Moolec Science S.A. Q3 FY2024 earnings call

• Gaston highlighted Moolec's achievement of USDA-APHIS regulatory approval for Piggy Sooy, a unique soybean platform technology, and its significance in addressing climate change and food security.
• Amit Dhingra discussed progress on the safflower platform, including GLASO being in pre-commercialization stages, trial production of GLASO, and patents granted for SPC2.
• Jose Lopez Lecube presented financial highlights for Q3 2024, including revenue, expense, and cash utilization details.

During Q3 2024, normalized revenues and other income excluding IAS29 increased year-over-year from nil to approximately $1.3 million, driven by the consolidation of the soy protein ingredient business. Normalized costs of goods sold increased from nil to close to $1 million, resulting in a gross margin of around 18%. SG&A and R&D expenses rose to $2.3 million from $1.4 million in Q3 2023. Operational cash flow for the quarter was approximately $2.7 million, and the cash position as of Q3 2024 was approximately $4.3 million.

• Piggy Sooy field trials started in May 2024 at three locations, with scaling up of production planned in 2-4 years and commercialization likely in 2027-2028.
• GLASO is expected to hit the market in the first part of the 2025 calendar year.
• YEA1 scale-up is ongoing in partnership with Grupo Insud in Europe, with open channels to regulators for providing information.

• Regulatory uncertainties related to obtaining approvals from agencies like the FDA.
• Challenges in market adoption of new food ingredients, as building relationships with customers takes time.
• Inflation and currency risks in Argentina, as Moolec has some costs denominated in Argentine pesos.

Q: How does Argentina's economic environment impact Moolec?

A: Jose said Moolec has global operations, with revenues in USD and some costs in Argentine pesos. Devaluation and inflation movements affect costs, but costs in pesos are a small part of the overall structure, and gradual devaluation and declining inflation provide some stability.