Bioharvest Sciences Inc (BHST) 2024 Q2 法說會逐字稿

Firstly, and good afternoon, everybody.

It's great to be in front of the cameras here on this webcast sharing with you our second quarter results.

I'm really excited with the momentum that we have in the business and the execution and delivery on all our commitments that we've shared with you all over the last 12 months.

And you'll see how that unfolds in the discussion today.

So first system moving to forward-looking statements.

Everybody can read this faster than I can talk this through.

So let's now walk through the key focus areas for today's discussion.

I'm going to talk a little bit about the company

[Northstar].

Well, just to kind of ground us, it's been a while since we spoke as a team of shareholder partners.

So I wanted to just make sure we're all holding hands.

As far as the vision and mission of the company.

We'll go deeper into dissecting the second quarter financial performance.

We'll then do a really good deep dive on performance in the products business unit.

Zaki, we're very lucky to have him with us here in Israel over the last few days and he'll take the lead in doing a update on the CDMO services, business unit.

And initially just in I had thought to talk about the Nasdaq update at the end, but I'm going to do something that it's not normally conventional because we do have a lot of good news here.

So I'm actually -- I think I'm going to cover that right in the beginning for our shareholder partners.

So they don't have to wait to hear the good news until the end, but you guys got all promised me, you'll stay for the whole presentation.

All right.

So I'm just going to go here, then I move to the section.

Okay.

So let's talk about Nasdaq update.

All right.

Well, ladies and gentlemen, I am very, very excited to share with you here as a Zaki that the SEC, the Securities Commission has approved the 20-F filing.

In fact, this happened on Tuesday and BioHarvest has now been -- has now become a foreign private issuer in the US under the 34 Act.

This was an absolutely critical step and enormous amount of work that was led by our VP of Finance, Bar Moreh and a team around her to be able to work through all the detail that's required to produce a 20-F filing.

So this is great news and it's a major, major milestone on our path to Nasdaq.

Secondly, we believe that our financial statements that were filed as part of the 6-K, which is a critical filing that we can now do meet the specific Nasdaq listing requirements for the path to Nasdaq that we are going via as it relates to specific requirements relating to shareholder equity and a number of other key financial metrics.

Based on our second quarter financials, we believe that we have met these requirements.

So really fantastic news, we're well along the journey.

That's important to understand that the process really starts to move faster now as a result of us getting the approval as far as the 20-F is concerned and now the focus for us, we're going to now work through that process with Nasdaq themselves, making sure that where fulfilling everything that's required in the overall approval process.

And we believe that before the end of the year, we will be trading on Nasdaq.

And obviously for us the listing on a major exchange like Nasdaq will really help expose the company to a much larger group of investors, sizable capital markets.

That's also going to help us with capital raising that we'll need in the future.

And you'll see as a result of the growth in the business and the need for capital for manufacturing is going to be important to support the growth of the business and also will help significantly as far as bringing the focus as it relates to actually has -- having actual sell-side analyst coverage on the company, we saw our first analyst report actually being published in July 10, with Diamond Equity Research.

And I hope all of you have actually read that report, a really well-versed comprehensive overview of the business and there are more at actual supply side and sell-side analyst reports that we believe will be coming on board over the next few months as part of our path to Nasdaq So and this is going to be critical for us as we really start to expose more eyeballs to what we're doing as a company and really how we're changing the world with our botanical synthesis technology.

We will plan to remain listed on the CSE in addition to obviously the uplisting to Nasdaq by the end of the year.

Just a couple of minutes, just to help you understand really the Northstar of what every single day, all the 85 employees in BioHarvest are really maniacally focused on.

And for us ultimately leveraging the power of our botanical synthesis technology.

Northstar for us is to develop maybe 10 to 15 molecules, molecules that matter, molecules that really change the world of health and wellness for hundreds of millions of consumers was doing this in a way that preserves the planet for future generations to come.

And those molecules are going to be anchored around four critical growth engines for the company as we look at nutraceuticals, pharmaceuticals and biotech industries, cosmeceutical industry and the nutritional sweetener ingredients industry, these are the four kind of growth engines that we see the development of these 10 to 15 molecules.

And these are molecules that obviously are derived from the power of the plant Kingdom, it's molecules that we produce with unique consistency with our unique sustainability and repeatability.

These are molecules that ultimately will have a combination.

And if you look at 10 to 15 molecules, some molecules, as we look at the pharma world will be more in the curative space today.

There are so many unmet medical needs out there, as it relates to key indications. 95% of rare diseases today there's no cure.

And perhaps those the cure lies in the power of the plant Kingdom and in leveraging the power of our botanical synthesis technology to be able to unlock that specific molecule that can change the lives of tens of millions of people.

In addition to the curative space, our Northstar will have us focused on molecules in the preventative space.

When you look at today, 75% of all health care costs stem from preventable health conditions, such as Type 2 diabetes, hypertension, obesity, and this is all about growing the health and wellness space, the longevity space.

And this is really when you look at VINIA, VINIA sits here in the longevity space as we leverage the power of our red great cell molecule to be able to address cardiovascular health and just broader quality of life as a result of people having better blood flow during their aging cycle.

And it's our core technology, the Botanical synthesis where we mirror, we magnify and multiply the critical factor medicinal compounds to be able to produce an end molecule consistently, reliably with unique predictability with patents as well as with economic viability, which is so important for us to be able to take these molecules and impact the lives of 10 million to 100 million people out there.

And importantly, what we're seeing today and Zaki will talk more about it in the CDMO discussion, it's actually looking at simple molecules as well as all the way through our technology can also play in the large old core complex molecule space.

And that gives us enormous optionality and the ability to be able to address literally many major companies need across these four growth engines with a technology that is able to increase potency has scalability, is cost effective, provides unique IP opportunities allows expanded portfolios for these companies and is doing this in a sustainable way.

So that technology, the chemical synthesis technology supports these two growth engines of the company.

And that today, we've been very clearly demarcated the lines between these two growth engines.

And ultimately, when you look at our P&L structure, our P&L structure is also today split according to these growth engines are in the financial world divisions where we have the product business units and we have the CDMO services business units.

And there's enormous synergy between these two business units as we go to market specifically that the Products business unit.

We are now scaling VINIA with great momentum.

It's a proof of concept market validation of the core technology and really allows us to build enormous manufacturing scale and a blueprint to be able to support the long term requirements of the molecules that matter that the CDMO business will be producing together with our customer partners, whilst the Products business unit focuses on specific molecules that we ourselves want to bring to market via our e-commerce machine.

So with that context and grounding, let's talk about how our Q2 financial performance really supports the momentum to be able to deliver that Northstar, that we're focused on delivering in this journey over the next five to eight years as we really start to build molecules that matter that change people's lives, leveraging the power of our botanical synthesis technology.

So let's now go into second quarter financial performance.

Overall performance, this has been really strong.

I'm really happy with the execution and the delivery of the business.

We have significant demand momentum across our business and that significant demand momentum is also driving improved financial performance

So quite clearly we hit that $6 million mark.

I mean $6 million in a quarter, I think -- when you think about it, you actually understand how many orders we're shipping.

And when you understand the magnitude of the direct customer base, I love talking to bankers about or not, and I started quote some of the numbers and their eyes just go up and they go like how did you build it.

And what's important for you to understand, we built it not just because we have really very talented, super committed marketing organization, but we built it because we produce the best molecules that matter with our technology.

Because you can't build a business, the size of the business that we're building without a molecule like the red grape cell like our VINIA, which as a dramatic change on people's overall health and wellness and is sticky, has low churn rates where people need to have their video every day to get the maximum out of their life.

So we saw literally 116% growth.

We gave guidance of 5.7 million to 6 million.

And obviously, when we give this kind of guidance, we work damn hard, real hard to make sure that we're going to beat the guidance.

And I'm really proud of the team's achievement and the fact that we got over that $6 million mark, which is a major milestone for the company.

And as you can see, we've delivered consecutive quarter on quarter growth and the guidance that we've given for the third quarter and where 30 days -- 30 to 33 days away from the end of the third quarter is to make sure we hit that next milestone of north of $6.5 million in revenue.

And you'll see that if past performance predict future performance, Q4 will take it up a notch.

And before you step back, you see that we would have at least doubled the business versus last year.

And that's consistent to what we did the previous when you literally last year, we doubled the business versus the previous year.

And this is the kind of pace of change that we're trying to build in this business in order to really leverage the power of our molecule and build that significant customer base.

Similarly, as you start to scale the business, we're able to get more leverage.

We have benefits of scale, there's lot of work and Ilana and her team on the manufacturing side of the business are doing in collaboration with other parts of the organization to improve margins across the business you can see that margin improvement every six months here, really taking it up a notch and our expectation is to continue and get closer over time by the end of the year to that 60% margin mark, which is really when you start to have the benefits of it go flow through to the P&L.

Let's talk about scaling and I guess channel scaling, as I call it, we've really built a very strong business today and Amazon literally Q2 was our first million-dollar quarter in Amazon.

And Amazon today is roughly 17% to 20% of the business, right, depending on how you look at it.

And you can see we've gone from 1 SKUs to 6 SKUs.

You have the 30 and then the 60s, which is a unique SKUs that we only provide in Amazon on the core red cell business.

And then we have all our coffee SKUs.

When you look at what we've done from an Amazon perspective with more than $1 million of revenue, we start to see that basically we've 4x the number of units nearly 5x the revenue we have more than 3,000 subscribers.

Our average sales per order has gone up and subscribers are really important because subscribers are spending a lot more, obviously.

When you look at what we've done with Amazon, we've done all of this with literally $168,000 of spend in Q2.

So more than $1 million of revenue with a $168,000 of spend.

That just shows you that when you are able to have consistent performance in Amazon and you're part of their algorithms and you have consistent supply going into Amazon, we start to land right now.

You'll see that VINIA is the number five roughly year between -- we oscillate between number three to number seven averaging number five respiratory product in the United States on Amazon, and we're also the most expensive.

So it's important to understand that, and with the most expensive because of, obviously, the power of our technology and the value that we create, we can afford to charge a premium.

So really strong results from an Amazon perspective that we will continue to build on in Q3 and all the way into Q4.

But we want to keep Amazon at roughly 20% of our business and obviously making sure that the other 80% is coming from our core Internet site, vinia.com.

Importantly, as well, we've improved overall efficiency in the business.

Subscribers increased 138%, but our sales and marketing only increased 43%.

Again, that drives leveraged that ultimately flows to the bottom line.

And kudos to Jared, AJ, John, [Aleaves] and the team that are really focused.

You know, we've got a dream team that sits on the marketing side.

If you think about it, we have a team of five people, five people that are running a business today, the run rate.

If you look at the quarter of near $24 million to $25 million in revenue, that's pretty unique.

And that's because each of these people are real technical experts in the area at the dream team that work amazing together.

And they're very focused not just on driving the demand side of the business, but also making sure they're doing this with the right financial metrics.

And these are the kind of results they're producing.

We nearly hit 6,000 reviews.

That's 6,000 verified reviews, maintaining our 4.8 out of 5 verified rating.

I think we'll probably hit 6,000 reviews tonight.

We should check that out just a little bit later to see how many reviews are all because of the scale of the business.

We're getting 20, 30 reviews every single night normally.

And you saw the announcement, $1 million of direct to consumer sales of our VINIA super blood flow coffee.

This is important to memorialize because what it's doing is it really validates.

Our VINIA inside strategy for the additional products that we're launching across these major verticals, I call them delivery mechanisms of hot beverages with an hydration and then in the future as well as we start to go into the cosmetic or cosmeceutical world.

So it's a big milestone for us, and I think it's important for you all to understand that we haven't been spending heavy marketing behind our VINIA coffee.

What's important to understand is the $1million here has really come for what I call a piggyback marketing strategy.

Our coffee has been piggybacking off all of the other work that we've been doing to drive our business.

So it's actually been when you look at it on a unit economics basis has been very, very profitable for us.

And it just shows you now that we've reached this milestone and as we start to get scale and I'm going to talk about how we scale our hot beverages with adding Superfood coffee in Nespresso capsules, compatible capsules, plus layering on our hot tea business.

All of a sudden, we have scale that we can then start to put the marketing machine behind.

And we're going to see another level of actual demand coming into the business.

And I'm going to take you through how we're going to do that a little bit later in the presentation.

Okay.

So that gives you a good understanding on the financial performance of the business, clear view of what's coming in Q3 as it relates to guidance.

Now let's go deep into the products business unit.

I'll spend maybe let's say, 15 minutes here and then I'm going to hand over to Zaki.

So let's talk the Product business -- Yes, sir.

Sorry, I'll just [on the second on your] any comment on any mitigation efforts associated with the ongoing hostilities in Israel.

I'm sure.

Look, we have since October 7, put in place all the responsible requirements from a business continuity perspective.

And we've done that across every aspect of the value chain and the team, the management team have been super responsible, doing everything that our shareholder partners like you're expect of us to do whatever it takes to maintain business continuity.

I think when you look at the performance that we've had in the first quarter, even starting in third quarter last year, fourth quarter, first quarter second quarter, right?

We have been able to focus on the business and make sure that we deliver on what our customers need, and making sure that we're delivering product to them on time in full with the right obviously the right quality and continuing to build the business and scale the business.

We're resilient people, we're very focused on a mission.

We're focused on that Northstar and we really work and come together as an even tighter team to make sure that we deliver the results of the business.

But at the same time having in place all the required business continuity and risk management strategies to be able to support multiple scenarios that we've planned from a business continuity perspective.

Now this is obviously the strategic formula for growth that the model that I use all the time to kind of navigate and share with your all the activities that we're taking ultimately in driving demand, the revenue side of the business, driving the cost management side of the business, ultimately to get the business to profitability.

So let's first talk about marketing optimization.

Again, the marketing team have done a great job broadening the reach of VINIA.

We started, we were heavily focused on [TBN], TBN is still a great partner.

But with that what we've learned and the confidence that we've gained, we've now started to play very, very effectively in major mass channel -- mass TV channels like Newsmax, Black Fox News.

And we're getting really good results.

And basically what we do is we were looking at time slots through 24 hours a day.

We know and I also hearing, we can see exactly, literally from the very sophisticated backend that we built.

We have the attribution to know which sale comes from a specific TV ad, and therefore, we're able to see the return on investment or return on advertising spend of every single piece of TV spend.

And the team led by John are digging into this everyday so that we can optimize every dollar that we spend.

And this is really part of our secret sauce of what makes our marketing machine so efficient.

So we've now done this very efficiently in Newsmax and Fox and we'll continue to move out into other channels, and this gives us much broader market reach from an overall eyeballs and consumer perspective.

We are also double downing on the stuff that most people, they just decide that it's just too difficult or not in a sexy box.

And this is basically how we leverage the 300,000 people database that we have, that allow us to market to them with great e-mails.

And [Alan], does a great job in this area.

Greg, sending every week specific targeted e-mails with the right kind of subject line, it's a science.

And we've really upped our game.

We had a 65% increase in revenue in the last 90 days versus the previous 90 days.

That's another $120,000 of revenue, and guess what, it cost us this much, right, it's mining the resources that we have.

And this is all about the owner mindset that we have as basically being a part of the BioHarvest family, were all focused and being owners of the business and making sure every dollar works.

And I'm really proud of these results, and we'll continue to get better and better in this area.

And similarly Eves leading some great work as it relates to bringing people into the funnel -- into our website funnel and increasing conversion rates and increasing the amount that people actually spend every time they come onto our websites.

There's a whole new system where we're actually trying to get people to upgrade to subscription, if they’re not on subscription or to buy additional products.

If it's a product for one partner in the family, for one person in the family to provide a better deal to buy two subscriptions for the family.

We see now the amount of families that have dual subscriptions are growing dramatically.

One person, in the families on VINIA a partners see, oh, my God, like your difference, you're much better person, you've got more energy, you're happier.

I need to take this product and that's a -- we love those situations because that's what I call the best form of organic growth.

Okay.

I want to talk now about something that like personally, I'm really super proud about and something that I've been trying to do for about three years and finally together, and thank you, John and AJ, we pulled it off in a major way with the ability to really position our company as real thought leaders, community leaders out there, because what we've done as a Canadian Israeli company in the US market is very, very unique.

And we kicked off a couple of months ago, our VINIA first responders program.

Where -- why we're really focusing on rewarding the work that these people do in the community.

From the military and veterans to firefighters police officers, emergency workers, doctors, nurses, these are people that make the community work ultimately.

And we started to receive reviews from first responders about how VINIA was changing their lives and allowing them to do their jobs more effectively.

Allowing an intensive care nurse to be able to be focused during those long shifts.

Allowing firefighters to have the physical energy to deal with the challenges they deal with.

And these beautiful stories of human truth and people overcoming the challenges in their lives.

It really inspired us to want to give back to the community as we build VINIA as the brand as well and build by harvest as a company that's entrenched in the community.

So we went so far and decided to launch a 20% off for life offer.

As long as you're on VINIA, your first responder and we can validate you as a first responder, you have 20% of your life.

And we launched this had to be in June, and it was really the appropriate price for us to do this because the governor's father was a firefighter, and led the firefighting office in the local community.

And we also had an amazing lady who appeared with the -- the governor show to be able to really demonstrate how VINIA was helping heard, Debbie and her as a first responder it really impacting as a nurse who is actually dealing directly with the problems that first responders have traveling hundreds of kilometers every single week and being able to function effectively because of VINIA.

And we kicked it off, I never realized the gravity and the magnitude of this program.

We executed well, where people can come in online.

They're able to sign up very easily validate through their identity numbers and then in order for us to verify them and boom before we knew it, we have 700 first responders that I find that there's customers. 72% active military and veterans, 18% health care workers, 10% first responders, and the numbers are increasing by the day.

This is so critical for us as a brand as a company to give back to communities.

It also is a fantastic platform for us to really demonstrate thought leadership to demonstrate the power of our molecules in changing people's lives, go back to that Northstar because these are the people that matter that drive the functioning of our communities for our families, for our children, for our grandchildren.

And this is going to be something that we're going to be building on as part of activities in the third quarter and the fourth quarter and actually really focusing this as a core program for BioHarvest and VINIA in the US market.

We have a lot of activity coming up in the next few months.

We have a great show -- insights show that more than 1 million YouTube fans.

It's a significant fan base in the US as well, and they've done a 30-minute show on our science interviewing, Dr. Zaki and Dr. Yochi and me can see here in beautiful, probably the most spiritual Cafe in the world overlooking the old city of Jerusalem, and that's going to be featured in the next couple of weeks.

And also we're going to be on Marit Streets, there good morning, Marit Street show where we're going to be part of the nutritional -- daily nutritional tips on how people can live a healthier lifestyle.

And this is a new channel that was launched together with Dr. Phil and is gaining momentum in the US and is part of us broadening out and getting more eyeballs.

Okay.

And we do so far, Justin.

(multiple speakers)

Before you've got your 40 minutes.

And so we're at the halfway

(multiple speakers)

I'm just going to have a little bit of VINIA tea.

Okay.

So let's talk about product scaling.

As I said earlier, the last six months has really demonstrated not just our ability to execute on delivery to Nasdaq, not just as you're going to see our ability to execute with a new CDMO business unit and building the capabilities to really go after those growth engines.

But importantly, while we have achieved with Superfood coffee is that we have validated, we have validated our VINIA inside strategy.

It's working.

$1 million in coffee was not a significant investment behind.

What the ratings that we're getting, it's really demonstrating that strategy of superior science, superior taste and superior efficacy in disrupting billion-dollar categories that are tired, sleepy, lazy and where consumers are demanding innovation, better-for-your health and wellness.

With opportunities to do this, whilst premiumizing and driving much better gross profit.

This strategy is really demonstrating the power of our molecules to also work across multiple different delivery systems.

So we have obviously focused on our hot beverages.

I'm going to touch on coffee.

I'm going to go and talk about next steps.

The next big bet on coffee to continue the momentum that I'm going to go deep into something that many of you have not seen a lot have not heard a lot about, but we've done a ton of work in the last -- literally the last three, four months together with a great partner in this area.

And then I'm going to share with you that really strong progress we're making on the hydration space.

Basically, whilst America's been sleeping over the summer, we've done a ton of research.

Market research, consumer research, quantitative research, concept testing, taste -- plant taste testing, everything that we need to do to make sure that we're delivering on that strategy of superior taste, superior efficacy and overall superior functionality.

So let's first talk about our coffee strategy.

As we talked about previously, our focus now has been Keurig 43 million Keurig machines in the US, you have today roughly of [her] between 10 million and 12 million Nespresso original machines.

The original Nespresso part is that a patent.

So therefore, there are multiple companies that now can play in Nespresso original compatible pods.

And we will be playing in this area with an espresso product.

VINIA, blood flow energy Espresso.

We tested our product have with consumers in California, Espresso coffee drinkers in quantitative taste, test research and our product tested parity versus Nespresso Kazaar.

Nespresso Kazaar is one of the major lines of Nespresso and these are really good results.

The -- we also once we're exposing the product in the concept, we were able to demonstrate at a premium price of $1.65, really strong intention to purchase.

You look at top two boxes, 45% based on my world.

I would look at top box, because top box gives you a better proxy for real market share, assuming you execute effectively.

And 12% of people saying they're definitely going to buy this at $1.65 per pod is a really strong result.

And 12% of people saying that they're going to replace their existing brand just validates that results.

So this just gives us the confidence that the product that we're going out is allowing us to basically deliver on our VINIA insight strategy, ensuring that we execute on superior science, superior taste and superior efficacy strategy.

So coming basically December, we're working like crazy with Joe's coffee garage.

We're a partner of ours, and we are launching the first ever super food in a Nespresso compatible part, never been done before.

Ladies and gentlemen, Nespresso have just launched a product with B12.

B12 -- do me a favor B12 we're launching VINIA Superfood espresso with our red grape cell molecule with VINIA inside.

It'll be two pods per day serving because you know, the pods are much smaller and we weren't able to get the full serving size into one smaller part, it's about 5.6 grams.

So it's two parts per day to give you that equivalent dose.

But that makes sense because most people in the coffee world, they're drinking three to five parts per day of coffee.

But with our product, I promise you they'll just need to drink those two pods per day.

So really exciting.

And the team are now ramping up.

This is work in progress graphics, and we will be revising this, but it's really looking good in the right direction.

Let's talk Teas.

This is again, significant markets.

The functional tea and coffee market is $5 billion.

Okay.

So there's plenty of space for us to operate here.

Ladies and gentlemen, I'm really proud to unveil to reveal to you our VINIA Superfood Tea.

Blood flow energy coming to you in four variance of teas.

We have an English breakfast black tea.

We have a signature Fine Cut Green Tea.

We have Premium Matcha Green Tea and a Cranberry Hibiscus Herbal Tea.

This is the after packaging of the 30 packs.

It will be in a 30 pack and a 60 pack.

The actual tea bags will be in beautiful envelopes with similar graphics, Alan and Claire have done an amazing job.

All of our graphics were not paying hundreds of thousands of dollars to graphic design agencies.

This is designed inside, okay.

And this is hours and hours and hours of dedication, in order to get this looking perfectly where we're communicating the branding, we're communicating the benefits.

You'll see the new benefits, we're focusing on from a functionality perspective as not just the alertness and the physical energy, but it's also we're adding a new structure function claim because with increased blood flow from the increased arterial dilation of the arteries, you have more removal of cellular toxins in the body, which is really important.

This is the power of blood flows, the oxygen and the removal of cellular toxins.

So you'll see that claim that we're adding in here because we think it's very relevant in the space.

And in addition, the product we are working together with Cairo 80 in Northern New York in amazing team, Michael and Gina, and Chris, and they've been great partners, who worked the last six months to develop amazing formulas.

Organic tea base, everything is rainforest alliance source, really important for us from a sustainability and a commitment to the planet perspective.

In addition to making sure that we're using biodegradable tea bags utilizing basically all materials that are recyclable.

This is the premium of the premium.

And you can see, I think it looks beautiful.

So the proof really comes down to superior science, superior taste and superior efficacy.

And we have winning key formulations versus leading brands in the largest tea segments.

And in the case of actual black tea, we took a market leader, one of the market leaders, which is twining English breakfast tea.

And we said, let's develop a product with VINIA that is at least parity.

Because parity, we have to be at least parity.

We did this in the coffee space with 50 Nespresso drinkers -- coffee drinkers in California, blind taste testing.

Let's do it here.

We did the same thing in July this year, 80 -- 79 tea drinkers, hot tea drinkers and voila we have superior taste.

We have a product that tastes great.

Blind taste test 66-34, this is significant.

Significantly preferred versus the leading national black tea brand.

So delivering on that VINIA inside strategy of superior taste.

You look at all of the critical metrics on preference, mostly Javo flavor, superior taste, best black tea flavor, most pleasant aftertaste and on, and on, and on, I'd purchases hot tea takes more like a full body cup of tea.

And then we will look at the PI, the purchase intent again, 50% top two box, like I said, most marketeers look at top two boxes, a like a Coke, if you want to know really what's going to happen.

You got to look at top box.

That's a really good score for top box.

And then replacement as well, similar numbers.

See how the two are heavily correlated.

So we have a great English breakfast black tea, and it looks beautiful.

And I'm so excited to bring this to the market and we're going to be bringing all the teas to market for basically for the November e-commerce Black November sales, Black Friday sales end of November.

This is when we bring this to market.

And the same thing for green tea, we went out we looked at who's the market leader, we need to go up against and all -- and basically Whole Foods Market organic green tea is one of the best out there.

And again, we beat them in blind taste test 59-41 -- 49-41 similar methodology of tea drinkers.

Here we have end of 73, 73 people at 78 -- 79 people with the black tea, okay.

And again, we did really well with very strong performance across the key attributes.

And again, purchase intent scores good, 36% is the green tea.

Remember not everybody likes green tea, 11%, definitely 18% lucky to replace it with their current most favorite brand.

So we're really excited, we're going to be using the teas as a major marketing vehicles will for those Black Friday sales will be giving a great prime offer.

We're not going to give discounts, we're going to give value.

In addition, we'll be using a -- coming up with basically a trial pack, a 10 pack, which will contain four black tea, four green tea, one matcha and one -- one of the primary Hibiscus teas, it's a variety pack that we will be giving away as a sample when people come in and buy their first three months of VINIA.

So it gives us lots of versatility and a great opportunity to really provide a unique offer out there for a lot of our TV specials.

So I'm going to talk about hydration and then I'm going to hand over to Zaki.

Okay.

All right.

Just grounding everybody on hydration.

This is the market.

You have the sugar players and you have the salt players.

Okay.

You have Liquid I.V. By the Liquid I.V., the $1 billion brand. $1 billion dollar brand has been built in three to four years.

You know, kudos to Unilever that now owns this brand.

It's has the core product, a 68% sugar.

They have now launched a zero or low calorie zero version.

This is one player.

You have the heavy salty player like element tea at 80% salt.

And then you have us anchored grounded, superior science, superior taste, superior efficacy, 20 calories with a very unique hydration solution.

I've shared this with you in the past around the formulation, the equivalent of one capsule VINIA plus we have a unique electrolyte mix with

[RAC sulphur sodium].

We have coconut water powder for the potassium and modernized magnesium, which went to react to the water will actually cause hydrogen.

So you got the power of blood flow plus the anti-accident power of hydrogen, which we believe is going to have a significant effect on overall performance and recovery for athletes because we're going after athletes, we going younger and we go after athletes.

That's the positioning.

We have multiple flavors.

But in our market research that we conducted, we utilize two formulations.

We've developed with Lewis from technology, that's a partner of mine from the Coca-Cola company.

Louis used to run all of R&D for Coke in Africa, Eurasia and the Middle East.

And he's been working with us put thousands of hours in the development of this formula.

We went into the recession.

The red grape flavor.

Obviously, we had to, and the lemon lime flavor, which is core Gatorade, Powerade, the lemon lime flavor is a major player and we have three or four other flavors that we will bring to market.

But this was the core.

We tested the product from a taste perspective.

We tested this concept.

You can read faster than I can talk, but basically we're communicating the benefits of the product.

And this is what -- how our marketing will look, basically the marketing positioning and hierarchy we will look like, which will be anchored in the clinical trial that we're going to commence in October.

So it's all about reducing blood flow and oxygen and nutrients repairing and recovery muscle cells, rehydrating and renourishing your body.

Okay.

So overall, liking again, here we're using a 10 point scale for overall liking like extremely liked, very much like moderately these are great scores.

Like extremely and like very much is normally what you look at.

You've got north of 30%, really strong results.

From ability to buy at $1.89, again, premiumizing.

Definitely would buy 20% okay, at $1.89, top two box north of 45% gold standard.

And then this is the one that I was really interested in, because I used to run this brand in the US.

This is a $15 billion industry in the US, okay, $15 billion just in the US.

I think everybody at our investor partners understand the size of Gatorade and Powerade.

And now you understand the world or the powder drinkers and then you have the tablet uses.

So here you can see the likelihood of replacement of their current brand.

So if you look at bottle drinkers, people drinking Powerade and Gatorade, 16% said they were very likely to replace their brand with Avenir hydration solutions.

Same thing for the powdered drink is 19%, slightly less for the tablet users, overall 15%.

That's 15% of the $15 billion industry, assuming all things equal on distribution and execution.

Literally, I will take 1% of it.

I'll take 1/10 of the 1%.

It's a game changer for our business.

This is the size of this opportunity, and that's why we're investing and superior science.

You got the superior taste of tasty solid.

We did the taste testing because I wanted to make sure before we went into the clinical trial that our product tastes really good because the last thing I wanted to do is have athletes say doesn't taste good, therefore, the news during the 90 day clinical trial, okay.

So for some of the people out there who are saying, well, it's taking a long time to bring this to market.

Look launching new products is not easy.

You have to go through a very systematic methodological approach.

And this is what we're doing one step at a time ticking the box, making sure we have excellent at every stage.

So the investigational review board approved our clinical trial at the end of May.

We've now done the validation of the product in taste testing.

With 75 athletes, when I say athletes, these are people that exercised three or four times a week, and they exercising for more than 45 minutes, so it's our core target.

We demonstrated the power of the proposition and the power of the product.

We're now going into production in September for the clinical trial.

Now that's proper production.

We're going to produce this properly in large scale online as not lab samples proper production.

And then the clinical trial will commence in October, and we are looking to launch this before the summer next year.

These are all the critical metrics that we're going after really excited, the initial signs are very encouraging.

And again, it's all about validating that strategy, VINIA inside strategy, superior science, superior taste and superior efficacy and disrupting, disboring, categories that are just crying out for innovation at premium prices.

Okay.

I'm now going to hand over to Zaki to talk to you about really strong progress that we've made in the CDMO business.

Hi, everyone.

Be happy to be with you this evening.

Morning or afternoon, some of the places I'm -- I apologize, I'm a bit under the weather, so I apologize if my voice is not adequately reflecting my enthusiasm about the business.

A lot of [standard] that we've heard earlier from Ilan about the product business unit and what we've been able to achieve on based on the technology that we've developed for many, many years.

We also look, we've also seen the delivery on the past, not just being a good company, but also good stock by really doing all the groundwork to make us eligible for the Nasdaq listing.

So I'm really glad, but as Chairman of the Board, kudos to management and every piece of work that to start in that regard.

The CDMO has a lot of standard and the CDMO is certainly one of our most important growth engines.

We are going to be able to serve with the molecules that we can develop all the four verticals or growth areas in pharma, biotech, nutraceuticals, nutrition and cosmetics.

In fact, what I'm going to present soon is a mini scorecard of the first six months of since we started, since with the beauty of the business of the CDMO.

And if I look at one of the criteria, one of the metrics to see where this business is going and the health of that business.

In February, when we launched the business, we really had only two engagements with two customers.

Now, yes, indeed, we were able to get 100% efficiency because we signed up those two customers.

One can say it's beginner's luck.

But really when I compare -- now in August six months later, we have about 18 different engagements.

Each one of them can lead to a deal, some of them more imminently, some of them a little later, but this is an indication of the health and the growth potential.

And what's also interesting about the business is that it's across all those four verticals.

In the CDMO world it's very important to have this type of edge because some -- like, for example, pharma might bring in very high gross margins, but it's slower moving from development to manufacturing just because of clinical trials and other things that the customer needs to do.

On the other side of that spectrum, you have, for example, the nutraceuticals or on the nutrition side, which is a much faster.

So having the ability with the same fundamental process technology to address all those four verticals simultaneously is really a big blessing in how we're building this business.

So like I said, the six months progress report starting with the infrastructure, we've put together a very strong team, both on the R&D side and on the business side that is now being integrated as we speak to be able to engage with the customer and ultimately deliver.

In every deal we have to do a lot of research to qualify the customer and qualify that particular request.

So this process is now being handled by a really strong group of professionals.

We on the infrastructure side, beside the human side of the infrastructure we also have now settled into the new campus with all the clean rooms in order to accommodate all the new projects.

As we have already announced, we've signed two CDMO deals.

We are in discussions, as I said, and I think it's probably the most important part of the news.

That we're in discussion with multiple potential customers, there are likely to result in two additional molecule development in this quarter Q2 -- sorry, in Q3 and three additional ones in Q4, that's what we're projecting in the next four months before the end of the year.

So with this scorecard that we're really bullish on the potential of the business unit, given just the amount of incoming requests and it's not ending with the 18 engagement, we're getting a lot of interest almost on a daily basis.

So let me -- because we have already announced the work that we've done on two separate molecules and because we can't really disclose the name of the customers, just due to confidentiality.

The first molecule with its -- with a pharma company.

We have actually made progress.

We have successfully reached the cell culture stage part of the process to build the cell -- to build and develop the cell bank.

The customer has displayed satisfaction to the extent that the second payment has been executed the best weight to show customer satisfaction.

And now we are in the process of analyzing the composition that was created in the cell bank, and we expect the decision on moving to stage two of our process in the next quarter.

The second molecule, which is in the nutrition space, has suffered a little bit on the fact that the sourcing of the plant is taking longer.

We went for an alternative plant and with alternative plans, we were able to successfully develop the cell culture.

The payment has been executed, which is yet again, a sign of satisfaction.

We're waiting for the analytical results.

But because of this delay in getting the original source plan, we expect the decision of moving from stage one to stage two to be in the first quarter of 2025.

So give you an idea of stage two of development is somewhere around between $600,000 and $800,000 per molecule.

So that opens up not only additional income, but also gets us closer to the final stage, which is where we manufacture the product, hopefully in mass of all those molecules.

Sorry, and the just one more comment about the CDMO, the -- what we're discovering and then maybe that's the one of the reasons we are -- we did not sign up new customers in the second quarter is that in the process of signing a deal.

We are -- we have to learn a little more about some of the legalities and some of the IP issues, et cetera.

But that's not discouraging because ultimately, that part is very important for our customers and it's highly appreciated.

We do a lot of work upfront to qualify the customer to qualify the molecules to increase the chance of success.

But also we deal with all the legalities and especially the intellectual property.

As I said, we're very bullish on the potential and we're looking at that two more molecules this quarter and three more molecules in the next quarter.

Thanks, Ilan.

Thank you, Zaki.

Zaki is the two-phase, really been dealing with a severe cold, and he's been resting his voice, hardly spoken to me all day because you wanted to keep his voice for tonight.

So I just and I think we'll go now -- we talked about the past in Nasdaq update on I'll just one other thing I wanted to share.

Hopefully after this discussion the ability for you to really understand what's happening deep in the company.

The demonstration of the consistent delivery on top line revenue and improving margins in the business.

Our ability to consistently execute and also our ability to be able to demonstrate the power of VINIA inside strategy.

And I think it's important for me to say that the VINIA inside strategy, whilst we're going to be scaling that with what we do in coffees and teas and hydration, don't forget the capsule, don't forget the core.

Our core business is on fire, okay.

We are consistently hand to mouth in delivering on tens of thousands of customers that are growing dramatically quickly as we start to scale our e-commerce machine with the team that's led by Jared, and supported amazingly by Jackie and her team on the customer success side.

We have an amazing core business.

Our innovation is very exciting, but it's important to understand you have to keep on growing core.

And that core business is growing like crazy, and we will share in the next -- probably the next update we've got some exciting surprises on our core business.

Because you can also innovate on your core business.

And that's the heart and soul of our companies anchored in innovation.

And ultimately with what we're doing and the validation that our products business does for the botanical synthesis technology, demonstrating the opportunity that sits in the CDMO business.

And the synergy between the two businesses really gives you the confidence that we can together, the team of 85 people here, plus all of you shareholder partners, working together to build a multibillion-dollar biotech company, that ultimately is going to be producing 10 to 15 molecules, some with partners, some alone, that changes the lives of hundreds of millions of people.

And doing that in a way, ultimately that first from a financial performance gets us to that breakeven mark and then ultimately becomes a high performing financial machine as well, generating significant value creation in addition to the human utility value creation.

And that's ultimately our mission, and what we're doing every day, we come to work every day to deliver.

So I'm going to start stop now we'll go to Q&A and I'm happy to bring Zaki.

Don't get too close to me.

I don't want to get sick.

(laughter) I've got to take him home tonight, so I think I put him in the trunk.

Okay, Justin, over to you for Q&A.

He's going to get a first assist.

Forget has home in our time allotted today.

So thank you, Zaki, that's great.

On the first one, I actually there's a bunch of questions came at the end.

When you talk about the convenience side strategy, I can't remember the word that you use for more opportunities for people to incorporate VINIA into their day as being the point.

But several people asked if the strategy is to trying to get individuals to consume more VINIA or whether it's actually broaden the appeal of VINIA.

It's all about what we call recruitment.

It's all about.

If you look at our business today and you understand from a from an overall, let's call it revenue by consumer group.

The majority of our business comes from two user groups today.

That's what we call problem solvers, which are people that are 50-plus that have challenges from a blood flow perspective and they need to have the best performing supplement that's going to improve their blood flow through the increased arterial dilation.

It comes to VINIA.

And then you have people that are 40-plus, they're basically hit the age of 40 start to realize that they've got to start thinking about the future looking after themselves, longevity and then ultimately start to take a supplement like VINIA.

So what we're trying to do now, specifically, if you look at the coffee business, it's allowed us to go younger.

It also allowed us to go broader.

The hydration, similar equities, hydration as well, right?

It goes much younger.

We're targeting athletes, right?

Where we're talking literally the hydration has got a clinical trial is on basically athletes.

They'll be 18 to 21.

It's a major play for athletes.

We're also talking with them basically going after the military channel.

If you look at the military today, whether it's the US military or the Israeli military, there's no hydration solution, unfortunately.

It's not incenting soldiers into the field.

They have amazing equipment from a technology perspective.

But when it comes to their own nutrition and having the right hydration, there's no solution out there.

And in fact, from a US military perspective, there are grants out there looking for that next generation hydration solution.

So yeah, it's definitely, basically allows us to bring VINIA through the life cycle curve with basically different products based on different need states and different occasions, which are so important -- I'm going to stop sharing actually.

Different need states in different occasions, and that's really important.

And so if you look at the brand.

If we're sitting here in 24 in -- say, 12 months' time, this time next year, we should have a lot younger user base.

That's really what we want to do.

We want to bring people into VINIA younger, coffees has helped us with that.

Teas were apply in both areas.

But again, the size of the prise, just when you look at cardiovascular health supplements, energy supplements, it's $13 million, $14 billion, okay.

We have a law -- the field of play is huge for us to play in.

And so this allows us to do this all in a way that is synergistic can be done as a portfolio and becomes very, very efficient.

Thank you.

So it's not so much about increasing per capita consumption is bread run.

Speaking of types of people, there are a bunch of questions about our marketing mix on VINIA?

I guess, what's your expectation?

So now if you move from TBN into a couple of new channels, I think we're pretty agnostic.

Like in the future, do you see us experimenting with other television networks?

Yeah, I just use Newsmax and Fox as examples because everybody knows that.

But we're doing this now at probably 30 channels, different channels.

And we go, we test, we learn and we optimize, and it's all about the [ROE] as.

Our team knows how to do this.

It's like an art and science coming together.

Test learn, optimize, and we're doing that now, as I said, 20 to 25 channels.

And as soon as the ROE as goes below a certain point basically, we will look for other channels.

We look for other opportunities, but we're getting really good at this.

We understand what it takes to increase that ROE as.

And what's important for you to understand, so let me give you an example.

If I ask him $3,000 on a TV commercial, okay, I want to at least get $3,000 of revenue.

We get like a one ROE as industry standard 0.5, 0.6 where I'd like a one.

What that means for us, I don't really care about everybody else, but for us where a subscription business.

So that's $3,000, most of that repeats three months later, and then most of that repeat three months later.

So that initial adds, has actually a really good return on investment because it's subscription customers that we bring in.

So that's why it's just that we have a whole team that's literally looking every single day at all of our TV placements and making sure that we get the right ROE as and if we don't, we don't go after that channel that time segment of that program again, and we start to understand what programs, which channels, which audiences are our best product market fit the sweet spot.

And we just keep on finding the sweet spot as we scale our basically our communications.

Thank you.

This one, there's a whole bunch of questions about expected launch dates, either VINIA insider or sell bank products or potentially CDM commercial contracts, I think maybe can you put it explain maybe with the facility, so the capabilities Convera about going to market.

And maybe just some context for people with they've heard us talk another question about the potential US facility and put it in context like facility capacity, product expansion of the US, how you see that your expectation on the next two years, how that might again lead for that?

Yeah, that's no problem.

So what I would say is that we invested very heavily in doing the R&D work and validation work over the last, let's call it, nine months.

There's a lot there.

Okay.

Now that's purposeful, because I like to run a business where I have optionality.

And I can decide to move things around.

I can decide to hold things back, a number of things that I haven't shown our shareholder partners yet because there's still a mechanic works, because you're always going to have a skunkworks.

So what's important to understand ultimately is that we are basically beholden on manufacturing capacity.

As we go into early next year, first quarter second quarter, we start to hit maximum levels of capacity.

Already Ilana and the team and that team is getting stronger and stronger as we build the blueprint.

We've ramped up capacity every quarter to meet the demand levels.

And we'll keep on doing that systematically up until we get the second quarter and an economy.

But based on where we expect the business to be at a flat line.

And that's why we are here in this facility.

And we have to have the 50 ton facility both by end of third quarter, early fourth quarter next year.

In order to deliver what we want to deliver in 2026, we have the capacity to deliver what we need to get to in 2025.

But for 2026, we want to take the business.

We have to have this facility up and running end of Q3, early Q4 because it takes a while to get the facility running to be able to deal with it.

What we believe will be the level of demand coming from core VINIA, core capsule VINIA plus the innovation that we bring into the marketplace plus we have [Olive] of sales and a lot of work we're doing on Olive of cells, the there is a lot of work and we haven't spoken about a lot because we're doing work on patents, okay.

So I can come and tell you all these things about all those and we filed patents.

So all of this also in the mix, and we will be producing all of this facility.

This is the intention and we're building it to be able to have some segregation between VINIA red grape cells and Olive cells.

And we've started already the regulation process on all those.

We've started our first in vitro trial and Olive as well.

We have a final trademark that we've registered across multiple different categories, and we're making really good progress.

The teams the team is focused on that, but that's looking more towards the back end of '25, that was a fit without capacity builds.

So yes, there is and being very directly, there is more innovation right now than what we may be able to handle.

And let's say, for example, teas, we hit a homerun with teas.

And we literally cannot have -- we cannot support the hydration, then we'll have to push it back that that be the worst problem that we have.

But I want to make sure that everything's ready.

So that we can make sure that we're delivering those aggressive growth targets that we have.

Sometimes with innovation, you can do -- the difference between major success and success can sometimes be significant and that's why we want to have that pipeline ready.

So we have that flexibility.

So hopefully that answers that question in a very thoughtful, methodical way, Justin.

Thank you.

And also I was addressing something.

Did you touch on the potential CDMO commercial?

Sorry, say that again.

Certainly we are aware of the timing and the housing potential location, just a plan for the

--

So basically, we're now busy doing all the work.

Behind me is actually the lab.

It's a beautiful lab, you kind of see it, state of the art lab and then behind that all the clean rooms and we will -- the plan here is to move R&D, because R&D pretty much serves the CDMO today to move them to this campus.

Ideally by the end of this year.

And so basically, everybody can be together under one roof, which is going to be amazing as well from an efficiency from building the team perspective, right now where we're split across multiple campuses.

So that's the timing to bring everybody in here.

And that's also going to help support.

While Zaki talked about this, this really significant pipeline that we're chewing on.

It's exhausted.

Honestly, when you're dealing with this many customers, when you've got to go very, very deep in each customer's business, as Zaki said, as IP you need to understand, this dealing with issues and concerns around exclusivity.

In some cases, we have multiple companies that we're talking to in a certain area, and we have to balance that and make some tough decisions, they're all good challenges to have, because those are challenges that we're having as a result of demand for our technology.

And broader we're learning a lot.

We're learning so much, we're building great capabilities and we bring smarter and smarter people into the team, we can't believe the people that we're bringing to the team.

And what's amazing is that Zaki leadership and with the technology and Dr. Yochi and Dr. Malkit, we're bringing the best people in the world into the CDMO team and you'll start to see that with some of the announcements we're going to be making.

And these are people that are mission-based.

It's not about the money, it's about changing the world, and that's super exciting and people want to work, these are people from industry that are like at their Pinnacle in the careers, and they want to be part of this.

That's why we know we're got something really powerful in our hands that we have to be really, really responsible to make sure everything we do count, counts for humanity.

Thanks, Ilan.

A big questions came in.

Thank you, Matt.

We were going to touch on it Matt, just asking for a bit of comment on how the institution, our reach is going, that brings up your upcoming

[trip to].

Yes.

So hi, Matt.

Great to hear from you.

So together with our partners, MZ, our Investor Relation partners and Luke and Roy and Ian and team, we've done a lot of outreach.

I think from an institutional perspective now we have in our final note of 50 institutions, and they really are getting to know our companies.

And now with the work that we have completed from Diamond Equity Research and Hunter and his team with the analyst report that's come out, that's also been very, very helpful as we start to talk to family offices as well.

And what's really critical for us now is that we're nurturing these relationships with significant institutions.

I mean, our funnel MZs working with me is Zaki to continuously engage with them, because there's multiple interactions that you need to have.

Ultimately this the critical waits for Nasdaq because of -- at the end of the day, the majority I'm talking like 90% of these institutions that don't have a mandate to buy outside of the US.

It's maybe some of them have come in now that we did the reverse split and we're no longer penny stock that has helped us.

But basically everybody is waiting for that Nasdaq transitional moves, and we're spending a lot of time keeping that funnel very, very warm and engaging with them.

And next week, the following week, I've been invited to investor conference on H.C. Wainwright.

I'll be presenting there and also meeting a number of institutions, and we'll do a little bit of a roadshow, as well as meeting some CDMO customers.

And then again, at the end of October, early November, we'll be doing another roadshow.

And that's all critical building blocks of keeping these -- it's call a 50-plus institutional investors really, really connected to the company and continue to build the relationship, the trust, so that when we are on Nasdaq and they obviously have the mandate, we're going to see the fruits of that hard work.

We just have to be patient.

It's a test of our patients as well.

Yes, sir.

The other question on the coffee, you see the your distribution plans, adding retail for any of the products is retail going to be part of events.

After 18 years at Coke, I decided I didn't want to go to retail anymore back, I would say this to you.

In the case of coffee, there's really no reason for us to be on the retail side.

We are also going direct to adopt, we sell a lot of coffee into integrative medicine specialists, they really like this.

And again, it's a unique innovative and Sam who works as part of that team, she did a great job selling coffee into integrative medicine specialists, together with Dr. Brian, who does a lot of work, really helping the specialists understand the power of VINIA and they're a great tech team and we started to build a nice business.

I don't talk about a lot, but we've more than doubled our direct adopter business which is really important.

And it's very surgical selective top integrative medicine specialists at top integrative medicine centers across all the major cities in the US, we're very, very surgical.

So direct to consumer, and directly [doctor] are critical channels.

Now in the case of hydration, as an example, we have to be surgical in our distribution to also consider channels outside of the traditional, outside of our direct to consumer world through e-commerce.

And when you have a hydration product, you have to be at points of sweat as we used to call it in the industry.

So you want to be at James Equinox gym, High end gyms, high in sporting facilities.

But what we will do is the plan as you build the brand, you build the demand and then you basically start to go to those specific locations, you can call it specialized speciality retail in a very surgical way at terms that make sense for us.

Not with cash cycles today, adjuster we live in a 24 hour cash flow, it's amazing.

When I sit and talk to the bankers and I say, listen, they asked me this question.

Do you want to go to retail like what I don't want to go to a 140 day cash cycle and you've got a big for your cash, where you are working with a partners like Shopify, we have a 24 hour cash cycle.

So we will do it and hopefully be able to do it on our terms and have basically so that we're not dealing with those kind of challenges, but it will be very, very surgical.

But you won't see us in Walmart.

You're not going to see me and target.

You're not going to see me and Kroger.

No, that's not where premium brands like us need to be play.

And I'm getting a lot of questions about people asking longer term forecast than what we included in Q2.

And I know we are as far as pre Nasdaq has and being careful around regulators et cetera.

Can you comment on, I guess, your initiatives to sell the products business, like what kind of initiatives as you approach breakeven on the products, what focuses on being very careful

(multiple speakers)

Keep on going.

Give me a little bit more.

Okay.

So I guess so today in our Q2, you've mentioned margins, we've talked about marketing mix, kind of reducing costs, increasing efficiencies.

Just on the product side, people are just asking how that -- how you feel that it's going.

Yes.

Look, I'm really happy with the progress, you can see consecutive quarterly improvement in top-line growth and margin expansion.

And you know what I like it to be faster, yes.

Am I happy with where we're at.

Yeah, I'm somewhat happy.

We always have to be a complacency is a worldwide disease.

And so I'm always pushing for more and faster, but it's important that we're doing things very methodically.

This is biotech, okay.

It's not like when I launched Coke in Mongolia and we started to scale the business.

And it was like pressing buttons and going from a glass line to a PET line to a multi-serve PET line and just getting more trucks and getting more lines and you press balance.

This is biotech.

And we're also -- what's really important as well is that a Ilana and her team supported by Alan and Dr. Yochi and Dr. Malkit.

As we scale the business Justin, and you know this, we talk about a lot in our leadership meetings every week.

You've seen the progress that we're making in really building the biological blueprint for our business.

And this is also important because we're not just scaling the business by just bringing more bioreactors, bringing more machines.

We’re getting sharper and sharper, in effect what we're doing now is we're digitizing our entire factory, our entire biological factory for those of in Israel come to Israeli.

Very welcome to come on a personal tour with me and Ilana our COO, and you'll see how in the last 12 months we've digitized every action we take in the plant with basically ERP system and a brain, we built a brain for our bioreactors.

So we know every single action he's logged and measured on what we take with the bioreactor and every single variable is measured.

And by doing this, where basically refining improving the manufacturing blueprint.

And that's so important because we've got to make an investment here in a 50 ton facility.

And we've got to make sure that that investment is right.

And that we are planning it the right way based on what we're doing to take inefficient processes out, for example, a harvesting process today is very manual intensive.

So now we've been working with automation, the Swiss company to develop machines to do our harvesting where instead of three or four people at one button.

And the machine does the harvesting for us.

And so over the next three, four months, we're experimenting with a smaller version of that machine before we go and buy the machines for when we -- actually are in this facility.

So we've been very, very methodical on how we do it and it takes time, sometimes the challenges with the geopolitical situation, it takes a little bit longer, ships are coming through the Suez Canal anymore.

They go all the way around.

It's another six to eight weeks.

But we're doing things very, very methodically because also we have to do this because we're going to build a plant in the US in 2026.

Net plant needs to function and the more we can refine define quantify our manufacturing blueprint, the easier it is to upskill people in the US to be able to literally learn our technology list, the components of the technology where we are growing the cells in large-scale bioreactors and then doing the downstream and to be able to do that in a scalable way right.

And that work is getting done now.

And that's we're spending hours on that work.

And our manufacturing performance is getting better and better, and it's going to be critical for the future of the company.

So these are factors that will just means that we have to scale the business responsibly and methodically, and making sure that we're doing process improvements along the way so that we build with setting up the business for the success that we want to be able to deal with that Northstar, to be able to produce 10 to 15 molecules affecting the lives of hundreds of millions of people.

In six months' time will be affecting the lives of 100,000 people already.

I consider 100,000 people, right that that's huge, but we got to make sure that we're building that blueprint in the right way to be able to do that across countries, across continents because I can't copy paste my people.

We've got to make sure that we have that methodology just perfect.

And that's what we're focused on.

Thank you.

I guess you did ask answer a bunch of questions now about your strategy for being able to scale production across the globe.

We're at -- we're just past the 90 minutes, we got several dozen questions that are still here.

I have screenshot and everything.

So justin@bioharvest.com, I will give specific answers and for the very complex ones, I will make sure that the line is included.

So please, if you've got more follow-up, please come directly to me. some parting words.

Thank you so much, everybody for attending today's session.

Thank you, everybody.

And again, I appreciate everybody's support for the messages I've received, of support over the last few months.

Specifically over the last few weeks, we really appreciate it.

And thank you for everybody and really excited about this journey, both Zaki and I over the next few months.

And that's why I wanted to bring that Nasdaq news to you all right in the front of the presentation, because that's a huge achievement for us to get through that Securities Commission process with flying colors really well done.

So thank you, and have a great long weekend ahead of you in the US, take care.

Thank you, everyone.