Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ ~~No ☐~~

As of ~~May 24,~~November 4, 2022, the registrant had ~~123,199,202~~151,552,065 sh~~ares~~shares of common stock, $0.0001 par value per share, outstanding.

~~This Amendment No. 1~~ on Form 10-Q/A (“Amendment”) is being filed to correct our original Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 (the “Initial Form 10-Q”) filed with the Securities and Exchange Commission (the “SEC”) on May 16, 2022. This Amendment amends Items 1 and 2 of the Initial Form 10-Q and no other items in the Initial Form 10-Q are amended hereby. The Amendment includes the Company’s restated condensed consolidated statement of operations for the three months ended March 31, 2022 and 2021 to correct an error related to the classification of operating expenses associated with general and administrative expense and research and development expense for the three months ended March 31, 2022, and to correct an error related to Net Loss per Share for the three months ended March 31, 2021. The condensed consolidated statement of operations for the three months ended March 31, 2022 and 2021, Notes 1 and 14 of the condensed consolidated financial statements, and the Results of Operations portion of Item 2 have been amended as a result of the correction of the foregoing errors. This restatement does not have any material impact on the Company's statement of financial positions, net loss, cash flows, liquidity, and capital resources.

This Quarterly Report on Form 10-Q (this “Report”) includes forward-looking statements regarding, among other things, the business and financial plans, strategies, and prospects of GreenLight Biosciences Holdings, PBC (“we,” “us,” “our,” the “Company” or “New GreenLight”). These statements are based on the beliefs and assumptions of the management of the Company. Although the Company believes that the plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot assure you that it will achieve or realize these plans, intentions, or expectations. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, and any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes”, “estimates”, “expects”, “projects”, “forecasts”, “may”, “might”, “will”, “should”, “seeks”, “plans”, “scheduled”, “possible”, “anticipates”, “intends”, “aims”, “works”, “focuses”, “aspires”, “strives” or “sets out” or similar expressions. Forward-looking statements are not guarantees of performance. Forward-looking statements involve a number of risks, uncertainties (many of which are beyond the Company’s control) or other factors that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. You should not place undue reliance on these statements, which speak only as of the date these statements were made. These risks and uncertainties include, but are not limited to, the following risks, uncertainties (some of which are beyond the Company’s control) or other factors:

The risks described above are not exhaustive. New risk factors emerge from time to time, and it is not possible to predict all such risk factors, nor can the Company assess the impact of all such risk factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. Some of these risks and uncertainties may in the future be amplified by the COVID-19 pandemic, and there may be additional risks that the Company considers immaterial or which are unknown. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

This document contains references to trademarks, trade names and service marks belonging to other entities. Solely for convenience, trademarks, trade names and service marks referred to in this Report may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that the applicable owner will not assert, to the fullest extent under applicable law, its rights to these trademarks and trade names. The Company does not intend its use or display of other companies’ trademarks, trade names or service marks to imply a relationship with, or endorsement or sponsorship of the Company by, any other companies.

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (unaudited)

Further, the Company has restated the calculation of net loss per share as calculated in Note 14, where the adjustment to the net loss available to common stockholders for preferred stock dividends accrued for the three months ended March 31, 2021 is no longer applicable as a result of the retrospective restatement accounting for Business Combination as disclosed in Notes 1 and 3. The adjustment related to accruals of dividends of preferred stock has been removed, and the net loss per share for the three months ended March 31, 2021 has been restated as a result. The effect of the change to calculation and presentation of net loss per share for the three months ended March 31, 2021, on the condensed consolidated statement of operations, as well as the disclosures in Note 14, is as follows:

Included in construction in progress as of September 30, 2022 was approximately $10.2 million of leasehold improvements that have been funded through tenant incentive allowances associated with leases signed in September 2021 related to laboratory, office and greenhouse space.

10. DEBT

~~10.~~

~~DEBT~~

A summary of the outstanding debt as of ~~March 31,~~September 30, 2022 is as ~~follows:~~follows (in thousands):


AS OF MARCH 31, 2022
AS OF SEPTEMBER 30, 2022														AS OF SEPTEMBER 30, 2022
DESCRIPTION	ISSUANCE DATE(S)	MATURITY DATE(S)	STATED INTEREST RATE			PRINCIPAL BALANCE OUTSTANDING		UNAMORTIZED DEBT DISCOUNT			DEBT BALANCE				ISSUANCE DATE(S)	MATURITY DATE(S)	INTEREST RATE			PRINCIPAL BALANCE OUTSTANDING		UNAMORTIZED DEBT DISCOUNT			DEBT BALANCE
Trinity Equipment Financing	March 2021 - August 2021	March 2024 - August 2024	9.48% - 9.73%			$	8,598	$	(223	)	$	8,375			March 2021 - August 2021	March 2024 - August 2024	9.48% - 9.73%			$	6,824	$	(172	)	$	6,652
Term Loan – Silicon Valley Bank	September 2021	September 2024		3.50	%		10,000		(193	)		9,807			September 2021	September 2024		6.50	%		8,000		(126	)		7,874
Term Loan – Horizon	December 2021	May 2025		9.00	%		15,000		(479	)		14,521			December 2021	May 2025		12.00	%		15,000		(408	)		14,592
Capital lease							832		—			832									563		—			563
Total Debt							34,430		(895	)		33,535									30,387		(706	)		29,681
Less: Current Portion												(9,849	)													(12,907	)
Total Long-Term											$	23,686													$	16,774

A summary of the outstanding debt as of December 31, 2021 is as ~~follows:~~follows (in thousands):

2322

AS OF DECEMBER 31, 2021

DESCRIPTION

ISSUANCE DATE(S)

MATURITY DATE(S)

STATED INTEREST RATE

PRINCIPAL BALANCE OUTSTANDING

UNAMORTIZED DEBT DISCOUNT

DEBT BALANCE

Trinity equipment financing

March 2021 - August 2021

March 2024 - August 2024

9.48% - 9.73%

$
9,454

$
(252
)

$
9,202

Term loan - Silicon Valley Bank

September 2021

September 2024

3.50
%

10,000

(225
)

9,775

Term loan - Horizon

December 2021

May 2025

9.00
%

15,000

(582
)

14,418

Capital lease

992

-

992

Total Debt

35,446

(1,060
)

34,386

Less: Current Portion

(7,234
)
Total Long-Term

27,152

Convertible notes - PIPE Investors

December 2021

December 2022

0.33
%

13,500

0

13,500

Convertible notes (a)

April &
May 2020

April &
May 2022

5.00
%

18,213

(22
)

18,191

31,713

(22
)

31,691

Total debt and convertible notes

$
67,159

$
(1,082
)

$
66,077


AS OF DECEMBER 31, 2021
DESCRIPTION	ISSUANCE DATE(S)	MATURITY DATE(S)	STATED INTEREST RATE			PRINCIPAL BALANCE OUTSTANDING		UNAMORTIZED DEBT DISCOUNT			DEBT BALANCE
Trinity equipment financing	March 2021 - August 2021	March 2024 - August 2024	9.48% - 9.73%			$	9,454	$	(252	)	$	9,202
Term loan - Silicon Valley Bank	September 2021	September 2024		3.50	%		10,000		(225	)		9,775
Term loan - Horizon	December 2021	May 2025		9.00	%		15,000		(582	)		14,418
Capital lease							992		—			992
Total Debt							35,446		(1,060	)		34,386
Less: Current Portion												(7,234	)
Total Long-Term												27,152
Convertible notes - PIPE Investors	December 2021	December 2022		0.33	%		13,500		—			13,500
Convertible notes (a)	April & May 2020	April & May 2020		5.00	%		18,213		(22	)		18,191
							31,713		(22	)		31,691
Total debt and convertible notes						$	67,159	$	(1,082	)	$	66,077

As of December 31, 2021, ~~and March 31, 2022,~~ the Company’s debt liability included $16.8 million ~~and $~~0~~, respectively,~~ of convertible notes issued by GLPRI in 2020, as well as the associated accrued interest liability of $1.4 ~~million and $~~0~~, respectively.~~million.

Convertible Instruments -PIPE Investors

In December 2021, certain new and existing investors in GreenLight (the “Prepaying PIPE Investors”) agreed to purchase from GreenLight convertible instruments with an aggregate principal amount of approximately $35.3 million (the “PIPE Instruments”). The Company received $13.5 million in December 2021 and $21.8 million in January of 2022.

In conjunction with entering into the PIPE Instruments, each PIPE Investor entered into a side letter agreement (the “Side Letter”) with GreenLight, which required the PIPE

Investor to tender its PIPE Instrument as a corresponding payment for all or a portion of such PIPE Investor’s purchase of shares upon the closing of a business combination.

In February of 2022, in accordance with the Business Combination, $35.3 million of the PIPE Instruments were surrendered, cancelled, and converted into shares of common

stock. The Company determined that the cancellation and conversion of the PIPE Instruments represented an extinguishment for accounting purposes.

Term Loan – Horizon

In December 2021, the Company entered into a loan and security agreement with Horizon Technology Finance Corporation and Powerscourt Investments XXV, LP (together, “Horizon”), which provided for a term loan facility in an aggregate principal amount of up to $25.0 million, $15.0 million of which was borrowed at the closing and the remainder of which may be borrowed following the achievement of certain milestones, but not after June 30, 2022. As of June 30, 2022, the Company had not borrowed, and could no longer borrow the remainder of the term loan.

Accrued interest is payable monthly. The principal of each term loan must be repaid in equal monthly installments beginning February 1, 2023 (or August 1, 2023 if any of the remaining $10.0 million is borrowed), with a scheduled final maturity date of July 1, 2025. The Company may prepay the term loans in full, but not in part, without premium or penalty, other than a premium equal to (i) 3% of the principal amount of any prepayment made within 12 months after the applicable funding date, (ii) 2% of the principal amount of any prepayment made between 12 and 24 months after the applicable funding date and (iii) 1% of the principal amount of any prepayment made more than 24 months after the applicable funding date. On the earlier of the scheduled final maturity date and the prepayment in full of the term loans, the Company must pay a final payment fee equal to 3.0% of the original principal amount of the funded term loans.

The debt was recorded based on proceeds received net of related debt issuance costs of approximately $0.6 million. The debt issuance costs include the fair value of approximately $0.4 million for the warrants the Company is committed to issue in conjunction with this financing. The warrants were issued on January 19, 2022. See Note 11 - Warrants for further discussion of the warrants.

Term Loan – Silicon Valley Bank

In September 2021, the Company entered into a loan and security agreement with Silicon Valley Bank (“SVB”), which provided for a term loan facility in an aggregate principal amount of up to $15.0 million, $10.0 million of which was borrowed at the closing and the remainder of which may be borrowed following the achievement of certain milestones, but not after March 31, 2022. The remaining $5.0 million was no longer available as it was not borrowed as of March 31, 2022.

Accrued interest is payable monthly. The principal of each term loan must be repaid in equal monthly installments beginning April 1, 2022, with a scheduled final maturity date of September 1, 2024. On the earlier of the scheduled final maturity date and the prepayment in full of the term loans, the Company must pay a final payment fee equal to 4.0% of the original principal amount of the term loans. GreenLight may prepay the term loans in increments of $5.0 million and without premium or penalty, other than a premium equal to (i) with respect to any prepayment made on or before September 22, 2022, 3% of the principal so prepaid, (ii) with respect to any prepayment made after September 22, 2022 and on or before September 22, 2023, 2% of the principal so prepaid and (iii) with respect to any prepayment made after September 22, 2023 and on or before September 1, 2024, 1% of the principal so prepaid. GreenLight granted a first-priority, perfected security interest in substantially all of its present and future personal property and assets, excluding intellectual property, to secure its obligations to SVB.

The debt was recorded based on proceeds received net of related debt issuance costs of approximately $0.3 million. The debt issuance costs include the fair value of approximately $0.2 million for the 51,724 shares of common warrants the Company previously issued in conjunction with this financing. No additional common warrants were issued in conjunction with this financing. Total debt issuance costs of approximately $0.4 million is being amortized over the term of the financing agreement.

Equipment Financing

On March 29, 2021, the Company entered into a master equipment financing agreement with Trinity Capital (Trinity) authorizing equipment financing in the aggregate of approximately $11.3 million with advances to be made as follows: (1) up to $5.0 million at execution of the agreement and (2) the remaining balance to be drawn at Company’s option but no later than September 1, 2021. The monthly payment factors are determined by Trinity based on the Prime Rate reported in The Wall Street Journal on the first day of the month in which a financing schedule is executed, which as of the effective date of the equipment financing agreement was 3.25%. As of ~~March 31,~~September 30, 2022, the Company has drawn the entire $11.3 million on multiple advances, which is repayable over a 36-month period that commenced on the advance date. The historical cost of the assets subject to a lien under this financing arrangement is approximately $14.7 million.

The debt was recorded based on proceeds received net of related debt issuance costs of approximately $0.4 million, which are being amortized over the term of the financing agreement. The debt issuance costs include the fair value of approximately $0.1 million for the 219,839 common stock warrants the Company issued in conjunction with this financing.

Convertible Notes

In connection with the Merger (See Note 3)3 - Business Combination), $16.8 million of the Company’s outstanding convertible notes, which were issued in 2020, and accrued interest of $1.6 million converted into 10.1 million shares of Series D Preferred Stock. Concurrently with the business combination, the Series D Preferred Stock was exchanged for shares of common stock of New GreenLight in February of 2022.

Loan Interest Expense and Amortization

~~The Company’s total interest~~Interest expense ~~was approximately $1.0~~ ~~million and $0.3~~ ~~million~~ for the three and nine months ended ~~March 31,~~September 30, 2022 and 2021 ~~respectively.~~ ~~The following summarizes~~consisted of the ~~components of total interest expense:~~ following:


					THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
					2022		2021		2022		2021
	MARCH 31, 2022		MARCH 31, 2021		($ in thousands)
Interest paid or accrued	$	804	$	101	$	718	$	248	$	2,457	$	551
Non-cash amortization of debt discount and deferred financing cost		224		210		278		316		701		738
Total	$	1,028	$	311	$	996	$	564	$	3,158	$	1,289

Scheduled future principal payments on total outstanding debt, as of ~~March 31,~~September 30, 2022 are as ~~follows:~~follows (in thousands):


	MARCH 31, 2022		SEPTEMBER 30, 2022
Remainder of 2022	$	6,706	$	2,603
2023		14,438		14,261
2024		10,786		11,023
2025 and thereafter		2,500		2,500
Total	$	34,430	$	30,387

11.

WARRANTS

Common Stock ~~Warrant~~Warrants classified as Liability

~~Horizon Debt Warrants~~

~~In connection with Loan Agreement the Company entered into with Horizon which provided for a term loan facility in an aggregate principal amount of up to $25.0~~ ~~million, $15.0~~ ~~million of which was borrowed at the closing (See Note 10). The Company issued warrants for both the $15.0~~ ~~million loan drawn at the closing and the remaining $10.0~~ ~~million available commitment which had different terms and conditions. In conjunction with the $10.0~~ ~~million available commitment, the Company made available Horizon a warrant to purchase up~~ ~~57,034~~ ~~shares, of which~~ ~~28,517~~ ~~shares of the Company’s common stock were issued at an exercise price per share of $5.26~~. These warrants are recognized as liabilities on the condensed consolidated balance sheets and were measured at their inception date fair value and subsequently remeasured at each reporting period with changes recorded as a component of other income in the Company’s condensed consolidated statements of operations. ~~The warrants issued for the $10.0~~ ~~million available commitment was summarized below as a liability classified Common Stock Warrant.~~

Warrant Class

Shares

Fair Value

Issuance Date

Exercise Price

Expiration Date
Common stock

28,517

$
249

January 19, 2022

$
5.26

The earlier of March 29, 2031 or the date of a qualifying acquisition

~~The warrant’s fair value upon issuance and as of March 31, 2022 was estimated to be approximately $0.2~~ ~~million, and was measured using a probability weighted Black-Scholes option-pricing model with the following assumptions:~~

Valuation Assumptions

AT ISSUANCE (AS OF JANUARY 19, 2022)

AS OF
MARCH 31, 2022

Fair value of common stock

$
5.89

$
9.63

Risk free interest rate

1.50
%

2.39
%
Expected volatility

59.60
%

59.60
%
Expected term (in years)

10.50

10.00

Private Placement Warrants

The Private Placement Warrants may not be redeemed by the Company so long as the Private Placement Warrants are held by the initial purchasers, or such purchasers’ permitted transferees. The Private Placement Warrants have terms and provisions identical to those of the Public Warrants which are discussed below, including as to exercise price, exercisability, and exercise period, except if the Private Placement Warrants are held by someone other than the initial purchasers’ permitted transferees, then the Private Placement Warrants are redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. On the Closing Date and as of ~~March 31,~~September 30, 2022, there were 2,062,500 Private Warrants issued and outstanding. These warrants are recognized as liabilities on the condensed consolidated balance sheets and were measured at their inception date fair value and subsequently remeasured at each reporting period with changes recorded as a component of other income (expense) in the Company’s condensed consolidated statements of operations.

Warrant Class

Shares

Fair Value

Initial Recognition Date

Exercise Price

Expiration Date
Private Placement Warrants

2,062,500

$
1,341

February 2, 2022

$
11.50

March 2, 2027

Warrant Class

Inception Date Fair Value (in thousands)

Initial Recognition Date

Exercise Price

Expiration Date

Private Placement Warrants

2,062,500

1,341

February 2, 2022

11.50

March 2, 2027

The fair value of the Private Placement Warrant upon initial recognition and as of ~~March 31,~~September 30, 2022 was estimated to be approximately $1.3 million and $~~1.6~~0.5 million respectively, and was measured using a Black-Scholes option-pricing model with the following assumptions:

Valuation Assumptions

INITIAL RECOGNITION
(AS OF FEBRUARY 2, 2022)

AS OF
MARCH 31, 2022

Fair value of common stock

$
8.82

$
9.63

Risk free interest rate

1.59
%

2.39
%
Implied volatility (1)

15.9
%

12.0
%
Expected term (in years)

5.00

4.85

~~(1)~~ ~~The implied volatility considers the trading price of the public warrants and calculated value of the public warrants based on a Monte Carlo simulation model.~~


Valuation Assumptions	INITIAL RECOGNITION (AS OF FEBRUARY 2, 2022)			AS OF SEPTEMBER 30, 2022
Fair value of common stock	$	8.82		$	2.32
Risk free interest rate		1.59	%		4.15	%
Volatility		15.9	%		53.0	%
Expected term (in years)		5.00			4.42

Common Stock ~~Warrant~~Warrants classified as Equity

Horizon Debt Warrants

In connection with the Loan Agreement the Company entered into with Horizon in December 2021, the Company issued ~~the~~ warrants to Horizon to purchase 85,552 shares of the Company’s common stock at an exercise price per share of $5.26 for the $15.0 million drawn commitment. Upon ~~the~~ issuance ~~during~~of these warrants in January 2022, the Company reassessed ~~for~~ the classification of ~~these~~the warrants and noted that there ~~were~~was no variability onin the number of shares or the exercise price of the ~~settlement. T~~warrants. heThe Company determined that the ~~Warrants~~warrants met the requirements for equity classification and the fair value of $0.4 million was reclassified to equity ~~during the period.~~as of March 31, 2022.

Warrant Class

Issuance Date

Exercise Price per Share

Expiration Date

Common stock warrant

85,552

January 19, 2022

5.26

January 19, 2032

The warrant’s fair value upon issuance was estimated to be approximately $0.4 million, and was measured using a Black-Scholes option-pricing model with the following assumptions:


Valuation Assumptions	AT ISSUANCE (AS OF JANUARY 19, 2022)
Fair value of common stock	$	5.89
Risk free interest rate		1.50	%
Expected volatility		59.60	%
Expected term (in years)		10.00

In connection with Loan Agreement the Company entered into with Horizon which provided for a term loan facility in an aggregate principal amount of up to $25.0 million, of which $15.0 million was borrowed at the closing (See Note 10 - Debt). The Company issued warrants for both the $15.0 million loan drawn at the closing and the remaining $10.0 million available commitment which had different terms and conditions. In conjunction with the $10.0 million available commitment, the Company made available to Horizon a warrant to purchase up 57,034 shares, of which 28,517 shares of the Company’s common stock were issued at an exercise price per share of $5.26. These warrants were recognized as liabilities and were measured at their inception date fair value and subsequently remeasured at each reporting period with changes recorded as a component of other income in the Company’s condensed consolidated statements of operations. The warrants issued for the $10.0 million available commitment is summarized below as a liability-classified Common Stock Warrant.

Warrant Class

Inception Date Fair Value (in thousands)

Issuance Date

Exercise Price

Expiration Date

Common stock warrant

28,517

249

January 19, 2022

5.26

The earlier of March 29, 2031 or the date of a qualifying acquisition

The warrant’s fair value upon issuance and as of June 30, 2022 was estimated to be approximately $0.2 million and $35 thousand, respectively, and was measured using a probability weighted Black-Scholes option-pricing model with the following assumptions:


Valuation Assumptions	AT ISSUANCE (AS OF JANUARY 19, 2022)			AS OF JUNE 30, 2022
Fair value of common stock	$	5.89		$	2.21
Risk free interest rate		1.50	%		2.39	%
Expected volatility		59.60	%		59.60	%
Expected term (in years)		10.50			10.00

At June 30, 2022, the Warrants were determined to have met the requirements for equity classification and the fair value of $35 thousand was reclassified to equity.

Public Warrants

Each Public Warrant entitles the holder to the right to purchase one share of common stock at an exercise price of $11.50 per share. No fractional shares will be issued upon exercise of the Public Warrants. The Company may elect to redeem the Public Warrants subject to certain conditions, in whole and not in part, at a price of $0.01 per Public Warrant if (i) 30 days’ prior written notice of redemption is provided to the holders, and (ii) the last reported sale price of the Company’s common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third business day prior to the date on which the Company sends the notice of redemption to the warrant holders. Upon issuance of a redemption notice by the Company, the warrant holders have a period of 30 days to exercise for cash, or on a cashless basis. On the Closing Date, there were 10,350,000 Public Warrants issued and outstanding.

In March 2022, ~~105,210~~105,120 of the Public Warrants were exercised into shares of the Company's common stock for a total exercise price of $1.2 million in cash.

The following table presents a roll-forward of the Company’s warrants from December 31, 2021 to ~~March 31,~~September 30, 2022:

COMMON STOCK WARRANTS

PREFERRED STOCK WARRANTS

Warrants Outstanding, December 31, 2021 (1)

207,376

635,404

Exercised in the business combination (1)

(207,376
)

(635,404
)
Issued (1)

75,924

-

Assumed in the business combination

12,412,500

-

Exercised subsequent to the business combination

(105,120
)

-

Warrants Outstanding, March 31, 2022

12,383,304

-


	COMMON STOCK WARRANTS			PREFERRED STOCK WARRANTS
Warrants Outstanding, December 31, 2021 (1)		207,376			635,404
Exercised in the business combination (1)		(207,376	)		(635,404	)
Issued (1)		75,924			—
Assumed in the business combination		12,412,500			—
Exercised subsequent to the business combination		(105,120	)		—
Warrants Outstanding, September 30, 2022		12,383,304			—

(1) Number of warrants have been adjusted to reflect the exchange for New GreenLight warrants at an exchange ratio of approximately 0.6656 as a result of the Business Combination. See Note 3 - Business Combinationfor further information.

12.

STOCKHOLDERS' EQUITY

Authorized shares

The Company was authorized to ~~iss~~ueissue 500,000,000 shares of $0.0001 par value common stock and 10,000,000 shares of $0.0001 par value preferred stock as of ~~March 31,~~September 30, 2022 and 191,500,000 shares of $~~0.001~~0.0001 par value common stock as of December 31, 2021.

As of ~~March 31,~~September 30, 2022, there were ~~122,980,505~~151,465,425 shares of common stock issued and outstanding and 12,383,304 warrants to purchase the Company’s common stock outstanding. As of ~~March 31,~~September 30, 2022, there were 0no shares of preferred stock issued or outstanding.

Legacy Greenlight Redeemable Convertible Preferred Stock

In connection with the Business Combination, Legacy Redeemable Convertible Preferred Stock previously classified as temporary equity was retroactively adjusted, converted into common stock at an exchange ratio of approximately 0.6656, and reclassified to permanent equity as a result of the reverse recapitalization. As of ~~March 31,~~September 30, 2022, there was 0no Legacy Redeemable Convertible Preferred Stock authorized, issued or outstanding. The following table summarizes details of Legacy Redeemable Convertible Preferred Stock authorized, issued, and outstanding immediately prior to the Business Combination.

MARCH 31,

DECEMBER 31,

Redeemable Convertible Preferred Stock Classes

2022

2021

Series A-1 redeemable convertible preferred stock, $0.001 par value,
   2,865,698 shares authorized, 2,827,878 shares issued and
   outstanding as of December 31, 2021. Liquidation preference of
   $6,334 and $0 at December 31, 2021 and March 31, 2022,
   respectively

$
0

$
4,414

Series A-2 redeemable convertible preferred stock, $0.001 par value,
   7,018,203 shares authorized, 6,993,693 shares issued and
   outstanding as of December 31, 2021
   Liquidation preference of $19,138 and $0 at December 31,
   2021 and March 31, 2022, respectively

0

11,438

Series A-3 redeemable convertible preferred stock, $0.001 par value,
   8,647,679 shares authorized, 8,629,505 shares issued and
   outstanding as of December 31, 2021
   Liquidation preference of $30,544 and $0 at December 31,
   2021 and March 31, 2022, respectively

0

19,917

Series B redeemable convertible preferred stock, $0.001 par value,
   21,245,353 shares authorized, issued and
   outstanding as of December 31, 2021
   Liquidation preference of $24,017 and $0 at December 31,
   2021 and March 31, 2022, respectively

0

18,671

Series C redeemable convertible preferred stock, $0.001 par value,
   35,152,184 shares authorized, 35,092,183 shares issued and
   outstanding as of December 31, 2021
   Liquidation preference of $69,595 and $0 at December 31,
   2021 and March 31, 2022, respectively

0

55,851

Series D redeemable convertible preferred stock, $0.001 par value,
   71,019,827 shares authorized, 60,184,332 shares issued and
   outstanding as of December 31, 2021
   Liquidation preference of $122,459 and $0 at December 31,
   2021 and March 31, 2022, respectively

0

108,499

Total

$
0

$
218,790


	SEPTEMBER 30,		DECEMBER 31,
Redeemable Convertible Preferred Stock Classes	2022		2021
	($ in thousands)
Series A-1 redeemable convertible preferred stock, $0.001 par value, 2,865,698 shares authorized, 2,827,878 shares issued and outstanding as of December 31, 2021. Liquidation preference of $6,334 and $0 at December 31, 2021 and September 30, 2022, respectively	$	—	$	4,414
Series A-2 redeemable convertible preferred stock, $0.001 par value, 7,018,203 shares authorized, 6,993,693 shares issued and outstanding as of December 31, 2021 Liquidation preference of $19,138 and $0 at December 31, 2021 and September 30, 2022, respectively		—		11,438
Series A-3 redeemable convertible preferred stock, $0.001 par value, 8,647,679 shares authorized, 8,629,505 shares issued and outstanding as of December 31, 2021 Liquidation preference of $30,544 and $0 at December 31, 2021 and September 30, 2022, respectively		—		19,917
Series B redeemable convertible preferred stock, $0.001 par value, 21,245,353 shares authorized, issued and outstanding as of December 31, 2021 Liquidation preference of $24,017 and $0 at December 31, 2021 and September 30, 2022, respectively		—		18,671
Series C redeemable convertible preferred stock, $0.001 par value, 35,152,184 shares authorized, 35,092,183 shares issued and outstanding as of December 31, 2021 Liquidation preference of $69,595 and $0 at December 31, 2021 and September 30, 2022, respectively		—		55,851
Series D redeemable convertible preferred stock, $0.001 par value, 71,019,827 shares authorized, 60,184,332 shares issued and outstanding as of December 31, 2021 Liquidation preference of $122,459 and $0 at December 31, 2021 and September 30, 2022, respectively		—		108,499
Total	$	—	$	218,790

The following describes the rights and preferences of the Legacy GreenLight Redeemable Convertible Preferred Stock prior to the conversion in the Business Combination:

Voting Rights

The h~~olders~~holders of each share of Preferred Stock (“Preferred Stockholders”) generally had the right to one vote for each share of common stock into which such Preferred Stock could then convert. On matters on which the holders of shares of a particular series of Preferred Stock had the right to vote separately as a single class, such holders had the right to one vote per share of Preferred Stock of that particular series.

Conversion

Each share of Preferred Stock was convertible into common stock at any time at the option of the holder. Each share was converted into such number of shares of common stock as is determined by dividing the applicable original issuance price by the applicable conversion price in effect at the time of the conversion. The conversion price was subject to adjustment upon the happening of specified events, including the issuance or deemed issuance of certain additional shares of common stock, stock splits and combinations, dividends, distributions, mergers, and reorganizations. The original issuances prices of the shares of Series A-1, Series A-2, Series A-3, Series B, Series C and Series D Preferred Stock were $1.53, $1.65, $2.32, $0.86, $1.60 and $1.81 per share, respectively. As of ~~three months ended March 31, 2022~~immediately prior to the conversion of the Preferred Stock upon the consummation of the Business combination and as of June 30, 2021, the Series A-1, Series A-2, Series A-3, Series B, Series C, and Series D conversion prices were $1.21, $1.27, $1.63, $0.86, $1.60, and $1.81 per share, r~~espectively.~~respectively. As such, the shares of Preferred St~~ock~~Stock converted on a one-for-one basis, except that the shares of Series A-1, Series A-2 and Series A-3 Preferred Stock converted at the rates of approximately 1.26446, 1.29528 and 1.42239 shares of common stock, respectively, per share of Preferred Stock.

Conversion was mandatory at the earlier of the closing of a firm commitment underwritten public offering of the Company’s common stock at a price of at least $5.4354 per share and with net proceeds to the Company of at least $75.0 million or at the election of the holders of a majority of the outstanding shares of Series D Preferred Stock.

Dividends

The holders of Series A-1 Preferred Stock were entitled to receive cumulative dividends that accrued at an annual rate of approximately 5%. The holders of Series A-2, Series A-3, Series B, Series C and Series D Preferred Stock were entitled to receive cumulative dividends that accrued at an annual rate of approximately 8%. Dividends were payable only when, as and if declared by the Board of Directors. In the event the Company declared, paid, or set aside any dividends on shares of any class of capital stock of the Company, other than dividends on shares of common stock payable in shares of common stock, the holders of Preferred Stock were entitled to receive, before or at the same time as such dividends, a dividend on each outstanding share of Preferred Stock in the amount of the accruing dividends unpaid as of such date as well as a comparable dividend on an as-converted basis. As of ~~March 31,~~September 30, 2022 and December 31, 2021, 0no dividends had been declared.

Redemption

The Company’s Preferred Stock could only be redeemed upon a deemed liquidation event as described in the Company’s certificate of incorporation. Upon redemption, holders of shares of Preferred Stock of a particular series were entitled to receive a redemption amount equal to the original issue price of the shares of that series, plus any accrued but unpaid dividends and any declared but unpaid dividends for the shares of that series, subject to the terms summarized in the “Liquidation Preference” section below.

Liquidation Preference

In the event of any liquidation, dissolution or winding up of the Company, the holders of shares of Preferred Stock of a particular series were entitled to receive an amount per share equal to the greater of (i) the original issuance price of the shares of Preferred Stock of that series, plus any accruing dividends that are unpaid, whether or not declared, plus any other dividends declared but unpaid thereon, or (ii) such amount per share as would have been payable had such shares of Preferred Stock been converted into common stock. Such liquidating distributions were payable first, to the holders of shares of Series D Preferred Stock, second, to the holders of shares of Series C Preferred Stock and Series B Preferred Stock on a pari passu basis, third, to the holders of shares of Series A Preferred Stock on a pari passu basis, and finally, to the holders of shares of common stock. If

insufficient assets and funds were available to permit payment of the full amount of the applicable liquidation preference payable to the holders of any series of Preferred Stock (or group of series payable on a pari passu basis), then all available assets and funds would have been distributed to the holders of such series (or group of series) on a pro rata basis, taking into account the order of priority set forth in the previous sentence.

After payment in full to the Preferred Stockholders, the holders of common stock are entitled to receive the remaining assets of the Company available for distribution on a pro rata basis based on the number of shares held.

13. STOCK-BASED COMPENSATION

2022 Stock Incentive Plan

On February 1, 2022, stockholders approved the New GreenLight 2022 Equity and Incentive Plan, or the “New GreenLight Equity Plan”, or “Equity Plan”, replacing the GreenLight 2012 Equity Plan (the “2012 Plan”), pursuant to which the Company’s Board of Directors may grant stock options, both incentive stock options and nonstatutory stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, dividend equivalent rights, or cash awards to employees, directors and consultants. There are 31,750,000 registered shares of common stock reserved for issuance under the Equity Plan. During the ~~three~~nine months ended ~~March 31,~~September 30, 2022, ~~555,000~~6,950,569 stock options were granted under the Equity Plan.

The Plan is administered by the Company’s Board of Directors (the “Board”). The exercise prices, vesting and other restrictions are determined at the discretion of the Board, except that the exercise price per share of incentive stock options may not be less than 100% of the fair market value of the common stock on the date of grant. Stock options awarded under the Plan expire ten years after the grant date unless the Board sets a shorter term. Vesting periods for awards under the plans are determined at the discretion of the Board. Incentive stock options granted to employees and non-statutory options and restricted stock awards granted to employees, officers, members of the Board, advisors, and consultants of the Company typically vest over four or five years.

The fair value of stock option awards is estimated on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions:


	THREE MONTHS ENDED MARCH 31,					NINE MONTHS ENDED SEPTEMBER 30,
	2022			2021		2022			2021
Fair value of underlying common stock	$	9.15		$	0.82	$	3.49		$	1.33
Weighted average risk-free interest rate		2.56	%	0.27% - 1.55%			3.00	%		1.17	%
Expected term (in years)		6.00		5.00 - 6.00			6.04			6.07
Expected volatility		56.28	%	69.49% - 70.36%			65.36	%		67.92	%
Expected dividend yield		—			—		0	%		0	%

The following table summarizes the activity of the Company’s stock options under the Plan for the ~~three~~nine months ended ~~March 31,~~September 30, 2022:

AVERAGE

AGGREGATE

WEIGHTED-

REMAINING

INTRINSIC

AVERAGE

CONTRACTUAL

VALUE

SHARES (1)

EXERCISE PRICE (1)

TERM (in years)

(in thousands)

Outstanding at December 31, 2021

18,101,548

$
1.14

8.0

$
139,505

Granted

555,000

9.15

—

—

Exercised

(79,055
)

0.32

—

594

Cancelled or forfeited

(72,127
)

0.27

—

—

Outstanding at March 31, 2022

18,505,366

0.71

7.8

141,869

Vested and expected to vest at March 31, 2022

18,505,366

0.71

7.8

141,869

Exercisable at March 31, 2022

8,337,001

$
0.54

6.3

$
69,248


						AVERAGE		AGGREGATE
				WEIGHTED-		REMAINING		INTRINSIC
				AVERAGE		CONTRACTUAL		VALUE
	SHARES (1)			EXERCISE PRICE (1)		TERM (in years)		(in thousands)
Outstanding at December 31, 2021		18,101,548		$	1.14		8.0	$	139,505
Granted		6,950,569			5.67		—		—
Exercised		(921,010	)		0.48		—		1,600
Cancelled or forfeited		(729,248	)		2.63		—		2,746
Outstanding at September 30, 2022		23,401,859			2.49		7.9		23,687
Vested and expected to vest at September 30, 2022		23,401,859			2.49		7.9		23,687
Exercisable at September 30, 2022		9,785,355		$	0.88		6.7	$	15,657

(1) Number of options and weighted average exercise price has been adjusted to reflect the exchange of Legacy GreenLight's stock options for New GreenLight stock options at an exchange ratio of approximately ~~0.665~~0.6656 as a result of the Business Combination. See Note 3 for further information.

The weighted-average grant date fair value of stock options granted during the ~~three~~nine months ended ~~March 31,~~September 30, 2022 and 2021 was $~~5.06~~3.49 per share and $~~0.51~~0.81 per share, respectively.

As of ~~March 31,~~September 30, 2022, total unrecognized compensation expense related to stock options totaled approximately $~~9.8~~31.6 million, which is expected to be recognized over a weighted-average period of~~2.7~~ 3.3 years.

The aggregate intrinsic value of common stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. The intrinsic value of options exercised for the ~~three~~nine months ended ~~March 31,~~September 30, 2022 and 2021, was approximately $~~0.6~~1.6 million and $~~0.1~~1.2 million, respectively.

Restricted Stock

The fair value of each restricted common stock award is estimated on the date of grant based on the fair value of the Company’s common stock on that same date.

A summary of the Company’s restricted stock activity during the ~~three~~nine months ended ~~March 31,~~September 30, 2022 is presented below:


	SHARES			WEIGHTED AVERAGE GRANT DATE FAIR VALUE		SHARES			WEIGHTED AVERAGE GRANT DATE FAIR VALUE
Unvested shares as of December 31, 2021		4,231		$	0.76		4,231		$	0.76
Vested		(1,567	)		0.23		(4,231	)		0.23
Unvested shares as of March 31, 2022		2,664		$	0.22
Unvested shares as of September 30, 2022							—		$	—

The total fair value of restricted stock that vested during the ~~three~~nine months ended ~~March 31,~~September 30, 2022 and 2021 was approximately $259 thousand and $322 thousand, respectively.

Stock-Based Compensation Expense

Stock-based compensation expense recorded as research and development and general and administrative expenses, for employees, directors and non-employees during the three and nine months ended ~~March 31,~~September 30, 2022 and 2021 is as follows:


					THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	THREE MONTHS ENDED MARCH 31,				2022		2021		2022		2021
	2022		2021		($ in thousands)
Research and development	$	504	$	131	$	1,417	$	261	$	2,879	$	580
General and administrative		1,683		217		1,283		276		3,642		712
Total stock-based compensation expense	$	2,187	$	348	$	2,700	$	537	$	6,521	$	1,292

The Company recognized additional stock-based compensation expense associated with 292,469 shares subject to GreenLight options that vest based on both a liquidity and a service condition. At the date of grant in 2020, achievement of the conditions in the performance-based award was deemed not probable and, accordingly, the grant date fair value of the award was 0zero based upon the probable outcome of such conditions. The liquidity condition is satisfied upon the occurrence of certain events, including a merger or acquisition or other business combination transaction involving the Company and a publicly traded special purpose acquisition company or other similar entity and, as a result, the liquidity condition for certain of GreenLight’s options was satisfied upon the completion of the Business Combination. Assuming achievement of the highest level of performance,

the performance-based award would have had a grant date fair value of $0.2 million. In December 2021, the Company’s Board of Directors voted to extend the length of time to allow for the performance vesting to occur by March 31, 2022. The fair value of the award, as modified, was $2.2 million as of the modification date. Upon closing of the Business Combination, the Company recognized approximately $1.4 million of incremental stock-based compensation expense associated with these options during the three months ended March 31, 2022, and the remainder will be recognized over the remaining service period.

14. NET LOSS PER SHARE

The following table summarizes the computation of basic and diluted net loss per ~~share attributable to common stockholders of the Company:~~share:


(In thousands, except shares and per share data)	THREE MONTHS ENDED MARCH 31,						THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
	2022			2021			2022			2021			2022			2021
Numerator:
Net loss available to common stockholders	$	(38,207	)	$	(21,283	)
Net loss							$	(38,158	)	$	(29,181	)	$	(128,291	)	$	(77,638	)
Denominator:
Weighted-average common stock outstanding		113,558,404			96,300,247			139,061,906			96,424,182			125,385,422			96,351,247
Net loss per share, basic and diluted	$	(0.34	)	$	(0.22	)	$	(0.27	)	$	(0.30	)	$	(1.02	)	$	(0.81	)

The Company’s potential dilutive securities include unvested restricted stock, common stock options and common stock warrants. The Company excluded the following potential common stock, presented based on amounts outstanding at period end, from the computation of diluted net loss per share ~~attributable to common stockholders~~ because including them would have had an anti-dilutive effect:


	AS OF MARCH 31,				AS OF SEPTEMBER,
	2022		2021		2022		2021
Unvested restricted stock		2,664		20,097		-		41,160
Options to purchase common stock		18,505,366		16,294,545		23,401,859		17,632,135
Common stock warrants		12,383,304		831,304		12,383,304		864,979
Total		30,891,334		17,145,946		35,785,163		18,538,274

15. INCOME TAXES

The Company did 0not record U.S. federal or state income tax expense for the three and nine months ended ~~March 31,~~September 30, 2022 ~~or the three months ended March 31,~~and 2021 due to the Company’s historical net operating losses, forecasted continued net ~~operati~~ngoperating losses, and the Company’s recognition of a full valuation allowance.

The Company recorded foreign income tax expense of $1.1 million for the three and nine months ended September 30, 2022 related to foreign withholding tax from the Agreement with SIIPL. The Company did not record income tax expense related to foreign withholding tax for the three and nine months ended September 30, 2021 under this agreement.

The Company's effective tax rate differs from the statutory rate, primarily due to the Company’s history of incurring losses, which have not been benefited, ~~and~~ other permanent ~~differences.~~differences, and withholding taxes. Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain.

16. COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company’s significant operating leases entered as of December 31, 2021, are disclosed in Note 18, Commitments and Contingencies – Operating Leases, of the notes to the audited consolidated financial statements for the year ended December 31, 2021 as filed with the SEC on March 31, ~~2021~~2022 on ~~form~~Form 8-K/A. Since the date of those financial statements, the Company has entered into new operating leases or has modified existing operating leases for the ~~three~~nine months ended ~~March 31, 2021,~~September 30, 2022, as noted below.

On September 30, 2021, the Company entered into a lease for new laboratory, office and greenhouse space in ~~Research Triangle Park,~~Durham, North Carolina, which commenced in January 2022. The lease term expires in July 2033, unless extended. The base rent for this lease is approximately $2.3 million per year, subject to a 3% increase each ~~year~~year.

In March 2022, the Company entered into a lease for new laboratory space in Lexington, Massachusetts, ~~with an anticipated commencement date of~~which commenced in May 2022. The lease term expires in July 2033. The base rent for this lease is $3.9 million per year, subject to a 3% increase each year.

Total rent expense in the condensed consolidated statements of operations for the operating leases was approximately $~~2.8~~10.1 million and $~~0.8~~3.8 million for the nine months ended September 30, 2022 and 2021, respectively. Total rent expense in the condensed consolidated statements of operations for the operating leases was approximately $3.4 million and $1.8 million for the three months ended ~~March 31,~~September 30, 2022 and 2021, respectively.

A summary of the Company’s future minimum lease payments under noncancelable operating leases, excluding tenant improvement payables, as of ~~March 31,~~September 30, 2022, is as ~~follows:~~follows (in thousands):


	AS OF MARCH 31, 2022		AS OF SEPTEMBER 30, 2022
Remainder of 2022	$	8,840	$	2,160
2023		12,286		10,610
2024		8,285		8,426
2025		7,296		7,380
2026		7,018		7,082
Thereafter		43,975		46,125
Total	$	87,700	$	81,783

Legal proceedings

Legal claims may arise from time to time in the normal course of business. There are 0no such claims as of September 30, 2022 or December 31, 2021 nor during the respective three and nine months ended ~~March 31,~~September 30, 2022 and 2021, that are expected to have a material effect on the Company’s condensed consolidated financial statements.

Other funding commitments

In December 2020, the Company entered into an assignment and license agreement with Bayer CropScience LLP (“Bayer”) under which the Company may be obligated to make milestone and royalty payments. These payment obligations are contingent upon future events, such as achieving certain development, regulatory, and commercial milestones or generating product sales. The timing of these events is uncertain; accordingly, the Company cannot predict the period during which these payments may become due. The Company ~~have~~has agreed to pay up to $2.0 million in milestone payments under this assignment and license agreement when certain development milestones are met. The Company assessed the milestones ~~at three~~for the nine months ended ~~March 31,~~September 30, 2022 and concluded no such milestone payments were deemed probable nor due.

In November 2021, the Company entered into a manufacturing and development contract service agreement with a contract development and manufacturing organization for the Company’s mRNAmRNA COVID-19 vaccine. Based on the Company’s minimum purchase commitments, the Company expects to pay the organization a minimum of approximately $11.5 million in service fees under the agreement, excluding the cost of raw materials. Based on the current schedule, the Company expects to incur the majority of these expenses in 2022 and ~~a portion~~the remainder in 2023. For the ~~first quarter of 2023.~~nine months ended September 30, 2022, the Company has incurred approximately $5.7 million in costs under this service agreement.

17. SUBSEQUENT EVENTS

~~The~~On October 12, 2022, the Company ~~has completed an evaluation~~announced a restructuring plan to realign operating costs to better focus on near-term value drivers, resulting in a reduction of ~~all subsequent events~~the Company’s workforce by approximately ~~through May 16, 2022,~~ 25%. As a result of the ~~date these condensed consolidated financial statements were available~~restructuring plan, the Company expects to ~~be issued. There were no subsequent events that require adjustments to or disclosure~~incur a pre-tax restructuring charge in the ~~financial statements.~~fourth quarter of 2022 within the range of $1.5 million to $2.0 million, which is expected to consist of employee severance payments and other restructuring related costs and expenses and approximately $3.5 million to $4.0 million of incremental non-cash charges resulting from consolidation of the Company’s lab and office spaces. The reductions in headcount are expected to generate savings of approximately $13.0 million in direct employee costs in 2023 and the Company expects there will be savings from other direct and indirect cost areas.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of the financial condition and results of operations of GreenLight Biosciences Holdings

PBC and its consolidated subsidiaries should be read together with the Company’s unaudited condensed consolidated financial statements, together with the related notes thereto, included elsewhere in this Quarterly Report on Form 10-Q (this “Report”) and the Company’s audited consolidated financial statements, together with the related notes thereto (the “2021 Consolidated Financial Statements”), included as Exhibit 99.1 to the Company’s Amendment No. 1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on March 31, 2022 and the Company’s audited consolidated financial statements, together with the related notes thereto (the “2021 Consolidated Financial Statements”), included as Exhibit 99.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on September 26, 2022. This discussion contains forward-looking statements that involve numerous risks and uncertainties, including, but not limited to, those described under the heading “Risk Factors” in Item 1A of Part II of this Report and Item IA of Part I of the Company’s Annual Report for the year ended December 31, 2021. See “Cautionary Note Regarding Forward-Looking Statements” at the beginning of this Report. All references to years, unless otherwise noted, refer to the Company’s fiscal years, which end on December 31. For purposes of this section, all references to “we,” “us,” “our,” “New GreenLight” or the “Company” refer to GreenLight Biosciences Holdings PBC and its consolidated subsidiaries.

Overview

GreenLight Biosciences Holdings, PBC is a pre-commercial stage ~~synthetic biology~~biotechnology company with a proprietary ~~cell- free~~cell-free ribonucleic acid (RNA) production platform for the discovery, development, and commercialization of ~~high- performing~~high-performing products to promote healthier plants, foods, and people. Our vision is to pave the way for a sustainable planet through widely available and affordable RNA products. We are developing RNA products for plant and life science applications to advance crop management, plant protection, animal health, vaccine development and pandemic preparation. We have a pipeline of product candidates across various stages of development.

Since our inception in 2008, we have devoted substantially all of our efforts and financial resources to conducting research and development activities for our programs, acquiring, in-licensing, and discovering product candidates, securing related intellectual property rights, raising capital, and organizing and staffing our company. We do not have any products approved for sale and have not generated any revenue from product sales. WeFrom our founding through September 30, 2022, we have funded our operations primarily ~~with proceeds from the sale of preferred stock and to a lesser extent proceeds from the issuance of convertible notes and debt financing. From our founding through March 31, 2022, we have raised funds~~ through proceeds from the sale of our ~~preferred~~capital stock, ~~from~~ the Business Combination ~~from purchase of ENVI's Common Stock ("~~(including the related PIPE ~~Prepayment")~~financing), ~~and from~~the Private Placement in August 2022, debt financings, the issuance of ~~debt.~~convertible notes and collaboration agreements.

In October 2022, we announced a corporate realignment to focus on key anticipated near-term value drivers and extend the Company's cash runway. With the realignment, the Company is seeking to improve its organizational structure through certain team integrations that are expected to allow the Company to more efficiently support its research, development and commercialization goals.

We have incurred significant operating losses since inception. Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current or future product candidates. Our net losses were ~~$38.2~~$128.3 million and ~~$21.3~~$77.6 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2022 and 2021, respectively. As of ~~March 31,~~September 30, 2022 and December 31, 2021 we had an accumulated deficit of ~~$291.8~~$381.9 million and $253.6 million, respectively. WeNotwithstanding our recent corporate realignment, we expect to continue to incur significant expenses and ~~increasing~~ operating ~~losses. We expect that~~losses as we pursue our ~~expenses and capital requirements will increase substantially in connection with our ongoing activities,~~remaining programs, particularly if and as we:

•

conduct field and clinical trials for our product candidates;

•

continue to develop additional product candidates;

•

maintain, expand, and protect our intellectual property portfolio;

•

hire additional and/or replacement clinical, scientific manufacturing and commercial personnel;

•

expand external and/or establish internal commercial manufacturing sources and secure supply chain capacity sufficient to provide commercial quantities of any product candidates for which we may obtain regulatory approval;

•

acquire or in-license other product candidates and technologies;

•

seek regulatory approvals for any product candidates that successfully complete field trials or clinical trials;

•

establish a sales, marketing, and distribution infrastructure to commercialize any products for which we may obtain regulatory approval; and

•

add operational, financial and management information systems and personnel to support our product development, clinical execution and planned future commercialization efforts, as well as to support our operations as a public company.

As a result, we will need substantial additional funding to support our continuing operations and pursue our growth strategy. We expect to finance our operations through the sale of equity securities, debt financings or other capital sources, which may continue to include collaborations with other companies or other strategic transactions. WeThe fundraising environment for early-stage biotechnology companies like ours is becoming increasingly challenging, and we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms, or at all. If we fail to raise sufficient capital or enter into such agreements or arrangements as and when needed, we may have to significantly delay, scale back, or discontinue the development and commercialization of one or more of our product candidates and delay or discontinue the pursuit of potential in-license or acquisition opportunities.

Because of the numerous risks and uncertainties associated with product development, we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability. Even if we are able to generate product sales, we may not become profitable. If we fail to become profitable or are unable to sustain profitability on a continuing basis, then we may be unable to continue our operations at planned levels and be forced to further reduce or terminate our operations. The Company expects that its existing cash and cash equivalents of ~~$83.2~~$98.4 million as of ~~March 31,~~September 30, 2022 will last through the second quarter of 2023 but will not be sufficient to fund its operations for twelve months from the date ~~we issued our condensed consolidated~~these interim financial statements ~~for the three months ended March 31, 2022.~~are issued. We are ~~evaluating~~continuing to evaluate a range of additional opportunities to extend cash runway, including management of program spending, platform licensing collaborations and potential financing activities.

~~Response to COVID-19~~Macroeconomic Conditions

Economic uncertainty in various global markets, including the U.S. and Europe, caused by political instability and conflict and economic challenges caused by the ongoing COVID-19 pandemic, have led to market disruptions, including significant volatility in commodity prices, credit and capital market instability and supply chain interruptions, which have caused record inflation globally. In response to the ongoing global COVID-19 pandemic, we established a cross-functional task force and have implemented business continuity plans designed to address and mitigate the impact of the COVID-19 pandemic on our employees and our business. Our operations are considered an essential business and we have been allowed to continue operating under governmental restrictions during this period. We have taken measures to continue our research and development activities, while work in laboratories and facilities has been organized to reduce risk of COVID-19 transmission. The extent of the impact of the ongoing COVID-19 pandemic and current macroeconomic conditions, including changes in inflation, interest rates and overall economic conditions and uncertainties on our business, operations and product development timelines and plans remains uncertain, and will depend on certain developments, including the duration and spread of the outbreak and its impact on our field trial completion, clinical trial enrollment, trial sites, contract research organizations (“CROs”), contract manufacturing organizations (“CMOs”), and other third parties with whom we do business, as well as its impact on regulatory authorities and our key scientific and management personnel. While we are experiencing limited financial and operational impacts at this time, given the global economic slowdown, the overall disruption of global healthcare systems and the other risks and uncertainties associated with these macroeconomic conditions and the ongoing pandemic, our business, financial condition, and results of operations ultimately could be materially adversely affected. We continue to closely monitor the global economic and geopolitical conditions and the ongoing COVID-19 pandemic as we evolve our business continuity plans, clinical development plans and response strategy.

Recent Developments

Human Health Programs

Our ongoing focus remains on obtaining proof of concept of our technology platform with our COVID-19 vaccine program and our shingles vaccine program, each as further described below. Other potential product candidates in our human health pipeline are in early stages of pre-clinical research and development and have yet to reach the candidate selection phase. In order to achieve candidate selection phase for our other potential product candidates in our human health pipeline, we must successfully design and test the product candidates in animal models, achieve positive results, select the product candidates to progress to IND-enabling toxicology studies, develop chemistry, manufacturing, and controls protocols and create a development plan to discuss with applicable regulatory agencies as part of pre-submission consultations, and manufacture, fill and finish the vaccine candidate material.

COVID-19 Vaccine Program

Our COVID-19 vaccine candidate, GLB-COV-2-043, which is based on the original “Wuhan” strain of the SARS-CoV-2 virus, has successfully completed preclinical testing and we are pursuing approval to begin Phase I/II clinical trials. In April of 2022, we submitted a Clinical Trials Application, or CTA, with the South African Health Products Regulatory Authority, or SAHPRA for a phase I/II single-vaccination booster study. That application was rejected with the recommendation that the resubmission include more detail on the

specific benefits of our testing efforts and a resulting vaccine will bring to South Africa considering the ready availability of other COVID-19 vaccines in that country. After further review and discussions with SAHPRA, we have decided not to amend or resubmit our CTA with SAHPRA in favor of identifying other countries in which to begin clinical trials and consider whether to do so in combination with a US-based Investigational New Drug, or IND, application with the FDA. Subject to our ability to identify a viable country and obtain applicable regulatory approvals, we are continuing to work towards initiating a Phase I/II clinical trial by the first half of 2023. We can offer no assurance that any clinical trial applications will be accepted by regulatory authorities.

Shingles Vaccine Program

Since March 2022, our Shingles vaccine program has progressed from the stage of concept evaluation to the stage of antigen design and pre-clinical evaluation in small animals. In March 2022 we granted Serum Institute of India Private Limited, or SIIPL, an exclusive license to use our proprietary technology platform to develop, manufacture and commercialize an mRNA Shingles product and up to two other mRNA products in all territories other than the United States, the 27 member states of the European Union, the United Kingdom, Australia, Japan, New Zealand, Canada, South Korea, China, Hong Kong, Macau, and Taiwan. Pursuant to our arrangement with SIIPL, we are performing the design and preclinical research work to develop a shingles vaccine candidate. Once a candidate is selected, SIIPL will undertake toxicology testing, clinical and manufacturing development, product registration and commercialization in the licensed regions. We currently anticipate that we will select a candidate in 2023 to enable SIIPL to commence clinical development thereafter.

Plant Health Programs

The success of our plant health product pipeline will depend on us inventing and bringing to market new uses of RNA in agriculture. Since our product candidates are first of a kind, we typically do not project the timing of a product candidate coming to market until Phase 3 of our development process when we draft a Federal Insectiside, Fungicide, and Rodenticide Act ("FIFRA") dossier for internal review. While we believe our projected timelines are reasonable, given that we are introducing new modes of action for pest control, it is difficult to predict when we will be able to obtain the regulatory approvals required for commercial sales and our expected timelines may be subject to change. Our initial experience with bringing RNA-based agricultural products to market were based on the conception, development and testing of Calantha and we continue to grow our development and regulatory experience as we develop RNA solutions to manage a range of target pests.

Colorado Potato Beetle Program

Calantha, our product candidate for the Colorado potato beetle (Leptinotarsa decemlineata), was submitted to the EPA for approval earlier this year. We are aiming to commercially launch Calantha in 2023, assuming we are able to obtain EPA and required state approvals by or before the first half of 2023 ahead of the following growing season.

Varroa Mite Program

We are in the process of preparing a registration for our Varroa mite product for submission to the EPA and are conducting studies necessary for that submission using the EPA’s Guidance on Exposure and Effects Testing for Assessing Risks to Bees. The viscosity of our formulation makes it difficult for us to rely solely on Tier 1 toxicity study under the EPA guidance and we have therefore recently conducted and completed a Tier 2 toxicity study to enable us to better satisfy the data requirements in preparation for submission to the EPA. For the United States registration of our Varroa mite product, we expect to make our submission for approval under the FIFRA

regulations in the first half of 2023. In certain foreign jurisdictions, including the European Union, we expect that we will be required to apply for authorization of our Varroa mite product as an animal health product under applicable veterinary medicine regulations.

Diamond Back Moth Program

We continue to adjust the formulation of our Diamond Back Moth candidate based on data from field testing and now target commercialization after 2026, subject to receipt of regulatory approval.

Botrytis Program

We continue to adjust the formulation of our Botrytis candidate based on data from field testing and now target commercialization after 2025, subject to receipt of regulatory approval.

Fusarium Head Blight Program

We are preparing to begin early field testing of our Fusarium product candidates and expect that we will need to complete 2 seasons of field testing given the importance of mycotoxin control for public health and have revised our timeline accordingly.

Business Combination and Public Company Costs

On August 9, 2021, ~~GreenLight~~the Company and Merger Sub entered into the Business Combination Agreement with ~~ENVI and Merger Sub.~~GreenLight Biosciences, Inc. On February 2, 2022, ~~GreenLight consummated~~ the Business Combination was consummated, pursuant to which Merger Sub merged with and into GreenLight Biosciences, Inc., with GreenLight Biosciences, Inc. surviving the Merger as a wholly owned subsidiary of ~~ENVI.~~the Company. On February 2, 2022, in connection with the consummation of the Merger, ~~ENVI~~the Company changed its name to GreenLight Biosciences Holdings, PBC and became a public benefit corporation.

Immediately before the closing of the Business Combination, ~~ENVI~~the Company held approximately ~~$207.0~~$207 million in a trust account for its public stockholders. In connection with the Business Combination, ~~ENVI’s~~the Company's public stockholders redeemed shares of public common stock for $194.9 million, and the funds remaining after such redemptions became available to finance transaction expenses and the future operations of ~~New GreenLight.~~the Company. In connection with the Business Combination, ~~ENVI~~the Company entered into agreements with new investors and existing investors in GreenLight ~~investors~~Biosciences, Inc. to subscribe for and purchase an aggregate of approximately 12.4 million shares of ~~ENVI~~the Company's Class A Common Stock (the ~~“PIPE~~“February 2022 PIPE Financing”). The February 2022 PIPE

Financing was consummated on February 2, 2022 and resulted in gross proceeds of approximately ~~$124.3~~$136.4 million (of which $35.3 million ~~was~~had been advanced to GreenLight Biosciences, Inc. by the Prepaying PIPE Investors).

The Merger was accounted for as a reverse recapitalization, whereby for accounting and financial reporting purposes, GreenLight Biosciences, Inc. was the acquirer. A reverse recapitalization does not result in a new basis of accounting, and the financial statements of the ~~combined entity will~~Company represent the continuation of the consolidated financial statements of GreenLight Biosciences, Inc. in many respects. The shares of ~~ENVI~~the Company remaining after redemptions of shares of ~~ENVI~~the Company's public common stock and the unrestricted net cash and cash equivalents on the date the Business Combination was consummated were accounted for as a capital infusion to ~~GreenLight.~~GreenLight Biosciences, Inc.

The Company retroactively applied the recapitalization to the Company’s equity structure, including the consolidated statement of stockholders’ (deficit) equity from January 1, 2020 to December 31, 2021, the total stockholders’ (deficit) equity within the Company’s consolidated balance sheet as of December 31, 2021 and 2020, and the weighted average outstanding shares (basic and diluted) for the years ended December 31, 2021 and 2020. The retroactive application reflects the equivalent number of shares of the Company’s common stock, $0.0001 par value per share, issued to GreenLight’s stockholders in connection with the Business Combination at the applicable exchange ratio of .6656 (the “Exchange Ratio”). Additionally, GreenLight’s convertible preferred stock previously classified as temporary equity was retroactively adjusted, converted into common stock and reclassified to permanent equity as a result of the reverse recapitalization.

The most significant change in ~~GreenLight’s~~the Company's financial position and results of operations resulting from the consummation of the Business Combination (including the February 2022 PIPE Financing) was an estimated cash inflow (as compared to ~~GreenLight’s~~GreenLight Biosciences, Inc. balance sheet at December 31, 2021) of approximately $136.4 million, prior to payment of the transaction costs. Total direct and incremental transaction costs of $26.7 million ~~was~~were treated as a reduction of the cash proceeds with capital raising costs being deducted from ~~GreenLight’s~~GreenLight Biosciences, Inc.'s additional paid-in capital. ~~Cash on hand after giving effect to the Merger will be used for general corporate purposes, including advancement of our product development efforts.~~

As a consequence of the Business Combination, GreenLight Biosciences, Inc. effectively became the successor to a publicly traded and Nasdaq-listed company, which ~~is requiring GreenLight~~required it to hire additional personnel and is requiring it to implement procedures and processes to address public company regulatory requirements and customary practices. ~~GreenLight~~The Company expects to incur additional annual expenses as a public company for, among other things, directors’ and officers’ liability insurance, director fees and additional internal and external accounting, legal and administrative resources, including increased audit and legal fees.

Financial Overview

Components of Our Results of Operations

Revenue

~~Through March 31,~~For the nine months ended September 30, 2022, we ~~hav~~ehave not ~~recognize~~drecognized any revenue from product ~~sales, and we do not expect to generate any revenue from the sale of products in the next year.~~sales. If our development efforts for our product candidates are successful and result in regulatory approval, or license agreements with third parties, we may generate revenue in the future from product sales or license agreements. However, there can be no assurance as to when we will generate such revenue, if at all.

License and Collaboration Revenue

~~All of~~Collaboration revenue is related to our ~~revenue through March 31, 2022 has been derived from private grants from the Bill & Melinda Gates Foundation. In March 2022, the Company entered into a License Agreement~~collaboration agreement with Serum Institute of India Private Limited (“SIIPL”)~~. The Company has not generated~~ which was entered into in March 2022. For the three and nine months ended September 30, 2022, we recognized $1.7 million and $3.4 million, respectively of revenue primarily related to ~~date from~~ the ~~License Agreement with SIIPL.~~delivery of IP and research services, which includes manufacturing technology transfer services.

Grant Revenue

In July 2020, we entered into a grant agreement with the Bill & Melinda Gates Foundation to advance research in in vivo gene therapy for sickle cell disease and to explore new, low-cost capabilities for the in vivo functional cure of sickle cell and/or durable suppression of HIV in developing countries. We were approved to receive a grant of $3.3 million in the aggregate. As of ~~March 31,~~September 30, 2022, we had received the entire grant amount, of which ~~$0.7~~$0.8 million was recorded as deferred revenue as of that date. The grant agreement provides for payments to reimburse qualifying costs, including general and administrative costs, incurred to perform our obligations under the agreement. Revenue from this grant agreement is recognized as the qualifying costs related to the grant are incurred, and any amounts received in excess of revenue recognized are initially recorded as deferred revenue on our condensed consolidated balance sheets and later recognized as revenue when qualified costs are incurred. The revenue recognized through ~~March 31,~~September 30, 2022 under the grant was related to qualifying research and development expenditures that we incurred. The research supported by this grant is expected to be completed by the end of ~~May 2022.~~2023.

Operating Expenses

Research and Development Expenses

Research and development expenses consist primarily of costs incurred for our research activities, including our discovery efforts and the development of our product candidates. We expense research and development costs as incurred. These expenses include:

Program expenses

•

external research and development expenses incurred under agreements with CMOs, CROs, universities and research laboratories that conduct our field trials, preclinical studies and development services;

•

costs related to manufacturing material for our field trials and preclinical studies;

•

laboratory supplies and research materials;

•

payments made in cash or equity securities under third-party licensing agreements and acquisition agreements;

•

costs to fulfill our obligations under the grant agreement with the Bill & Melinda Gates Foundation; and

•

costs related to compliance with regulatory requirements;

Personnel expenses

•

employee-related expenses, including salaries, bonuses, benefits, stock-based compensation, and other related costs for employees involved in research and development efforts;

Facilities and other expenses

•

costs of outside consultants engaged in research and development functions, including their fees and travel expenses; and

•

facilities, depreciation, and other allocated expenses, which include direct and allocated expenses for rent, utilities, and insurance.

Costs for certain activities are recognized based on an evaluation of the progress to completion of specific tasks using data such as information provided to us by our vendors and analyzing the progress of our field trials and preclinical studies or other services performed.

This process involves reviewing open contracts and purchase orders, communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. Such amounts are recognized as an expense as the goods are delivered or the related services are performed, or until it is no longer expected that the goods will be delivered, or the services rendered.

Our direct research and development expenses are ~~not~~ tracked on a program-by-program basis for our product candidates and consist primarily of external costs, such as fees paid to outside consultants, CROs, CMOs and research laboratories in connection with our pre-clinical development, field trials, process development, manufacturing, and clinical development activities. Our direct research and development expenses by program also include fees incurred under license, acquisition, and option agreements. We do not allocate costs associated with our discovery efforts, laboratory supplies, employee costs or facility expenses, including depreciation or other indirect costs, to specific programs because these costs are deployed across multiple programs and, as such, are not separately classified. We use internal resources primarily to conduct our research and discovery as well as for managing our pre-clinical development, field trials, process development, manufacturing, and clinical development activities. ~~We expect that our research and development~~

expenses will continue to increase as we continue our current discovery and research programs, initiate new research programs, continue development of our product candidates, and conduct future field and clinical trials for our product candidates.

General and Administrative Expenses

General and administrative expense consists primarily of employee-related costs, including salaries, bonuses, benefits, stock-based compensation, and other related costs. General and administrative expense also includes professional services, including legal, accounting and audit services, consulting fees and facility costs not otherwise included in research and development expenses, insurance, and other general administrative expenses.

We anticipate that our general and administrative expenses will increase ~~in the~~commensurate with future ~~as we increase our headcount to support our continued research activities and development~~commercialization of our ~~product candidates.~~products and expansion of research collaboration work. We also anticipate that we will incur significantly increased accounting, audit, legal, regulatory, compliance and director and officer insurance costs as well as investor and public relations expenses associated with operating as a public company.

Other (Expense) Income, Net

Other (expense) income, net consists of interest income, interest expense and any change in the fair value of our warrant liabilities.

Interest Income

Interest income consists of income earned in connection with our investments in money market funds.

Interest Expense

Interest expense consists of interest on outstanding borrowings under our loan agreements with Trinity Capital, Silicon Valley Bank and Horizon Technology Finance, our convertible debt and tenant improvement loans payable with our lessors. Interest expense also includes amortization of debt discount and debt issuance costs.

Fair ~~value~~Value of Warrant Liabilities

Change in fair value of warrant liabilities consists of the remeasurement gains or losses associated with changes in the fair value of the warrant liabilities. Until settlement, fluctuations in the fair value of our warrant liabilities are based on the remeasurement at each reporting period.

Provision for Income Taxes

Our income tax provision consists of an estimate for U.S. federal, state and ~~state~~foreign income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities and changes in tax law. ~~There is no~~The Company has a provision for income taxes for the three and nine months ended ~~March 31,~~September 30, 2022, respectively related to the foreign withholding taxes on payments made by SIIPL, pursuant to the research and collaboration agreement. There is no provision for U.S. federal and state income taxes for the three and nine months ended September 30, 2022 and 2021, respectively, as we have historically incurred net operating losses, and expect to continue to generate net operating losses. Based on this history of net operating losses, we also maintain a full valuation allowance against our U.S. federal and state deferred tax assets.

Results of Operations

Comparison of the Three Months Ended ~~March 31,~~September 30, 2022 and 2021

The following table summarizes our results of operations for the three months ended ~~March 31,~~September 30, 2022 and 2021:


	THREE MONTHS ENDED MARCH 31,						INCREASE /			THREE MONTHS ENDED SEPTEMBER 30,						INCREASE /
Dollars (in thousands)	2022			2021			(DECREASE)			2022			2021			(DECREASE)
License and collaboration revenue										$	1,689		$	—		$	1,689
Grant revenue	$	257		$	325		$	(68	)		43			362			(319	)
Total revenue		257			325			(68	)		1,732			362			1,370
Operating expenses:
Research and development		27,281			17,411			9,870			29,944			22,661			7,283
General and administrative		9,755			3,898			5,857			8,025			5,112			2,913
Total operating expenses		37,036			21,309			15,727			37,969			27,773			10,196
Loss from operations		(36,779	)		(20,984	)		(15,795	)		(36,237	)		(27,411	)		(8,826	)
Other expenses:
Interest income		4			11			(7	)		240			4			236
Interest expense		(1,073	)		(311	)		(762	)
Interest and other expense											(1,069	)		(631	)		(438	)
Change in fair value of warrant liability		(359	)		1			(360	)		—			(1,143	)		1,143
Total other expense, net		(1,428	)		(299	)		(1,129	)
Total other income (expense), net											(829	)		(1,770	)		941
Net loss before income tax											(37,066	)		(29,181	)		(7,885	)
Income tax expense											1,092			—			1,092
Net loss	$	(38,207	)	$	(21,283	)	$	(16,924	)	$	(38,158	)	$	(29,181	)	$	(8,977	)

License and Collaboration Revenue

For the three months ended September 30, 2022, we recognized $1.7 million of revenue from our license and collaboration agreement with SIIPL primarily related to the delivery of IP and research services, which includes manufacturing technology transfer services. Because the license and collaboration agreement was executed in March 2022, we did not recognize any revenue under this agreement for the three months ended September 30, 2021.

Grant Revenue

Grant revenue was ~~$0.3 million~~$43 thousand for the ~~March 31,~~three months ended September 30, 2022, compared to grant revenue of ~~$0.3~~$0.4 million for the three months ended ~~March 31,~~September 30, 2021. All of our grant revenue is derived from a grant made by the Bill & Melinda Gates Foundation in July 2020. The decrease in grant revenue is due to a decrease of costs incurred under this grant.

Research and Development Expenses


	THREE MONTHS ENDED MARCH 31,				INCREASE /		THREE MONTHS ENDED SEPTEMBER 30,				INCREASE /
Dollars (in thousands)	2022		2021		(DECREASE)		2022		2021		(DECREASE)
Program expense	$	7,988	$	7,122	$	866	$	11,043	$	8,593	$	2,450
Personnel costs		12,628		7,041		5,587		11,416		9,407		2,009
Other		6,665		3,248		3,417		7,485		4,661		2,824
Total research and development expenses	$	27,281	$	17,411	$	9,870	$	29,944	$	22,661	$	7,283

Research and development expense was ~~$27.3~~$29.9 million for the three months ended ~~March 31,~~September 30, 2022, compared to ~~$17.4~~$22.7 million for the three months ended ~~March 31,~~September 30, 2021. The increase of ~~$9.9~~$7.2 million resulted primarily from increased program costs of $2.5 million related to R&D materials and service fees supporting the commercial-scale engineering run, pre-clinical trial activities and personnel expenses, as well as facilities costs such as rent and depreciation expenses.

Our headcount supporting research and development activities increased, which generated additional personnel-related costs of ~~$5.6~~$2.0 million. Other research and development costs increased by approximately ~~$3.4~~$2.8 million, primarily related to a ~~$2.6~~$1.7 million increase in rental expense as we expanded our footprints and entered into multiple leases during 2021 and 2022, and an increase of ~~$0.9~~$0.4 million in depreciation expense due to an increase in capitalized ~~spend in~~expenditures for lab equipment and lab space leasehold ~~improvement.~~improvements.

General and Administrative Expenses

General and administrative expense was ~~$9.8~~$8.0 million for the three months ended ~~March 31,~~September 30, 2022, compared to ~~$3.9~~$5.1 million for the three months ended ~~March 31,~~September 30, 2021. The increase of ~~$5.9~~$2.9 million was primarily due to an increase of ~~$2.7~~$0.5 million in personnel-related costs in general and administrative functions, which resulted from increased headcount supporting general and administrative activities; a ~~$1.7~~$1.5 million increase in professional services fees ~~to support the Business Combination Agreement;~~associated with being a publicly traded company; and an increase of ~~$1.4~~$0.9 million related to facilities and other administrative ~~expenses.~~expenses as we expanded our footprints and entered into multiple leases during 2021 and 2022.

Interest Income

For the three months ended ~~March 31,~~September 30, 2022, interest income ~~decreased~~increased by $0.2 million compared to the three months ended September 30, 2021. This increase in our interest income was driven by an ~~insignificant amount.~~increase in our cash and cash equivalents due to capital raises in 2022 and an increase in the interest rate yield on our cash and cash equivalents.

Interest and Other Expense

Interest and other expense was ~~$1.0~~$1.1 million for the three months ended ~~March 31,~~September 30, 2022, compared to ~~$0.3~~$0.6 million for the three months ended ~~March 31,~~September 30, 2021. The increase of ~~$0.7~~$0.5 million is primarily related to interest accrued on the various loan agreements we entered into during ~~2021.~~the second half of 2021 as well as an increase in interest rates on our variable rate debt.

Change in Fair Value of Warrant Liabilities

~~Expense attributable to the~~There was no change in fair value of warrant liabilities ~~was $0.3~~for the three months ended September 30, 2022 compared to an expense of $1.1 million for the three months ended ~~March 31, 2022, and zero for the three months ended March 31,~~September 30, 2021. The entire ~~increase~~decrease of ~~$0.3~~$1.1 million in the fair value of our warrant liabilities was due to the decrease in the fair value of the private placement warrants.

Results of Operations

Comparison of the Nine Months Ended September 30, 2022 and 2021

The following table summarizes our results of operations for the nine months ended September 30, 2022 and 2021:


	NINE MONTHS ENDED SEPTEMBER 30,						INCREASE /
Dollars (in thousands)	2022			2021			(DECREASE)
License and collaboration revenue	$	3,437		$	—		$	3,437
Grant revenue		320			1,180			(860	)
Total revenue		3,757			1,180			2,577
Operating expenses:
Research and development		101,376			62,081			39,295
General and administrative		27,357			13,943			13,414
Total operating expenses		128,733			76,024			52,709
Loss from operations		(124,976	)		(74,844	)		(50,132	)
Other expenses:
Interest income		301			20			281
Interest and other expense		(3,480	)		(1,471	)		(2,009	)
Change in fair value of warrant liability		956			(1,343	)		2,299
Total other expense, net		(2,223	)		(2,794	)		571
Net loss before income tax		(127,199	)		(77,638	)		(49,561	)
Income tax expense		1,092			—			1,092
Net loss	$	(128,291	)	$	(77,638	)	$	(50,653	)

License and Collaboration Revenue

For the nine months ended September 30, 2022, we recognized $3.4 million of revenue from our license and collaboration agreement with SIIPL primarily related to the delivery of IP and research services, which includes manufacturing technology transfer services. Because the license and collaboration agreement was executed in March 2022, we did not recognize any revenue under this agreement for the nine months ended September 30, 2021.

Grant Revenue

Grant revenue was $0.3 million for the nine months ended September 30, 2022, compared to grant revenue of $1.2 million for the nine months ended September 30, 2021. All of our grant revenue is derived from a grant made by the Bill & Melinda Gates Foundation in July 2020. The decrease in grant revenue is due to a decrease of costs incurred under this grant.

Research and Development Expenses


	NINE MONTHS ENDED SEPTEMBER 30,				INCREASE /
Dollars (in thousands)	2022		2021		(DECREASE)
Program expense	$	42,706	$	25,671	$	17,035
Personnel costs		37,543		24,924		12,619
Other		21,127		11,486		9,641
Total research and development expenses	$	101,376	$	62,081	$	39,295

Research and development expense was $101.4 million for the nine months ended September 30, 2022, compared to $62.1 million for the nine months ended September 30, 2021. The increase of $39.3 million resulted primarily from increased program costs related to commercial-scale engineering run, specifically costs of approximately $15.0 million related to R&D materials and service fees supporting the commercial-scale engineering run, pre-clinical trial activities and personnel expenses, as well as facilities costs such as rent and depreciation expenses.

Our headcount supporting research and development activities increased, which generated additional personnel-related costs of $12.6 million. Other research and development costs increased by approximately $9.6 million, primarily related to a $6.0 million increase

in rental expense as we expanded our footprints and entered into multiple leases during 2021 and 2022, and an increase of $2.0 million in depreciation expense due to an increase in capitalized expenditures for lab equipment and lab space leasehold improvements.

General and Administrative Expenses

General and administrative expense was $27.4 million for the nine months ended September 30, 2022, compared to $13.9 million for the nine months ended September 30, 2021. The increase of $13.5 million was primarily due to an increase of $4.6 million in personnel-related costs in general and administrative functions, which resulted from increased headcount supporting general and administrative activities; a $4.6 million increase in professional services fees to support the Business Combination Agreement and costs associated with being a publicly traded company; and an increase of $4.2 million related to facilities and other administrative expenses as we expanded our footprints and entered into multiple leases during 2021 and 2022.

Interest Income

For the nine months ended September 30, 2022, interest income increased by $0.3 million compared to the nine months ended September 30, 2021. This increase in our interest income was driven by an increase in our cash and cash equivalents due to capital raises in 2022 and an increase in the ~~estimated~~interest rate yield on our cash and cash equivalents.

Interest and Other Expense

Interest and other expense was $3.5 million for the nine months ended September 30, 2022, compared to $1.5 million for the nine months ended September 30, 2021. The increase of $2.0 million is primarily related to interest accrued on the various loan agreements we entered into during the second half of 2021 as well as an increase in interest rates on our variable rate debt.

Change in Fair Value of Warrant Liabilities

Other income attributable to the change in fair value of warrant liabilities was $1.0 million for the nine months ended September 30, 2022, compared to an expense of $1.3 million for the nine months ended September 30, 2021. The entire decrease of $2.3 million in the fair value of our ~~common stock underlying~~warrant liabilities was due to the ~~outstanding~~decrease in the fair value of the private placement warrants.

Liquidity and Capital Resources

Sources of Liquidity

Since our inception, we have generated recurring net losses. We do not have any products approved for sale and have not yet commercialized any ~~product and we do not expect to generate revenue from sales of any products for several years, if at all.~~product. Since our inception, we have funded our operations primarily through proceeds from the issuance of ~~preferred~~capital stock and to a lesser extent through debt financings, the issuance of ~~convertible~~convertible notes and ~~debt financings.~~collaboration agreements. From our founding through ~~March 31,~~September 30, 2022, we have raised ~~an aggregate of approximately $330.2 million of net~~ proceeds from the sale of our ~~preferred~~capital stock, the Business Combination ~~and from purchase of ENVI's Common Stock ("~~(including the related PIPE ~~Prepayment")~~financing), ~~and from from founding through March 31,~~the August 2022 ~~we have raised $67.0 million~~PIPE Financing, and from the issuance of debt and convertible notes. As of ~~March 31,~~September 30, 2022, we had cash and cash equivalents of ~~$83.2~~$98.4 million.

Private Placement and Securities Subscription Agreement

On August 11, 2022, we entered into Securities Subscription Agreements (the “August 2022 PIPE Subscription Agreements”) with certain institutional accredited investors (collectively, the “August 2022 PIPE Investors”), providing for the sale by us of 27,640,301 shares (the “August 2022 PIPE Shares”) of our common stock (the “Common Stock”) at a purchase price of $3.92 per share, in a private placement (the “August 2022 PIPE Financing”). The August 2022 PIPE Shares were issued (the “Closing”) simultaneously with the execution and delivery of the August 2022 PIPE Subscription Agreements. The aggregate gross proceeds for the Private Placement were approximately $108.3 million. The gross proceeds do not reflect transaction costs of $2.3 million. We intend to use the net proceeds from the August 2022 PIPE Financing to fund ongoing clinical development and commercialization of our existing product pipeline.

Business Combination and PIPE Financing .

In February 2022, ~~GreenLight~~we consummated the Business Combination with ENVI, which generated gross proceeds to New GreenLight of approximately $136.4 million, including $124.3 million from the PIPE Financing and $12.1 million from the trust account (after redemptions). The gross proceeds do not reflect transaction costs of $26.7 million. For more information, see “—Recent Developments—Business Combination and Public Company Costs” above.

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Horizon Loan Agreement

In December 2021, we entered into a loan and security agreement with Horizon Technology Finance Corporation and Powerscourt Investments XXV, LP (together, “Horizon”), which provided for a term loan facility in an aggregate principal amount of up to $25.0 million, $15.0 million of which was borrowed at the closing and the remainder of which may be borrowed following the achievement of certain milestones, but not after June 30, 2022. As of June 30, 2022, we had not borrowed, and could no longer borrow the remainder of the term loan. Under the agreement, in January 2022 the lenders were granted 10-year warrants to purchase shares of common stock of GreenLight. The warrants are exercisable in the aggregate for a number of shares equal to 3% of the total term loan facility (assuming we borrow the full facility amount of $25.0 million) divided by the exercise price of the warrants. Upon the closing of the Business Combination, the warrants became warrants to purchase shares of New GreenLight Common Stock based on the exchange ratio under the Business Combination Agreement.

Accrued interest is payable monthly. Under the terms of our agreement, this loan accrues interest at a floating rate per annum equal to one-month prime rate as reported in the Wall Street Journal on a date that is 5 business days prior to the funding date of the Loan plus 5.75%. The principal of each term loan must be repaid in equal monthly installments beginning February 1, 2023 (or August 1, 2023 if we borrow any of the remaining $10.0 million), with a scheduled final maturity date of July 1, 2025. We may prepay the term loans in full, but not in part, without premium or penalty, other than a premium equal to (i) 3% of the principal amount of any prepayment made within 12 months after the applicable funding date, (ii) 2% of the principal amount of any prepayment made between 12 and 24 months after the applicable funding date and (iii) 1% of the principal amount of any prepayment made more than 24 months after the applicable funding date. On the earlier of the scheduled final maturity date and the prepayment in full of the term loans, we must pay a final payment fee equal to 3.0% of the original principal amount of the funded term loans.

The agreement contains customary affirmative and negative covenants (including an obligation to maintain certain amounts of cash in accounts subject to springing control in favor of the lenders) and customary events of default; it does not contain a financial covenant. We granted a second-priority, perfected security interest in substantially all of our present and future personal property and assets, excluding intellectual property, to secure our obligations to the lenders, which security interest is subordinated to the security interest granted to Silicon Valley Bank.

In April 2021, we entered into a joinder agreement with Horizon pursuant to which the Company became a party to the Horizon loan agreements as a co-borrower. Under the joinder agreement, the Company also granted Horizon a continuing security interest in its existing and after-acquired personal property and assets, excluding intellectual property.

Silicon Valley Bank Loan Agreement

In September 2021, we entered into a loan and security agreement with Silicon Valley Bank, or SVB, providing for a term loan facility in an aggregate principal amount of up to $15.0 million, $10.0 million of which we borrowed at the closing and the remainder of which we may borrow following the achievement of certain milestones, but not after March 31, 2022. We ~~have~~did not ~~borrowed~~borrow any additional amounts from SVB ~~at the time of this filing.~~before March 31, 2022. At the closing, we granted SVB a 10-year warrant to purchase up to ~~51,724~~34,427 shares of GreenLight Common Stock (assuming we borrow the entire $15.0 million from ~~SVB)~~SVB and giving effect to the reverse recapitalization). Upon the closing of the Business Combination, the warrants became warrants to purchase shares of New GreenLight Common Stock based on the exchange ratio under the Business Combination Agreement.

Accrued interest is payable monthly. Under the terms of our agreement, this loan accrues interest at a floating rate per annum equal to the greater of (i) three and one half of one percent (3.50%) and (ii) the prime rate (as stated in the Wall Street Journal) plus the prime rate margin of one quarter of one percent (0.25%). The principal of each term loan must be repaid in equal monthly installments beginning April 1, 2022 (or October 1, 2022, if the Company borrows any of the remaining $5.0 million), with a scheduled final maturity date of September 1, 2024. On the earlier of the scheduled final maturity date and the prepayment in full of the term loans, the Company must pay a final payment fee equal to 4.0% of the original principal amount of the term loans. The Company may prepay the term loans in increments of $5.0 million and without premium or penalty, other than a premium equal to (i) with respect to any prepayment made on or before September 22, 2022, 3% of the principal so prepaid, (ii) with respect to any prepayment made after September 22, 2022 and on or before September 22, 2023, 2% of the principal so prepaid and (iii) with respect to any prepayment made after September 22, 2023 and on or before September 1, 2024, 1% of the principal so prepaid.

The loan and security agreement with SVB contains customary affirmative and negative covenants (including an obligation to maintain cash in accounts at SVB sufficient to repay all loan obligations) and customary events of default; it does not contain a financial covenant. We granted a first-priority, perfected security interest in substantially all of our present and future personal property and assets, excluding intellectual property, to secure our obligations to SVB.

4244

In April 2021, we entered into a joinder agreement and first amendment to loan and security agreement with SVB pursuant to which the Company became a party to the SVB loan agreements as a borrower. Under these agreements, the Company also granted SVB a continuing security interest in its existing and after-acquired personal property and assets, excluding intellectual property. These agreements also amended certain terms of the original SVB loan agreement to, among other things, add representations, affirmative and negative covenants, and events of default regarding the Company’s obligations as a public benefit corporation. Under the amended terms, it is an event of default for there to be any pending or threatened litigation by a shareholder alleging that we or our directors failed to satisfy any obligations under Delaware law regarding our status as a public benefit corporation, if the litigation is likely to result in a final monetary judgment against us in excess of $250,000. In addition, if any action, investigation, or proceeding is pending or known to be threatened in writing against us with respect to such a claim, the bank may not need to make further loans to us.

Trinity Capital Equipment Financing Agreement

In March 2021, we entered into a master equipment financing agreement with Trinity Capital (Trinity) authorizing equipment financing with an aggregate borrowing capacity of $11.3 million, with up to $5.0 million available immediately and the remaining principal balance available to be drawn before September 2021. We entered into this loan to finance our capital purchases associated primarily with our research and manufacturing programs. The monthly payment factors for each draw are determined by Trinity based on the Prime Rate reported in the Wall Street Journal on the first day of the month in which an equipment financing schedule for such draw is executed. As of December 31, 2021, the Company had drawn the entire $11.3 million, which is repayable in monthly installments starting April 2021.

Funding Future Operations; Going Concern

The Company ~~expects~~estimates that its existing cash and cash equivalents of ~~$83.2~~$98.4 million as of ~~March 31,~~September 30, 2022 will last through the second quarter of 2023 but will not be sufficient to fund its operations for twelve months from the date ~~we issued our audited consolidated~~these interim financial ~~statements.~~statements are issued. As a result, there is substantial doubt about our ability to continue as a going concern for at least one year from the date of issuance of ~~our~~these financial statements, as discussed in Note 1 - Nature of Business and Basis of Presentation of the notes to our condensed consolidated financial statements as of September 30, 2022 and for the three and nine months ended ~~March 31,~~September 30, 2022 and 2021, included elsewhere herein.

Based on our existing cash and cash equivalents, we are evaluating a range of opportunities to extend cash runway, including management of program spending, platform licensing collaborations and potential financing activities.

We expect to incur significant expenses and operating losses for the foreseeable future as we advance our product candidates through preclinical and clinical development and field trials, seek regulatory approval, and pursue commercialization of any approved product candidates. We ~~expect~~anticipate that our ~~research and development and~~ general and administrative ~~costs~~expenses will increase ~~in connection~~commensurate with future commercialization of our ~~planned~~products and expansion of research ~~and development activities.~~collaboration work. In addition, in light of the completion of the Business Combination, we expect to incur ~~additional~~continuing costs associated with operating as a public company. Because of the numerous risks and uncertainties associated with research, development, and commercialization of our product candidates, we are unable to estimate the exact amount of our working capital requirements. Our future capital requirements will depend on many factors, including:

•

the design, initiation, timing, costs, progress, and results of our planned clinical trials and field trials;

•

the progress of preclinical development and possible clinical trials of our current and future earlier- stage programs;

•

the scope, progress, results and costs of our research programs and preclinical development of any additional product candidates that we may pursue;

•

the development requirements of other product candidates that we may pursue;

•

our headcount ~~growth~~ and associated costs ~~as we expand our research and development~~ and establish a commercial infrastructure;

•

the timing and amount of milestone and royalty payments that we are required to make or eligible to receive under our current or future collaboration and license agreements;

•

the outcome, timing and cost of meeting regulatory requirements established by the FDA, EPA and other regulatory authorities;

•

the costs and timing of future commercialization activities, including product manufacturing, marketing, sales and distribution, for any of our product candidates for which we receive marketing approval;

•

the cost of expanding, maintaining, and enforcing our intellectual property portfolio, including filing, prosecuting, defending, and enforcing our patent claims and other intellectual property rights;

•

the cost of defending potential intellectual property disputes, including patent infringement actions brought by third parties against us or any of our product candidates;

•

the effect of competing technological and market developments;

•

the cost and timing of completion of commercial-scale manufacturing activities;

•

the extent to which we partner our programs, acquire or in-license other product candidates and technologies or enter into additional collaborations;

•

the revenue, if any, received from commercial sales of any future product candidates for which we receive marketing approval; and

•

the costs of operating as a public company.

Until we can generate product revenues to support our cost structure, if any, we expect to finance our cash needs through a combination of equity offerings, debt financings, collaborations, and other similar arrangements. To the extent that we raise additional capital through the sale of equity or convertible securities, the ownership interest of our stockholders will be or could be diluted, and the terms of these securities may include liquidation, dividend, redemption, and other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures, or declaring dividends. If we raise funds through collaborations, or other similar arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us and/or may reduce the value of our common stock. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market our product candidates even if we would otherwise prefer to develop and market such product candidates ourselves.

Cash Flows

The following table summarizes our cash flows for each of the periods presented:

THREE MONTHS ENDED
MARCH 31,

INCREASE /

2022

2021

(DECREASE)

Net cash (used in) operating activities

$
(49,468
)

$
(21,358
)

$
(28,110
)
Net cash (used in) investing activities

(250
)

(4,688
)

4,438

Net cash provided by financing activities

102,454

2,634

99,820

Net increase (decrease) in cash, cash equivalents
and restricted cash

$
52,736

$
(23,412
)

$
76,148


	NINE MONTHS ENDED SEPTEMBER 30,						INCREASE /
	2022			2021			(DECREASE)
Net cash (used in) operating activities	$	(112,142	)	$	(67,241	)	$	(44,901	)
Net cash (used in) investing activities		(22,907	)		(11,362	)		(11,545	)
Net cash provided by financing activities		202,915			18,376			184,539
Net increase (decrease) in cash, cash equivalents and restricted cash	$	67,866		$	(60,227	)	$	128,093

Operating Activities

Cash flows from operating activities represent the cash receipts and disbursements related to all our activities other than investing and financing activities. Operating cash flow is derived by adjusting our net loss for non-cash operating items such as depreciation, amortization, and stock-based compensation as well as changes in operating assets and liabilities, which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in our results of operations.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2022, operating activities used ~~$49.5~~$112.1 million of cash, primarily resulting from our net loss of ~~$38.2~~$128.3 million, ~~adjusted~~adjusted for non-cash items and the effect of changes in operating assets and liabilities. Non-cash adjustments primarily include stock-based compensation expense of ~~$2.2~~$6.5 million and depreciation and amortization expense of ~~$2.1~~$5.9 million offset by a change in the fair value of our warrant liabilities of $1.0 million. Net cash used by changes in our operating assets and liabilities ~~for three months ended March 31, 2022~~ consisted primarily of a ~~$9.5~~$4.0 million decrease in accounts payable, ~~and~~an increase of $8.2 million in accrued expenses and other liabilities, a ~~$6.5~~$9.0 million increase in prepaid expenses and other current assets, ~~and an increase of $5.0 million in accounts receivable,~~ partially offset by an increase in deferred revenue of ~~$4.7~~$6.4 million. The ~~increase~~decrease in accounts payable ~~and accrued expenses~~is related to ~~our increased level of operating activities and~~ timing of vendor invoicing and payments. The increase in accrued expenses and prepaid expenses and other assets was due to our increased level of research collaborations and manufacturing development activities related to our product candidates.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, net cash used in operating activities was ~~$21.4~~$67.2 million. Net cash used in operating activities consists of net loss of ~~$21.3~~$77.6 million, adjusted for non-cash items and the effect of changes in operating assets and liabilities. ~~Non-cas~~hNon-cash adjustments primarily include depreciation and amortization expense of ~~$1.1~~$3.7 million, stock-based compensation of

$1.3 million, non-cash interest expense of $0.7 million and ~~stock-based compensation~~change in fair value warrant liability of ~~$0.3~~$1.3 million. Net cash ~~used~~provided by changes in our operating assets and liabilities ~~for the three months ended March 31, 2021,~~ primarily consisted of a ~~$1.6~~$4.3 million increase in accounts payable and other current liabilities partially offset by a $0.9 million increase in prepaid ~~expenses.~~expenses and other current assets. The increase in accounts payable and other assets was related to timing of vendor invoicing and payments. The increase in prepaid expenses and other current assets was primarily due to our increased level of research collaborations and manufacturing development activities related to our product candidates.

Investing Activities

During the ~~three~~nine months ended ~~March 31,~~September 30, 2022, investing activities used ~~$0.3~~$22.9 million of cash, consisting primarily of purchases of property and equipment, of which a substantial majority related to laboratory and facilities improvements in ~~Research Triangle Park,~~Durham, North Carolina and Lexington, Massachusetts as well as purchases of laboratory equipment and facilities improvements for our manufacturing facility in Rochester, New York.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, investing activities used ~~$4.7~~$11.4 million of cash consisting of purchases of property and ~~equipment,~~equipment, of which a substantial majority related to purchases of laboratory equipment and facilities improvements for our manufacturing facility in Rochester, New York ~~construction of cleanrooms and preclinical manufacturing capacity in our facility in Burlington, Massachusetts,~~ and laboratory construction in our facility in Woburn, Massachusetts.

Financing Activities

During the ~~three~~nine months ended ~~March 31,~~September 30, 2022, financing activities provided ~~$102.5~~$202.9 million of cash, consisting primarily of ~~$80.5~~$106.1 million of net proceeds raised in the August 2022 PIPE financing, $78.5 million of net proceeds from the Business Combination, net of transaction costs, a $21.8 million in proceeds from issuance of convertible debt from PIPE Investors, and $1.2 million of proceeds from the exercise of public warrants, which were partially offset by ~~$0.8~~$5.4 million of repayments on our secured debt, term loan payable, tenant improvement allowance and capital lease obligations.

During the nine months ended September 30, 2021, financing activities provided $18.4 million of cash, consisting primarily of $10.4 million of net proceeds from a new secured debt agreement, $10.0 million of net proceeds from a term loan and $0.1 million of proceeds from the exercise of options, partially offset by $1.6 million of repayments on our secured debt and ~~term loan payable.~~

~~During the three months ended March 31, 2021, financing activities provided $2.6~~capital lease obligations and $0.5 million of ~~cash, consisting primarily of $2.8 million of proceeds from equipment financing.~~payments related to financing costs incurred on the business combination.

Contractual Obligations and Commitments

Operating Lease Obligations

We have non-cancelable operating lease obligations, consisting primarily of lease payment obligations for our facilities, including our headquarters in Medford, Massachusetts; ~~clean rooms in Burlington, Massachusetts;~~ office, laboratory and greenhouse space in ~~Research Triangle Park,~~Durham, North Carolina; laboratory and office space in Woburn, Massachusetts; office and laboratory space in Lexington, Massachusetts, and our manufacturing facilities in Rochester, New York. The leases for these facilities expire on various dates through 2026, unless extended.

In March 2022, the Company entered into a lease for new office, laboratory and clean room space in Lexington, Massachusetts, ~~with an anticipated commencement date of~~which commenced in May 2022. The lease term expires in July 2033. The base rent for this lease is $3.9 million per year, subject to a 3% increase each year.

In June 2022, we terminated our lease for manufacturing clean rooms in Burlington, Massachusetts.

See Note 16, Commitments and Contingencies — Operating Leases, of the notes to our condensed consolidated financial statements for the ~~three~~nine months ended ~~March 31,~~September 30, 2022 and 2021, for further information on our ~~future~~ operating lease obligations.

Purchase Obligations

In the normal course of business, we enter into contracts with third parties for field trials, preclinical studies and research and development supplies. These contracts generally do not contain minimum purchase commitments and provide for termination on notice, and therefore are cancellable contracts.

License Agreement Obligations

In December 2020, we entered into an assignment and license agreement with Bayer CropScience LLP (“Bayer”) under which we may be obligated to make milestone and royalty payments. These payment obligations are contingent upon future events, such as achieving certain development, regulatory, and commercial milestones or generating product sales. The timing of these events is

uncertain; accordingly, we cannot predict the period during which these payments may become due. We have agreed to pay up to $2.0 million in milestone payments under this assignment and license agreement when certain development milestones are met. The Company assessed the milestones atfor the three and nine months ended ~~March 31,~~September 30, 2022 and concluded no such milestone payments were deemed probable nor due.

In August 2020, we entered into a license agreement with Acuitas Therapeutics, Inc. (“Acuitas”) under which we are obligated to make potential milestone payments, royalty payments, or both. These payment obligations are contingent upon future events, such as achieving certain clinical and regulatory milestones and generating product sales. Such payments are dependent upon the development of products using the intellectual property licensed under the agreements and are contingent upon the occurrence of future events. The potential clinical and regulatory milestone payments that Acuitas is entitled to receive is in the low double-digit millions for the first option exercised. With respect to the sale of each licensed products, the Company is also obligated to pay Acuitas royalties in the low single digit percentages on net sales of the licensed products by the Company and its affiliates and sublicensees in a given country until the last to occur, in such country, of (i) the expiration or abandonment of all licensed patent rights covering the licensed product, (ii) expiration of any regulatory exclusivity for the licensed product, or (iii) ten years from the first commercial sale of the ~~licensed~~licensed product. ~~As of~~For the three and nine months ended ~~March 31,~~September 30, 2022, none of these events were deemed probable and hence no expenses were recorded.

Debt Obligations

See Note 10, Debt, of the notes to our condensed consolidated financial statements included elsewhere in this filing for further information on our future debt repayment obligations.

Manufacturing Commitments and Obligations

In November 2021, we ~~entered into the~~engaged Samsung ~~Agreements, pursuant to which we engaged Samsung~~Biologics Co., Ltd. (“Samsung”) as a contract development and manufacturing organization for scale up and commercial scale production of our mRNA COVID-19 ~~vaccine.~~vaccine pursuant to a Master Services Agreement and a Product Specific Agreement with Samsung (collectively, the “Samsung Agreements”). Pursuant to the Samsung Agreements, we must, among other things, (a) pay Samsung service fees for its pharmaceutical development and manufacturing services, (b) purchase certain minimum quantities of drug products, and (c) pay Samsung, on a minimum take-or-pay basis for each year under the agreement, for our minimum purchase commitments, as determined under the terms of the Samsung Agreements. Based on our minimum purchase commitments, we expect to pay Samsung a minimum of approximately $11.5 million in service fees under the Samsung Agreements, excluding the cost of raw materials. For the nine months ended September 30, 2022, the Company has incurred approximately $5.7 million in costs under this service agreement. Based on our current schedule, we expect to incur ~~the substantial majority~~approximately $0.7 million of these expenses in the fourth quarter of 2022 and ~~a portion~~the remainder in ~~the first quarter of~~ 2023.

Critical Accounting Policies and Significant Judgments and Estimates

Our condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these condensed consolidated financial statements ~~require~~requires us to make judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities in our financial statements. We base our estimates on historical experience, known trends and events and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results may differ from these estimates under different assumptions or conditions. On a recurring basis, we evaluate our judgments and estimates in light of changes in circumstances, facts, and experience. The effects of material revisions in an estimate, if any, will be reflected in the condensed consolidated financial statements prospectively from the date of the change in the estimate.

We believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our financial statements.

Revenue Recognition

Contract Revenue

In March 2022, the Company entered into a License Agreement (the “Agreement”) with Serum Institute of India Private Limited (“SIIPL”), pursuant to which the Company granted SIIPL an exclusive, sub-licensable, royalty-bearing license to use the Company’s proprietary technology platform to develop, manufacture and commercialize up to three mRNA products in all territories other than the United States, the 27 member states of the European Union, the United Kingdom, Australia, Japan, New Zealand, Canada, South Korea, China, Hong Kong, Macau, and Taiwan (the “SIIPL Territory”). The first licensed product target will be a shingles product target, and

SIIPL has an option to select the additional two licensed product targets through the end of 2024. Under the terms of the Agreement with SIIPL, the Company will provide research search services related to the shingles product target to develop a “proof of concept” and will provide manufacturing technology transfer services. In addition, GreenLight retains the option to purchase research ~~plan~~ and clinical trial data, developed by SIIPL, for 50% of the cost of the research ~~plan~~studies and clinical trials for use in the Company’s own development.

SIIPL is responsible for the development, formulation, filling and finishing, registration and commercialization of the products in the SIIPL Territory, subject to oversight from a joint steering committee composed of representatives of the Company and SIIPL. SIIPL will use commercially reasonable efforts to develop and obtain regulatory approval for the products in the countries in the SIIPL Territory. The License Agreement includes terms customary in the industry for provisions related to sublicensing, intellectual property, and termination, and customary representations and warranties of GreenLight and SIIPL, along with certain customary covenants, including confidentiality, limitation of liability and indemnity provisions.

Pursuant to the License Agreement, SIIPL will pay the Company an upfront license fee of $5.0 million, as well as payments upon additional target selection and reservation of exclusivity. The Company may receive up to a total of an additional ~~$22.0~~$17.0 million in development, regulatory and commercial (net sales) based milestone payments across all three product targets, as well as manufacturing technology transfer payments up to $10.0 million. SIIPL shall pay royalty payments in the mid-double digits, based on the net sales of products resulting from the licensed technology for the term of the License Agreement. The License Agreement shall terminate on a ~~product-by product~~product-by-product and country-by-country

basis on the later of the expiration of the patent rights owned by the Company or the tenth anniversary of the first commercial sale of the applicable product(s) in the applicable country. ~~The Company had not received payment of the $5.0 million upfront license fee as of March 31, 2022, thus has recorded a receivable for the amount billed to SIIPL.~~

The Company has determined that the Agreement falls within the scope of ASC 606, Revenue Recognition, ("ASC 606")as it includes a customer-vendor ~~relation~~relationship as defined by ASC 606 and ~~meets the criteria of~~thus represents a ~~contract.~~contract with a customer. The Company has determined that the license of IP granted is not distinct from the research services, which includes manufacturing technology transfer services, and thus should be combined. The Agreement contains a single performance obligation for the combined License of ~~IP/research services~~IP and ~~the manufacturing technology transfer~~research services. Revenue from the contract will be recognized over time, using an ~~input-method.~~input-method based on labor costs as a percentage of total expected labor costs. The Company has determined that variable consideration from the development and regulatory payments, as well as the $5.0 million of the manufacturing technology transfer payment, in the Agreement should be fully constrained as of ~~March 31,~~September 30, 2022, and commercial milestones and royalties will be recognized in the period the underlying sales occur. ~~Through March 31,~~For the three and nine months ended September 30, 2022, ~~no revenue~~$1.7 million and $3.4 million had been recorded from the Agreement and the ~~entire~~remaining amount of ~~upfront~~billed and unconstrained consideration is recorded as deferred revenue. Based on current estimated timelines, the Company expects to recognize the deferred revenue over approximately 1812 months and ~~the portion expected to be recognized over the next 12 months~~ is classified as current in the condensed consolidated balance ~~sheet~~sheets as of ~~March 31,~~September 30, 2022.

Grant Revenue

In July 2020, we entered into a grant agreement with the Bill & Melinda Gates Foundation to advance research in in vivo gene therapy for sickle cell disease and to explore new, low-cost capabilities for the in vivo functional cure of sickle cell and/or durable suppression of HIV in developing countries. The grant agreement provides for payments to reimburse qualifying costs, including, general and administrative costs. As we are performing services under the agreement that are consistent with the Company’s ongoing central activities and we have determined that we are the principal in the agreement, we recognize grant revenue as we perform services under this agreement when the funding is committed, which occurs as underlying costs are incurred. Revenues and related expenses are presented gross in the condensed consolidated statement of operations as we have determined that we are the primary obligor under the agreement relative to the research and development services we perform as the lead technical expert.

Stock-Based Compensation

We measure stock-based awards granted to employees, non-employees and directors based on their fair value on the date of the grant using the Black-Scholes option-pricing model for options and the fair value of our common stock for restricted common stock awards. Compensation expense for those awards is recognized over the requisite service period, which is generally the vesting period of the respective award for employees and directors and the period during which services are performed for non-employees. We use the straight-line method to record the expense of awards with service-based vesting conditions. We recognize stock-based compensation for performance awards based on grant date fair value over the service period to the extent achievement of the performance condition is probable.

The fair value of our stock option awards is estimated using a Black-Scholes option-pricing model that uses the following inputs: (1) fair value of our common stock, (2) assumptions we make for the expected volatility of our common stock, (3) the expected term of

our stock option awards, (4) the risk-free interest rate for a period that approximates the expected term of our stock option awards, and (5) our expected dividend yield, if any.

Determination of the Fair Value of Common Stock

~~Determination~~Since the consummation of the ~~Fair Value~~Business Combination, the fair value of ~~Common Stock As~~our common stock has been based on the quoted market price on the Nasdaq Global Market.

Prior to becoming a public company as there has not been a public market for our common stock, the estimated fair value of our common stock was determined by our board of directors as of the date of grant of each option or restricted stock award, considering our most recently available third-party valuations of common stock and our board of directors’ assessment of additional objective and subjective factors that it believed were relevant and which may have changed from the date of the most recent valuation through the date of the grant. These third-party valuations were performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. Our common stock valuations were prepared using either an option pricing method (“OPM”) or a hybrid method, both of which used market approaches to estimate our enterprise value. The OPM treats common stock and preferred stock as call options on the total equity value of a company, with exercise prices based on the value thresholds at which the allocation among the various holders of a company’s securities changes. Under this method, the common stock has value only if the funds available for distribution to stockholders exceed the value of the preferred stock

liquidation preferences at the time of the liquidity event, such as a strategic sale or a merger. A discount for lack of marketability of the common stock is then applied to arrive at an indication of value for the common stock. The hybrid method is a probability-weighted expected return method (“PWERM”) where the equity value in one or more scenarios is calculated using an OPM. The PWERM is a scenario-based methodology that estimates the fair value of common stock based upon an analysis of future values for the company, assuming various outcomes. The common stock value is based on the probability-weighted present value of expected future investment returns considering each of the possible outcomes available as well as the rights of each class of stock. The future value of the common stock under each outcome is discounted back to the valuation date at an appropriate risk-adjusted discount rate and probability weighted to arrive at an indication of value for the common stock. A discount for lack of marketability of the common stock is then applied to arrive at an indication of value for the common stock.

~~These~~Prior to the reverse recapitalization, these independent third-party valuations were performed at various dates, which resulted in estimated valuations of our common stock by our board of directors (without giving effect to the reverse recapitalization) of $0.46 per share as of December 31, 2019, $0.65 per share as of August 1, 2020, $0.82 per share as of December 31, 2020, $1.74 per share as of May 1, 2021, $5.26 per share as of September 30, 2021, and $5.89 per share as of December 31, 2021. In addition to considering the results of these third-party valuations, our board of directors considered various objective and subjective factors to determine the fair value of our common stock as of each grant date, including:

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the prices at which we sold shares of preferred stock and the superior rights and preferences of the preferred stock relative to our common stock at the time of each grant;

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the progress of our research and development programs, including the status and results of our product candidates;

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our stage of development and commercialization and our business strategy;

•

external market conditions affecting the biotechnology industry and trends within the biotechnology industry;

•

our financial position, including cash on hand, and our historical and forecasted performance and operating results;

•

the lack of an active public market for our common stock and our preferred stock;

•

the likelihood of achieving a liquidity event given prevailing market conditions; and

•

the analysis of IPOs and the market performance of similar companies in the biotechnology industry.

The assumptions underlying these valuations represented management’s best estimate, which involved inherent uncertainties and the application of management’s judgment. As a result, if we had used different assumptions or estimates, the fair value of our common stock and our stock-based compensation expense could have been materially different. Following the consummation of the Business Combination, the fair value of New GreenLight Common Stock ~~will be~~is determined based on the quoted market price on the Nasdaq Global Market.

Off-Balance Sheet Arrangements

We did not have during the periods presented, and we do not currently have any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

Recently Adopted Accounting Pronouncements

A description of recently issued accounting pronouncements that may potentially impact our financial position, results of operations or cash flows is provided in Note 2 - Summary of Significant Accounting Policiesto our condensed consolidated financial statements appearing elsewhere herein.

Effects of Inflation

Inflation generally affects us by increasing our cost of labor and research and development contract costs. We do not believe that inflation currently has had a material effect on our business, financial condition or results of operations. Our operations may be affected by inflation in the future.

Emerging Growth Company and Smaller Reporting Company Status

New GreenLight is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding nonbinding stockholder advisory votes on executive compensation and any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective, have not filed and not withdrawn a Securities Act registration statement that has not become effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. New GreenLight has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, New GreenLight, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of New GreenLight’s financial statements with certain other public companies difficult or impossible because of the potential differences in accounting standards used.

New GreenLight will remain an emerging growth company until the earlier of: (i) the last day of the fiscal year (a) following the fifth anniversary of the closing of ENVI’s initial public offering, (b) in which New GreenLight has total annual gross revenue of at least $1.1 billion, or (c) in which New GreenLight is deemed to be a large accelerated filer, which means the market value of its common equity that is held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal quarter; and (ii) the date on which New GreenLight has issued more than $1.0 billion in non-convertible debt securities during the prior three-year period. References herein to “emerging growth company” have the meaning associated with it in the JOBS Act.

We are also a “smaller reporting company” as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of our voting and non-voting Common Stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our voting and non-voting Common Stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to certain market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates.

Interest Rate Risk

As of ~~March 31,~~September 30, 2022 and December 31, 2021, we had cash and cash equivalents which consisted of cash and money market funds. Interest income is sensitive to changes in the general level of interest rates; however, due to the nature of these investments, an immediate 10% change in interest rates would not have a material effect on the fair market value of our investment portfolio.

We have exposure to interest rate risk ~~fro~~mfrom our variable rate debt. We do not hedge our exposure to changes in interest rates. As of ~~March 31,~~September 30, 2022, we had ~~$25.0~~$23.0 million in ~~variable~~variable rate debt outstanding. A 10% change in interest rates would have an immaterial impact on annualized interest expense.

Foreign Currency Exchange Risk

Our reporting and functional currency is the U.S. dollar. We currently do not have significant exposure to foreign currencies as we hold no foreign exchange contracts, option contracts, or other foreign hedging arrangements. Our operations may be subject to fluctuations in foreign currency exchange rates in the future.

Effects of Inflation

Item 4. Controls and Procedures.

Background and Remediation of Material Weakness

In connection with the preparation and audit of our consolidated financial statements as of and for the years ended December 31, 2021 and 2020, material weaknesses were identified in our internal control over financial reporting. Please see the sections of the Annual Report titled “Risk Factors— Risks Related to our Business and Industry—Our accounting predecessor, GreenLight, has identified material weaknesses in its internal controls of financial reporting. If we are unable to remediate the material weaknesses, or if we identify additional material weaknesses or otherwise fail to maintain effective internal control over financial reporting, this may result in material misstatements or restatements of our consolidated financial statements or cause us to fail to meet our periodic reporting obligations” and “—During 2021, ENVI identified two material weaknesses in its internal control over financial reporting which may result in material misstatements or restatements of our consolidated financial statements or cause us to fail to meet our periodic reporting obligations” for more information.

We are focused on designing and implementing effective internal controls measures to improve our evaluation of disclosure controls and procedures, including our internal control over financial reporting, and remediate the material weaknesses. In order to remediate these material weaknesses, we have taken and plan to take the following actions:


	●	the hiring and continued hiring of additional accounting, finance, and legal resources with public company experience; and


	●	implementation of an ERP system and establishment of review controls and processes requiring timely account reconciliation and analyses of certain transactions and accounts and integrate appropriate segregation of duties.

These actions and planned actions are subject to ongoing evaluation by management and will require testing and validation of design and operating effectiveness of internal controls over financial reporting over future periods. We are committed to the continuous improvement of our internal control over financial reporting and will continue to review the internal controls over financial reporting.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the fiscal quarter ended ~~March 31,~~September 30, 2022, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon their

evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were not effective as of ~~March 31,~~September 30, 2022 to provide reasonable assurance that information required to be disclosed in the reports we file and submit under the Securities and Exchange Act is recorded, processed, summarized and reported as and when required.

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the quarter ended September 30, 2022, we finalized the implementation of a new Enterprise Resource Planning ("ERP") software system. Accordingly, we have modified certain existing internal control processes relating to the implementation of the new ERP system. Other than the material weakness referenced above, there have been no additional changes in our internal control over financial reporting identified in connection with the evaluation of such internal control required by Rules 13a-15(d) and 15d-15(d) under the Exchange Act that occurred during the quarter ended ~~March 31,~~September 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

We currently are not a party to any material litigation or other ~~material~~material legal proceedings. From time to time, we may be subject to legal proceedings and claims in the ordinary course of business.

Item 1A. Risk Factors

Investing in our securities involves a high degree of risk. Before you decide to invest in any of our securities, you should

consider carefully the risks described in the section of our Annual Report entitled “Item 1A. Risk Factors,” as well as the risks described below. If any of these risks actually occur, our business, results of operations and financial condition would likely be materially and adversely affected. In these circumstances, the market price of our securities could decline, and you may lose part or all of your investment. This Report also contains forward-looking statements that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking Statements.” Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, the risks referred to in this paragraph.

Investors should not rely on outdated financial projections.

In connection with the Business Combination, we disclosed certain projections of GreenLight’s potential financial performance in future years. As previously disclosed, these projections were prepared solely for GreenLight’s internal use, capital budgeting and other management purposes, were finalized as of June 30, 2021 and were not updated to reflect events after that date. Also, as previously disclosed, the projections were not prepared with a view toward public disclosure or with a view toward complying with U.S. GAAP, the published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information. Readers were cautioned not to rely on the prospective financial information because actual results are likely to differ materially from the prospective financial information. In light of the substantial passage of time since June 30, 2021, the projections have become outdated and do not represent the current views of management. We reiterate our prior caution not to rely on the previously published and now outdated financial projections. We have not undertaken any obligation to publish any financial projections.

We will require substantial additional funds to complete our research and development activities, and, if additional funds are not available, we may need to significantly scale back or cease our business.

From our founding through September 30, 2022, we raised proceeds from the sale of capital stock, the Business Combination (including the PIPE Financing), and the August 2022 PIPE Financing and from our founding through September 30, 2022 we raised proceeds from the issuance of debt and convertible notes, which we have dedicated to the development of our RNA platform, human health product pipelines and plant health product pipelines. As of September 30, 2022, we had approximately $98.4 million in cash and cash equivalents. On February 2, 2022, we consummated the Business Combination and raised gross proceeds of approximately $136.4 million, which included funds held in ENVI’s trust account (after giving effect to redemptions of $194.9 million) and proceeds from the February 2022 PIPE Financing of $124.3 million (inclusive of the PIPE Prepayment), before deducting estimated transaction expenses of $26.7 million. On August 11, 2022, we entered into Securities Subscription Agreements with certain accredited investors, pursuant to which we raised net proceeds of $106.1 million. We have invested and will continue to invest in property, plant and equipment, and human capital and will require substantial funds to bring the current products in our product pipeline to market and to grow our business by researching, developing, and protecting products not currently in our product pipeline. Our current available funds are not sufficient for all of these activities and, as a ~~public benefit corporation,~~result, there is substantial doubt about our ability to continue as a going concern.

Based on our history of losses, we ~~face burdens~~do not expect that ~~traditional corporations~~we will be able to fund our longer-term capital and liquidity needs through our current cash balances and operating cash flow alone. To fund our longer-term capital and liquidity needs, we will need to secure additional capital. The amount of capital we will need will be subject to change depending on, among other things, the success of our efforts to grow revenue and our efforts to continue to effectively manage expenses.

When we raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences and privileges superior to those of holders of our common stock. Any debt financing that we may secure in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. The fundraising environment for early-stage biotechnology companies like ours is becoming increasingly challenging, and we may not ~~encounter.~~be able to obtain additional financing on terms favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our business growth and to respond to business challenges and opportunities could be significantly impaired, and our business may be adversely affected.

~~Public benefit corporations~~Our financing needs may also increase substantially depending on the results of our research, trials and development for products and costs arising from additional regulatory approvals. We may not succeed in raising additional funds in a timely manner. The timing of our need for additional funds will depend on a number of factors, which are ~~a relatively new type of legal entity compared~~difficult to ~~more common corporate forms and~~predict or may be ~~unfamiliar~~outside of our control, including:

•

the resources, time and costs required to ~~some~~initiate and complete our research and development and to initiate and complete studies and trials and to obtain regulatory approvals for additions to our product pipeline;

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progress in our research and development programs;

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the timing and amount of milestone, royalty and other payments; and

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costs necessary to protect any intellectual property rights.

If our estimates and predictions relating to any of these factors are incorrect, we may need to modify our business plans.
Our ability to raise funds will depend upon many factors, including conditions in the parties with whom we interact, causing additional delays, demands or costs because of that unfamiliarity. While under the Delaware General Corporation Law public benefit corporations share many of the same legal characteristics as traditional corporations, they also have unique aspects, such as a purpose to benefit the public,debt and equity capital markets, as well as ~~fiduciary obligations~~investor perception of our creditworthiness and prospects. If we are unable to ~~address that public benefit~~raise funds on acceptable terms, we may not be able to execute our business plan, take advantage of future opportunities, or respond to competitive pressures or unanticipated requirements. This may seriously harm our business, financial condition and results of operations. If we are not able to continue operations, investors may suffer a complete loss of their investments in ~~a manner that balances it with both the pecuniary interests of stockholders~~our securities.

Our corporate restructuring and the ~~best interests~~associated headcount reduction may not result in anticipated savings, could result in total costs and expenses that are greater than expected and could disrupt our business.

In October 2022, we undertook an organizational restructuring that reduced our workforce by approximately 25%. We may not realize, in full or in part, the anticipated benefits, savings, and improvements in our cost structure from our restructuring efforts due to unforeseen difficulties, delays or unexpected costs. If we are unable to realize the expected operational efficiencies and cost savings from the restructuring, our operating results and financial condition would be adversely affected. Furthermore, our restructuring plan may be disruptive to our operations. For example, our headcount reductions could yield unanticipated consequences, such as increased difficulties in implementing our business strategy, including retention of ~~those materially affected by~~our remaining employees. Employee litigation related to the ~~corporation’s conduct, including creditors,~~headcount reduction could be costly and prevent management from fully concentrating on the business.

We will need to modify the size of our organization from time to time, and we may experience difficulties in managing these changes, which could disrupt operations.

We will continue to slow our hiring in the near future as we assess capacity, capital needs and the scope of our operations. The skills we seek are typically in high demand and we may have difficulty identifying, hiring, integrating, motivating and retaining additional employees, consultants, and contract personnel, particularly in light of our recent workforce reduction. Also, our management may need to divert a disproportionate amount of their attention away from our day-to-day activities and devote a substantial amount of time to simultaneously manage rightsizing and growth activities. We may not be able to effectively manage changes in the size of our operations, which may result in weaknesses in our infrastructure, give rise to operational mistakes, loss of business opportunities, loss of employees and ~~others. Because~~reduced productivity among remaining employees. Any future growth could require significant capital expenditures and may divert financial resources from other projects, such as the development of product candidates. If our management is unable to effectively manage our rightsizing efforts while scaling the Company, our expenses may increase more than expected, our ability to generate and/or grow revenues could be reduced, and we may not be able to implement our business strategy. Our future financial performance and our ability to commercialize our product candidates and compete effectively will depend, in part, on our ability to effectively manage the size of our organization. Many of the ~~relative novelty~~companies that we compete against for qualified personnel and consultants have greater financial and other resources, different risk profiles, more established brands and a longer history in the industry than we do. If we are unable to continue to attract, motivate, and retain high-quality personnel and consultants, the rate and success at which we can discover and develop product candidates and operate our business will be limited.

We will depend on relationships with third parties for revenues, and for the development, regulatory approval, commercialization and marketing of the legal regime governing public benefit corporations, companies and others that do business with us may seek to impose obligations on us that they would not seek from traditional corporations. For example, onecertain of our ~~lenders, Silicon Valley Bank, required, among other things, that (a) we agree that it is~~products and product candidates, which are outside of our full control.

We rely on a number of third-party relationships for our leases, construction of our facilities, and the development, regulatory approval and commercialization of certain of our product candidates. Certain aspects of our regulatory affairs and clinical development relating to our products and product candidates are also outsourced to third parties. Reliance on third parties subjects us to a number of risks, including:

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the inability to control the resources such third parties devote to our programs, products or product candidates;

•

disputes may arise under an ~~event of default under our loan~~ agreement ~~for there~~and the underlying agreement may fail to provide us with significant protection or may fail to be ~~any pending~~effectively enforced if such third parties fail to perform;

•

failure or ~~threatened~~perceived failure by us to comply with our obligations under an agreement with a third party could cause the third party to make public statements against us or could result in litigation ~~by a shareholder alleging~~asserting that we orhave breached our ~~directors failed to satisfy~~obligations, any ~~obligations under Delaware law regarding our status as a public benefit corporation if the litigation is likely to result in a final monetary judgment against us in excess~~ of $250,000, (b) we agree that, if any action, investigation or proceeding is pending or known to be threatened in writing against us with respect to such a claim, the bank may not need to make further loans to us under the loan agreement, and (c) if an event of default has occurred or is reasonably likely to occur, our board must in some cases, at the bank’s request, consider whether it is advisable for us to convert to a traditional Delaware corporation. Accordingly, we may face stricter contractual obligations and tighter controls on our operations than traditional corporations, which ~~may increase our costs or otherwise~~could have a material adverse effect on our reputation, business, financial condition, or results of operations;

•

the interests of such third parties may not always be aligned with our interests, and ~~operations.~~such parties may not pursue regulatory approvals or market a product in the same manner or to the same extent that we would, which could adversely affect revenues, or may adopt strategies that could have an adverse effect on our business, results of operations or financial condition;

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third-party relationships require the parties to cooperate, and failure to do so effectively could adversely affect product development or the clinical development or regulatory approvals of product candidates under collaborative control, could result in termination of the research, development or commercialization of product candidates or could result in litigation or arbitration;

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any failure on the part of such third parties to comply with applicable laws, including tax laws, regulatory requirements and/or applicable contractual obligations or to fulfill any responsibilities they may have to protect and enforce any intellectual property rights underlying product candidates could have an adverse effect on revenues as well as give rise to possible legal proceedings;

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any failure on the part of such third parties to meet their contractual obligations to us because of supply chain related failures, including supply chain failures resulting from the global Covid-19 pandemic, wars such as the war in Ukraine, political and tariff disputes or other causes, any one of which could give that third party the ability to not perform its obligations to us under a claim of force majeure; and

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any improper conduct or actions on the part of such third parties could subject us to civil or criminal investigations and monetary and injunctive penalties, impact the accuracy and timing of financial reporting and/or adversely impact our ability to conduct business, operating results and reputation.

Given these risks, there is considerable uncertainty regarding the success of current and future collaborative efforts. If these efforts fail, our product development or commercialization of product candidates could be delayed, revenues from products could decline and/or the anticipated benefits of these arrangements may not be realized.

The time and expense required to obtain regulatory approvals for our preclinical and clinical trials could be significantly greater than for more conventional therapeutic technologies or products. If clinical trials of any product candidates fail to demonstrate safety and efficacy to the satisfaction of regulatory authorities, do not otherwise produce positive results or are for other reasons are not satisfactory to those authorities, we may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of such product candidates.

In the United States, the products that we intend to develop and market are regulated by the FDA under its drug and biologic development and review processes. Before such products can be marketed, we must obtain multiple authorizations and licensures from the FDA, first through submission and authorization of an investigational new drug application, or IND, then through successful completion of human testing under three phases of clinical trials and finally through submission of a biologics license application, or BLA. Even after successful completion of clinical testing, there is a risk that the FDA may refuse to file our BLA submissions, request further information from us, disagree with our findings, undertake a lengthy review of our BLA submissions or deny our application.

The time required to obtain approval or licensure by the FDA and other comparable regulatory authorities is unpredictable but typically takes many years following the commencement of clinical trials and depends upon numerous factors, including the substantial discretion of the regulatory authorities. In addition, approval and licensure policies, regulations or the type and amount of clinical data necessary to gain approval or licensure may change during the course of a product candidate’s clinical development and may vary among jurisdictions. We have not obtained marketing approval or licensure for any product candidate, and it is possible that none of our existing product candidates, or any product candidates we may seek to develop in the future, will ever obtain approval for clinical trials, marketing approval or licensure.

Our product candidates could fail to receive regulatory approval for clinical trials, marketing or licensure in the United States or other countries for many reasons, including the following:

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the regulatory authority may disagree with the design, implementation or location of our clinical trials;

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we may be unable to demonstrate to the satisfaction of the regulatory authority that a product candidate is safe, pure, potent or sufficiently distinguishable from existing therapies already in the market;

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results of clinical trials may not meet the level of statistical significance required for licensure;

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unanticipated delays in starting clinical trials or marketing of product candidates could result in test material becoming obsolete when compared to other therapies or going past its useful life which in turn would require us to obtain the production resources for replacement material, redevelop the material or cancel the development of that product candidate;

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we may be unable to demonstrate that a product candidate’s clinical and other benefits outweigh its safety risks;

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regulators may disagree with our interpretation of data from preclinical studies or clinical trials;

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data collected from clinical trials of our product candidates may not be sufficient to support the submission of a BLA to the FDA or other submission or to obtain marketing licensure in the United States;

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the FDA may find deficiencies with or fail to approve the manufacturing processes or facilities of third-party manufacturers with which we contract for clinical and commercial supplies; and

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the licensure policies or regulations of the FDA may significantly change in a manner rendering our clinical data insufficient for licensure.

This lengthy licensure process as well as the unpredictability of future clinical trial regulatory approvals and results may result in our failing to obtain licensure to market any of our product candidates, which would significantly harm our business, results of operations, financial condition and prospects. The FDA and its counterparts in other countries have substantial discretion in approving clinical trials, granting licenses and determining when or whether regulatory licensure will be obtained for any of our product candidates. Even if we believe the data collected from clinical trials of our product candidates are promising, such data may not be sufficient to support licensure.

In addition, even if we were to obtain licensure, regulatory authorities may approve any of our product candidates for fewer or more limited indications than we request, may not approve the price we intend to charge for our products, may grant a license contingent on the performance of costly post marketing clinical trials, or may approve or license a product candidate with a label that does not include the labeling claims necessary or desirable for the successful commercialization of that product candidate. Any of the foregoing scenarios could materially harm the commercial prospects for our product candidates.

If we decide to market any product that we develop in jurisdictions in addition to the United States, we may incur the same costs or more in satisfying foreign regulatory requirements governing the conduct of preclinical and clinical trials, manufacturing and marketing and commercialization of any product that we develop in the future. Approval or licensure by the FDA by itself does not assure approval by regulatory authorities outside the United States. Each of these foreign regulatory approval processes includes all of the risks associated with the FDA approval or licensing process, as well as risks attributable to having to satisfy local regulations within each of these foreign jurisdictions and the possibility that our management team will be unfamiliar with that country’s regulatory regime. Our inability to obtain regulatory approval outside the United States may also adversely compromise our business prospects.

We may have difficulties convincing the medical community and third-party payors to accept and use any product that we are able to develop in the future even following our receipt of regulatory approval or licensure for commercialization. Key participants in pharmaceutical marketplaces, such as distributors, physicians, third-party payors and consumers, may not accept a product that we develop and we may be unable to compete with multiple-product or portfolio discounts larger competitors may offer. Even if such a product is accepted by these participants, the medical community may not consider effectiveness and safety alone as a sufficient basis for prescribing such a product in lieu of other alternative treatment methods and medications that are available.

All of our products require rigorous, time-consuming and expensive regulatory examination and approval before they can be commercialized and some or all of our products may not receive this approval.

Any products that we are currently developing or may develop in the future will be subject to extensive governmental regulations relating to development, trials, manufacturing and commercialization. Rigorous studies, clinical trials and extensive regulatory licensure and approval processes are required to be successfully completed in the United States and in many foreign jurisdictions, such as Africa, the European Union and Japan, before a new product may be offered and sold in any of these countries or regions. Satisfaction of these and other regulatory requirements is costly, time-consuming, uncertain and subject to unanticipated delays. We have experienced and may continue to experience additional unanticipated delays in our efforts to satisfy regulatory requirements relating to our product candidates. For example, in April 2022, we applied for a Clinical Trials Application, or CTA, with the South African Health Products Regulatory Authority, or SAHPRA, for a phase I/II single-vaccination booster study. That application was rejected on the basis that the application failed to identify specific benefits our testing efforts and a resulting vaccine would bring to South Africa considering the ready availability of other COVID-19 vaccines in that country. After further review and discussion with SAHPRA, we have decided not to amend or resubmit our CTA in South Africa in favor of identifying other countries in which to begin clinical trials and whether to do so in combination with a US-based Investigational New Drug, or IND, application with the FDA. We can offer no assurance that any clinical trial applications we may file will be accepted by regulatory authorities.

Studies and trials for regulatory licensure and approval are expensive and difficult to design and implement, in part because they are subject to rigorous regulatory requirements. Because many products that we develop in the future will be based on new technologies, we expect that they will require extensive research and development and necessitate substantial manufacturing and processing costs. In addition, costs to treat potential side effects that may result from a product we develop may be significant.

If successfully released for sale, our COVID-19 vaccine candidate may fail to gain market acceptance.

Even if our mRNA vaccine for COVID-19 successfully completes clinical trials and is approved for commercial marketing, it may fail to meet the same high level of efficacy demonstrated by competitors and our ability to obtain revenues from the vaccine may be diminished or eliminated altogether. Moreover, the addressable market for our COVID-19 candidate may be limited if competing products have saturated some or all markets, particularly the most profitable markets. Further, any delays in commercialization may result in any approved COVID-19 vaccine becoming obsolete as the COVID-19 virus continues to mutate, which in turn may require us to obtain the production resources for replacement material, redevelop the material and restart the regulatory approval process or cancel the development of that product candidate.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The information required by this item has been previously reported.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable

Item 5. Other Information.

None.

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Item 6. Exhibits.

Furnish the exhibits required by Item 601 of Regulation S-K (§ 229.601 of this chapter).


Exhibit Number		Description
10.1		License Agreement, dated March 10, 2022, between GreenLight Biosciences, Inc. and Serum Institute of India Private Limited (incorporated by reference to Exhibit 10.32 to Post-Effective Amendment No. 1 to Form S-1 Registration Statement filed with the Securities and Exchange Commission on April 5, 2022).
10.2		Form of Securities Subscription Agreement, dated as of August 11, 2022, between GreenLight Biosciences Holdings, PBC and each purchaser named in the signature pages thereto (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on August 15, 2022).
10.3		Commercial Lease, dated March 9, 2022, by and between ARE-MA Region No. 8, LLC and GreenLight Biosciences Inc. (incorporated by reference to Exhibit 10.34 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on September 26, 2022).
10.4		First Amendment to Commercial Lease, dated September 12, 2022, by and between ARE-NC REGION NO. 17, LLC and GreenLight Biosciences Inc. (incorporated by reference to Exhibit 10.35 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on September 26, 2022).
10.5		Third Amendment to Commercial Lease, dated September 12, 2022, by and between ARE-NC REGION NO. 17, LLC and GreenLight Biosciences Inc. (incorporated by reference to Exhibit 10.36 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on September 26, 2022).
31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

5560

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	GreenLight Biosciences Holdings, PBC

Date: ~~June 1,~~November 9, 2022	By:	/s/ Andrey J. Zarur
		Andrey J. Zarur
		President and Chief Executive Officer

Date: ~~June 1,~~November 9, 2022	By:	/s/ Susan Keefe
		Susan Keefe
		Chief Financial Officer

5661


Delaware	85-1914700
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
200 Boston Avenue Medford, Massachusetts	02155
(Address of principal executive offices)	(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	GRNA	Nasdaq Global Market
Warrants, each exercisable for one share of Common Stock for $11.50 per share	GRNAW	Nasdaq Global Market


	MARCH 31, 2022			DECEMBER 31, 2021			SEPTEMBER 30, 2022			DECEMBER 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	83,223		$	31,446		$	98,353		$	31,446
Prepaid expenses		8,725			2,331			10,954			2,331
Accounts receivable		5,000			—
Total Current Assets		96,948			33,777			109,307			33,777
Restricted cash		1,321			362			1,321			362
Property and equipment, net		22,876			23,399			38,954			23,399
Deferred offering costs		—			4,099			—			4,099
Other assets		1,285			1,420			1,836			1,420
TOTAL ASSETS	$	122,430		$	63,058		$	151,418		$	63,058
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	6,049		$	7,551		$	3,027		$	7,551
Accrued expenses		9,398			14,624			8,814			14,624
Convertible debt		—			31,691			—			31,691
Long-term debt, current portion		9,849			7,234			12,907			7,234
Deferred revenue, current portion		3,941			963			7,363			963
Other current liabilities		287			278			305			278
Total Current Liabilities		29,524			62,341			32,416			62,341
Warrant liabilities		1,820			2,105			470			2,105
Deferred revenue, net of current portion		1,765			—
Long-term debt, net of current portion		23,686			27,152			16,774			27,152
Other liabilities		1,809			1,435			17,343			1,435
TOTAL LIABILITIES		58,604			93,033			67,003			93,033
COMMITMENTS AND CONTINGENCIES (Note 16)
LEGACY REDEEMABLE CONVERTIBLE PREFERRED STOCK (Note 12)		—			—			—			—
STOCKHOLDERS’ EQUITY (DEFICIT)
Common stock, $0.0001 par value; 500,000,000 and 191,500,000 shares authorized, 122,980,505 and 96,575,107 shares issued and outstanding at March 31, 2022, and December 31, 2021, respectively		13			10
Preferred Stock, $0.001 par value; 10,000,000 shares authorized, 0 shares issues and outstanding at March 31, 2022, and December 31, 2021, respectively		—			—
Common stock, $0.0001 par value; 500,000,000 shares authorized, 151,465,425 and 96,575,107 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively								15			10
Preferred Stock, $0.0001 par value; 10,000,000 shares authorized, no shares issues and outstanding at September 30, 2022 and December 31, 2021, respectively								—			—
Additional paid-in capital		355,603			223,584			466,274			223,584
Accumulated deficit		(291,790	)		(253,569	)		(381,874	)		(253,569	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		63,826			(29,975	)		84,415			(29,975	)
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	122,430		$	63,058		$	151,418		$	63,058


	$0.001 PAR VALUE CONVERTIBLE PREFERRED STOCK						COMMON STOCK $0.0001 PAR VALUE				ADDITIONAL PAID-IN		ACCUMULATED			TOTAL STOCKHOLDERS’
	SHARES			AMOUNT			SHARES		AMOUNT		CAPITAL		DEFICIT			EQUITY (DEFICIT)
Balance at January 1, 2022		134,972,944		$	218,790			3,663,894	$	4	$	4,800	$	(253,569	)	$	(248,765	)
Retroactive application of business combination		-			(218,790	)		92,911,213		6		218,784		-			218,790
Adjusted balance, beginning of period		-			-			96,575,107		10		223,584		(253,569	)		(29,975	)
Cashless exercise of Legacy GreenLight preferred stock warrants		-			-			490,031		-		460		-			460
Cashless exercise of Legacy GreenLight common stock warrants		-			-			170,981		-		1,183		-			1,183
Reclassification of Legacy GreenLight common stock warrants to equity		-			-			-		-		352		-			352
Conversion of convertible notes		-			-			6,719,116		1		18,290		-			18,291
Conversion of convertible notes - PIPE Investors		-			-			3,525,000		-		35,250		-			35,250
Business Combination transaction, net of transaction costs of $26.7 million		-			-			15,285,374		2		72,987		-			72,989
Vesting of restricted stock awards		-			-			1,567		-		-		-			-
Exercise of common stock options		-			-			79,055		-		22		-			22
Stock-based compensation expense		-			-			-		-		2,187		-			2,187
Exercise of public warrants		-			-			105,120		-		1,209		-			1,209
Other		-			-			29,154				79		(14	)		65
Net loss		-			-			-		-		-		(38,207	)		(38,207	)
Balance at March 31, 2022		-		$	-			122,980,505	$	13	$	355,603	$	(291,790	)	$	63,826

Balance at January 1, 2021		134,952,637		$	218,787		3,252,636		$	3	$	2,434	$	(141,259	)	$	(138,822	)
Retroactive application of business combination		(134,952,637	)		(218,787	)		93,031,647		7		218,780		-			218,787
Adjusted balance, January 1, 2021		-			-			96,284,283		10		221,214		(141,259	)		79,965
Vesting of restricted stock awards	-			-				7,271		-		-		-			-
Stock-based compensation expense	-			-			-			-		348	-				348
Exercise of common stock options	-			-				24,582		-		6	-				6
Net loss	-			-			-			-	-			(21,283	)		(21,283	)
Balance at March 31, 2021		-		-				96,316,136	$	10	$	221,568	$	(162,542	)	$	59,036


	$0.001 PAR VALUE LEGACY REDEEMABLE CONVERTIBLE PREFERRED STOCK						COMMON STOCK $0.0001 PAR VALUE				ADDITIONAL PAID-IN			ACCUMULATED			TOTAL STOCKHOLDERS’
	SHARES			AMOUNT			SHARES		AMOUNT		CAPITAL			DEFICIT			EQUITY (DEFICIT)
Balance at January 1, 2022		134,972,944		$	218,790			3,663,894	$	4	$	4,800		$	(253,569	)	$	(248,765	)
Retroactive application of business combination		(134,972,944	)		(218,790	)		92,911,213		6		218,784			-			218,790
Adjusted balance, beginning of period		-			-			96,575,107		10		223,584			(253,569	)		(29,975	)
Cashless exercise of Legacy GreenLight preferred stock warrants		-			-			490,031		-		460			-			460
Cashless exercise of Legacy GreenLight common stock warrants		-			-			170,981		-		1,183			-			1,183
Reclassification of Legacy GreenLight common stock warrants to equity		-			-			-		-		352			-			352
Conversion of convertible notes		-			-			6,719,116		1		18,290			-			18,291
Conversion of convertible notes - PIPE Investors		-			-			3,525,000		-		35,250			-			35,250
Business Combination transaction, net of transaction costs of $26.7 million		-			-			15,285,374		2		72,987			-			72,989
Vesting of restricted stock awards		-			-			1,567		-		-			-			-
Exercise of common stock options		-			-			79,055		-		22			-			22
Stock-based compensation expense		-			-			-		-		2,187			-			2,187
Exercise of public warrants		-			-			105,120		-		1,209			-			1,209
Other		-			-			29,154		-		79			(14	)		65
Net loss		-			-			-		-		-			(38,207	)		(38,207	)
Balance at March 31, 2022		-			-			122,980,505		13		355,603			(291,790	)		63,826
Reclassification of common stock warrants to equity		-			-			-		-		35			-			35
Vesting of restricted stock awards		-			-			1,331		-		-			-			-
Exercise of common stock options		-			-			681,479		-		314			-			314
Stock-based compensation expense		-			-			-		-		1,634			-			1,634
Other		-			-			-		-		(158	)		-			(158	)
Net loss		-			-			-		-		-			(51,926	)		(51,926	)
Balance at June 30, 2022		-			-			123,663,315		13		357,428			(343,716	)		13,725
Vesting of restricted stock awards		-			-			1,333		-		-			-			-
Common stock issued pursuant to PIPE financing, net of transactions costs of $2.3 million		-			-			27,640,301		2		106,049			-			106,051
Exercise of common stock options		-			-			160,476		-		97			-			97
Stock-based compensation expense		-			-			-		-		2,700			-			2,700
Net loss		-			-			-		-		-			(38,158	)		(38,158	)
Balance at September 30, 2022		-		$	-			151,465,425	$	15	$	466,274		$	(381,874	)	$	84,415


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒


		Page

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	13
	Condensed Consolidated Balance Sheets as of ~~March 31,~~September 30, 2022 and December 31, 2021	13
	Condensed Consolidated Statements of Operations for the three and nine months ended ~~March 31,~~September 30, 2022 and 2021	24
	Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the three and nine months ended ~~March 31,~~September 30, 2022 and 2021	35
	Condensed Consolidated Statements of Cash Flows for the ~~three~~nine months ended ~~March 31,~~September 30, 2022 and 2021	47
	Notes to Unaudited Condensed Consolidated Financial Statements	68
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3534
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5152
Item 4.	Controls and Procedures	5152

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	5354
Item 1A.	Risk Factors	5354
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5459
Item 3.	Defaults Upon Senior Securities	5459
Item 4.	Mine Safety Disclosures	5459
Item 5.	Other Information	5459
Item 6.	Exhibits	5560
Signatures		5661


SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Property and equipment included in accrued expenses and accounts payable	$	1,313	$	906
Conversion of convertible debt to equity	$	53,541	$	-
Legacy GreenLight cashless warrant exercises	$	1,643	$	-
Warrant liabilities assumed in the Business Combination	$	1,341	$	-
Deferred financing costs in accrued expenses and accounts payable	$	1,948	$	-
Non-cash equipment financing issuance costs	$	-	$	138

	THREE MONTHS ENDED MARCH 31,
	2022		2021
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	83,223	$	71,656
Restricted cash		1,321		80
Total cash, cash equivalents and restricted cash	$	84,544	$	71,736


	Three Months Ended March 31, 2022
(in thousands)	As reported		Adjustment			As restated
OPERATING EXPENSES:
Research and development	$	8,012	$	19,269		$	27,281
General and administrative		29,024		(19,269	)		9,755
Total operating expenses	$	37,036	$	-		$	37,036


(In thousands, except shares and per share data)	THREE MONTHS ENDED MARCH 31, 2021
	As reported			Adjustment		As restated
Net loss	$	(21,283	)	$	—	$	(21,283	)
Numerator:
Less: Accruals of dividends of preferred stock		(4,296	)		4,296		-
Net loss available to common stockholders	$	(25,579	)	$	4,296	$	(21,283	)
Denominator:
Weighted-average common stock outstanding		96,300,247			-		96,300,247
Net loss per share, basic and diluted	$	(0.27	)	$	0.05	$	(0.22	)


		ESTIMATED USEFUL LIFE
Manufacturing equipment		10 years
Furniture and fixtures		7 years
Laboratory equipment		5 years
Computer equipment and software		3 years
Leasehold improvements		Shorter of useful life or lease term


	BUSINESS COMBINATION (in thousands)			BUSINESS COMBINATION (in thousands)
Cash - ENVI trust and cash (net of redemptions)	$	12,123		$	12,123
Cash - PIPE Investors, including proceeds from conversion of Convertible notes - PIPE Investors		124,250			124,250
Gross proceeds		136,373			136,373
Less: total transaction costs		(26,660	)		(26,660	)
Less: cash proceeds from Convertible notes - PIPE Investors		(35,250	)		(35,250	)
Add: transaction costs paid in 2021		4,080			4,080
Add: transaction costs accrued at March 31, 2022		1,948
Cash proceeds from Business Combination received in 2022		80,491			78,543

Less: transaction costs paid in 2021		(4,080	)		(4,080	)
Less: warrant liabilities assumed		(1,341	)		(1,341	)
Less: transaction costs accrued at March 31, 2022		(1,948	)
Less: net liabilities assumed in the Business Combination		(133	)		(133	)
Reverse merger, net of transactions costs	$	72,989		$	72,989


	Number of Shares
Common stock, outstanding prior to the Business Combination		20,700,000
Less: Redemption of ENVI shares		(19,489,626	)
ENVI Public Shares		1,210,374
ENVI Sponsor Shares		5,175,000
Shares issued in PIPE financing		12,425,000
Business combination and PIPE financing shares		18,810,374
Legacy GreenLight shares (1)		104,011,760
Total shares of common stock immediately after Business Combination		122,822,134


DESCRIPTION	MARCH 31, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		SEPTEMBER 30, 2022		QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
									($ in thousands)
Asset
Money market funds		83,223		83,223		0		0		98,353		98,353		—		—
Total assets measured at fair value	$	83,223	$	83,223	$	0	$	0	$	98,353	$	98,353	$	—	$	—
Liability
Warrant liabilities		1,820		0		0		1,820		470		—		—		470
Total liabilities measured at fair value	$	1,820	$	0	$	0	$	1,820	$	470	$	—	$	—	$	470


	WARRANT LIABILITY			WARRANT LIABILITY
Balance—December 31, 2021	$	2,105		$	2,105
Warrants exercised in business combination		(1,633	)		(1,633	)
Warrants reclassified to equity		(352	)		(387	)
Change in fair value of warrants		359			(956	)
Warrants assumed in business combination		1,341			1,341
Balance—March 31, 2022	$	1,820
Balance—September 30, 2022				$	470


Valuation Assumptions	AT ISSUANCE (AS OF JANUARY 19, 2022)			AS OF MARCH 31, 2022
Fair value of common stock	$	5.89		$	9.63
Risk free interest rate		1.50	%		2.39	%
Expected volatility		59.60	%		59.60	%
Expected term (in years)		10.50			10.00


	MARCH 31,		DECEMBER 31,
Redeemable Convertible Preferred Stock Classes	2022		2021
Series A-1 redeemable convertible preferred stock, $0.001 par value, 2,865,698 shares authorized, 2,827,878 shares issued and outstanding as of December 31, 2021. Liquidation preference of $6,334 and $0 at December 31, 2021 and March 31, 2022, respectively	$	0	$	4,414
Series A-2 redeemable convertible preferred stock, $0.001 par value, 7,018,203 shares authorized, 6,993,693 shares issued and outstanding as of December 31, 2021 Liquidation preference of $19,138 and $0 at December 31, 2021 and March 31, 2022, respectively		0		11,438
Series A-3 redeemable convertible preferred stock, $0.001 par value, 8,647,679 shares authorized, 8,629,505 shares issued and outstanding as of December 31, 2021 Liquidation preference of $30,544 and $0 at December 31, 2021 and March 31, 2022, respectively		0		19,917
Series B redeemable convertible preferred stock, $0.001 par value, 21,245,353 shares authorized, issued and outstanding as of December 31, 2021 Liquidation preference of $24,017 and $0 at December 31, 2021 and March 31, 2022, respectively		0		18,671
Series C redeemable convertible preferred stock, $0.001 par value, 35,152,184 shares authorized, 35,092,183 shares issued and outstanding as of December 31, 2021 Liquidation preference of $69,595 and $0 at December 31, 2021 and March 31, 2022, respectively		0		55,851
Series D redeemable convertible preferred stock, $0.001 par value, 71,019,827 shares authorized, 60,184,332 shares issued and outstanding as of December 31, 2021 Liquidation preference of $122,459 and $0 at December 31, 2021 and March 31, 2022, respectively		0		108,499
Total	$	0	$	218,790