company that has
developed a unique two-step proprietary technology platform to convert
abundant and sustainable non-food biomass into cellulosic gasoline, diesel and
fuel oil. KiOR's cellulosic fuels may be transported using existing
distribution networks and are suitable for use in vehicles on the road today.
KiOR strives to help ease dependence on foreign oil, reduce lifecycle
greenhouse gas emissions and create high-quality jobs and economic benefit
across rural communities.

KiOR's shares are traded on NASDAQ under the symbol "KiOR." For more
information, please visit

The KiOR logo is available at

Forward-Looking Statements

This release contains "forward looking" statements regarding future results
and events, including, without limitation, statements about: our potential to
be the first U.S. commercial cellulosic diesel/gas producer in 2012, the
performance of our next generation catalyst platform and the levels of our
yield of gallons per bone dry ton of biomass, the timing of our commencement
of production of cellulosic gasoline and diesel, the commercialization at our
biomass-to-fuel facility in Columbus, Mississippi, potential future sales of
our fuels products, and our anticipated future operations. For this purpose,
any statements contained herein that are not statements of historical fact may
be deemed forward looking statements. Without limiting the foregoing, the
words "believes," "anticipates," "plans," "expects," intends," "appears,"
"estimates," "projects," "would," "could," "should," "targets," and similar
expressions are also intended to identify forward looking statements. The
forward looking statements in this press release involve a number of important
risks and uncertainties. Our actual future results may differ significantly
from the results discussed in the forward looking statements contained in this
press release. Such factors and others are discussed more fully in the section
entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2011 as filed with the United States Securities and Exchange
Commission and as updated by our Quarterly Report on Form 10-Q for the quarter
ended June 30, 2012, and in our other filings with the Securities and Exchange
Commission. The "Risk Factors" discussion in the filings listed above is
incorporated by reference in this press release. If any of these risks or
uncertainties materialize, or if our underlying assumptions prove to be
incorrect, actual results, levels of activity, performance or achievement may
vary significantly from what we have projected. We specifically disclaim any
obligation to update these forward looking statements in the future. These
forward-looking statements should not be relied upon as representing our
estimates or views as of any date subsequent to the date of this press

KiOR, Inc
Condensed Consolidated Statement of Operations
(In thousands, except shareand per share amounts)

                              Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                              2012        2011        2012        2011
Operating expenses:                                             
Research and development       $(8,659)  $(8,269)  $(25,069) $(23,251)
General and administrative     (17,448)   (5,905)    (39,182)   (17,267)
Depreciation and amortization  (849)      (598)      (2,229)    (1,684)
Loss from operations           (26,956)   (14,772)   (66,480)   (42,202)
Other income (expense), net:                                    
Interest income                4          2          13         2
Interest expense, net of       —         —         (274)      —
amounts capitalized
Loss from change in fair value —         —         —         (6,914)
of warrant liability
Other expense, net             4          2          (261)      (6,912)
Loss before income taxes       (26,952)   (14,770)   (66,741)   (49,114)
Income tax expense - current   —         —         —         —
Net loss                       $(26,952) $(14,770) $(66,741) $(49,114)
Deemed dividend related to the
beneficial conversion feature  —         —         —         (19,669)
of Series C convertible
preferred stock
Net loss attributable to       $(26,952) $(14,770) $(66,741) $(68,783)
Net loss per share of Class A
common stock, basic and        $(0.26)   $(0.15)   $(0.64)   $(0.73)
Net loss per share of Class B
common stock, basic and        $(0.26)   $(0.15)   $(0.64)   $(0.73)
Weighted-average Class A and B
common shares outstanding,     104,805    101,724    104,085    46,096
basic and diluted

KiOR, Inc.
Condensed Consolidated Balance Sheets
(In thousands)

                                                   September 30, December31,
                                                   2012          2011
Current assets:                                                  
Cash and cash equivalents                           $74,299     $131,637
Inventories                                         2,517        --
Prepaid expenses and other current assets           1,836        1,000
Total current assets                                78,652       132,637
Property, plant and equipment, net                  235,948      169,923
Intangible assets, net                              2,384        2,233
Other assets                                        1,905        471
Total assets                                        $318,889    $305,264
Liabilities, Convertible Preferred Stock and                     
Stockholders' Equity (Deficit)
Current liabilities:                                             
Current portion of long-term debt, net of discount  $10,701     $5,506
Accounts payable                                    4,918        6,496
Accrued capital expenditures                        759          14,571
Accrued liabilities                                 6,004        2,648
Total current liabilities                           22,382       29,221
Long-term debt, less current portion, net of        112,474      47,304
Other liabilities                                   174          --
Total liabilities                                   135,030      76,525
Total stockholders' equity (deficit)                183,859      228,739
Total liabilities, convertible preferred stock and  $318,889    $305,264
stockholders' equity (deficit)

CONTACT: For Investors:
         Max Kricorian
         Director of Finance
         For Media:
         Kate Perez
         Director of Corporate Communications & Public Relations

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