BioHarvest Sciences, Inc. Q4 FY2024 earnings call

• CEO Ilan Sobel noted strong revenue growth in 2024 ($25.2M, 99% growth) and NASDAQ listing as a pivotal step. VINIA's success validated botanical synthesis technology. - Fourth quarter 2024 revenue $7.3M, exceeding guidance, with gross margins at 57%. - Plan to achieve adjusted EBITDA profitability at ~$11-$12M per quarter in H2 2025. - Focus on expanding product portfolio (e.g., new coffee, tea, chew products), investing in R&D (Botanical Synthesis 2.0) and AI-empowered CDMO capabilities. - Upcoming product launches include VINIA Superfood Coffee in espresso pods, VINIA Superfood Teas in K-Cup format, and VINIA Daily 2X Formula Chews.

Product Division: VINIA, the flagship red grape cell-derived nutraceutical, accounted for the majority of 2024 revenue. In 2024, total revenue was $25.2 million, with 99% growth. Fourth quarter 2024 revenue grew 62% y-o-y to $7.3 million, driven by strong VINIA sales. VINIA has over 50,000 active subscribers, with 90% of Vinia.com revenue from subscriptions. The core nutraceutical capsule business grew over 90% in 2024. CDMO Services Division: Signed deals like with Tate & Lyle to develop next-generation plant-based zero-calorie sweeteners. Busy pipeline with intense deal flow, including a NASDAQ-listed pharma deal, and progress on CDMO contracts.

• Target adjusted EBITDA profitability at ~$11-$12M per quarter in H2 2025. - First quarter 2025 guidance no less than $7.8M. - CDMO deals and product innovations expected to drive growth in subsequent quarters, with compounding subscription effects.

Q: Update on CDMO contracts, especially Tate & Lyle, and pipeline.

A: Ilan Sobel said progress with Tate & Lyle, signed deal with NASDAQ-listed pharma, busy pipeline with intense deal flow.

Q: VINIA retail availability, product development.

A: Ilan Sobel mentioned coffee pods, teas, chews, hydration, beauty products in development, with clinical trials and Informed Sport certification.

Q: Working capital, balance sheet impact.

A: Ilan Sobel said direct-to-consumer model leverages partnerships, compounding subscription effect drives growth, no balance sheet pressure.

Q: Olive cell compound, commercialization.

A: Ilan Sobel discussed Verbascoside in olives for NAFLD, regulatory and clinical trials in progress, scalable with subscriber base.

Q: Coffee/tea product margins, subscriber basket size.

A: Ilan Sobel said higher margins than capsules, new subscribers from other categories, trade-ups at checkout increasing basket size.