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Z zymergen Zymergen Provides Business Update August 3 , 2021 Jay Flatley , Chairman of the Board , Appointed Acting CEO ; Josh Hoffman to Step Down Conference Call to be Held at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time Today EMERYVILLE , Calif . , Aug. 03 , 2021 ( GLOBE NEWSWIRE ) -- Zymergen Inc. ( " Zymergen " or the " Company " ) , today provided a business update regarding its commercial product pipeline and financial forecast . Zymergen recently became aware of issues with its commercial product pipeline that will impact the Company's delivery timeline and revenue projections . Accordingly , the Company no longer expects product revenue in 2021 , and expects product revenue to be immaterial in 2022 . During the quarter , several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes typical of new product and process development learnings . The Company has made significant progress towards addressing these challenges and believes there are no intrinsic technical issues with Hyaline . However , this issue has resulted in a delay in the Company's commercial ramp . Zymergen is working to strengthen its commercial team to ensure the reliability and robustness of the sales pipeline qualification and forecast processes . The Company is also evaluating emerging data on the total addressable market for foldable display applications , which indicate a smaller near - term market opportunity that is growing less rapidly than anticipated , as well as its impact on Zymergen's sales forecast . The Company will conduct a full re - examination of Zymergen's target markets confirming our past views or altering them if the data indicate a shift in market focus is appropriate . " We are disappointed by these developments , and the Board and management team are focused on resolving the underlying issues to ensure Zymergen moves forward as a stronger company with a compelling operating plan , " said Jay Flatley , Acting CEO and Chairman of the Board . " The Board has formed dedicated committees , including a Strategic Oversight Committee , and is working with outside experts to conduct an in - depth review of the Company's operational , financial , product , and commercialization efforts to facilitate the development of an updated strategic plan for Zymergen . The underlying promise of our business and technology is sound , and I am proud of the work our teams are doing across the organization . We are confident in Zymergen's opportunities and prospects , although it will take longer to accomplish our goals than previously expected . " CEO Transition In connection with the business update , Zymergen also announced that Jay Flatley has been appointed Acting Chief Executive Officer , effective immediately . Flatley's appointment follows the mutual decision by Zymergen and Josh Hoffman that Hoffman will step down as CEO and as a member of the Board , effective immediately . The Company's Board of Directors will commence a search process to identify a permanent CEO . Sandi Peterson will serve as Zymergen's Lead Independent Director while Flatley serves as Acting CEO . Flatley is a seasoned executive , with a strong track record of driving operational excellence and bringing innovative technology and products at scale into the markets . Flatley served as CEO of Illumina , a cutting - edge company in the human health space , for 17 years , and as its Executive Chair , and later Chairman of the Board , until 2021 . " A key element to ensuring Zymergen is set - up for long - term success is having the right team in place , and the Board and Josh recognize that new leadership is required , " said Flatley . " The Board will take whatever time is needed to conduct a thorough search to identify a world - class leader for Zymergen . Until then , I am committed to working with our deep bench of talent to drive our company forward . On behalf of the Board and management team , I thank Josh for his work in advancing our mission and wish him the best in his future endeavors . " Preliminary Q2 FY 2021 Results For the quarter ended June 30 , 2021 , the Company currently estimates total revenue of $ 5 million to $ 6 million , all relating to R & D service agreements and collaboration revenue . The Company currently estimates GAAP total cost and operating expenses of approximately $ 100 million to $ 105 million , including estimated stock - based compensation , depreciation and amortization and an increase in non - cash rent expense of approximately $ 20 million , and non - GAAP total cost and operating expenses of approximately $ 80 million to $ 85 million . As of June 30 , 2021 , the Company had cash and cash equivalents of approximately $ 588 million , including restricted cash of approximately $ 11 million . In connection with today's business update , Zymergen is developing a plan to reduce and align expenses with the change in the Company's revenue expectations The financial results presented in this press release are preliminary , estimated and unaudited . They are subject to the completion and finalization of Zymergen's purchase accounting for the acquisition of Lodo and other financial and accounting closing procedures . They reflect management's estimates based solely upon information available to management as of the date of this press release . Further information learned during that completion and finalization may alter the final results . In addition , the preliminary estimates should not be viewed as a substitute for full quarter financial statements prepared in accordance with GAAP . There is a possibility that Zymergen's second quarter financial results could vary materially from these preliminary estimates . In addition to the completion of the financial closing procedures , factors that could cause actual results to differ from those described above are set forth below under " Cautionary Note Concerning Forward - Looking Statements . " Accordingly , you should not place undue reliance upon this preliminary information . Additional information regarding the Company's second quarter 2021 financial results will be available in the Company's Form 10 - Q , which will be filed