Moolec Science SA Q4 FY2024 Earnings Call

Good morning and welcome to Moolec Science’s fourth quarter and full fiscal year 2024 conference call. My name is Bill Zima of ICR Strategic Communications and Advisory. During this conference call, all participants will be muted until after management’s remarks, when there will be a question and answer session. Please also note that today’s session is being recorded. Today, Moolec announced its fourth quarter and full fiscal year 2024 business highlights. The document is now available on the company’s Investor Relations website at ir.moolecscience.com. This morning, you will hear from Gaston Paladini, Chief Executive Officer and co-Founder of Moolec Science, together with Jose Lopez Lecube, Chief Financial Officer, and Amit Dhingra, Chief Science Officer. During the Q&A session, they will be joined by Martin Salinas, Chief Technology Officer. In today’s call, we will be referring to a presentation that will be later available on the company’s Investor Relations website. Moving to Slide 2, this conference call is mainly for informational purposes, and during this call the company will be making forward-looking statements regarding future events and results which are not historical facts and include, but are not limited to, statements about the company’s beliefs and expectations. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks are included in the company’s annual report on Form 20-F filed with the SEC, also available on the company’s Investor Relations website. Now moving to Slide 3, I would like to turn the call over to Moolec CEO, Gaston. Please go ahead.

Thank you Bill, and good morning to everyone. It’s a pleasure to once again provide our latest business update corresponding to our annual review for our company. Today’s agenda will address three main topics. As I just mentioned, we will first review the major milestones we have achieved during the fiscal year of 2024. Secondly, Moolec’s Chief Financial Officer will walk you through the financial overview; and last but not least, we would like to share with you our thoughts on what we expect for fiscal year 2025. Let’s move now to the next slide. We will recap the main milestones the Moolec team achieved during fiscal year 2024. Turn with me now to Slide 5. What a phenomenal year it has been for Moolec in terms of scientific developments, business operations, and regulatory achievements. Our team has been driven to deliver milestone after milestone and continues to fire up on all fronts to push out deliverables on all pillars. We have the commercialization of our science-based products using molecular farming technology shortly on the horizon, built upon the many efforts over the last year, from setting up Moolec’s self-owned molecular biology lab in the U.S. to the establishment of animal protein expression levels in Piggy Sooy products, as well as receiving USDA approval for Piggy Sooy while preparing Glaso products for commercialization through trial production and securing farmland for production, and increasing Piggy Sooy production in three U.S. locations. The Moolec team has shown exceptional execution. To provide more details of these achievements during fiscal year 2024, I would like to hand things over to Amit Dhingra, our Chief Science Officer. Amit, over to you.

Thank you Gaston. I’m excited to share the significant accomplishments of the Moolec farming team over this fiscal year. In the first quarter of fiscal year 2024, we successfully set up our fully owned plant molecule and biology lab, the Moolabs, in College Station, Texas. Our lab became fully operational in Q1 FY2024, and I oversaw our plant molecular farming team that focused on the molecular characterization of the transgenic events for our target products. Conducting a significant portion of our plant biology R&D projects in-house versus third party labs helped us centralize and streamline the process. It facilitated faster implementation of decisions, ensuring the highest quality control standards, and improved the timeliness and quality of work while generating cost savings. Also during the first quarter, we achieved significant results in the continued development of Piggy Sooy product. During the first quarter, we harvested and analyzed third generation, or T3 transgenic events at Moolabs. Consistent with the prior results, the expression values of the animal protein, or myoglobin, reached up to 20% in T3. Previously, we have observed expression levels of up to 25% of the total soluble protein in T2. Overall, what we have observed is that the expression of the animal protein has stabilized across three generations, which is very exciting. Onto the second half of this year, this business update marks a crucial moment for Moolec. In the third quarter, we announced a groundbreaking milestone, the first-ever approval from USDA, making Moolec the first company in our industry to achieve such a regulatory breakthrough. This achievement exemplifies our commitment to harnessing the power of plants through cutting-edge science, addressing critical challenges like climate change and global food security. For those new to our journey, Moolec has developed a unique patentable soybean platform technology under the trademark, Piggy Sooy. Our dedicated scientific team has achieved remarkable results expressing animal meat proteins in soybeans, with porcine protein levels reaching up to 25% of total soluble protein in the seeds. With this approval, USDA APHIS RSR has determined that Piggy Sooy poses no greater plant pest risk than non-generic soybeans, allowing us to transport and distribute this product with individual APHIS permits. This significantly accelerates logistics and reduces costs while ensuring full compliance with USDA regulations, giving Moolec a distinct advantage in the market. Also in the third quarter, we carried out a trial for our downstream production of Glaso with our industrial partner in Iowa as we optimized, processed, and produced a few tons of material to fine-tune the process. In the fourth quarter, we began planting after successfully contracting 600 acres with key growers to produce Glaso seeds for crushing. Additionally, we contracted 60 more acres for seed production, aiming to yield 300 to 400 tons of safflower. This product has multiple customers, including a major client, as previously announced, with Moolec signing an offtake agreement with a leading global CPG company. In addition, Piggy Sooy field trials have commenced in Ohio, Missouri, and Iowa in order to increase seeds for scale-up and sampling for customers and to collect environmental and regulatory data as we work on the US FDA approvals. Now I’d like to turn the presentation over to my colleague, Jose, for the financial overview part of the presentation. Thank you very much for your kind attention.

Thank you, Amit, and good morning to everyone. I’m pleased to provide this annual business update for Moolec for the fiscal year 2024. I would like to highlight our revenues, cost of sales, expenses, and cash utilization. Please note that all figures mentioned today are in U.S. dollars, unaudited, and based on IFRS unless stated otherwise. Now let's move on to Slide 9. During fiscal year 2024, normalized revenues and other income excluding IAS29 increased by $4.8 million year-over-year from about $1 million in 2023 to $5.8 million in 2024. This increase was attributed to the consolidation of the soy product ingredient business, which occurred in April 2023. Normalized cost of sales also rose year-over-year from nearly $1 million in 2023 to $4.5 million in 2024. This aligned with our revenue growth, resulting in an annual gross margin of around [indiscernible]. On the expense side, SG&A and R&D rose by $3.1 million, from $6.2 million in 2023 to $9.3 million in 2024. The increase in expenses is mainly due to non-cash items like depreciation, amortization, and equity incentives, along with the consolidation of the soy ingredient business. In terms of cash used in operating activities, cash utilization grew by $1.8 million, from $7.5 million in 2023 to $9.3 million in 2024. Specifically, in 2024, about $4 million was allocated towards reducing accounts payable, primarily related to transaction costs from 2023. Lastly, our cash position of around $5.4 million as of Q4 2024 has been strengthened by the purchase of 15,000 tons of HB4 soybean, which holds strategic importance for Moolec regarding ESG alignment, traceability, and stability in raw material procurement. The acquisition of HB4 soy has been carried out through the issuance of a convertible note to BIOX and meets our projected raw material requirements for the soy protein ingredient business until around December 2025. We are very pleased with Moolec's progress in achieving significant milestones and creating value while maintaining an efficient corporate structure and a cost-effective strategy. I will now pass it back to Gaston for a look ahead at Moolec’s fiscal year 2025. Gaston, over to you.

Thanks Jose. Looking forward to fiscal year 2025, we believe this is going to be a pivotal year for Moolec. Turn with me to the next slide. In terms of commercialization traction in 2025, we expect to see commercialization of our new science-based ingredient begin to take off. With our already established traction in textured soy protein generation revenues, we are honing our operational expertise in launching our new products, first with Glaso, which we’ll harvest in October and is targeted to generate new revenues for Moolec in the upcoming fiscal year. Glaso will be a strategic commercial focus for us, driven by the signed R&D collaboration agreement with Bunge with the purpose of working together on the development of safflower varieties to improve productivity for a specific application or market, as well as the commitment made from the offtake agreement with a major global CPG company. At the same time, we are actively engaging in conversations with prospective partners and clients, providing samples of the different proteins in our pipeline. We are looking at all fronts of business income streams, including the licensing of our proprietary technology for using new markets. In terms of operational focus for 2025, we will continue to fine-tune operations to enhance our upstream and downstream yields, as well as ensure the highest quality for our products following our identity preservation program, and implementing the best stewardship practices for all our crops. We are going step by step in each process to make sure we provide only the best. At the same time, we will continue scaling up our seed inventory so we can prepare for the different uses of our seeds from processing to planting. As we invest our time in all these activities in preparing for growth, we are still very committed to being careful to evaluate all our spending and managing the costs while looking into different methods to improve our cost efficiency and streamline our logistics. The last point in this section, but one that is extremely critical to our operations, is our deliberate focus on making meaningful progress on the regulatory pathway. We are actively performing and pursuing relevant processes and approvals from different regulatory agencies. With regards to R&D and product development, this continues to be a core component of Moolec’s business. We plan to add new projects to the innovation pipeline with new proteins and molecular product development as current developments progress towards commercialization. Product development will continue during fiscal year 2025 in conjunction with close communication and collaboration with partners and customers to ensure the marketability of our products in the pipeline. Lastly, in fiscal year 2025 we are consolidating our team. In order to optimize our work efficiency, we are consolidating efforts strategically. The company will be establishing a new operational hub based in the U.S. so that we can strengthen our team’s collaboration and communication and enhance our overall efficiency. Secondly, with the coming new product commercialization, we need to expand our sales and marketing efforts. With this, we are methodically expanding the team to capture this market opportunity. In addition, the company will promote expanded visibility and presence in the industry by sending team members to present and network at food, pet food, and supplement industry shows and conferences. Let’s now move onto the next and final slide. As we look forward to the exciting developments in 2025, I am confident that our strategic initiatives will drive growth and value for all our stakeholders. Now I would like to open the floor to your questions and hear your thoughts, so I will now turn things over to Bill for the Q&A portion of our call. Thank you very, very much.

Thank you Gaston. At this time, Moolec’s management - Gaston, Jose, and Amit, as well as Moolec’s Chief of Technology, Martin Salinas will be taking questions. You will submit questions through the Q&A chat box by submitting your name and firm in the chat and typing your question. Please be advised that we will ask you to un-mute your line to ask your question live. We ask those that would like to participate in the Q&A if your name and firm is not indicated in your profile, please submit your name and firm in the Q&A box before asking the question. Again, you may submit your questions through the Q&A chat box. Okay, before we take questions from the live queue, we have received a few questions via email. The first question is, this quarter you highlighted an offtake agreement for Glaso with a major global CPG company to enter the U.S. market in 2025. Can you provide more details on this collaboration? What efforts have both parties made, and what is the estimated scale and expected revenue generation in 2025?

Well, thank you so much, Bill, and thank you for the question. Please, let’s leave the floor to Scott Fortune after this question, because I saw he raised his hand before. Thank you for the question, thank you for being here. Good morning. Great question, because we are very excited about this offtake agreement of our first molecular farming product, Glaso, in the United States. We are excited for a couple of reasons. The first one, because it’s a major global CPG company; we can’t reveal the name, unfortunately, because it’s private, because it’s huge, but it’s a very well-known brand worldwide with major operations in the States. That’s the main reason. Second good reason is that we are extremely happy about this is that Moolec is actually delivering milestones. We always tackled the U.S. We always had the U.S. market as the first market to roll out our technology, our platform, molecular farming, and now this is real because it will be landing in the U.S. commercially. Third, it's because it's happening at perfect timing. The 2025 calendar year, we always had this timing in our internal plans. Moolec is delivering, and this contract is proof of that. Going back to the question, I want to highlight before going to Martin and then to Jose, I want to highlight that this is not a one-year contract; this is a three-year contract with the possibility to expand it. It’s not only relevant for the landing and to the starting point, it’s also an ongoing relationship with these major customers. I will leave the floor now to Martin Salinas, our Chief Technology Officer. He’s leading this operation in the United States, and he can give more color about the volumes and the traction of the crops and the production of the product, and afterwards Jose can give some indications of the revenue aspect.

Okay, thank you Gaston. As Amit mentioned, we currently have more than 600 acres planted in Idaho in the American Falls area. Most will be used as grain for crushing purposes, but we also have our seed stock planned as well to get to production next year in the following season, so we’re close to the harvest time where we’ll actually know our final yield, but we are expecting yields in a similar range to last year, around 1,400 tons per acre. Then, we will expect a range between 50 to 60 tons of GLA to be produced for the first year, mostly dedicated to the offtake agreement that Gaston mentioned.

Jose? Thank you, Martin.

Sure, thanks Gaston. Look - in terms of revenue, as you know, we have had a revenue stream, which is the soy protein ingredient business, which has produced revenues in the range of $6 million this 2024 fiscal year, and we believe for the fiscal year 2025, $6 million of revenues is a pretty good indication of how the business could evolve. It could grow gradually in terms of the soy protein ingredient business. However, we are very pleased with the introduction of Glaso as the second revenue stream for Moolec. We have high expectations for this product. In the medium term, we expect Glaso to participate as incremental revenue in fiscal year 2025 with a range of around 15% of the total revenue in fiscal year 2025. Having said that, as information, we have a three-year contract with a major CPG company. We expect that contract to provide a base demand for Glaso, and as time goes by and as we move onto fiscal year 2026 and 2027, we expect Glaso to become a more important part of the overall total revenue and have high participation in the total revenue, and we have good hopes in terms of how much this business can grow and to increase Moolec’s revenues in the short term, medium term, and long term as well.

Thank you Jose. Okay, let’s move on. Thank you all.

All right, thank you. The second question is you mentioned signing an R&D collaboration agreement with Bunge to develop safflower varieties aimed at improving productivity for specific applications and markets. Can you share more details about this partnership and the business opportunities from this? Are there any notable developments you’d like to highlight?

Thank you Bill. I can't wait to talk about the Bunge agreement, but I would prefer, if you don’t mind, to go to Scott Fortune, because he raised his hand before. Scott, you want to un-mute yourself and ask your question?

Thank you and good morning. I want to congratulate you on your milestones and regulatory approvals achieved in fiscal year '24. I would like to explore the commercialization and expansion further. Do we know if the end market is for supplements or mainly for pet foods with this CPG company? You have an initial quantity of about 50 tons. Additionally, your harvest is expected to yield about 300 to 400 tons of safflower seeds. How much of that volume do you anticipate for 2026? I would appreciate more details on the ramp-up into 2026 with the volume expectations and how much will be allocated to your new CPG partner.

Thank you, Scott, and welcome to the call. To outline, Glaso's applications include dietary supplements, nutritional beverages, infant formulas, animal health, and pet food, among others. Martin, feel free to chime in if I overlook any applications. Currently, we are engaged in discussions with various potential customers across these categories, particularly in dietary supplementation. Glaso's competitive edge is its concentration level, which is up to three times higher than that of existing GLA oil products in the market. The dietary supplementation market holds significant relevance for us. Regarding the specific offtake agreement with a CPG company, that pertains to pet food and involves a high-volume, high-value player among the leading global brands. We are also having productive conversations with other potential customers for different applications. As for production quantities, we expect the upcoming harvest to yield between 50 to 70 tons, with approximately 60 tons anticipated, of which around 50 tons will be allocated to this commercial contract while the remainder will cater to other customers. We will need a few weeks until we can harvest and assess the yields, with production planning starting at the end of the month. As I speak in October, we anticipate having the specific yields from the land and our factory by November. We're thrilled about this, as this represents our first molecular farming product. Thank you for the question. Martin, Jose, or Amit, please feel free to add anything if you'd like, but that summarizes the offtake agreement, Scott.

I appreciate it. Regarding your discussions with other companies, could you provide an update on how far along those discussions are and your expectations for potentially adding more this year? What are they sampling, and what needs to happen for them to move forward with you? Please give an idea of the status of that pipeline and the potential addition of Glaso for you.

I am quite confident that we will sell the entire production. I believe we could sell even more if we had additional material, but we need to wait for the biological timing. This is our first commercial campaign, and we are entering the market with a great contract, strong partners, and a solid starting point. However, we need to multiply seeds, as Martin mentioned earlier. We are reserving part of the production for seed multiplication to support this campaign and prepare for the next year. This will give us more flexibility for future commercial efforts. We should refrain from selling all the material from this campaign to keep some fresh samples available for sampling, which will help us expand our commercialization network and strengthen relationships with new customers. Overall, that's the plan, and I am excited about the potential for business growth next year. For now, however, everything is fully committed.

Got it, and my final question is about the R&D collaboration with Bunge, which is excellent. Could you walk us through the progress on the Piggy Sooy side? We know that there are regulatory discussions with the USDA or the FDA, but we’ll get more information on the field trial results in October. You've mentioned a 20% range, but can you confirm if we are still on track for commercialization in 2027 or 2028? Also, please highlight the key milestones we should be aware of leading up to 2027, particularly in the next year regarding Piggy Sooy.

Thank you for the question. A month ago, we announced that we will be harvesting two crops in October this year: Glaso for production and Piggy Sooy for various purposes. One goal is to collect information for the FDA, which requires data from three different locations: Missouri, Ohio, and Iowa, representing diverse latitudes and regions. We are actively engaging with regulators and are confident in navigating the regulatory landscape with our expert team. We do not anticipate any delays, and everything is progressing according to plan. I hope to invite all stakeholders to witness the harvest across these three locations, as the plants are looking impressive. This is a significant moment for us, marking the harvesting of animals from U.S. soil with full USDA approval. The second reason for advancing the field trials for Piggy Sooy, alongside gathering regulatory data for the FDA, is to provide fresh material for summer use. I want to emphasize that Moolec is a science-based ingredient company. The ingredient sector can be challenging, but our approach involves obtaining samples, building relationships with producers, and creating prototypes. We will collect fresh material straight from the farm, extract proteins, and send the samples promptly. We are currently in discussions with various potential players and customers who are eager to test Piggy Sooy in their recipes and facilities, as they see the potential benefits. The third reason for conducting these field trials in the U.S. is to finalize the R&D phase of product development. I will now hand it over to Amit to provide more details about the different events planted in the field, as we need to analyze transgenic events, plant performance, and begin processing this information to identify the champion seed that will be scaled up for market introduction in 2027 and 2028. I want to emphasize that timeline. Amit, would you like to add anything regarding the science in the field?

Yes, thank you Gaston, and thanks for the question as well. As you all know, Piggy Sooy has demonstrated that we can express animal proteins to a very high level and store it in the seed section of the plant, which is really what is the product that we’re going to be utilizing. As we are doing these field trials in different locations, we want to reach a point where we want to evaluate in the fourth generation what the levels of this protein are going to be, and this platform technology which is primarily the regulatory elements that allow us to express this protein at a very high level, is being tested out. As I initially spoke during the update, we are seeing 20% total soluble protein being consistent through the third generation, which is a very important milestone in any transgenic technology event, and as we are doing these field trials, we will be harvesting a lot of plant material which we’ll also do further evaluations on. This high level is unprecedented in seed production, and we will take it from there. This is the platform we also want to utilize for other ingredients or other proteins, or other molecules that are desirable in the market as well, so very exciting what we are doing with this. We’re expanding our reach to commodity groups, as well soybeans and other commodity groups to keep them involved and included as we are developing this product, so as Gaston invited stakeholders to our facilities and our trials just to see what we are really developing over here. Really exciting times for us and the science sector, and we continue to - as a scientist, we continue to develop our concepts further and expand to other molecules as needed - it could be bioplastics, it could be any other pharmaceutical ingredient, etc. Thank you very much, Gaston. Back to you.

Thank you Amit. Okay, let’s move on. Thank you so much, Scott.

Thank you.

All right, our next question, we have an online question from Anthony Vendetti of Maxim Group. I’m going to read them. Have you signed any additional commercial uptake agreements for Glaso? If not, do you expect to sign any by the end of 2024? What percent of yield is accounted for?

Well, thank you Anthony, and we will not forget about answering the Bunge question that was online before. But I want to say hi to Anthony - Anthony, thank you for joining us today, and thank you for the question. We do not have any other offtake agreements signed yet. I think for the short term, it will not be necessary, it would be just invoicing and commercializing directly via spot sales for this campaign. We are envisioning to have a formal agreement for the following campaign, so that - who knows if it would be before the year end or next year. We have time for that. We are in good conversations with some other customers. I think that it’s also a matter of timing and awareness. We are hitting the market now, so it’s one new product, it’s new in the market, we are planning to attend some food and animal health shows and some dietary supplement shows next year to market the product. I’m really optimistic about the traction of this product for next year, and I’m really looking forward to continue signing offtake agreements for the upcoming campaigns. Going back to the question, I want to answer it fully - what percentage of yield is accounted for? Do you want to tackle this question, Martin?

Thank you for the question, Jeremy. I’m trying to understand the specific yield you are mentioning regarding the tons per acre that we can recover from each acre.

Talk about both, yes.

Yes, the expected yield for safflower in the area is around 1,200 to 1,300 tons per acre. Last year, we achieved a yield in the range of 1,600 tons, but there were seeding challenges compared to this season, which was our first commercial season. We anticipate similar yields this season. The amount of oil we can recover depends significantly on the production of the crushing facility we are using, and we have been focused on optimizing that processing in recent months. This specific trait of GLA has a lower total oil content compared to wild types of flower, so we expect an extraction rate of about 15% to 20% of the total oil. Out of that, we can expect around 80% yield from the total oil recovery. This yield we are expecting will soon be fully determined.

Yes, agree. This is happening as we speak, as I said before. Thank you so much, Martin. Okay, let’s move on. Thanks Anthony.

Okay, we can move onto my previous question. You mentioned signing an R&D collaboration with Bunge to develop safflower varieties aimed at improving productivity for specific applications and markets. Can you share more details about this partnership and the business opportunities from this? Are there any notable developments you’d like to highlight?

Yes, I remember your question about Bunge. Thank you for that. We're very excited about our R&D collaboration agreement with them. As you may know, Bunge is one of the largest companies in global agriculture trading, alongside ADM, Cargill, and Dreyfus. It's a privilege for us, as a young company, to be associated with these industry leaders. The R&D collaboration focuses on our safflower platform, which is part of our Glaso improvements and includes new developments in safflower varieties. I'll hand it over to Amit first to delve into the genetics involved in improving and focusing on breeding varieties in the field. Understanding yields in agriculture and emphasizing science and genetics is crucial. Then, Martin will provide further insights into the specific traits we're developing. I want to emphasize that Bunge is concentrating on safflower for biofuel applications, while Moolec is leveraging safflower as a bioreactor platform, creating many small facilities to produce Glaso and other products in development. Both efforts are linked by the upstream segment of the value chain. Now, I'll pause and let Amit discuss the breeding aspect, followed by Martin who will detail the trait focus.

Thank you Gaston. I would say that what we produce, what transgenic lines we produce, we select our champion events which have the highest level of expression and agronomic performance. But as new breeding lines are being generated which either have other traits, for example, they can perform better agronomically in different geographies or under different climatic conditions, we can introgress or make crosses between these plants, go back to traditional breeding and take these traits that we’ve developed in our lines and move them into desirable genetic backgrounds so that we can produce this product at a larger scale more efficiently with less input. One of the biggest things is that the genetic potential through breeding continues to be enhanced, and we have the opportunity through these partnerships where we can capitalize on the new genetics that are coming through the pipeline as well by combining these traits through breeding. I also wanted to say that we have in our internal Moolabs where we can categorize all these very rapidly with the equipment and the robotics that are available to us. We are able to really fast-track identification of progeny or products that come out of those crosses, that can then be deployed. In the past, we mentioned about global scale-up potential of our technology, and I think this is where combining what we develop as initial traits with the breeding pipelines that exist in different crops, especially in this case, safflower, we can really produce this anywhere in the world. Thank you. Over to Martin.

Yes, so basically the yield that I mentioned for safflower GLA, is around 14 to 15 tons is quite a great yield in the United States, and it’s a variety that we have been using for a while. But when you compare that yield with the commercial of many other germplasms in the southern hemisphere, particularly in countries like Argentina, yields are not as good, so our main goal is to evaluate this and develop new lines that are better adapted, that are optimized in terms of yield, and productivity for different territories, other territories than the United States, for us to increase our potential opportunities to expand the technology into other territories. That’s on us. As Amit said, once we identify this optimized line for other territories, we can start the integration process where we can introduce our traits into new germplasm and new varieties. Thank you.

Thank you, Martin - very clear, and thank you for the question. I want to add on top of that before going to the next question, I think it’s a huge opportunity for Moolec being close to Bunge because of not only safflower seeds, but also because of all our pipeline, soybean as well. We are having great conversations about soybean in the future, so let’s see how it goes in the future. We are focusing of course on delivering our commitment to Bunge in terms of safflower upstream, but as I said before, this is maybe one step for new potential collaborations in the future with this major company. Let’s move on, Bill. Thanks for the question again.

Okay, great. Our next question comes from Arun Suresh. In terms of safflower oil products, how much revenue growth is expected in 2025, and can this be the main part of the business in the future, given the push in AI and data centers for biofuels?

Thank you, Arun, for being here today and for your question. I will let Jose discuss the growth for 2025 in relation to the business. However, I can't comment on the applications in AI and data centers at this time. What I can emphasize is that Moolec is dedicated to enhancing yields for Glaso and future products by utilizing safflower as a bioreactor, effectively serving as a compact biological factory. Bunge is focused on biofuels. I believe we have yet to fully explore the potential of plants. Moolec is demonstrating with Glaso and Piggy Sooy that this technology is both achievable and cost-effective, sustainable, and tangible. It’s significant and substantial. In the future, using AI for data centers or other applications is promising, and we have the capacity to produce any molecule or protein in any crop with these methods. But returning to your question, Arun, I appreciate it, and I will hand it over to Jose for more information regarding revenue.

Sure, thank you Gaston, and Arun, thank you very much for the question. As mentioned before, what we expect for fiscal year 2025 is that Glaso participates in the overall total revenue in around 15%. Again, for fiscal year 2026, there’s going to be a lot of focus on the operation of Glaso and the scale-up of the operation of Glaso, with a bigger campaign starting in May-June calendar year 2025. So, what to expect in terms of Glaso participating in the revenue onwards for fiscal year 2026, probably in fiscal year 2025 it’s going to be around 50%, for fiscal year ’26, I would expect it could be participating similarly to fiscal year 2025, so yes, we have good hopes, good expectations for the product and how it helps grow the revenue of Moolec.

Thank you, Jose. Before moving on to the next question, I would like to let Amit elaborate on my technological and scientific response. Amit, please go ahead.

Yes, I’m sorry - I’m having some connection issues.

No worries.

Well, in this particular case, I think our technologies are expanding quite a bit. Gaston, as you already mentioned, and Jose has also mentioned quite a bit about it. I don’t have much to add, but I think as we expand our technology platform here, we can make further milestones in this case to reach the market, as well as expand our product line in the future. Back to you, Gaston. Thank you.

Yes, I fully agree. Thank you Arun for the question. Please Bill, let’s move to the next question.

Okay, we have a follow-up question from Anthony Vendetti with Maxim Group. Anthony states, can you discuss what steps you have taken or intend to take to continue to drive awareness and adoption of your PMF products?

Well, thank you for the question, Anthony, again. All the efforts that we have done, we are willing to do in terms of our awareness of plant molecular farming as a technology are for the industry and for the people that really understand technology, science, and applications. Moolec has a B2B business model. We don’t need to invest money and time to de-focus communications in mainstream communications. We don’t need to talk to consumers. The Nestlé’s of the world know how to communicate to consumers. Of course, we need to be transparent. We need to talk about the science. If you get into our website, we are trying to be very transparent about how we modify plants, how all our technology works and so on, but all our efforts are to approach the people that really understand the tech, and that’s mostly the R&D departments of our potential customers - food technologies, scientists, food scientists, and people that now I can say that are fully understanding the potential of this tech. I always say that when we started back in 2020, talking about modifying seeds for human consumption purposes, it was quite shocking. Four years, I definitely can assure that this is very well understood. So we are going to continue educating the R&D departments. Most of them approach us directly because we are very active in leading, in PR and some specific shows that we are attending, so it’s working so far. We really want to reinforce that communication since we are hitting the market now with Glaso and getting fresh material from Piggy Sooy very soon. We want to continue investing and maybe expanding that message now with fresh materials and new materials, clear communication materials as well. This is a very relevant topic that you have just raised, Anthony, in terms of helping us in the commercialization stage that Moolec is starting as we speak.

Okay, moving forward, we’ve received an online question from Patricio. Some of this is similar to the prior question, but if you care to elaborate, feel free to do so, Moolec team. The question is the achievements made so far in terms of advancements, research, commercialization, and technology are truly impressive; however, what are the specific plans for marketing campaigns and public relations? While this technology is innovative, I believe it is still not widely understood by the general public. Do you think greater exposure and support could attract more investors and increase the value of the shares? What is the plan on this matter?

It's evident in your question, but it's crucial for us to address all of these aspects, particularly our investor relations efforts alongside ICR, including you, Bill, Steph, and the ICR team. As a small company, establishing strong investor relationships through a reputable IR firm like yours is vital. Our strategy is to continue collaborating with you and to participate in more conferences to effectively communicate our progress and keep our investors informed. Sometimes, this is challenging because the market is vast, with numerous public companies and many promising biotechnology firms, making it difficult to reach everyone. However, I genuinely believe that if we consistently achieve important milestones and communicate these accomplishments promptly to the public and our investors, we will gradually build more traction and awareness. It’s important to remember that we are in this for the long haul—we're looking at decades ahead, and we are just getting started. This is a very relevant question, Patricio, and I appreciate it. I want to emphasize the excellent collaboration we have with ICR to enhance our outreach.

Okay, another follow-up question. Salvatore Verdoliva asks, I'm new to the story. From my understanding, Glaso is a fat-based product, so how can it compete on cost with palm oil, for example, or is it targeting a more premium market?

Thank you, Salvatore, and I appreciate your question. I’m pleased to see that you’re getting familiar with our story, which allows us to provide you with more insights about Glaso applications, its products, and our competitive advantages. Additionally, this will give you a better understanding of what Moolec is doing in the realm of molecular farming. Before we turn to Martin, who will explain the product, I’ll be brief because the market has just opened, and I know many of you are eager to monitor the shares. To clarify, Glaso stands for GLA safflower oil, referring to gamma-linolenic acid safflower oil. This omega-6 is a nutritional oil, positioning it against other GLA oils rather than palm oil. Most of these alternatives are sourced from borage oil and evening primrose oil. Martin, would you like to add anything further?

No, I think you explained it quite well. The only thing I would add is our competitive advantage compared to borage and maybe even primrose, which are plant-based oils rich in GLA, is that our expresses something between 50 to 60% of GLA, so out of the complete fatty acid profile, 60% between 50 and 60% is GLA. The next most rich GLA plant-based oil is borage, and it has only 20%, and then even in primrose, it’s in the 10% range, so our fatty acid profile, our oil produces three times more GLA per kilo of oil than other oils in the market rich in GLA. That’s our main competitive advantage.

Thank you Martin. I want to add before we close, or we go to the next question, that concentration levels are critical for dietary supplements, for example. It’s not the same to take three or four pills per day rather than one pill, so our competitive advantage is definitely a strong sales message and that’s what we are going to do in terms of communications. Now that we have products in the market, it’s to reinforce that competitive edge. Bill, do you have any more questions? I think there is not any other questions in the chat box.

That’s correct, Gaston. It appears there are no further questions at this time, so I’d like to hand the call back over to you for some closing remarks.

Yes, well before that, I want to ask my fellow partners here if you want to add something before we go. Amit, I think that maybe you wanted to add some comments in terms of the technology. Jose, Martin, feel free before we go.

Thank you, Gaston. I wanted to build on some earlier comments regarding plant molecular farming. We are establishing strong connections with commodity group organizations, which is important given our B2B business model. Engaging with these groups not only increases our visibility but also paves the way for collaborations and partnerships. Additionally, we are becoming members of various organizations, such as the International Society of Plant Molecular Farming and the Society of In Vitro Biology, among others. Our goal is to collaborate with these scientific bodies, which can use our insights in plant molecular farming to influence policymakers. This can also have implications for investor groups. Our technological advancements are bridging the business and scientific aspects, positioning us to produce essential ingredients through plant molecular farming. We're developing a robust ecosystem around this initiative. As Gaston mentioned, R&D professionals are approaching us; I’m even invited to speak at various plenary sessions to discuss our progress with soy and other projects. This is an exciting time for us in the scientific realm, as it encourages new ideas and attracts emerging scientists interested in innovative technologies. Together, we can significantly advance our scientific efforts, which is very promising. Thank you, Gaston. I’ll turn it back to you.

Thank you, Amit. I appreciate it. To elaborate, we are highly dedicated to stewardship and committed to maintaining identities within our program for our crops in the United States. We are working with high-value products while fully operating in the U.S. under the RSR from USDA APHIS, which is impressive. Additionally, we are focused on ensuring traceability for our beans and seeds, which is crucial for our operations. This complements what you mentioned, Amit, regarding our involvement in soybean and scientific associations. Jose, Martin, do you have anything to add before we continue?

No, for my part, thank you everyone for participating in the call, the interest in Moolec. Please do reach out for anything, any questions, any doubts that you have. I’ll be pleased to help and get in touch with you.

I’m okay. I’m okay on my end, thank you. Thank you all. It was quite an interesting conversation during this Q&A. Thank you.

Good, okay. Great. I personally would like to thank Catalina Jones, our Chief of Staff and Sustainability of Moolec, for leading internally again this business update. Thanks ICR, Steph, Bill, thank you, and to the Moolec team, and also to my fellow officers here presenting with me. To all of you, thanks for joining us today on this annual business update. Thank you for that, for taking the time and your interest in the company and our story. Finally, I want to reinforce the commitment of our company, of Moolec, and our main shareholders as well to keep the company public in this challenging market, as you surely know. We redouble our commitment to our purpose of redefining the way we produce animal proteins through molecular farming for the good of the planet, for the good of all. So thank you again, and have a great day.

Thank you all, you may now disconnect.