Moolec Science S.A. Q3 FY2024 earnings call

• Gaston highlighted the achievement of USDA-APHIS regulatory approval for Piggy Sooy, a significant milestone in biotechnology, and discussed how Piggy Sooy can address climate change and food security by producing pork meat proteins with lower environmental impact than traditional livestock. - Amit Dhingra discussed the safflower platform, including GLASO in pre-commercialization stages, with 600 acres contracted for production and 60 acres for seed production, and patents granted for SPC2. - Jose Lopez Lecube provided the financial overview, discussing revenues, expenses, cash utilization, and the company's cash position.

In 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 was approximately $2.7 million, and the cash position was ~$4.3 million as of Q3 2024.

• Amit mentioned Piggy Sooy commercialization is planned to begin in 2027-2028. - Gaston stated GLASO is aiming for commercialization in the first part of 2025, targeting customers in pet foods, dietary supplementation, ingredient blending, and nutritional beverages.

• Exposure to Argentine peso devaluation and inflation affecting local costs, though local currency-denominated costs are a small part of the overall cost structure.

Q: This quarter, you highlighted USDA approval for Piggy Sooy. Can you provide more color on the significance of this achievement, what's next and the opportunity you see?

A: Gaston expressed pride in being the first molecular farming company to get USDA-APHIS approval, mentioned field trials are ongoing without permits, and started conversations with FDA. He emphasized the product's potential in food applications and other industries.

Q: In the business update, you mentioned GLASO was in pre-commercialization stages. Can you talk more about the types of customers and timing of commercialization for GLASO?

A: Gaston said GLASO's customers include those in pet foods, dietary supplementation, ingredient blending, and nutritional beverages, aiming for commercialization in the first part of 2025.

Q: On Piggy Sooy, when can you expect commitments from customers? Have you had feedback from potential customers so far?

A: Gaston said it's hard to specify timing, but received good feedback from potential customers, started delivering samples, and is multiplying seeds to prepare more samples for customers.

Q: Provide a little more color on the conversations you're having with ingredient foods and dietary supplements for GLASO, and timing of commercialization?

A: Gaston mentioned working on closing take agreements, potential customers in food applications, and GLASO is on track for early 2025 commercialization.

Q: Color around the YEA1 scale up and timing to achieve regulatory compliance?

A: Gaston said YEA1 scale up is on track with partner Grupo Insud in Europe, moving in parallel with regulatory channels, and open to providing information to regulators in the US.

Q: How has Argentina's economy, specifically inflation, impacted Moolec?

A: Jose explained Moolec has global operations, revenues in US dollars, some costs in Argentine pesos. Devaluation and inflation impact local costs, but local currency costs are a small part of the overall structure; gradual devaluation and declining inflation provide some stability.