Good afternoon, and welcome to the SEBA's second quarter 2025 results conference call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. At this time, I would like to turn the conference over to Carlo Bruch, Interim Chief Financial Officer. Please go ahead.

Thank you, and good afternoon. I would like to thank you for taking time to join us to receive the second quarter 2025 financial results and business update conference call and webcast. Presenting with me today is Peter Beetham, co-founder, interim chief executive officer, president and COO, and Greg Gochel, co-founder and our chief scientific officer. Before we begin the call, I'd like to remind everyone that statements made on the call and webcast including those regarding future financial results and future operational goals and industry prospects are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to defer materially from those described in the call please refer to cbs sgc findings for a list of associated risks this conference call is being webcast the webcast link along with our press release and corporate presentation are available on the Investor Relations section of SEBUS.com to assist you in your analysis of our business. And with that, I would now like to turn the call over to Peter.

Thanks, Carlo, and good afternoon to everyone. I'd like to start today's call to recognize that our team here at SEBUS remains laser-focused on delivering our targeted near-term revenues. Our second quarter demonstrates continued execution toward our commercial objectives, with clear progress across our focus programs in rice and partner-funded and or supported sustainable ingredients, including biofragrances, that are positioning SEBUS to begin recognizing initial revenue in 2026. Every quarter, we are getting closer to that pivotal initial revenue moment through tangible commercial progress, which includes successful field trials, milestone achievements, regulatory clearances, and direct customer engagement. The path to revenue is really clear. Let me be even more specific about what we're building toward. Our rise herbicide tolerance traits, HT1 and HT3 alone, represent over $200 million in potential annual royalty revenue across our initial target geographies in the United States and Latin America. These traits are progressing on schedule toward targeted initial launches in Latin America beginning in 2027 and expanding to the United States in 2028, which would generate initial royalty revenue and set the stage for further opportunities in the immense global rice seed market. this pursuit doesn't represent a distant aspiration rather this is the reality of our near-term commercial opportunities we believe we are developing a new industrial plant breeding platform we have traits moving into customer germplasm we're seeing positive results in field trials and we're witnessing an increasingly accepting global regulatory environment that's opening doors for customer engagement and market penetration opportunities that simply didn't exist before. As we advance towards revenue generation, we're taking a disciplined and strategic approach to capital allocation that maximizes our near-term commercial opportunities while preserving the significant value we've created across our broader trait portfolio. The streamlined operational focus we just announced in July concentrates our resources on our rice herbicide tolerance traits, partner funded and or supported sustainable ingredients programs, including bio fragrances. These are our nearest term revenue opportunity drivers with the clearest, most efficient path to market this calibrated focus is designed to reduce our annual cash usage to approximately a net 30 million dollars by 2026 extending our runway while positioning us to capture the significant revenue opportunity ahead of us that said we have invested substantial resources and expertise in developing a portfolio of opportunity pipeline traits and programs that includes highly valuable productivity traits across multiple crops. We are actively in pursuit of partner-funded projects for these traits until such time as our capital resources are sufficient to efficiently support more robust development efforts. I will now take a few moments to discuss our priority programs and recent regulatory progress before passing it over to Greg to discuss our opportunity pipeline traits and programs in more detail. Starting with our RICE platform, which is our number one priority pipeline trait and foundation for near-term revenue generation, we continue to make significant progress with trait integration, field trials, and registration activities, each of which are on track to meet our targeted commercial timelines. This quarter, we also achieved a key milestone by completing edits and delivering stacked traits containing our HT3 trait to a second U.S. partner. Our customer momentum continues to build significantly. Recently, we signed an agreement with Semilano, a Colombian-based Latin American rice seed company, marking our fifth customer in the Americas. The greater penetration of Latin America is particularly exciting, both with large and small participants, as these markets have historically lacked access to advanced weed management solutions in rice, representing a transformative opportunity for SEBUS to drive value for farmers in these key regions with our gene-edited HT traits. What's driving this commercial interest is our standardised platform that enables us to edit customers' elite germplasm and return it with specific traits in approximately 12 to 15 months. This represents a fundamental breakthrough that intersects with agriculture's important plant breeding programmes which, as I've said before, are the engine room of genetic innovation for the seed industry. Seed companies are coming to us because they recognise this creates a dependable model for trait development that is unlike anything the seed industry has seen before. This is the recognition that our rapid trait development system accelerates the adoption of gene-edited traits into their best genetics faster than modern trait integration. Bill trial programs for RICE are progressing as planned across our customer base, and we continue to advance trait registration activities that are essential for our Latin American launch targeted for 2027, 2028, and subsequent U.S. commercialization targeted for 2028. We also expect to initiate our first trait validation trial in Latin America later this year, with delivery of initial HT traits to Latin American customers anticipated by year-end. Our partner-funded and supported Sustainable Ingredients Program continues to serve as a complementary near-term revenue opportunity driver. We remain on track for nominal revenues from our biofragrance products beginning later this year, with targeted commercial expansion ramping in 2026. This quarter, we successfully completed first stage scale-up of two biofragrance products, supporting our expectations for realising revenues from this program. The BioFragrance Program continues to meet development milestones and demonstrates the versatility of our core capabilities in creating value beyond our crop productivity traits. What's exciting about this area is the strong interest for bio-based products we're seeing from the consumer packaged goods industry. The industry is very interested in our ability to provide fragrances and other products that they previously had to source through either expensive natural processes or synthetics. We expect the revenue ramp to accelerate in this area over the next few years, providing a near-term offset to expenses as we advance our rice traits towards commercialization. Now, shifting over to the regulatory front, we continue to see acceptance of gene editing technologies that is fundamentally changing the commercial landscape and the opportunity set for innovators such as SEBUS. While the EU trilog discussions have extended beyond their initial June 30th target this year, I want to emphasize that this process, while delayed, has not stalled and customers remain engaged and excited about the opportunity that awaits. The Trilog is a highly iterative process involving detailed committee work streams and negotiations among individual member countries, the Parliament and the Commission. These discussions are actively progressing and we believe resolution will occur within the next six months. When completed, this will represent an incredible moment for our industry, one in which SEBUS is uniquely positioned to benefit from due to our positive regulatory track record and commercial ready traits. The transition from Polish to Danish EU Council presidency has brought fresh momentum, with Danish officials having clear visibility on the specific outstanding items requiring resolution. This regulatory advancement, combined with our recent positive determination in Ecuador, ongoing approvals across North and South America, and continued regulatory clarity in India and parts of Asia, is creating a foundation to market our trades globally. These regulatory developments across multiple geographies significantly strengthen the commercial opportunity for our trade pipeline and serve as important catalysts for our business. And with that, I will now pass the call over to Greg to discuss our Opportunity Pipeline traits and programs.

Greg? Thank you, Peter. Now before I share more details about our Substantial Opportunity Pipeline, I would like to add my own endorsement of the breadth of the gene editing toolbox our talented team has developed here at SEBUS. As a career plant biologist with over 25 years' experience in gene editing development, I continue to be impressed by the advances we make at CBIS in our underlying editing frequency of gene editing at a cellular level. These advances paved the way for our commercial opportunities for the most important traits in our partners' most elite seats. Now, let me share more details about the Substantial Opportunity Trait Pipeline Peter just referenced—specifically, our Productivity Traits Portfolio and the partner interests we're seeing across multiple programs. While we remain strategically focused on our priority near-term revenue drivers, the value we've built in our broader trade portfolio continues to generate meaningful commercial opportunities that we're well-positioned to pursue through partnerships. I'll briefly review some specific examples of the progress and partner interest we're seeing, starting with our canola programs. Our HT2 field trials have delivered promising early results validating both the traits tolerance profile and field efficacy. These positive field demonstrations have generated concrete interest from potential partners who recognize the significant commercial value of next-generation herbicide tolerance in canola's global market. Remember, this is our second-generation HT2 edus, which is a great example of how our technology can iterate and improve trait development. Equally compelling is our sclerotinia resistance program in canola, which continues to attract substantial interest. Potential partners are particularly drawn to our multi-layered approach to durable disease resistance, an approach that addresses one of canola's most persistent and costly challenges while offering growers a more sustainable solution. Beyond canola, our soybean platform represents perhaps our most substantial long-term opportunity. Having successfully edited soybean cells for our HT2 trait earlier this year, we've made an initial step to demonstrate proof of concept to potentially access a market with an estimated 125 million accessible acres and potential annual trait royalties in the range of $10 to $15 per acre. The scale of this opportunity, combined with our technical progress, has generated serious partnership discussions. More recently, we've realized a commercial milestone with our Altered Lignin Alfalfa Program. Last month, the FDA completed its review of our Altered Lignin Alfalfa Trait, clearing the way for U.S. commercialization. Our seed company customer is now positioned to offer the first commercial gene-edited alfalfa varieties to U.S. growers, with commercial seed quantities available in two initial variety offerings. This trait delivers compelling value by providing potentially improved digestibility for livestock, while giving farmers greater harvest flexibility. Essentially creating higher value alfalfa on the same acres with the same inputs. While not a significant potential revenue driver for us as compared to our priority programs such as rice and bio fragrances, this successful partnership exemplifies our strategy of working with established seed companies to bring our traits to market efficiently while generating meaningful revenue streams for SEBUS. What ties all of these programs together is the strong foundation we've built through our development activities, including ongoing greenhouse and field trials and the recent regulatory designations by the USDA APHIS of multiple SEBIS traits as not regulated. This progress, combined with our demonstrated technical capabilities, positions us exceptionally well to engage partners who can provide both funding and market access for these valuable productivity traits. This partnership-driven approach perfectly aligns with our capital discipline strategy Peter outlined, allowing us to advance these high-value assets while maintaining our focused execution on priority revenue drivers.

And with that, I'll hand the call over to Carlo for a financial update. Carlo? Thank you, Greg.

Looking at our financials for the second quarter, our cash and cash equivalents were $36.5 million as of June 30, 2025. Taking into account the $27.5 million in gross proceeds we raised from our public offering in June, along with the impact of implemented cost-saving initiatives, we expect that our existing cash and cash equivalents will be sufficient to fund planned operating expenses and capital expenditure requirements into the second quarter of 2026. Moving to our operating results. Revenue for the second quarter was $933,000 compared to $838,000 in the year-ago period, reflecting increased activity in our partner-funded programs. Research and development expense was $12.2 million for the second quarter, compared to $13 million in the year-ago period. This $800,000 decrease is primarily due to cost reduction initiatives that we have implemented as part of our streamlined operational focus. Selling, general, and administrative expense was $6.6 million for the second quarter, compared to $9.3 million in the year-ago period. The $2.7 million decrease is primarily due to cost reduction initiatives. Net loss was $26.6 million for the second quarter, compared to $28.5 million in the year-ago period. As Peter mentioned, we're focused on managing our cash usage as we approach revenue generation. Subsequent to quarter-end, we announced a reduction in force as a pivotal step in implementing our streamlined business focus. We expect this RIF to result in related one-time charges of approximately $0.5 million in the third quarter. However, the RIF, along with other initiatives, is expected to reduce our annual net cash usage to approximately $30 million by 2026. This disciplined approach to capital allocation extends our cash runway while positioning us to capture the significant revenue opportunity ahead of us, with initial revenues beginning in 2026 and meaningful commercial expansion thereafter. And with that financial overview, let me turn it back to Peter for closing remarks.

Thank you, Carlo. As I reflect on our progress this quarter and look ahead, I'm really confident we're executing on the strategy that will deliver long-term value for our shareholders. Our team has made some tough decisions this past quarter, and I'd like to recognize the entire team for their impactful contributions. While difficult, this has positioned us to stay laser-focused on the commercial path in front of us as we pursue our long-term strategy. We see this as a natural evolution of our business, as our partner interactions are now more focused on delivering traits in a time-bound and predictable way. As I noted previously, improved genetics are the engine room for seed genetic advancement, driving real value creation for farmers, our seed company partners, and for SEBUS shareholders. The bottom line is we have traits moving into customer germplans, we continue to see positive field trial results, and we're operating in an increasingly favourable regulatory environment that's opening up global market opportunities. The gene editing revolution in agriculture is happening now, and SEBUS is positioned at the forefront of this transformation with a clear path to approximately $200 million in potential annual royalty revenue from our rice trace alone. With initial biofragments revenues beginning next fiscal year and meaningful expansion as we progress through to our rice commercial launch timeline. As I've mentioned a few times, we remain laser-focused on our core priorities, advancing our rice herbicide tolerance traits toward commercialisation, growing our partner-funded and supported sustainable ingredients program, and building the operational foundation for sustainable revenue and cash flow generation that will capture significant value as our market opportunities materialise. We are confident that in time the gene editing opportunities will expand to many of the world's important food crops. In concert with this, and with the advent of AI and tools like gene editing to execute on complex traits, we do see expanding trait development categories opening up like nutrient use efficiency, NUE, and the exciting opportunities of non-allergenic crops. And with that small look into the future, thank you all for your attention and interest and we look forward to updating you on our continued progress next quarter. Operator, we're now ready to take questions.

Thank you. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. We will go first to Matthew Venizia with AGP.

Thank you for taking my questions. First, I wanted to ask about the germplasm transfer that occurred this quarter. So, is this a customer that has already initiated field trials in RICE-HT3 on their own, or would this provide a new set of company-specific field trials? And then I have a couple of follow-ups.

Thanks, Matt. This is Peter. I really appreciate your question. You know, just to put this into context, I think this is a great example of why we're so excited about rice. I think that, you know, we're on the commercial path now with, you know, six customers and, you know, our ability to do edits and get material back to customers is something we're really proud of. and I think that it's really going to set us up for the future. But more specifically around your question, I think this is something I'm going to hand off to Greg because he's been intimately involved in the delivery of these lines back to one of our existing rice tufties.

Thanks, Peter, and thanks, Matt, for the question. So this is a new customer that we're delivering back to for the U.S., sudden we're delivering back multiple lines with our HK3 trait.

So, we're really excited because of their ability then to use that in field trials going forward.

Great. Okay. Thank you, Greg. That answers my question. And then I heard at the beginning of the call you had mentioned initial revenue in 2026. Is this reflecting the biofragrance moving from 4Q25 into 1Q26 for those first nominal revenues?

Thanks, Matt. Let me expand on that a little bit because I think this is an area of our business that, you know, again, really looking forward to getting our first revenues and what we've been really focused on, as you'll hear more and more around SEBUS, is that we're so laser-focused on that near-term revenue. So with regards to the biofragrances, as you've heard, we've had a lot of success over the last quarter of starting to scale up. And everything we've done, we've met our milestones on scale up. We're really excited about where we're at now and where we're going to be towards the end of this year. We still see some nominal revenues this year as we scale up as some of the early product is delivered back to a customer. And then in 26 is when we really start to do full commercial runs with regard to the biofragrances that we have in our pipeline. And from there, there really ramps beyond that.

Great. Thank you. And those bio-fragrance revenues are all royalty in the same way your other potential revenues would be, correct?

Correct. I mean, the nominal revenues to start with, we're handing off some of the scale-up material, which is great. So that's not essentially a royalty, but next year we'll be moving to the royalty business model.

Great. Okay. Thank you guys for taking my questions. I'll hop back in the queue. Thanks, Matt.

We'll go next to Austin Muller with Canaccord.

Good afternoon. Just my first question here. What have the Danish officials in European Parliament told you are the next steps or hurdles in the negotiations for approving gene editing in the EU?

Austin, thank you for your question. This is Peter. I'm going to start off and I'll let Greg chime in as well. But I think, you know, as I said in our prepared remarks, the EU regulatory acceptance is something that is part of the harmonizing globally. And, you know, that really has turned what has been some headwinds into tailwinds. I can't stress that enough. It is really why, you know, gene editing is happening now and a clear path for our commercialization of many traits. So, you know, obviously we follow this closely and, you know, as the trilogue goes forward, it is a highly iterative process. There's a number of detailed committee work streams based on the council, the parliament and the commission. And to your question around the Danish, what we've heard from both the Polish and the Danish is that they're really working on the important amendments that were tabled last year in Parliament. And what they're looking at is how to implement the legislation and get to the final text. So some of that is around understanding how to execute that in all the different countries. So some of the questions that have been brought up and the visibility around that is with regards to labelling and patenting, two of the key issues that they've discussed. and I think that the good news for all of us in the technology space is that that's really been handled very carefully and linked with the European Patent Office. So we're confident that in the next six months these will come to a good resolution and we'll have a final text by the end of this year.

Okay.

And just to add a little bit to Peter's remarks, So remember that we've been in field trials in the U.K. with our pod shatter resistance trait for the last two years. And what you've seen in the UK is a move from approved legislation to implementing that legislation over the last couple of years to get to the point where you'll shortly be able to plant and grow edited crops without any restriction in the UK. and that's our expectation going forward once you have final text in the EU and it's implemented across all of the 27 countries.

So thanks for the question, Austin.

Thanks. And just to follow up, what stage are we at in the winter oilseed rape field trials in the UK, and what is the timeline for evaluation of the results?

So, we're towards the end of the second field season. So, harvest will happen likely in August, and that's where we'll know what the efficacy of the traits this year is. But we're excited from what we saw last year, that those results are similar this year for the material that was planted.

Great. Thanks for the additional details.

Thanks, Austin.

We'll connect to Samir Joshi with H.C. Wainwright.

Yeah, good afternoon, and thanks for taking my questions. I just have a quick couple ones, mostly focused on 2026 cash burn. So I think you are on track to reduce your OPEX to $13 million by the end of next year. when should we start seeing that like drop in expense and part two of that question is are you assuming any net proceeds from the bio fragrances business that you expect to commercialize next year?

So thanks, Samir. This is Peter. I'll start out and hand off to Carlo but I think what we said in our prepared remarks too is that we're very much focused on a discipline and strategic approach to our capital allocation. And this is a natural evolution of how the business is evolved. As we move and see a clear path to commercialization, we're really about maximizing our near-term opportunities. And I think, you know, both bio fragrances and the rice traits, there's some, every day we see a clearer path, which is fantastic. What we've also recognized is that to focus on that, our business models is changing. And this is a really important point for everybody to hear is that, you know, our ability to do things time bound and predictably with editing and to be able to hand back to customers earlier has really changed the way we think about the business and what we do. And part of that is, you know, handing off earlier to customers, like we talked about with regards to our rights customers in HT3, allows us to really sort of be more strategic and disciplined about our capital allocation. So, you know, over the next couple of months, we've already seen a reduction in spend. And, you know, we had a reduction in force subsequent to the quarter ends, and we're on track to reduce our annual net cash usage, as you mentioned, in 2026 to a net $30 million. You know, this is part of the natural evolution of the business, and it also is part of our laser focus. And I'll hand it to Carlo to see if you wanted to add anything.

Thank you, Peter. Now, you fully nailed it. The RIF, as you have heard, and as you can read, was in July, and the focus we talk about is absolutely also on expenses. It takes now a bit of time, but we're focused to be ready early in 2006 with the number you mentioned. So the 30 million is a net number, and that is our target for 2026, and we get there.

Thanks, Amir.

Understood.

And my second question relates to sort of the scale up and scale of sustainable ingredients. When should we see, meaning apart from the bio-fragrances, the sustainable ingredients and maybe also consumer packaged goods start to at least see some commercial or customer interaction? And when should we see the scale-up in revenues from those?

Thank you for the question. And let me – I'll start out on this one and then hand off to Greg. But I think there's two parts to your question. There's the fragrances, and this is definitely where we see the scale up from 26 through the next 18 months on that. And I think that that's exciting for us because it really helps to work through to revenues that are meaningful very quickly. And that's the beauty of that particular revenue stream. With regards to sustainable ingredients, we are in the process of working with a funding partner, and we've made a lot of progress in that area. We're excited to see that come, but probably not for a couple of years. And so I think that'll be towards the end of the late 20s is the best I could say today. But the good news is, in the sustainable ingredients area, is this is an expanding space. Bio-based products, whether it's fragrances or other bio-based products, is an area that has really garnered a lot of interest in agriculture and it continues to. So it's not just fuels anymore. There's lots of other sustainable ingredients that people are fascinated to apply new technologies to. And gene editing is one of the technologies that allows you to think through really interesting products that are different oil profiles, for example. And I mentioned in some of the summary remarks about non-allergenic crops as well, non-allergenic peanuts, non-allergenic wheat. These are opportunities that are really important sustainable ingredients as we go forward. And Greg, I'll...

Yeah, so, Peter, I think you've covered most of it. So I think the bottom line is we're leveraging the platforms that we have. And really, we have a lot of opportunities in platforms that we've developed in the past, even, as Peter says, with opportunities potentially in wheat and peanut, but also an ability to really understand the what to edit for a vast number of traits. where on more of the output side of the trades, what we would see is those are done mainly with partnerships. And even as we move forward with our sclerotinia program and our HT2 program, we see those as partnered activities where we've made a huge amount of progress that we can really quickly deploy with managing our cash into potential products in the future.

So thank you for your question.

Yeah, no, thank you. Thanks for that, Khaled. That was very useful. Thanks for taking my questions.

Lawrence Alexander with Jefferies.

Hey, guys. This is Kevin on for Lawrence. Thank you for taking my questions. So just on the EU regulatory discussions, I mean, I guess how long do you think it could be until companies are either selling into the EU or selling to third-party customers that then sell into the EU via trade? And I guess have you sort of quantified what you think the opportunity, I guess, for the EU could represent to you guys? And just a really quick laugh on that. What do you think could be the larger opportunity? Would it be domestic cultivation in the EU or trade of genetic crops into the EU?

Thanks, Kevin. This is Peter. I'll start out. I think that the EU, as I mentioned, on the regulatory front, again, it's something we follow so closely. We've been doing this for a number of years, so we understand that literally in the next six months, there will be legislation and final text. There's no doubt in our minds that that is the likely outcome of where the Danish are. What that triggers is the implementation side of it. And so just as what has happened in the UK, if you go back and look at what happened with the UK, they went through the primary legislation and then the secondary legislation, which is essentially to implement that law. And we see that probably two years after the final text, And so that'll be heading towards the end of 27 is when you'll start to see products that can be commercialized in that marketplace. Primarily it's to do a seed variety registration work that'll be done in the EU. But more importantly is what you'll see, as you saw in the UK and what you've already seen in parts of Italy, is gene-edited field trials will start to occur next year with our partners. And so as well as mock cultivation, as field trials will start happening, that'll pave the way for full commercialisation. And remember, Europe is literally in crops. is a 100 million acre opportunity, green field opportunity when it comes to trades. You know, they missed out on trades because they banned, essentially banned GMOs. And so they haven't had the ability to take any trades into that marketplace. So I think, you know, not only does EU drive a lot of positivity around global regulatory harmonization for trade and for cultivation, but it also opens up this enormous marketplace for traits as we move forward. So we're really excited about, you know, not only just for our near-term revenue opportunities, but also the longer term where we can access that market.

Understood. Okay, thank you. And then just on RTDS, I guess just more generally, I guess how is Scevas differentiating its technology amid the rising competition in genetting in general?

Yeah, so, Kevin, I think that's an excellent question. I mean, we're really excited. In terms of the RTDS system, we're starting with single cells and editing those single cells in a process and to generate a product that is non-transgenic. So, that is our approach and having built gene editing from the ground up. But even beyond that, it's the complex edit. So both numbers of loci. So we had a paper published at the end of 23 talking about eight different loci. We continue to push the limits of how many loci we can edit in a single cell at the same time. And you'll understand that with a process where you don't need a null segregant, you keep your genetic configuration intact as you move that forward. The second part is continuing to increase the number of edits collinear in a locus. And I think for what's possible in plants, I think we're in the best place from what I see out in the peer-reviewed literature and at conferences, et cetera. So we're excited for the complexity of the edits that we can make and the single-cell system that enables us to keep those edits together in the right genetic configuration in a lead germ positive.

Let me just add a little bit to that, Kevin, because I think it's such an important question. And I'm going to maybe simplify it a little bit. No one else does what we do. and using the single cell system has huge advantages for complex traits but also from a regulatory front so it's something that just as Greg said we've built this from the ground up as a gene editing company not really changing a GMO pipeline into an editing pipeline we are very different to anybody else and creates a lot of opportunities that no one else can get to okay thank you very much i appreciate it we will go

next to alex hamman with sidoti good afternoon thanks for taking questions just a couple from me firstly just to follow up on the 26 commercial ramp for bio fragrance could we just talk a little bit about whether that comes from expanding your relationship you know with your current client, or is that really from selling into new customers, and so that might take a little longer?

Thanks, Alex. This is Peter. That's such a great question, because it really is a big driver. We are very much focused on a single customer right now for 2026. Having said that, You know, there is other opportunities out there. And fragrances are used in so many different products, from personal care to packaging to a lot of, you know, household goods. And that size of market continues to grow when you can provide something that's bio-based and not necessarily through very expensive natural processes or synthetic processes. So you've got an opportunity that we see potentially expanding. But to your specific question, in 26, it is really around one customer. We'd like to see that expand even within that customer's opportunity and take on others as well.

Great context. Thank you. and then one more from me just on something you've brought up a couple times so I think you gave a sense of royalty scale for alfalfa relative to rice but maybe you could do the same for non-allergenic crops and nitrogen use efficiency thanks Alex exactly, I think when you think about SEVIS from a commercialization company we're all about licensing technology for royalties and so we're also very much focused on productivity traits

so every productivity trait we we think about is what the money that we are going to save the farmer at the farm gate so that's you know where our you know annualized royalty pricing comes from. I think that when you start to do complex traits or you start to combine traits and bring traits together the pricing model increases and it's exciting to see the sorts of numbers you might get to when you think about what Greg mentioned earlier about the $10 to $15 per acre next to SEBUS on a trait in soybeans that we think can access 125 million acres. When it comes to non-allergenic crops, the pricing of the royalty can be considerably more than that because you end up with a quality trait that garners a much higher premium, not only at the farm gate, but when they deliver it to silos or they deliver it to a food company. So I think that, you know, we are yet to sort of talk about any crisis in those sorts of areas, but we have in our productivity traits. But suffice to say, I think some of the quality traits are going to have a much higher price point from a royalty standpoint.

Understood. Thank you.

And we have no further questions holding at this time. I will now turn the conference back to Peter Beetham for any additional or closing remarks.

So thank you for everybody to join the call today. I really do appreciate that. I've just got a few closing remarks because I think we've covered a lot today. But I wanted to say how proud I was of the team in the last quarter. This is a time where the business is evolving and I couldn't be prouder of what we've been able to achieve, but also positioning us for commercial success. Implementing changes to maximise our path to that near-term revenue is something that everyone in this company has been laser-focused on. I couldn't be prouder of that. What I've said before, and I'll say it again, is gene editing has a clear path to industrialised breeding. And it's not for the future. It's actually happening now, which is very exciting. So hopefully we've covered a good summary of our pipeline, where we are laser-focused with rice and beyond. I think Greg's done a great job of sharing out our portfolio. And as a group, we look forward to updating you all on the next earnings call next quarter. So I'd like to thank you for your interest And thank you for your continued support. And with that, we would like to close the call.

Thank you, Sarah. This does conclude today's program. We thank you for your participation. You may disconnect at any time.