Yield10 Bioscience Inc (YTEN) 2023 Q3 法說會逐字稿

Hello, and welcome to the third quarter 2023 financial results and business update conference call for Yield10 Bioscience. (Operator Instructions) As a reminder, this conference call is being recorded.

您好，歡迎參加 Yield10 Bioscience 2023 年第三季財務業績和業務更新電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。

I would now like to turn the conference over to your host, Yield10 Vice President of Planning and Corporate Communications, Lynne Brum. Please go ahead.

現在我想將會議交給主持人 Yield10 規劃和企業傳播副總裁 Lynne Brum。請繼續。

Thank you, Sarah. Good afternoon, everyone. Welcome to the Yield10 Bioscience third quarter 2023 conference call. Joining me on the call today are President and CEO, Dr. Oli Peoples; Vice President of Research and Chief Science Officer, Dr. Kristi Snell; and Chief Accounting Officer, Chuck Haaser.

謝謝你，莎拉。大家下午好。歡迎參加 Yield10 Bioscience 2023 年第三季電話會議。今天與我一起參加電話會議的還有總裁兼執行長 Oli Peoples 博士；研究副總裁兼首席科學官 Kristi Snell 博士；和首席會計官查克·哈瑟。

Earlier the noon Yield10 issued our third quarter 2023 financial results. This press release as well as slides that accompany today's presentation are available on the Investor Relations Events section of our website at yield10bio.com.

中午早些時候，Yield10 發布了 2023 年第三季財務業績。本新聞稿以及今天簡報附帶的幻燈片可在我們網站的投資者關係活動部分取得：yield10bio.com。

Let's turn to Slide 2. Please note that as part of our discussion today, management will be making forward-looking statements. These statements are not guarantees of future performance, and therefore, you should not place undue reliance on them. Investors are also cautioned that statements are not strictly historical constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results to differ materially from those anticipated.

讓我們轉向投影片 2。請注意，作為我們今天討論的一部分，管理層將做出前瞻性聲明。這些聲明並不是對未來業績的保證，因此，您不應過度依賴它們。投資人也應注意，嚴格意義上的歷史陳述並不構成前瞻性陳述。此類前瞻性陳述存在許多風險和不確定性，可能導致實際結果與預期有重大差異。

These risks include risks and uncertainties detailed in Yield10's filings with the SEC. The company undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this conference call.

這些風險包括 Yield10 向 SEC 提交的文件中詳細說明的風險和不確定性。本公司不承擔更新任何前瞻性陳述以反映本次電話會議之後可能發生的事件或情況的義務。

I'll now turn the call over to Oli.

我現在將電話轉給奧利。

Thanks Lynne. Good afternoon, everyone, and thanks for joining our call. Let's now turn to Slide 3. We are making solid progress on our technology and business plans to launch Camelina as a platform crop with a focus on higher fuel feedstock markets and high-value market for omega-3 oils.

謝謝琳恩。大家下午好，感謝您加入我們的通話。現在讓我們轉向幻燈片 3。我們正在技術和業務計劃方面取得紮實進展，將亞麻薺作為平台作物推出，重點關注高燃料原料市場和 omega-3 油的高價值市場。

Using different Camelina varieties, both products can be produced in a closed loop value chain, which encompasses contracting with growers and oilseed crushers and securing offtake agreements with end users for the different oils.

使用不同的亞麻薺品種，這兩種產品都可以在閉環價值鏈中生產，其中包括與種植者和油籽壓榨商簽訂合同，並與不同油的最終用戶簽訂承購協議。

Today, we'll provide an update on recent accomplishments in our Camelina seed genetics to biofuel platform. Our progress developing herbicide-tolerant Camelina varieties provide an update on our omega-3 Camelina; we'll present second quarter financials; and summarize key milestones. We will then open the call to questions.

今天，我們將提供亞麻薺種子遺傳學到生物燃料平台的最新成就。我們在開發耐除草劑亞麻薺品種方面取得的進展為我們的 omega-3 亞麻薺提供了最新資訊；我們將公佈第二季財務數據；並總結關鍵里程碑。然後我們將開始提問。

Let's now turn to slide 4, progress on key 2023 business goals. Over the course of 2023, we've achieved numerous milestones on the path towards commercializing Camelina as a platform crop for biofuels, supplying herbicide tolerance and producing high-value omega-3 fatty acids in Camelina.

現在讓我們轉向投影片 4，也就是 2023 年關鍵業務目標的進展。 2023 年，我們在將亞麻薺作為生物燃料平台作物商業化、提供除草劑耐受性以及在亞麻薺中生產高價值 omega-3 脂肪酸的道路上取得了許多里程碑。

In biofuels, our key commercial goal in 2023, have been to demonstrate the value chain for Yield10 Camelina seed to commercial offtake of Camelina grain to a customer. An important goal has been achieved as we have generated cash proceeds from ship -- seed shipments to growers and from grain shipments to a biofuel plant.

在生質燃料方面，我們 2023 年的主要商業目標是展示 Yield10 亞麻薺種子到向客戶商業銷售亞麻薺穀物的價值鏈。我們已經實現了一個重要的目標，因為我們透過船舶——向種植者運送種子以及向生物燃料工廠運送穀物——獲得了現金收益。

In 2024, we intend to continue to deliver grain for use in biofuel based on the winter Camelina grower contracts we signed this fall. As this is a key area for partnership we are continuing to progress discussions to form additional partnerships in biofuels. A year ago, we signed a one year extension of our research and option agreement with Rothamsted completely omega-3 Camelina program, which had been delayed due to COVID restrictions in the UK.

到 2024 年，我們打算根據今年秋天簽署的冬季亞麻薺種植者合約繼續提供用於生物燃料的穀物。由於這是合作的關鍵領域，我們將繼續推進討論，以在生物燃料方面建立更多的合作夥伴關係。一年前，我們與 Rothamsted 完全 omega-3 Camelina 計畫簽署了將研究和選擇協議延長一年的協議，該計畫由於英國的新冠疫情限製而被推遲。

We've made good progress with our Camelina platform in 2023, including developing project timelines and the launch plan for the first product, EPA omega-3 oil. A few weeks ago, we announced that we've exercised our option to finalize an exclusive global commercial license with Rothamsted. Shortly thereafter, we announced the signing of an LOI for a partnership with BioMar Group, one of the largest aquafeed producers in the world. And I am pleased to let you know that we have recently initiated seed scale-up activities for the omega-3 EPA8 Camelina line in Chile. The EPA8 line produces up to 20% EPA in the seed oil.

2023 年，我們的 Camelina 平台取得了良好進展，包括制定專案時間表和第一個產品 EPA omega-3 油的推出計劃。幾週前，我們宣布我們已行使選擇權，與洛桑銀行敲定全球獨家商業許可。此後不久，我們宣布與世界上最大的水產飼料生產商之一 BioMar 集團簽署合作意向書。我很高興地告訴您，我們最近在智利啟動了 omega-3 EPA8 Ca​​melina 系列的種子擴大活動。 EPA8 生產線在種子油中產生高達 20% 的 EPA。

Going into 2024, we anticipate the production of pilot quantities of the purified EPA oil for business development purposes and potentially larger-scale field production of EPA8 Camelina to support our commercial development activities.

進入 2024 年，我們預計將試生產用於業務發展目的的純化 EPA 油，並可能進行更大規模的 EPA8 Ca​​melina 現場生產，以支持我們的商業開發活動。

Let's now turn to slide 5, establishing Camelina production. Our business plan is based on using advanced genetics to develop Camelina as a platform crop for producing oil and meal and specialty products. Today, there is a significant opportunity in the biofuels market where vegetable oil is processed into sustainable aviation fuel and renewable diesel.

現在讓我們轉到投影片 5，建立 Camelina 生產。我們的商業計劃是基於利用先進的遺傳學將亞麻薺開發為生產油、粕和特色產品的平台作物。如今，生物燃料市場存在重大機遇，將植物油加工成永續航空燃料和再生柴油。

Significant new demand for feedstock oils is being generated as new refineries are coming online and as new environmental commitments are being made to utilize these cleaner fuels across the globe. Based on our partnering because discussions, we believe the biofuel sector recognizes that there is going to be a divergence of supply and demand at some point, but it's not yet clear when exactly this will happen.

隨著新煉油廠的投產以及全球範圍內利用這些清潔燃料的新環境承諾，對原料油的大量新需求正在產生。根據我們的合作討論，我們相信生物燃料產業認識到在某個時刻將會出現供需分歧，但目前尚不清楚這種情況具體何時發生。

For 2023, we contracted approximately 2000 acres of winter and spring Camelina for production in Canada and in the US. In Canada, we engaged growers in southern Alberta, in Northern Alberta at the Peace River region, in Saskatchewan and Manitoba.

到 2023 年，我們承包了約 2000 英畝冬季和春季亞麻薺，用於加拿大和美國的生產。在加拿大，我們與艾伯塔省南部、艾伯塔省北部和平河地區、薩斯喀徹溫省和馬尼托巴省的種植者合作。

In the US, we contract growers in Idaho and Montana. We are very pleased with the level of grower engagement we had. Growers shared their insights on the crop, but they're on farm practices or opportunities they see for how they could use the crop in the rotations and comparative economics.

在美國，我們與愛達荷州和蒙大拿州的種植者簽訂合約。我們對種植者的參與程度感到非常滿意。種植者分享了他們對作物的見解，但他們關注的是農場實踐或他們看到的如何在輪作和比較經濟學中使用作物的機會。

In particular, the growth has strong positive feedback on the types of herbicide tolerant varieties Yield10 is developing and how those could significantly expand the opportunity and add value for them.

特別是，這種增長對 Yield10 正在開發的耐除草劑品種類型以及這些品種如何顯著擴大機會並為其增加價值產生了強烈的正回饋。

We were also very pleased with the performance of our current Camelina varieties. For example, our WDH2 winter variety is a very robust in cold temperatures and planted seed shows a built-in fail-safe mechanism for bio seed that did not germinate in the fall, it survived winter and germinates in the spring.

我們對目前亞麻薺品種的表現也非常滿意。例如，我們的 WDH2 冬季品種在寒冷的溫度下非常堅固，種植的種子顯示出內建的生物種子故障保護機制，該生物種子在秋季不會發芽，它能熬過冬季並在春季發芽。

Both our winter and spring varieties require some moisture to germinate, but then demonstrate excellent drought tolerance over the growing season. For example, we had a 160-acre field in Southern Alberta that received just 1.5 inches of rain over the entire season, but over twice the yield of neighboring mustard and canola crops grown under the same drought conditions.

我們的冬季和春季品種都需要一定的水分才能發芽，但在整個生長季節表現出優異的耐旱性。例如，我們在阿爾伯塔省南部有一塊160 英畝的田地，整個季節的降雨量僅為1.5 英寸，但在相同乾旱條件下種植的芥菜和油菜作物的產量卻是鄰近芥菜和油菜作物的兩倍多。

Camelina also showed good pest resistance, in particular, to flea beetles and in some areas, grasshoppers, which are pests in other oilseed crops such as canola and mustard. During the third quarter of 2023, our contracted growers harvested the winter and spring Camelina fields, setting in motion steps in the value chain from planting, harvest, grain delivery and off-take customer. Borders in this slide illustrate the steps of the value chain we established in Western Canada.

亞麻薺也表現出良好的抗蟲性，特別是對跳甲蟲和某些地區的蚱蜢，它們是油菜和芥菜等其他油料作物的害蟲。 2023 年第三季度，我們的合約種植者收穫了冬季和春季亞麻薺田，啟動了從種植、收穫、糧食運輸和承購客戶的價值鏈步驟。這張投影片中的邊界說明了我們在加拿大西部建立的價值鏈的步驟。

In the third quarter of 2023, we contracted with existing and new growers and planted winter acres for harvest in summer of 2024. As you can see in the photo to the right, there's already been snow cover on that crop in Canada. The same closed-loop value chain can be used with the omega-3 Camelina varieties for the production of omega-3 oils in the future.

2023 年第三季度，我們與現有和新種植者簽訂了合同，種植了冬季作物，以便在 2024 年夏季收穫。如右圖所示，加拿大的該作物已經被積雪覆蓋。未來，相同的閉環價值鏈可與 omega-3 Camelina 品種一起用於生產 omega-3 油。

I will now turn the call over to Kristi for an update on the development of HT and stacked HT Camelina varieties.

現在，我將把電話轉給 Kristi，以了解 HT 和堆疊 HT Camelina 品種開發的最新情況。

Thanks, Oli, and good afternoon, everyone. Let's turn to Slide 6. A couple of years ago, we prioritized the development of herbicide tolerant Camelina to provide farmers with the robust weed control package, supporting the broad adoption of the crop in North America, we have been waiting for regulatory responses from USDA-APHIS and the Environmental Protection Agency to enable the use of glufosinate for control of broadleaf weeds with our engineered Camelina lines.

謝謝奧利，大家下午好。讓我們轉向幻燈片 6。幾年前，我們優先開發耐除草劑亞麻薺，為農民提供強大的雜草控制方案，支持該作物在北美的廣泛採用，我們一直在等待美國農業部的監管回應- APHIS 和環保署允許使用草銨膦透過我們的工程亞麻薺品系來控制闊葉雜草。

We hope that we would receive responses from the agencies before year-end, and I'm delighted this afternoon that we heard we received a positive response from USDA-APHIS stating that our glufosinate-tolerant line is not considered regulated by the agency. Growers have provided us with positive feedback on the potential of using glufosinate-tolerant Camelina in their rotations.

我們希望在年底前收到這些機構的答复，今天下午我很高興聽到我們收到了 USDA-APHIS 的積極答复，表示我們的耐草銨膦系列不被認為受到該機構的監管。種植者向我們提供了關於在輪作中使用耐草銨膦亞麻薺的潛力的積極反饋。

Historically, incorporation of herbicide tolerance traits, including glufosinate tolerance into canola, helped transform it from a marginal crop to a major crop grown on millions of acres. And we believe Camelina has the potential to follow a similar path. We have demonstrated tolerance to applications of glufosinate in three seasons of successful field tests of our lead spring HT Camelina variety. One main objective of our 2023 field testing was to collect and analyze the data on the seed composition of the herbicide tolerant lines compared to controls.

從歷史上看，將除草劑耐受性特徵（包括草銨膦耐受性）納入油菜籽中，有助於將其從邊緣作物轉變為數百萬英畝種植的主要作物。我們相信 Camelina 有潛力走類似的路。在對我們的領先春 HT 亞麻薺品種進行的三個成功的田間試驗中，我們證明了對草銨膦施用的耐受性。我們 2023 年田間測試的主要目標之一是收集和分析耐除草劑品系與對照品系的種子成分資料。

Samples have been harvested for these analyses. This is required for a data package to verify the safety of the meal for animal feed through a self determination process. We also intend to voluntarily submit this package to FDA in 2024. With field data in hand and seed scale-up activities underway, we remain on track to launch our first herbicide tolerant Camelina variety as early as 2025.

已採集樣本以用於這些分析。這是透過自決過程驗證動物飼料粉安全性的資料包所必需的。我們還打算在 2024 年自願向 FDA 提交該包。隨著現場數據的掌握和種子規模擴大活動的進行，我們預計最早在 2025 年推出我們的第一個耐除草劑亞麻薺品種。

Let's now turn to Slide 7. Over the course of 2023, we made good progress with the development of stacked herbicide tolerance in spring and winter Camelina. Our stacked herbicide tolerance Camelina exhibits tolerance to over-the-top applications of glufosinate for broadleaf weed control as well as tolerance to Group 2 herbicides in soil. Camelina is very sensitive to Group 2 residues. Thus, the Group 2 trait is important to provide Camelina with tolerance to SU and IMIs herbicides that may remain in the soil from a previous season's crop.

現在讓我們轉向幻燈片 7。2023 年，我們在春季和冬季亞麻薺的疊加除草劑耐受性開發方面取得了良好進展。我們的疊加除草劑耐受性亞麻薺表現出對草銨膦用於闊葉雜草控制的過度施用的耐受性以及對土壤中第 2 類除草劑的耐受性。亞麻薺對第 2 組殘留物非常敏感。因此，第 2 組性狀對於為亞麻薺提供對可能殘留在前一季作物土壤中的 SU 和 IMI 除草劑的耐受性非常重要。

This past summer, we reported encouraging data from our spring field trials, demonstrating robust stacked herbicide tolerance in multiple events. The photos on the slide show examples of events with stacked herbicide tolerance that has survived herbicide treatments. Little to no growth of control plants was observed in plants without stacked HT trait and plots labeled with red dots on the slide.

去年夏天，我們報告了春季田間試驗的令人鼓舞的數據，顯示在多個事件中具有強大的疊加除草劑耐受性。幻燈片上的照片顯示了經過除草劑處理後仍具有疊加除草劑耐受性的事件範例。在沒有堆疊HT性狀的植物中觀察到對照植物幾乎沒有生長，並且在載玻片上用紅點標記的圖上觀察到對照植物的生長很少或沒有生長。

We are currently analyzing agronomic data from the spring field trials and are measuring seed yield and seed oil content. We expect to choose the best lead and backup lines to move forward in our pipeline. In our winter 2023 field tests, we are testing for the first time, several candidate stacked HT winter Camelina lines. Here, too, we plan to choose the best lead and backup line to move forward in our pipeline based upon field test results.

我們目前正在分析春季田間試驗的農藝數據，並測量種子產量和種子含油量。我們希望選擇最好的主線和備用線來推進我們的管道。在 2023 年冬季現場測試中，我們首次測試了多個候選堆疊 HT 冬季亞麻薺系列。在這裡，我們還計劃根據現場測試結果選擇最佳的主線和備用線，以在我們的管道中前進。

Earlier in 2023, we filed a request for regulatory status review for RSR, with USDA-APHIS to determine if the stack trait is exempt from regulation. I am pleased to say that we also received a response this afternoon from USDA-APHIS stating that our HT stack is not considered regulated by the agency. We believe the stacked herbicide tolerance lines will be a win-win for growers and Yield10, as the trait will allow robust wheat control for farmers, potentially increasing yield and revenue and providing tolerance to soil residues of previously applied Group 2 herbicides. This is expected to result in broad expansion of acres available for Camelina planting.

2023 年初，我們向 USDA-APHIS 提交了 RSR 監管狀態審查請求，以確定堆疊性狀是否不受監管。我很高興地說，今天下午我們也收到了 USDA-APHIS 的回复，表示我們的 HT 堆疊不受該機構監管。我們相信，疊加的除草劑耐受性品系對於種植者和Yield10 來說將是雙贏，因為該性狀將使農民能夠對小麥進行強有力的控制，有可能增加產量和收入，並提供對先前施用的第2 類除草劑的土壤殘留的耐受性。預計這將導致亞麻薺種植面積的廣泛擴大。

Let's now turn to Slide 8. As shown in the figure on the right of the slide, our stacked herbicide tolerant E3902 is a highly engineered Camelina plant. The molecular stack in this plant is a result of the use of a variety of tools. The oil content trait in E3902, which improves seed oil content by 5%, was achieved by editing genes. We previously determined that the resulting genome edited E3902 line is not considered a regulated article with the submission to USDA-APHIS under the former IMI regulated process.

現在讓我們轉向幻燈片 8。如幻燈片右側的圖所示，我們的堆疊除草劑耐受性 E3902 是一種高度工程化的亞麻薺植物。該工廠的分子堆疊是使用多種工具的結果。 E3902的含油性狀透過基因編輯實現，可將種子含油量提高5%。我們先前確定，根據先前的 IMI 監管流程向 USDA-APHIS 提交的基因組編輯 E3902 係不被視為監管文章。

To incorporate stacked herbicide tolerance, we inserted a gene that confers tolerance glufosinate containing herbicides when expressed in a plant. We also inserted another mutated gene that when expressed in a plant confers tolerance to IMIs and SUs in both Group 2 herbicides. Modern biotech tools allow this straightforward stacking of traits and we believe that the US science-driven regulatory process is favorable for Camelina with stacked trait as evidenced by our recent positive decision from USDA-APHIS stating that our HT stack is not considered regulated by the agency.

為了整合疊加的除草劑耐受性，我們插入了一個基因，該基因在植物中表達時賦予含有草銨膦的除草劑耐受性。我們也插入了另一個突變基因，當基因在植物中表現時，會賦予植物對兩種 2 類除草劑中的 IMI 和 SU 的耐受性。現代生物技術工具允許這種簡單的性狀疊加，我們相信美國科學驅動的監管流程有利於具有疊加性狀的亞麻薺，美國農業部動植物衛生檢疫局最近的積極決定證明了這一點，該決定表明我們的HT 堆疊不被認為受到該機構的監管。

Our EPA8 Camelina is also based on a molecular stack of genes, enabling EPA production in the oil. We are utilizing molecular stacking to deploy new traits in Camelina with the aim to deliver ongoing enhancements to crop performance, which, if achieved, would bring enhanced revenue and margin to the crop. Our strategy is to create a pipeline of highly engineered elite Camelina varieties to deliver ongoing performance improvements in agronomics, yield, oil content, meal profile and other desirable attributes.

我們的 EPA8 Ca​​melina 也基於基因分子堆疊，可在油中產生 EPA。我們正在利用分子堆疊在亞麻薺中部署新性狀，目的是持續增強作物性能，如果實現的話，將為作物帶來更高的收入和利潤。我們的策略是創造一系列高度工程化的優質亞麻薺品種，以持續改進農藝學、產量、含油量、粉質和其他所需屬性的性能。

We are deploying these novel traits through genome editing, traditional genetic modifications and breeding to create new Camelina varieties. For example, we are deploying combinations of traits for additive effects where we are evaluating performance traits such as C3004, C3007 and C3020 and others to drive ongoing improvements to plant vigor, seed yield and oil content. As we create new engineered Camelina varieties, we intend to protect our Camelina varieties through plant variety protection and patent filings.

我們正在透過基因組編輯、傳統基因改造和育種來利用這些新特徵來創造新的亞麻薺品種。例如，我們正在部署具有附加效應的性狀組合，其中我們正在評估 C3004、C3007 和 C3020 等性能性狀，以推動植物活力、種子產量和含油量的持續改善。當我們創造新的工程亞麻薺品種時，我們打算透過植物品種保護和專利申請來保護我們的亞麻薺品種。

I'd like to acknowledge the tremendous efforts of the Yield10 technology team. Their continued diligent efforts to produce the elite herbicide tolerant Camelina germplasm that forms the foundation of our commercial Camelina pipeline for production of feedstock oils for biofuels. These herbicide-tolerant lines are expected to provide the elite Camelina germplasm background for high-level production of omega-3 oils, and in the future, PHA bioplastics.

我要感謝 Yield10 技術團隊所做的巨大努力。他們不斷努力生產優良的耐除草劑亞麻薺種質，這構成了我們用於生產生質燃料原料油的商業亞麻薺管道的基礎。這些耐除草劑品系預計將為高水準生產 omega-3 油以及未來的 PHA 生物塑膠提供優良的亞麻薺種質背景。

In the months ahead, we look forward to further field testing our lead commercial quality herbicide-tolerant Camelina lines, advancing the omega-3 oil technology platform, and we seek to secure favorable regulatory decisions for our elite Camelina products.

在接下來的幾個月中，我們期待進一步對我們領先的商業品質耐除草劑亞麻薺系列進行現場測試，推進omega-3 油技術平​​台，並尋求為我們的精英亞麻薺產品爭取有利的監管決策。

I'll now hand the call back to Oli.

現在我將把電話轉回給奧利。

Thanks, Kristi. Let's now turn to Slide 9, the omega-3 market opportunity. We secured the rights to the omega-3 Camelina technology from Rothamsted in 2020 because we believe that the omega-3 oils containing EPA and DHA fatty assets represent a very significant differentiated and growing market opportunity. These omega-3 fatty acids are essential to aquaculture feed and human nutrition. As we've highlighted before, there continues to be major global supply constraints and disruptions in oil produced from ocean harvested fish.

謝謝，克里斯蒂。現在讓我們轉向投影片 9，即 omega-3 市場機會。我們在 2020 年從 Rothamsted 獲得了 omega-3 Camelina 技術的權利，因為我們相信含有 EPA 和 DHA 脂肪資產的 omega-3 油代表了一個非常重要的差異化和不斷增長的市場機會。這些 omega-3 脂肪酸對於水產養殖飼料和人類營養至關重要。正如我們之前強調的那樣，全球供應仍然面臨重大限制，海洋捕撈魚類生產的石油也受到干擾。

It's been reported recently that the cancellation of the first Peruvian anchovy harvest earlier this year cost the industry $1 billion. And while the second anchovy harvest is going forward, the authorized catch is about 25% below 2022 levels, which is expected to extend the supply constraint on the industry. We are also seeing positive developments on the regulatory front with Norway, the largest producer of farm salmon, recently approving the use of a GMO omega-3 oil from Nuseed. They produce a DHA-containing oil in canola.

最近有報導稱，今年稍早秘魯第一批鳳尾魚收穫活動被取消，該產業損失了 10 億美元。雖然第二次鳳尾魚收穫正在進行，但授權捕撈量比 2022 年水平低約 25%，預計這將擴大對該行業的供應限制。我們也看到最大的農場鮭魚生產國挪威在監管方面取得了積極進展，最近批准使用 Nuseed 的基因改造 omega-3 油。他們在菜籽油中生產含有 DHA 的油。

As a result of continuing supply constraints as well as evidence of a more receptive regulatory environment, we are seeing increased third-party interest in alternative sources like the Camelina omega-3 platform. Based on the technology developed by Rothamsted, we believe that producing omega-3 fatty acids in Camelina represents a potential game changer for the Omega 3 and salmon farming industries by enabling a plant-based predictable supply of this high-value nutrition in a vein.

由於持續的供應限制以及更容易接受的監管環境的證據，我們看到第三方對 Camelina omega-3 平台等替代來源的興趣不斷增加。基於Rothamsted 開發的技術，我們相信，透過在亞麻薺中生產Omega-3 脂肪酸，可以透過靜脈中基於植物的可預測供應這種高價值營養，為Omega 3 和鮭魚養殖業帶來潛在的遊戲規則改變者。

Based on our successful collaboration with Professor Johnathan Napier's team at Rothamsted, we recently executed our exclusive option to an exclusive commercial license to the omega-3 Camelina. Reflecting industry interest in new sources omega-3, we also recently signed a letter of intent with BioMar Group, a global aquafeed producer and industry leader to develop a collaboration on the production of omega-3 for this market.

基於我們與 Rothamsted 的 Johnathan Napier 教授團隊的成功合作，我們最近執行了 omega-3 Camelina 獨家商業許可的獨家選擇。為了反映業界對新來源 omega-3 的興趣，我們最近還與全球水產飼料生產商和行業領導者 BioMar Group 簽署了一份意向書，旨在針對該市場生產 omega-3 開展合作。

Let's now turn to Slide 10, an overview of the omega-3 Camelina development status. On the regulatory front, we filed an RSR with USDA-APHIS in the third quarter for the EPA8 Camelina line, which produces oil with up to 20% EPA content. And we are preparing a second RSR filing for an omega-3 Camelina line that produces both EPA and DHA at levels similar to Northern Hemisphere fish oil. Using the RSR process for regulatory approval by USDA-APHIS under the secure role, we see a promising path to production of omega-3 in the US.

現在讓我們轉向投影片 10，概述 omega-3 Camelina 的開發狀態。在監管方面，我們在第三季向 USDA-APHIS 提交了 EPA8 Ca​​melina 生產線的 RSR，該生產線生產的油中 EPA 含量高達 20%。我們正在為 omega-3 Camelina 系列準備第二份 RSR 備案，該系列生產 EPA 和 DHA 的水平與北半球魚油相似。利用 RSR 流程獲得 USDA-APHIS 安全角色下的監管批准，我們看到了在美國生產 omega-3 的一條充滿希望​​的道路。

We recently began scaling up EPA, Camelina seed to support business development activities and potentially additional planting in 2024. The EPA8 oil will also have use in aquafeed formulations as it is closer to commercial production, and we can be blended with algae DHA oil. Rothamsted has also developed and extensively tested the omega-3 Camelina DHA1 line, which contains 10% EPA and 10% DHA in the oil.

我們最近開始擴大EPA、亞麻薺種子的規模，以支持業務發展活動以及2024 年可能的額外種植。EPA8 油也將用於水產飼料配方，因為它更接近商業化生產，並且我們可以與藻類DHA 油混合。 Rothamsted 也開發並廣泛測試了 omega-3 Camelina DHA1 系列，該系列油中含有 10% EPA 和 10% DHA。

Published results on aquafeed studies carried out in previous Rothamsted collaboration with BioMar have shown that the DHA1 oil can serve as a drop in replacement for fish oil. Human clinical studies also published have shown this oil to be an effective alternative to fish oil in the human diet. We look forward to completing the commercial license with Rothamsted, and working to form partnerships with BioMar and others to advance omega-3 Camelina towards commercialization. Chuck, over to you.

Rothamsted 先前與 BioMar 合作進行的水產飼料研究已發表的結果表明，DHA1 油可以作為魚油的替代品。同時發表的人體臨床研究表明，這種油是人類飲食中魚油的有效替代品。我們期待與 Rothamsted 完成商業許可，並努力與 BioMar 等公司建立合作關係，推動 omega-3 Camelina 走向商業化。查克，交給你了。

Thanks Oli, and good afternoon, everyone. Let's turn to Slide 11, third quarter results. We ended the third quarter of 2023 with $2.8 million in cash and cash equivalents. During our third quarter of 2023, we raised $3.7 million in a public offering of units, assisting of common shares and warrants. We expect that our cash on hand, including the proceeds from the offering, will support our operations into December of 2023. We are engaged in a dedicated and ongoing effort to secure additional funds in the very near-term in order to continue our operations.

謝謝奧利，大家下午好。讓我們看投影片 11，第三季的業績。截至 2023 年第三季末，我們的現金及現金等價物為 280 萬美元。在 2023 年第三季度，我們透過公開發行單位籌集了 370 萬美元，並協助發行普通股和認股權證。我們預計，我們手頭上的現金，包括此次發行的收益，將支持我們的營運直至 2023 年 12 月。我們正在致力於持續不斷的努力，以確保在短期內獲得額外資金，以繼續我們的營運。

Our net operating cash used for operating activities was $2.6 million for the third quarter of 2023 as compared to $2.7 million for the third quarter of last year. For the full year 2023, we continue to expect total net cash usage in the range of $12.5 million to $13 million to fund our operations, including remaining payments to our growers for the first Camelina grain harvest.

2023 年第三季我們用於經營活動的淨經營現金為 260 萬美元，而去年第三季為 270 萬美元。 2023 年全年，我們預計淨現金使用總額將在 1,250 萬美元至 1,300 萬美元之間，為我們的營運提供資金，包括為第一批亞麻籽穀物收穫向種植者支付的剩餘款項。

Let's now review the third quarter and year-to-date operating results. For the third quarter of 2023, Yield10 reported a net loss of $3.7 million or $0.41 a share as compared to a net loss of $3.5 million or $0.71 per share for the third quarter of the previous year. And as expected, due to the completion of our Department of Energy grant during our first quarter of this year, we did not report grant revenue during the third quarter of 2023. We did report $0.1 million in grant revenue in the third quarter of 2022.

現在讓我們回顧一下第三季和年初至今的營運表現。 2023 年第三季度，Yield10 報告淨虧損 370 萬美元，即每股 0.41 美元，而去年第三季度的淨虧損為 350 萬美元，即每股 0.71 美元。正如預期的那樣，由於我們的能源部撥款在今年第一季完成，我們沒有報告 2023 年第三季的撥款收入。我們確實報告了 2022 年第三季的 10 萬美元撥款收入。

R&D expenses were $2.2 million during the third quarter of 2023 and during the third quarter of 2023, we recorded our first $100,000 in payments received are due to us from shipments of seed and harvested grain to growers and offtake partners as an offset to R&D expense. R&D expenses in the third quarter of 2022 were $2.1 million.

2023 年第三季的研發費用為220 萬美元，在2023 年第三季度，我們記錄了我們收到的第一筆10 萬美元的付款，這些款項是我們向種植者和承購合作夥伴運送種子和收穫穀物的款項，作為研發費用的抵銷。 2022年第三季的研發費用為210萬美元。

General and administrative expenses were consistent between the 2 years at $1.5 million for the third quarter of both 2023 and 2022. For the 9 months ended September 30, 2023, the company reported a net loss of $11.2 million or $1.70 per share compared to a net loss of $10.3 million or $2.09 per share during the first 9 months of the previous year. Year-to-date grant revenue during 2023 and 2022 from the completed DOE grant were $0.1 million and $0.4 million, respectively.

2023 年和2022 年第三季的一般和管理費用在兩年內保持一致，均為150 萬美元。截至2023 年9 月30 日的9 個月，該公司報告淨虧損1,120 萬美元，即每股1.70美元，而去年同期淨虧損去年前 9 個月虧損 1,030 萬美元，即每股虧損 2.09 美元。 2023 年和 2022 年迄今已完成的能源部撥款收入分別為 10 萬美元和 40 萬美元。

Research and development expenses were $6.4 million and $5.9 million during the 9 months ended September 30, 2023, and September 30, 2022, respectively. G&A expenses were $4.9 million and $4.7 million during each of those periods. For more details on our financial results, I ask you to please refer to our earnings release. Oli, back to you.

截至2023年9月30日及2022年9月30日的9個月內，研發費用分別為640萬美元及590萬美元。每個期間的一般管理費用分別為 490 萬美元和 470 萬美元。有關我們財務業績的更多詳細信息，請參閱我們的收益發布。奧利，回到你身邊。

Thanks, Chuck. Let's now turn to Slide 12, upcoming milestones. Before getting into the upcoming milestones, I'd like to comment on the accomplishments of the Yield10 team, including the heart of the press news we received from USDA-APHIS this afternoon. Congratulations to the entire Yield10 technology team who, under Kristi's leadership, have demonstrated compelling capabilities in the development and regulatory approval of advanced Camelina varieties developed using genetic engineering. On the commercial side, we have set up a value chain in biofuels requiring seed production and grower engagement and charted a path to use Camelina as a platform crop to produce omega-3 fatty acids based on our collaboration with Rothamsted.

謝謝，查克。現在讓我們轉向投影片 12，即將到來的里程碑。在討論即將到來的里程碑之前，我想先評論一下 Yield10 團隊的成就，包括我們今天下午從 USDA-APHIS 收到的新聞核心內容。恭喜整個 Yield10 技術團隊，他們在 Kristi 的領導下，在使用基因工程開發的先進亞麻薺品種的開發和監管審批方面表現出了令人信服的能力。在商業方面，我們建立了一條生物燃料價值鏈，需要種子生產和種植者參與，並在與洛桑國際合作的基礎上製定了使用亞麻薺作為生產 omega-3 脂肪酸的平台作物的路徑。

For the biofuel market, we are continuing partnership discussions across the biofuel value chain to support ramping up acreage of Camelina to produce low carbon feedstock oil in that market. As we work to realize our vision of leading the industry and the commercialization of differentiated Camelina varieties, our focus is on introducing HT and stacked HT Camelina varieties that are well suited to farmer rotations in North America.

對於生物燃料市場，我們正在繼續討論整個生物燃料價值鏈的合作夥伴關係，以支持擴大亞麻薺種植面積，並在該市場生產低碳原料油。當我們努力實現引領產業和差異化亞麻薺品種商業化的願景時，我們的重點是引進非常適合北美農民輪作的耐高溫和堆疊耐高溫亞麻品種。

I was thrilled to hear from Kristi this afternoon that we have received regulatory clearance for HT and stacked HT Camelina. This is not only a major milestone for Yield10, but also a major milestone for Camelina as a new crop. These positive regulatory outcomes bode well not only for the pending review of our EPA Camelina RSR, but also for the DHA1 RSR we are preparing and for the performance traits in our pipeline. We are building seed inventory over the winter in South America to support grower contracts. We believe that omega-3 products represent a wide array of commercial opportunities. These essential fatty acids are used in aquaculture feed, pet food, pharmaceuticals, nutraceuticals and even cosmetics.

今天下午，我很高興從 Kristi 那裡得知我們已獲得 HT 和 Stacked HT Camelina 的監管許可。這不僅是Yield10的一個重要里程碑，也是亞麻薺作為新作物的重要里程碑。這些正面的監管結果不僅對我們的 EPA Camelina RSR 的待審審查有利，而且對我們正在準備的 DHA1 RSR 和我們管道中的性能特徵也是有利的。我們正在南美冬季建立種子庫存，以支持種植者合約。我們相信 omega-3 產品代表著廣泛的商業機會。這些必需脂肪酸用於水產飼料、寵物食品、藥品、營養保健品甚至化妝品。

We look forward to completing the commercial license with Rothamsted, and working with BioMar and others to form a partnership to produce omega-3 oil for use in aquafeed. There have been some recent patent awards and notices of allowance for filings in our IP portfolio over the last few months. As we continue to expand and build our intellectual property portfolio.

我們期待與 Rothamsted 完成商業許可，並與 BioMar 和其他公司合作，建立合作夥伴關係，生產用於水產飼料的 omega-3 油。在過去的幾個月裡，我們的智慧財產權組合中最近獲得了一些專利獎項和允許申請的通知。隨著我們不斷擴大和建立我們的智慧財產權組合。

With that, I'd like to turn the call back over to Lynne for questions.

說到這裡，我想把電話轉回給琳恩詢問問題。

Thanks, Oli. And Sarah, we're ready for questions.

謝謝，奧利。莎拉，我們準備好回答問題了。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Ben Klieve, Lake Street Capital Markets.

Ben Klieve，湖街資本市場。

All right. Thanks for taking my questions. Oli, in your prepared remarks, you noted that you were continuing to progress the biofuel partnerships. But there's no mention made of Marathon, Mitsubishi, or American in your prepared remarks. I'm wondering, first of all, if you could give us an update on the status of these three relationships. Are they all ongoing? Or have any of those parties exited discussions with you?

好的。感謝您回答我的問題。奧利，在您準備好的發言中，您指出您正在繼續推動生物燃料夥伴關係。但你準備好的發言中沒有提到馬拉松、三菱或美國。首先，我想知道您能否向我們介紹這三種關係的最新情況。它們都在進行嗎？或者這些團體中是否有任何一方退出了與您的討論？

So I'm not going to get into too many details, but no one has exited at this point, and we have indicated that we are in extensive discussions in the biofuel space with other parties. So it's a very busy area, as you can imagine. I think the issue, of course, is a small company working with these giants to get things to the point where we mutually agree on the path forward, and that's what we're working on. So nothing has changed with those guys.

所以我不會透露太多細節，但目前還沒有人退出，我們已經表示我們正在與其他各方就生物燃料領域進行廣泛討論。所以你可以想像，這是一個非常繁忙的地區。當然，我認為問題在於一家小公司與這些巨頭合作，讓我們就前進的道路達成一致，這就是我們正在努力的方向。所以那些人沒有任何改變。

Okay. Well, that's good to hear. And a follow-up to that, to your comment right there, I mean, I'm wondering -- I appreciate you're not going to get in on the specifics, but I'm wondering if, on a high level, you can talk about kind of what the barriers, if any, have been to converting these relationships to a commercial or investment or a formal investment. Is there any kind of broad characterization that you can help make to give us confidence that these are going to be reaching a successful completion here soon?

好的。嗯，很高興聽到這個消息。對此的後續行動，對於你的評論，我的意思是，我想知道——我很欣賞你不會參與具體細節，但我想知道，從高層次上來說，你是否可以談談將這些關係轉化為商業或投資或正式投資的障礙（如果有的話）。您是否可以幫助我們做出任何廣泛的描述，讓我們相信這些工作很快就會成功完成？

So no, I think we remain very optimistic that we will achieve a successful partnership. Obviously, that takes to us to agree on the structure of the funding and how we go about this. So no, we don't -- we can't really provide color on individual bonds. But I would say overall on the interest remains very strong. There's been new players come to the table, which is great. But ultimately, it's a matter of getting the time and the decisions made within those organizations to essentially go forward on the fact that we want to go forward on. So we can't really provide too much color on individual companies.

所以不，我認為我們對建立成功的合作關係仍然非常樂觀。顯然，這需要我們就資金結構以及我們如何進行這項工作達成一致。所以不，我們不能——我們不能真正為單一債券提供顏色。但我想說，總體而言，人們的興趣仍然非常強烈。有新玩家加入進來，很棒。但最終，問題是要獲得時間並在這些組織內做出決定，以基本上推進我們想要前進的事實。因此，我們無法對個別公司提供太多的資訊。

Okay. Fair enough. Last one for me and then I'll get back in line. You called out $100,000 of Camelina grain deliveries that were recognized as an offset to R&D in the quarter. Can you talk about the level of inventories of grain you have today or grain that's expected to arrive here soon for future delivery over the next quarter, over the next year. And if those are going to be recognized as revenue or as continued, still as R&D offsets?

好的。很公平。這是我的最後一站，然後我會重新排隊。您調出了 10 萬美元的亞麻薺穀物交付量，這被視為本季研發的抵銷。您能談談目前的穀物庫存水準嗎？或者預計很快就會抵達這裡以便在下個季度、明年交付的穀物庫存水準。如果這些收入將被確認為收入，還是繼續被確認為研發抵銷額？

So I think, obviously, we're in that sort of gray zone between revenue and reimbursement. And obviously, we're working with the audit group to make sure that we stay on the right side of the fence on that. So I'm not sure we can provide much more color. We do have additional grain, and, or oil in hand, but we're trying to essentially use that strategically versus simply to make a quick sale. I mean, we have avenues to sell that or get reimbursed for it, if you like. But our goal is to leverage that oil for other purposes and we have discussions ongoing regarding a more strategic use of that material.

所以我認為，顯然，我們處於收入和報銷之間的灰色地帶。顯然，我們正在與審計小組合作，以確保我們在這方面保持正確的立場。所以我不確定我們是否可以提供更多的顏色。我們手頭上確實有額外的穀物和/或石油，但我們試圖從本質上策略性地使用它們，而不是簡單地進行快速銷售。我的意思是，如果你願意的話，我們有管道出售它或獲得補償。但我們的目標是將這些石油用於其他目的，我們正在討論如何更具策略性地使用該材料。

Oli, I think we've also indicated we completed the harvest from the first two seasons.

奧利，我想我們也表明我們已經完成了前兩個季節的收穫。

Yeah, we have completed the harvest, and that's basically where we are.

是的，我們已經完成了收穫，這基本上就是我們現在的情況。

And I would add to that, Ben, that as we talked about seed scale up as well, we are positioning across our portfolio of existing Camelina lines that are commercial as well, so the HT and stacked HT that are coming behind it to build inventory to support those launches that we anticipating. So, that's also part of the picture to be able to have sufficient seed for grower contracts.

Ben，我想補充一點，當我們談到種子規模擴大時，我們正在對現有的亞麻薺系列產品組合進行定位，這些產品線也是商業化的，因此 HT 和堆疊 HT 會在其背後建立庫存支持我們預期的發布。因此，這也是能夠為種植者合約提供足夠種子的一部分。

Yeah. that's fair enough. That's an important calculus to make at this stage. So, understood on all counts. Alright, that's it for me. Thanks for taking my questions and I will get back in line.

是的。這很公平。這是現階段需要進行的重要計算。所以，各方面都明白。好吧，對我來說就是這樣。感謝您提出我的問題，我會重新排隊。

Okay. Thanks Ben.

好的。謝謝本。

Anthony Vendetti, Maxim Group.

安東尼文代蒂，馬克西姆集團。

Hi, thanks for taking the questions. This is actually Jeremy on the line for Anthony. Just one quick question. Is there any overlap between all these different segments that you are in, meaning is there a limit when you grow something you are sort of have to focus on growing a Camelina for, let's say, for the crushers or for the herbicide tolerance, or are they separate and you could really just keep growing each segment of the business (multiple speakers) --

您好，感謝您提出問題。這其實是傑瑞米為安東尼打的電話。只是一個簡單的問題。您所處的所有這些不同細分市場之間是否有重疊，這意味著當您種植某些東西時，是否存在限制，您必須專注於種植亞麻薺，例如，為了破碎機或除草劑耐受性，或者是他們分開了，你真的可以繼續發展業務的每個部分（多個發言者）--

No, the way to think about it, Jeremy, is that the first generation was obviously the lines, for example, WDH2, that we started the grain contracting with or the E3902. Obviously, what's going to happen is those lines will be (technical difficulty) generation two, generation three. So they will all ultimately end up HT. It's just that it takes time to transition through this process of scale up with non-engineered lines and ultimately replace those with the engineered lines, which have higher value, higher productivity, better integration into crop rotations. And that will be a continuous process just like [our] Corteva or any of the big seed companies does. There is a continuous improvement process in place.

不，Jeremy，思考這個問題的方式是，第一代顯然是我們開始使用穀物合約的WDH2或E3902的品系。顯然，將會發生的事情是這些線路將是（技術難度）第二代、第三代。所以他們最終都會變成HT。只是，透過非工程生產線擴大規模並最終用工程生產線取代那些需要時間，工程生產線具有更高的價值、更高的生產力、更好地融入作物輪作。這將是一個持續的過程，就像我們的 Corteva 或任何大型種子公司所做的那樣。有一個持續改進的流程。

Okay, understood, thank you. And just one last question, you mentioned that you think you can get commercialization for the herbicide stacked Camelina -- herbicide tolerance test Camelina in 2025. What is that -- I know it's a little early, but what does that commercialization look like to you? Like how does that play out?

好的，明白了，謝謝。最後一個問題，您提到您認為您可以在2025 年將除草劑堆疊的亞麻薺進行商業化——除草劑耐受性測試亞麻薺。那是什麼——我知道現在有點早，但您認為這種商業化是什麼樣的？效果如何？

Well, I mean obviously, in terms of commercialization, and I will let Kristi speak to the technology because it's a pretty big accomplishment for a small company. Really fundamentally what it's going to come down to, we have got other steps in the regulatory process to go through. The biggest one and the most expensive one for the point of view of the development is really the USDA-APHIS because obviously, if you are doing this work under permitted conditions, it's very expensive.

嗯，我的意思顯然是，在商業化方面，我會讓克里斯蒂談論這項技術，因為這對一家小公司來說是一個相當大的成就。從根本上來說，我們在監管過程中還需要採取其他步驟。從發展的角度來看，最大、最昂貴的實際上是美國農業部動植物衛生檢疫局（USDA-APHIS），因為顯然，如果你在允許的條件下進行這項工作，那麼它的成本非常昂貴。

And there is a lot of these restrictions and regulations around it as there should be until they deregulate it because they believe it's safe. So, I think the reality of it is, is that we are going to move forward with this and I think we have a great project coming up. We know from the farmers, they want this. But we need to make sure we check all the boxes in 2025. But at that time, we will also built up quite a bit of, I don't want to use the word inventory, but available seed for larger-scale planting as well as generate the grower interest in using it. We know the grower interest is very, very strong. But obviously, we have got more work to do in '24 to get to that point.

圍繞著它有很多這樣的限制和規定，這是應該有的，直到他們放鬆管制，因為他們相信它是安全的。所以，我認為現實是，我們將繼續推進這個項目，我認為我們即將推出一個偉大的項目。我們從農民那裡得知，他們想要這個。但我們需要確保在 2025 年勾選所有選項。但到那時，我們還將建立相當多的，我不想使用「庫存」這個詞，但也將有可用於大規模種植的種子從而激發種植者使用它的興趣。我們知道種植者的興趣非常非常強烈。但顯然，要達到這個目標，我們在 24 年還有更多工作要做。

And do you want to talk a little bit about the -- (technical difficulty)

你想談談－（技術難度）

Yeah, you can talk. Yeah, that will be great.

是的，你可以說話。是的，那會很棒。

Well, I guess all I can say is that our lead event for the glufosinate tolerance is very robust in this field, and it's ideal for approval for regulatory agencies. So, the team has done a great job in constructing that event and evaluating it.

好吧，我想我能說的是，我們的草銨膦耐受性主導活動在該領域非常穩健，並且非常適合監管機構批准。因此，團隊在建立該活動並對其進行評估方面做得非常出色。

Okay. Alright, thank you. I will get back in the queue.

好的。好的，謝謝。我會回到隊列中。

(Operator Instructions)

（操作員說明）

Noel Parks with Tuohy Brothers.

諾埃爾·帕克斯和圖伊兄弟。

Hi, good afternoon.

嗨，下午好。

Hi.

你好。

Hi Noel.

嗨諾埃爾。

Hi. Sorry, there's a little problem with my phone option, just a second. Sorry.

你好。抱歉，我的手機選項有點問題，請稍等。對不起。

Okay.

好的。

Okay. To come back, I was just wondering if -- you were just talking about glufosinate tolerance. But I was wondering if you could maybe just drill down a bit more into feedback from growers, from the most recent harvest and looking towards the next crops. And I am sort of thinking in terms of -- if any of the feedback you have gotten, say, year-to-date, has really made any changes in terms of where you are headed in the product development?

好的。回來，我只是想知道您是否只是在談論草銨膦耐受性。但我想知道您是否可以更深入地了解種植者的反饋，從最近的收穫和展望下一批作物。我在思考——今年迄今為止，您收到的任何回饋是否真的對您產品開發的方向做出了任何改變？

Yeah. Noel, I think I can kind of give you kind of a broad kind of sweeping overview. I think in general, obviously, it was a pretty bad drought in that area of the North America this year. And so I think the number one thing was actually compared to the other crops that I am growing in my farm, this thing looks really very good. It's obviously very robust to drought conditions. It does require water. But it is very robust. I think the other aspect of it, of course, is that as they look at the rotations, and we talk to them about the herbicide tolerance we are developing, that's when they get very excited about it because they see ways to leverage that herbicide tolerance.

是的。諾埃爾，我想我可以給你一個廣泛而全面的概述。我認為總的來說，今年北美那個地區顯然經歷了相當嚴重的乾旱。所以我認為第一件事實際上是與我在農場種植的其他作物相比，這件事看起來真的非常好。顯然它對乾旱條件非常有抵抗力。它確實需要水。但它非常堅固。當然，我認為另一方面是，當他們觀察輪換，我們與他們談論我們正在開發的除草劑耐受性時，他們會對此感到非常興奮，因為他們找到了利用除草劑耐受性的方法。

This is a way to better manage their rotation. So, that's another very encouraging thing. And so I think in general, I would say the feedback is to remain very interested. And one thing we did see and at least coming from the -- our commercial team was a lot more interest from the growers enhancing spring Camelina in 2024 because of some of the challenges they had with some of the other crops. So, that was interesting to see.

這是更好地管理輪換的一種方法。所以，這是另一個非常令人鼓舞的事情。所以我認為總的來說，我會說反饋是保持非常感興趣。我們確實看到了一件事，至少來自——我們的商業團隊對 2024 年增強春季亞麻薺的種植者更感興趣，因為他們在其他一些作物上遇到了一些挑戰。所以，這很有趣。

Now, at the back end of 2023, of course, you have had a drought for many months. And so the soil is very, very dry. And so we actually backed off in some of the winter planting just because of the drought conditions in some areas, recognizing that that's probably the right thing to do at this stage while we bring forward these next generations of lines, so strong interest.

當然，現在到了 2023 年底，你們已經經歷了好幾個月的乾旱。所以土壤非常非常乾燥。因此，我們實際上只是因為某些地區的乾旱狀況而推遲了一些冬季種植，並認識到這可能是現階段應該做的正確的事情，同時我們推出了這些下一代品系，因此產生了濃厚的興趣。

It's definitely got the attention of the growers, no question about that. The growers are also, as I have said, very excited about the prospects for the glufosinate tolerant Camelina and then the stacked Camelina because if they are using these group 2s and a significant share of their acreage, those acreages are just not available for planting Camelina immediately after. So, they are definitely giving feedback that we are working on the right things, we are doing the right thing. Not to be negative in anybody, but one of them did tell me that if we were doing lipase that they are throwing us off the farm because of some of the weed issues they have seen.

毫無疑問，它肯定引起了種植者的注意。正如我所說，種植者也對耐草銨膦亞麻薺和堆疊亞麻薺的前景感到非常興奮，因為如果他們使用這些 2 類亞麻薺及其大部分面積，那麼這些面積就無法用於種植亞麻薺之後立刻。因此，他們肯定會給予回饋，表明我們正在做正確的事情，我們正在做正確的事情。不要對任何人持消極態度，但其中一位確實告訴我，如果我們做脂肪酶，他們就會因為他們看到的一些雜草問題而把我們趕出農場。

So, they are pretty vocal. They have strong opinions and very smart people because, of course, being a farmer is not easy. So yes, it's clear that we are working on the right thing. It's clear we have got to do it right. This first step with USDA-APHIS indicating the science is absolutely solid, and they don't see really any risk. The next step is obviously just what we believe is getting the data on the meal and demonstrating it's safe. So, I think the way I look at it going forward, it's all about two things. It's about safety, and it's about science. You get the science right and get the safety right. And then make sure it's adding value for the grower and that's the way we are focusing on developing our new products.

所以，他們的聲音非常好聽。他們有強烈的意見和非常聰明的人，因為當然，當農民並不容易。所以，是的，很明顯我們正在做正確的事情。很明顯，我們必須正確行事。美國農業部動植物檢疫局的第一步顯示科學絕對可靠，他們並沒有看到任何真正的風險。顯然，下一步就是獲取膳食資料並證明其安全性。所以，我認為我對未來的看法主要有兩件事。這事關安全，也事關科學。您掌握了正確的科學知識並確保了安全。然後確保它為種植者增加價值，這就是我們專注於開發新產品的方式。

Great. Thanks for that detail. And then sort of heading to another part in the value chain. I wondered, as you have continue talking with various parties about partnership, could you generally characterize what discussions with your integrated oil companies or the downstream refining companies are these days? I am just-- well two things. I am kind of curious about the attention span. And part of that is that there-- in my mind, there have been in their general sort of ESG, decarbonization portfolios, they have made some -- some of them have made some fairly puzzling investments, I would say, over the last couple of quarters. And also, I recognize that they can also tend to be kind of bureaucratic, which means it can take a while to get consensus on things. So, anything that you say about that would be great.

偉大的。謝謝你的詳細資料。然後轉向價值鏈的另一個部分。我想知道，您一直在與各方談論合作夥伴關係，您能否概括地介紹一下最近與您的綜合石油公司或下游煉油公司的討論情況？我只是──嗯，有兩件事。我對注意力持續時間有點好奇。其中一部分是——在我看來，他們在 ESG、脫碳投資組合中進行了一些投資——我想說，在過去的幾年中，他們中的一些人進行了一些相當令人費解的投資宿舍。而且，我認識到他們也可能傾向於官僚主義，這意味著可能需要一段時間才能就事情達成共識。所以，你對此所說的任何話都很好。

Yeah. So, I think let me just position two things. So, we are really pushing forward right now on two different oil products. And it's absolutely crystal clear to the entire biofuel sector. If you add 9.5 billion gallons of new vegetable oil demand by 2030 and the entire soybean and canola crop only produces around 8.5 billion gallons today, assuming we just stopped eating it. Then guess what, the math tells you is there is going to be a disconnect, so everybody knows this, everybody understands that.

是的。所以，我想讓我定位兩件事。因此，我們現在確實正在推動兩種不同的石油產品。對於整個生物燃料產業來說，這絕對是一目了然的。如果到 2030 年增加 95 億加侖的新植物油需求，假設我們剛剛停止食用，那麼整個大豆和油菜籽作物今天僅生產約 85 億加侖。然後你猜怎麼著，數學告訴你將會出現脫節，所以每個人都知道這一點，每個人都明白這一點。

Of course, then you get into the challenges around very large or, obviously, bureaucratic organizations with really smart people, I mean very, very smart people. But of course, they don't have the domain space in agriculture, farming and seed genetics. So, of course that is a hurdle. And then you have got the hurdle of there is a little -- this is small company in Woburn, Massachusetts, basically indicating that they are going to get -- basically going to go and do what Bayer and Monsanto did and be successful at it.

當然，然後你會面臨非常大的挑戰，或者顯然是官僚組織的挑戰，這些組織有非常聰明的人，我的意思是非常非常聰明的人。但當然，他們在農業、種植業和種子遺傳學方面沒有領域空間。所以，這當然是一個障礙。然後你會遇到一個障礙——這是一家位於馬薩諸塞州沃本的小公司，基本上表明他們將——基本上會去做拜耳和孟山都所做的事情，並取得成功。

And by the way, we just demonstrated we can be. And so we kind of have to show them we can do this because, of course, there is definitely an issue there. But I think when I look at the whole space, I would say, the entire sector knows this is going to be a crunch. They have been pretty open in the discussions with us that they know Canada oilseeds, particularly winter oilseeds, are going to be critical for the future of low-carbon intensity biofuel feedstocks. And then you get into the nuts and bolts of how do we make that happen. And that's where the learning experience just takes time, they just takes time.

順便說一句，我們剛剛證明了我們可以做到。所以我們必須向他們展示我們可以做到這一點，因為當然，那裡肯定存在問題。但我認為，當我審視整個領域時，我想說，整個產業都知道這將是一場危機。他們在與我們的討論中非常開放，他們知道加拿大油籽，特別是冬季油籽，對於低碳強度生物燃料原料的未來至關重要。然後您將了解我們如何實現這一目標的具體細節。這就是學習經驗需要時間的地方，他們只是需要時間。

And like everyone else in the sector, they want to turn the path. They just want to turn the valve and the pipe will flow out Camelina oil. Well, it doesn't work that way because these species have to be tested. There are some seed. There is the crusher. And so -- but getting the hinter on it. And some of these things that you have seen with CoverCress, and Bunge, and Bayer and obviously, Chevron, I mean that's happening. It's happening, it just takes time.

和該行業的其他人一樣，他們希望改變道路。他們只要轉動閥門，管道就會流出亞麻薺油。但事實並非如此，因為這些物種必須經過測試。有一些種子。那裡有破碎機。所以——但要得到暗示。你在 CoverCress、Bunge、Bayer 以及雪佛龍公司看到的一些事情，我的意思是這種情況正在發生。它正在發生，只是需要時間。

And you have got to get the circumstances right, You have got the location right. So, I think we are making phenomenal progress for a small company. And then if you kind of look at that and say, well, how does that compare to what's going on in omega-3 as well. Guess what, that disconnect between supply and demand has happened to that industry in a massive way. We have heard estimates that fish oil prices, which used to be $2,000 a ton are $9,000 a ton.

你必須找到正確的環境，你必須找到正確的地點。因此，我認為對於一家小公司來說，我們正在取得驚人的進步。然後如果你看看這個並說，好吧，這與 omega-3 中發生的情況相比如何。你猜怎麼著，供需之間的脫節已經在這個行業中發生了巨大的變化。我們聽說魚油價格從過去的每噸 2,000 美元漲到了每噸 9,000 美元。

And by the way, if you want to use [algor] systems to produce this, to make 20,000 tons, you have to invest $200 million if you get the Veramaris investment that went into the facility in Blair, Nebraska. So, when you look at the two things, they are obviously quite different. It's something for same technology, the same herbicide technology, the same Camelina. The difference is the omega-3 has been further modified to make this much higher value oil, and the market demand there is literally off the charts.

順便說一句，如果你想使用 [algor] 系統來生產這種產品，要生產 20,000 噸，如果你獲得 Veramaris 在內布拉斯加州布萊爾工廠的投資，你必須投資 2 億美元。所以，當你看這兩件事時，它們顯然是完全不同的。這是相同的技術、相同的除草劑技術、相同的亞麻薺。不同之處在於，omega-3 已被進一步改良，以製成這種價值更高的油，而且那裡的市場需求簡直是空前的。

So, very different, they are all based on the same technology, based on all of the investment we have made in new varieties in herbicide tolerance, and the partnership with Rothamsted. The difference being, we announced we are executing the exclusive option and within a few weeks, we have got an agreement in place with BioMar. And I can tell you that we have had a lot of interest from a number of others. So, it's just a different dynamic because that industry knows they need us here, we have to solve the problem. And so they are moving faster than the biofuel oil is.

因此，非常不同的是，它們都基於相同的技術，基於我們對除草劑耐受性新品種的所有投資，以及與洛桑銀行的合作。不同的是，我們宣布我們正在執行獨家選項，並在幾週內與 BioMar 達成協議。我可以告訴你，其他許多人對我們很感興趣。所以，這只是一個不同的動態，因為該行業知道他們需要我們，我們必須解決問題。因此它們的發展速度比生物燃料更快。

Got it. Thank you. And just one last thing, kind of touches on what you were just talking about. As you look ahead to the need to build inventory to support grower contracts, I am just thinking, is that -- does that imply any capital investment on your part down the road? And if so, is that a particular timeframe or can you sort of use leased facilities, equipment, etcetera, to handle that?

知道了。謝謝。最後一件事有點觸及你剛才所說的內容。當您展望需要建立庫存來支持種植者合約時，我只是在想，這是否意味著您今後會進行任何資本投資？如果是這樣，這是一個特定的時間範圍，還是您可以使用租賃的設施、設備等來處理這個問題？

Yeah. So, in terms of that, I mean, really, the issue is at some point, it will be a question of working capital associated with our planting seed inventory. That's what it's going to be. I mean would be it, but of course, the whole idea that we have with this value chain is to have off-take for the product, the oil and the meal lined up ahead of time. So, essentially when we took the transfer of the grain from the grower to the processing facility or to the storage facility, they get paid and we get paid and we pay them. So, it's going to be done fairly seamlessly. That's what we have basically been doing with the rigor we have in Western Canada. And ultimately, as it goes, the business may likely evolve into different business models for sure, as it gets big.

是的。因此，就這一點而言，我的意思是，實際上，問題在某種程度上是與我們的種植種子庫存相關的營運資金問題。事情就是這樣。我的意思是會這樣，但當然，我們對這個價值鏈的整體想法是提前安排產品、石油和膳食的承購。因此，本質上，當我們將穀物從種植者轉移到加工設施或儲存設施時，他們得到報酬，我們得到報酬，我們也付給他們。所以，這將相當無縫地完成。這就是我們在加拿大西部基本上一直在嚴格執行的事情。最終，隨著業務的發展，隨著業務規模的擴大，它肯定可能會演變為不同的商業模式。

Great. Thanks a lot.

偉大的。多謝。

Okay, Noel, thank you for your questions. They were great.

好的，諾埃爾，謝謝你的提問。他們很棒。

Thank you.

謝謝。

And I think, Oliver, I will turn the call back to you for closing remarks.

奧利弗，我想我會將電話轉回給您進行結束語。

So I'd like to personally thank all of you for joining us on the call tonight and especially our shareholders for your continued support and I want to thank everybody at Yield10 for contributions of keeping us on track to reach our commercial and product development goals. Have a nice evening.

因此，我個人要感謝大家今晚參加我們的電話會議，特別是我們的股東的持續支持，我要感謝 Yield10 的每個人為讓我們走上實現商業和產品開發目標所做的貢獻。祝你今晚愉快。

Thank you, everyone, for joining. You may now disconnect.

謝謝大家的加入。您現在可以斷開連線。

My apologies. Go ahead.

我很抱歉。前進。

That's fine. That's it. We are going to disconnect now, Noel. Thank you.

沒關係。就是這樣。我們現在要斷開連接了，諾埃爾。謝謝。