Bioharvest Sciences Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anthony Vendetti - Maxim Group LLC - Analyst : Ilan, I was just wondering if you could give us a little bit of an update on some of the CDMO contracts you've signed, particularly the one with Tate & Lyle. Where are you at with them in terms of developing molecules? And has some of these CDMO contracts that you have already signed up, particularly the Tate & Lyle one that's been announced, has that spurred interest in other contracts? And if you can give us sort of what your pipeline looks like as of right now in the CDMO business?

Question: Anthony Vendetti - Maxim Group LLC - Analyst : Just switching back to the retail side. obviously, with over 50,000 customers and strong recurring subscription rate, that brand, the Vina brand is off to a great start. I think you mentioned -- sorry, I just wanted to verify when that's going to be available in coffee pods. And then I know there were other formats you were contemplating. I was wondering whether it's protein bars or electrolyte drinks, where is that development process?

Question: Anthony Vendetti - Maxim Group LLC - Analyst : No, that was a great overview, Ilan. Appreciate all the color on both the CDMO business and the direct-to-consumer business.

Question: Amit Dayal - H.C. Wainwright - Analyst : So Ilan, you have so many initiatives going on. How do you manage your working capital needs and growth needs with the balance sheet you have? Can you give us a little bit color on whether you are a little bit handicapped to execute as aggressively given what the balance sheet looks like right now?

Question: Amit Dayal - H.C. Wainwright - Analyst : I appreciate that color. That was helpful. Then just last one for me. Revenue cadence for 2025, can we expect sequential growth given new products are coming to the market? And then adjacent to that, operating costs, should we anticipate steady operating costs? I mean, it looks like from your comments, you're not expecting too much of a ramp on that side. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 31, 2025 / 8:30PM, 8MV0.MU - Q4 2024 Bioharvest Sciences Inc Earnings Call So any commentary on how we should think about revenue cadence for the year, if there is any seasonality, et cetera, that we should be aware of? And then how to model for operating costs for the remainder of the year?

Question: Amit Dayal - H.C. Wainwright - Analyst : Maybe last one on I'm just checking my notes here. On the CDMO side, right, is there any tariff-related issue, or even on the D2C side, on the

Question: Hunter Diamond - Diamond Equity Research - Analyst : Firstly, congratulations on the strong results. So a lot of my questions have been answered, but I wanted to get additional details on the compound, the preclinical data, maybe the process that you see to potentially commercializing it and how it can leverage the existing subscriber base and distribution that you already have.

Question: Hunter Diamond - Diamond Equity Research - Analyst : No, it makes perfect sense. And you hit on all the points of the question. So in terms of, I guess, the reactors, are they all in Israel right now, or are there some moving to the US or other areas?

Question: Hunter Diamond - Diamond Equity Research - Analyst : Yes, makes perfect sense. And I can tell your enthusiasm from the call. So again, thank you for taking my questions, and congratulations on the strong results.

Question: Susan Anderson - Canaccord Genuity - Global Capital Markets; - Analyst : I guess maybe a lot of my questions have been answered as well, but just a follow-up on the coffee and tea product. I'm curious if you said how many of the 50,000 subscribers are also buying the ancillary products. And I guess, did any of that -- those products add to the growth? And I guess, just what's the opportunity to kind of increase the basket size of those subscribers longer term? And then I was kind of curious, too, what's the gross margin difference on those products versus the supplement?