KiOR Reports Fourth Quarter and Full Year 2012 Results

KiOR Reports Fourth Quarter and Full Year 2012 Results

           First Commercial Shipment of Cellulosic Diesel in March

         Obtains EPA Gasoline Pathway and 25% Gasoline Blend Approval

              Closes $50 Million Additional Operating Liquidity

PASADENA, Texas, March 18, 2013 (GLOBE NEWSWIRE) -- KiOR, Inc. (Nasdaq:KiOR),
announced today its financial results for the fourth quarter and fiscal year
ended December 31, 2012.

"KiOR hit its most significant milestone to date with the Company's first
commercial shipment of cellulosic diesel from its newly commissioned
production facility in Columbus, Mississippi," said Fred Cannon, KiOR's
President and Chief Executive Officer. "Commencement of commercial shipments
from Columbus validates the efficacy of KiOR's biomass-to-hydrocarbon-fuels
technology at scale and goes a long way toward dispelling concerns about the
renewable fuels industry's ability to make a meaningful contribution to the
US's fuel supply needs," Mr. Cannon continued. "This very positive
development, along with EPA's recent actions qualifying our cellulosic
gasoline for the RFS2 market and increasing our gasoline blend rate to 25%,
de-risk our business strategy and creates a market for KiOR's hydrocarbon
fuels nearly twice the size of the current ethanol market."

Financial Results

Fourth quarter 2012 net loss was $29.7 million, or $0.28 per share, compared
to a net loss of $27.0 million, or $0.26 per share, for the third quarter of
2012. Net loss for the fourth quarter of 2011 totaled $14.9 million, or $0.15
per share. Net loss for the full year 2012 was $96.4 million, or $0.92 per
share, compared to a net loss of $64.1 million, or $0.87 per share in 2011.

During the fourth quarter of 2012 KiOR recorded its first revenues since
inception, totaling $87 thousand which relate to the sale of blended
cellulosic diesel produced from the research and development facility and
fossil diesel.

Cost of product revenue recorded during the fourth quarter of 2012 totaled $68
thousand. These are related to KiOR's first sale and include production,
shipping and blending costs.

Research and development (R&D) expenses for the fourth quarter of 2012 totaled
$9.5 million, essentially flat from the $9.5 million recorded in the third
quarter of 2012. Fourth quarter 2012 R&D expenses increased $0.5 million from
fourth quarter 2011, mainly due to higher payroll and related expenses. Full
year-over-year R&D expenses increased $2.8 million to $36.6 million primarily
as a result of increased payroll and related expenses, including a $1.1
million increase in non-cash stock based compensation expense.

General and administrative (G&A) expenses for the fourth quarter of 2012 were
$20.2 million, an increase of $2.8 million from the third quarter of 2012,
primarily due to start-up activities related to the Columbus facility. Fourth
quarter 2012 G&A expenses increased $14.3 million from fourth quarter 2011,
also due to $11.5 million higher start-up related activities from to the
Columbus facility and $2.4 million higher non-cash stock based compensation.
Full year-over-year G&A expenses increased $36.2 million from 2011, mainly
driven by $28.5 million higher Columbus related expenses, $5.9 million higher
non-cash stock based compensation and higher other payroll related expenses.

Capital investments during the fourth quarter were $6.0 million, primarily
related to KiOR's flagship 1,500 bone dry ton per day project in Natchez,
KiOR's initial-scale commercial production facility in Columbus, and
enhancements to KiOR's research and development facility.

KiOR had cash and cash equivalents of$40.9 million at December 31, 2012,
which represents a$90.7 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 $126 million as of quarter-end.Subsequent to quarter end, the
Company amended its 4-year-term loan to, among other things, extend KiOR's
ability to pay interest in kind, defer principal amortizations, and increase
the facility to $125 million to provide additional operating liquidity.

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 investors section
of the Company's website: http://investor.kior.com/events.cfm.An audio replay
of the conference call will remain available for seven days until Monday,
March 25, 2013 at 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 10328600 for all
participants. The replay will also be available in the investors section of
the Company's website approximately two hours after the conclusion of the call
and remain available for approximately 90 calendar days.

About KiOR

KiOR, a global leader in cellulosic gasoline and diesel transportation fuels,
has developed a unique proprietary technology platform to convert abundant and
sustainable non-food biomass into fuels for use in vehicles on the road today.
KiOR's cellulosic fuels, which may be transported using existing distribution
networks, 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 www.KiOR.com.

The KiOR logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13767

Forward-Looking Statements

This release contains "forward looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and Section 21E of the
Securities Exchange Act of 1934, as amended, regarding future results and
events, including, without limitation, statements about: our potential to be
the first U.S. commercial cellulosic diesel/gas producer, the performance of
our next generation catalyst platform and the levels of our yield of gallons
per bone dry ton of biomass, the amount of risk related to our business
strategy; the timing of commercialization of our cellulosic gasoline and
diesel at our biomass-to-fuel facility in Columbus, Mississippi, potential
future sales of our fuels products, the size of the potential market for our
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, which could cause our actual future results to differ
significantly from the results discussed in the forward looking statements
contained in this press release. Such factors include our ability to raise the
additional capital we need in order to expand our business and begin
construction on our Natchez facility; the ability of our Columbus facility to
produce cellulosic hydrocarbon fuel on time, on a continuous and
cost-efficient basis and at expected yields; the availability of cash to
invest in the ongoing needs of our business; our ability to successfully
commercialize our cellulosic gasoline, diesel and fuel oil; our ability to
effectively scale our proprietary technology platform and process design; the
cost of constructing, operating and maintaining facilities necessary to
produce our cellulosic gasoline, diesel and fuel oil in commercial volumes;
the ability of our initial-scale commercial production facility, in which we
are in the start-up phase, to satisfy the technical, commercial and production
requirements under offtake agreements relating to the sale of cellulosic
gasoline, diesel and fuel oil; market acceptance of our cellulosic gasoline,
diesel and fuel oil; our ability to obtain and maintain intellectual property
protection for our products and processes, and other factors that 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 Reports on Form 10-Q for the quarters ended June 30, 2012 and
September 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
release.

KiOR, Inc.                                                       
Condensed Consolidated Statement of                               
Operations
(Unaudited)                                                      
(In thousands, except shareand per share                         
amounts)
                                                                
                                                                
                                Three Months Ended      Years Ended
                                December31,           December 31,
                                2012        2011        2012       2011
Revenues:                                                        
                                                                
Product revenue                  $85        $—        $85       $—
Renewable identification number  2          —         2         —
revenue
                                                                
Total revenues                   87         —         87        —
                                                                
Operating expenses:                                              
                                                                
Cost of product revenue          $(68)      $—        $(68)      $—
Research and development         (9,470)    (9,013)    (36,649)  (33,806)
expenses
General and administrative       (20,243)   (5,932)    (59,546)  (23,341)
expenses
                                                                
Loss from operations             (29,694)   (14,945)   (96,176)  (57,147)
Other income (expense), net:                                     
Interest income                  —         4          15        6
Beneficial conversion feature
expense related to convertible   —         —         —       —
promissory note
Interest expense, net of amounts —         —         (274)     —
capitalized
Foreign currency gain (loss)     —         —         —        —
Loss from change in fair value                         —        (6,914)
of warrant liability
                                                                
Other expense, net               —         4          (259)     (6,908)
                                                                
Loss before income taxes         (29,694)   (14,941)   (96,435)  (64,055)
                                                                
Income tax expense - current     —         —         —        —
                                                                
Net loss                         $(29,694)  $(14,941)  $(96,435) $(64,055)
Deemed dividend related to the
beneficial conversion feature of —         —         —        (19,669)
Series C convertible preferred
stock
                                                                
Net loss attributable to         $(29,694) $(14,941) $(96,435) $(83,724)
stockholders
                                                                
Net loss per share of Class A    $(0.28)    $(0.15)   $(0.92)   $(0.87)
common stock, basic and diluted
                                                                
Net loss per share of Class B    $(0.28)   $(0.15)   $(0.92)   $(0.87)
common stock, basic and diluted
                                                                
Weighted-average Class A and B
common shares outstanding, basic 105,149    102,072    104,335   60,205
and diluted

                                                                
                                                                
KiOR, Inc.                                                       
Condensed Consolidated Balance Sheets                            
(Unaudited)                                                      
(In thousands)                                                   
                                                                
                                                    December31, December31,
                                                    2012         2011
                                                                
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                            $40,887      $131,637
Inventories                                          3,239        —
Prepaid expenses and other current assets            1,528       1,000
Total current assets                                 45,654       132,637
Property, plant and equipment, net                   246,410      169,923
Intangible assets, net                               2,332        2,233
Other assets                                         1,641       471
Total assets                                         $296,037     $305,264
                                                                
Liabilities, Convertible Preferred Stock and                     
Stockholders' Equity (Deficit)
Current liabilities:                                             
Current portion of long-term debt                    $5,124       $5,506
Accounts payable                                     4,175        6,496
Accrued capital expenditures                         953          14,571
Accrued liabilities                                  5,753        2,648
Total current liabilities                            16,005       29,221
Related party long-term debt, less current portion,  79,843       —
net of discount
Long-term debt, less current portion, net of         41,035       47,304
discount
Other Liabilities                                    146          —
Total liabilities                                    137,029      76,525
Total convertible preferred stock                    --          --
Total stockholders' equity (deficit)                 159,008      228,739
Total liabilities, convertible preferred stock and   $296,037     $305,264
stockholders' equity (deficit)

CONTACT: For Investors:
         Max Kricorian
         Director of Finance
         281-694-8811
         Investor.relations@kior.com
        
         For Media:
         Kate Perez
         Director of Corporate Communications & Public Relations
         281-694-8831
         Media@kior.com

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