Moolec Science S.A. Q1 FY2024 earnings call

• Moolec's mission is to use science to bypass animal dependence by genetically engineering plants to produce animal proteins. - GLASO progress: Harvested 35 hectares with 1.8 tons per hectare yield (exceeding average by ~50%), expression levels up to 60% (exceeding original expectations by 10%), planning to plant 100-350 hectares in FY2024. - Piggy soy platform: Narrowed down transgenic events from T0 to T3, with high myoglobin expression in soy seeds across generations. T3 expression levels correlated with T2, with one line achieving 20.4% total soluble protein expression. - Moolabs in Texas fully operational since September 2023, providing IP control, cost savings, and efficiency in R&D.

In Q1 Fiscal Year 2024, revenues increased to $1.7 million from $0.9 million in the previous quarter, representing a 92% quarter-over-quarter growth. This growth was driven by full quarter consolidation of the acquired business, higher average pricing, and higher volumes. Costs were stable with a cross margin increase, admin expenses were significantly lower than the previous quarter ($1.9 million vs. ~$3 million), and operational cash utilization was approximately $1.8 million, in line with historical track record while supporting R&D progress.

• Controlled cash expenses will continue while supporting R&D progress. - Anticipated increased cash burn in the second half of 2024, likely related to the GLASO campaign starting in mid-2024.

• Impact of Argentine peso devaluation due to economic reforms is too soon to assess; Moolec has limited exposure to Argentina but some, and devaluation could affect dollar-denominated expenses.

Q: What are the biggest advantages of setting up Moolab at Texas A&M? Why is it such an advantage to not use a third-party lab as you've done in the past? And then finally, could you help us think about the cost savings as a result of setting up Moolab?

A: Gaston mentioned IP control, efficiency, and cost savings. Amit added that it provides nimbleness, avoids overheads to third parties, and allows quick analysis.

Q: What are your thoughts on potentially accelerating that commercial development or even advancing that commercialization model to maybe a royalty-based model to kind of get in the market quicker?

A: Gaston said the timeline is on track, and royalty model is a possibility for expanding territories, with focus on fully controlling products and delivering to customers directly.

Q: How should we think about the proposed economic reforms and any impact on the business, positive or negative?

A: Jose said it's too soon to tell, limited exposure to Argentina, but devaluation could affect dollar-denominated expenses.

Q: How are you guys looking at the relationships you guys currently have with other third party labs? Do you expect to continue to utilize third party labs or will you eventually start to transition?

A: Gaston mentioned still using some third party labs (e.g., Wisconsin Crop Innovation Center, Washington State University) but focusing on internal lab for IP control. Amit added it's pragmatic, balancing outsourcing for infrastructure vs. internal for IP generation.

Q: Could you please elaborate on what are the major significance of moving from greenhouses to field trials?

A: Gaston said it's to achieve commodity cost, confirm expression and plant performance, and for regulatory compliance. Amit explained it's part of the pipeline to go from controlled environment to field production to get soybean to commodity prices.