MindWalk Holdings Corp. Q2 FY2025 earnings call

• Relocated headquarters from Victoria, British Columbia to Austin, Texas, leveraging Austin's AI, semiconductor, and biotech ecosystem. - Actively pursuing divestiture of two European wetlands to reduce redundancies and focus on high-growth areas. - Implemented cost-cutting measures, including eliminating senior executive bonuses. - Planning rebranding to better reflect innovation and integrated approach. - Progress on TATX-112 program targeting TrkB-associated aggressive cancers. - Collaboration with BioNTech post Biotheus acquisition for oncology-focused antibody therapeutics. - OncoResponse rabbit anti-LILRB2 antibodies advanced through clinical trials. - Partnered with Mayo Clinic on study related to neurodegenerative diseases. - Collaborating with semiconductor company to enhance drug discovery pipeline computational efficiency.

In the second quarter of fiscal year 2025, BioStrand achieved $397,000 in revenue, marking its highest quarterly revenue to date with life-to-date revenue of $917,000. Canada's operations, including the Memory B cell platforms and protein manufacturing, are growing. The two European wetlands in Utrecht and Oss are being divested to focus on high-impact growth areas. Canada's revenue is driven by offerings like the Memory B Cell platform, protein manufacturing, single-step hybridoma discovery programs, etc.

• BioStrand's revenue expected to continue growing as early access users convert to paying clients. - Divestiture of European wetlands will redirect capital towards high-growth areas like LENSai platform and Canadian laboratory. - Rebranding to align operations with long-term growth opportunities and strengthen market presence.

• Changes in market conditions, regulatory changes, and other unforeseen business risks that could materially affect actual results. - Impact of convertible financing on share price and investor perception.

Q: What's the strategy behind moving headquarters to Austin and cost containments?

A: Moving to Austin leverages its AI, semiconductor, and biotech ecosystem for access to talent and partnerships. Cost containments like eliminating bonuses align with market alignment and divestitures to redirect capital for growth.

Q: How to square discoveries/advancements with flat revenue?

A: Revenue is flat due to recovery from prior quarter dip and client budget constraints. BioStrand's early access users are in trial periods for feedback, not yet contributing revenue.

Q: Thoughts on capital structure and divestitures?

A: Divestiture of European assets will help reduce debt and optimize capital structure. Expect to use proceeds from divestiture to address convertible financing concerns.

Q: Update on Astellas discovery program?

A: Contract prevents sharing detailed updates as Astellas restricts information for strategic reasons.

Q: Commercial aspect of semiconductor collaboration?

A: Collaboration aims for co-offering cloud-based infrastructure and synergistic technology to enter drug discovery market with pharma partners.