Bioharvest Sciences Inc. (BHST) September 15, 2026 Conference Transcript

all right we're going to go ahead and get started with the meeting thank you everyone for coming my name is david shomiak i will be moderating this meeting today i'm an investment banking analyst here at wainwright working on our ecm team with me here today is dr zakib rakib chairman and ceo of bioharvest sciences he'll be running through his presentation as well as a little q a at the end i want to give him as much time as possible to run through his presentation so with With that said, Rakib, it's all yours.

Good afternoon, everyone. I am Dr. Zakir Rakib. I'm the guy you see on the picture here. Here to tell you about BioHarvest. I am the chief executive officer and founder of the company. I've also invested $18 million of my own money into the company. um i am 68 years old and uh i feel the same energy i had uh in 1998 when i did an ipo uh a roadshow for a company i also founded back in silicon valley i have the same energy and conviction back then when i said to people that we would become a multi-billion dollar company so i'm standing here in front of you, and for those who are listening on the other side of the Ethernet, that I have the same conviction, same energy, and I'm here to tell you why. What we have done at BioHarvest as a biotech company, you'll be very hard-pressed to find any company in a biotech sphere with this kind of revenue and having a very, very modest valuation as we speak now. The company did $35 million in revenue last year, and as I said, we're a biotech company, and I'm here to tell you why you should be investing in the company. First and foremost, I have a very good team. It's a team of veterans from the biotech industry, math, data science, consumer goods, manufacturing, finance, and chemists. So we have a very capable team that has been with the company since its inception, most of them, working to build a very unique platform that can leverage plants and produce molecules that are life-changing. The company is based, the operations of the company is based in Israel, R&D and manufacturing. We started trading on NASDAQ a couple of years ago. The company, as I said, generated $35 million in revenue in 2025. On one particular product that was the validation of our platform technology, we have cumulatively sold over $100 million. And our focus is to provide molecules that are plant-based or derived from plants in a consistent and economic way, and we cover four different industries, nutraceutical, pharmaceutical, cosmeceutical, and nutrition. Our goal is, as a CDMO, to develop and manufacture these molecules for those industries. What's common about those industries is they're all looking for nature-based products. Basically, they want the products to be efficacious, They want them to be economic. They want to be consistently produced. Unfortunately, nature is not an industrial supply chain when it comes to biology, when it comes to molecules. The two bananas growing adjacent to each other will produce a different composition inside the cells. And so the key is how can we leverage all the wealth that exists in nature to remind people about 100 years ago, all medications, all drugs came from plants. Until chemical synthesis came up, everything was extracted from plants. While we are going back to the future, we want to get those great molecules and produce them in aseptic conditions and consistently in bioreactors. To be able to do that, we started with a fundamental science of programmable biology, whereby applying AI models and data science, we can program the conditions under which we expose the cells of the plant to make it produce the molecules at the concentration level we desire. And it's not GMO. This is not genetic modification. is just stressing literally the plant cells and force them to produce the molecules which otherwise they produce naturally but it takes them way longer and i'll give you a couple of examples later some of which we just announced a supply a major supply agreement of 20 to 30 million dollars over the next couple of years in the fragrance space so by applying a program over plant biology we create precision botanics why precision because we can consistently produce those compositions at the concentration that is desired and we do that initially in in small vessels like uh ellenmeyer's or petri dish and then we grow them in large-scale bioreactors One can say that we are the company that industrialized cell culture. The fundamental science behind the program of biology is the science called cell culture, which has been in existence for maybe over 100 years. But we industrialized it because we're the first company that has taken it to a stage where we can grow things in thousands of literate bioreactors. I'm not talking fermentation. This is cell culture technology. and the business model is develop, manufacture, collect revenue and royalties on the unique molecules we produce because no one else can do what we do. We're unique in that space. The process very quickly, which we call botanical synthesis, it starts by taking a piece of the plant where the cells of interest are in existence. Then we take those cells and as I said earlier, we stress them we create the conditions for them to express the molecules we're interested in and we create a cell bank that cell bank we keep forever that is uh the over 100 million dollars of a sale of a product we call vinia that we commercialize based on red grape cells same one single grape that was taken 15 years ago or more just one grape i want to stress that we never go back we're not doing any agriculture we took one grape we took from which the cells and from that point on we created the cell bank that we can perpetually use and that's what you have in the bottom of the screen where that the cells that we plant into the bioreactors get propagated from small scale to mid scale to large scale bioreactors and in a cycle of three weeks we basically get mud from which we that that we dry and we get the powder which is the bait which contains the cells that contain the molecules of interest now what can you do with the powder you can either sell it as it is like we do encapsulate it and we sell it as a dietary supplement it can go into foods like the deals we're doing with taten live for the sweeteners it can go as a as an ingredient for uh producing fragrances and incense like the program that we announced throughout last year and the supply agreement that i mentioned earlier that we announced on august 11. or you can put them in um in other formats like a choose um something that we announced today with vinya in a true format which would would be more adequate for younger people and various demographics. Benefits, as I mentioned earlier, are the scalability, lower cost, higher bioavailability with less danger when you look at natural products, less off-target risks, as well as much higher bioavailability. The consistency is paramount. And on top of everything, as we provide this technology for our customers, earth everything we do is patentable meaning the composition is unique and patentable you're not going to patent the banana but you can patent the special composition that came from a banana that can be only produced using the process the botanical synthesis process which is a proprietary process that is protected by patent very important and that's something that we've been doing in the last few years and i mentioned earlier in the programmable biology we use ai we use ai to provide us with using machine learning and improving the efficiency and reducing the number of experiments we need to conduct in order to get to optimize the the composition that we need to have it also provides us with capability to monitor the development itself to try to reduce again the number of tries and during the manufacturing process to reduce the contamination possibilities. After all, we're a biology factory. And in the future, as we're building a library of plant-based molecules, the ability of AI to predict which plant, which molecule would address a certain indication or actually generate ideas down the road. What we have currently in the pipeline, some of which is assets that we have 100% ownership, and some of it are products that we develop for other companies. The first one, the red grape cells, which is the one that we commercialized as a proof of concept, as a validation for the technology, for which we've done a revenue of $33 million last year. Just to give you an example, one molecule, one particular molecule that is called Pisces resveratrol, we magnify by a factor of 100. Same thing we do with the olive. We magnify the verbosco side by 15x. And in the case of pomegranate, those three products, we own 100% of them. The others are partial ownership or no ownership. For tate and lye, we have two protein sweeteners that we're developing for them. We don't own parts of those molecules. On the saffron, which is the most research plant we have 25 ownership and on the fragrance molecule that we haven't announced yet what it is for purpose of keeping it confidential uh at the request of the the sponsor the of the program um based in the united arab emirates that particular um fragrance molecule has a market of $15 billion a year. And it's a molecule that gets produced by a tree five years after the process of its growth by being attacked by a fungus. And the tree reacts by creating sesquiterpenes and chromones, if we want to get a little technical. Those are when they're heated, when they're heated, they uh create the the the scent or the fragrance itself the application for the technology as i said earlier nutrition the case state alive fragrance like the one i mentioned nutraceuticals saffron is also good for nutraceutical as well as it's for food so we can take it the culinary way or otherwise into the dietary supplement space vinya is the product that that we commercialized on the basis of the red grape cells. We conducted clinical trials that proved that VINIA is a natural vasodilator. It dilates the blood vessels, and hence it improves the blood flow. The company today operates as two divisions. One does the sales direct to the consumer, which is an asset that we want to continue to invest in and achieve for next year, higher revenue, higher scale and profitability. Same is happening on the CDMO. With the CDMO, we did $2 million in 2025. We debuted it in 2025. We needed to go through the validation of the technology with Vinya. So we did $2 million. This year, we guided for $4 to $5 million. And that's before even we started manufacturing, like what we start doing in 2027 for the fragrance. And the contract we have is for 20 tons in 27 and 28. And the value of this contract is $20 to $30 million. uh i mentioned earlier this is just uh an illustration of uh of the sesquiterpenes and the chromones for the fragrance it's a very exciting project uh it's also for uh for for our uh for our planet um you know you don't need to cut trees because those trees once you take the bark uh you need to basically you cut them uh so we our process does not touch any tree as i said we only take a sample initially and then we grow the cells and we grow the molecules that are providing for the scent so many applications the fragrance space why fragrances because there's higher margins lower volume higher margins we have a factory of 20 tons a year mostly and predominantly for vinya and next year by the end of next year we would have built the second factory also in israel for 75 tons to not only produce the growth in vinya but also to support the other products like the fragrance like saffron or like the other protein sweetness for taten light the business model development revenue we usually charge three million dollars for a development program from scratch over 18 to 24 months those are the revenues that we've generated in 2025 and 2026 all of the revenue on the cdmo side are going to be from development in 2027 we're going to see a mix of development manufacturing revenue as well as royalties that stems from the partial ownership or royalties that we charge the customer as a percentage of sales the as i said earlier we have the factory that we have today is about 20 tons a year we're building the 75 tons a year what's interesting about our technology is that it's actually a very efficient capex use. $5 million is what we spent on the first factory. $5 million generates in consumer good end price, $50 million a year of revenue. So you can look at the efficiency of the capex. Just a snapshot on the financials, The D2C revenue, the VINIA revenue last year was $32.6 million. We guided this year for $33 to $35. The CDMO revenue here as presented includes, if you were to split the two companies, the two divisions, that includes the revenue that would come in the CDMO from coming from the sale of the VINIA powder into the D2C business. Otherwise, if you subtract it, it would be about $2 million last year and $4 to $5 million for this year. Consolidated revenue for 2025 was $34.5 million for this year, it would be $37 to $40 million. As I said, we're at this inflection point where you have the compounded effect of the revenue that would come in the CDMO from development of more products, stages, more advanced stages that we reach within the development, and then you start compounding for the manufacturing revenue, and on top of it, you have the royalties. So as I said in the beginning of the presentation, I'm here to tell you what I did in 1998 when I IPO'd my first company in the telecom space. I said that this is going to be a multi-billion dollar company. I wasn't wrong. Two years later, the market cap of that company was $7 billion on NASDAQ. We are on NASDAQ. And I truly believe in the prospect of BioArvest. There's no such platform. There's no such high biotech company that has the wealth and technology and already have revenue that has this kind of low valuation. So inviting you to take a look at the company. I'm available to answer questions and of course our partners from LifeSci are also reachable for any questions that you may have or any email that you wish to send us with further questions. So thank you very much.

All right.