Group 1 - BioHarvest Sciences Inc. (NASDAQ: BHST) is positioned in the growing field of plant-based biotechnology, utilizing proprietary "botanical synthesis" technology to produce high-value molecules from plants without the need to cultivate entire plants [1] - The company represents a compelling investment opportunity due to its innovative approach and potential for significant growth in the biotechnology sector [1] Group 2 - The investment strategy discussed emphasizes a combination of technical analysis and the CAN SLIM methodology to identify high-growth companies that may be overlooked by mainstream analysts [1] - Key indicators for identifying potential investment opportunities include strong financial momentum, rapid earnings growth, and signs of institutional interest, which often precede substantial stock price movements [1] - The research process integrates both fundamental and technical perspectives, focusing on indicators such as relative strength, unusual trading volume, and earnings acceleration to pinpoint stocks poised for significant breakouts [1]

Core Insights - BioHarvest Sciences Inc. will host a Virtual Investor Webinar on September 10, 2025, at 1:00 PM ET to provide updates on corporate initiatives and future plans [1][2] - CEO Ilan Sobel will discuss new capability-building initiatives and the company's 'Big Bets' for the second half of 2025, including the Health Pros program and hydration products [2] - The webinar will include a question-and-answer session for participants, emphasizing the company's focus on profitable growth and long-term shareholder value [2] Company Overview - BioHarvest Sciences Inc. is a leader in Botanical Synthesis, utilizing patented technology to grow active ingredients in plants without cultivating the plants themselves [4] - The company operates in two main business verticals: as a contract development and production organization (CDMO) for complex molecules and as a creator of proprietary nutraceutical health and wellness products [4] - BioHarvest aims to develop science-based and clinically proven therapeutic solutions, enhancing its product offerings and expanding its CDMO pipeline [4]

Summary of BioHarvest Sciences (BHST) FY Conference Call - August 12, 2025 Company Overview - **Company Name**: BioHarvest Sciences (BHST) - **Industry**: Biotechnology focusing on plant cell biology and health products - **Founded**: February 2007 - **Key Product**: Vinia, a Red Grape Cell Circulation Superfood - **Revenue**: Over $60 million from Vinia since entering the U.S. market in May 2021 [6][25] Core Business Segments 1. **Direct to Consumer (DTC) Business Unit** - Focus on health and wellness products sold directly to consumers - Current run rate of $34 million with a 60% gross profit margin, aiming for 65% [21][22] - 90% of sales are subscription-based with a 24-hour cash turnaround [21] - Vinia has received high consumer ratings (4.7 out of 5) [26] 2. **Contract Development and Manufacturing Organization (CDMO)** - Launched 16 months ago, with a gross profit margin of over 70% [23] - Three major contracts in development for life-changing compounds [23][49] - Unique optionality in the biotech space, allowing for diverse applications of technology [24][56] Technology and Innovation - **Platform Technology**: - **Mirror, Magnify, Multiply**: The process used to enhance the production of phytonutrients from plant cells [12] - Non-GMO methods to increase the levels of critical phytonutrients economically [10][20] - Unique patents and processes that allow for consistent production of plant-based compounds [10][21] - **Key Product Features**: - Vinia contains 100 times more piceid resveratrol than found in red grapes, which is 25 times more soluble than regular resveratrol [15][61] - Demonstrated clinical efficacy in improving blood flow and reducing oxidative damage [28][31] Market Position and Strategy - **Market Size**: The U.S. supplement market is valued at $56 billion, with a focus on science-based products [27] - **Consumer Demand**: Increasing interest in health and wellness products that offer scientifically backed benefits [34] - **Product Expansion**: Plans to launch new products in coffee, tea, and hydration categories, leveraging the same technology [35][38] Financial Performance and Projections - **Revenue Generation**: The manufacturing facility can produce $65 million in revenue annually with a one-time capital expenditure of $5 million [25] - **Adjusted EBITDA**: The company aims to achieve a positive adjusted EBITDA by Q4 2025 [55] - **Gross Profit Growth**: Increased from 32% to 60% over two years without price increases, maintaining a focus on democratizing health products [53][55] Partnerships and Collaborations - **Strategic Partnerships**: Collaborations with major companies like Tate and Lyle for developing non-nutritive natural sweeteners [40][49] - **Contractual Agreements**: Engaged with a NASDAQ-listed pharmaceutical company and other firms in the fragrance and nutraceutical sectors [46][50] Key Challenges and Solutions - **Industry Challenges**: Addressing the historical issues that led pharmaceutical companies to move away from plant-based solutions [8][11] - **Sustainability Focus**: Commitment to environmental sustainability while unlocking the potential of the plant kingdom [7][57] Conclusion - BioHarvest Sciences positions itself as a unique player in the biotech industry, leveraging advanced technology to create high-demand health products while maintaining a strong focus on sustainability and consumer health. The company is on track for significant growth through its innovative product offerings and strategic partnerships.

Financial Performance - BioHarvest Sciences Inc. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.11, and compared to a loss of $0.04 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $8.52 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.91%, while year-ago revenues were $6.03 million, showing growth but still falling short of expectations [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once, indicating challenges in meeting market expectations [2] Stock Performance - BioHarvest Sciences Inc. shares have increased approximately 41.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.6% [3] - The current Zacks Rank for the stock is 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $10.78 million, and for the current fiscal year, it is -$0.32 on revenues of $40.4 million, indicating ongoing challenges [7] - The outlook for the Medical - Biomedical and Genetics industry, where BioHarvest operates, is currently in the bottom 41% of Zacks industries, which may negatively impact stock performance [8]

FINANCIAL STATEMENTS [Unaudited Interim Condensed Consolidated Statements of Financial Position](index=3&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) BioHarvest Sciences Inc.'s financial position as of June 30, 2025, shows increased assets and liabilities, with shareholders' equity shifting to a deficit | Metric | As at June 30, 2025 ($ thousands) | As at December 31, 2024 ($ thousands) | Change ($ thousands) | % Change | | :---------------------------------- | :--------------------------------- | :----------------------------------- | :------------------- | :------- | | Total assets | 27,798 | 25,001 | 2,797 | 11.19% | | Total liabilities | 32,021 | 23,671 | 8,350 | 35.27% | | Total Shareholders' equity (deficit) | (4,223) | 1,330 | (5,553) | -417.52% | | Current Assets Category | As at June 30, 2025 ($ thousands) | As at December 31, 2024 ($ thousands) | Change ($ thousands) | % Change | | :------------------------ | :--------------------------------- | :----------------------------------- | :------------------- | :------- | | Cash and cash equivalents | 3,727 | 2,390 | 1,337 | 55.94% | | Trade accounts receivable | 1,614 | 1,116 | 498 | 44.62% | | Other accounts receivable | 858 | 695 | 163 | 23.45% | | Inventory | 4,127 | 3,655 | 472 | 12.91% | | **Total current assets** | **10,326** | **7,856** | **2,470** | **31.44%** | | Current Liabilities Category | As at June 30, 2025 ($ thousands) | As at December 31, 2024 ($ thousands) | Change ($ thousands) | % Change | | :--------------------------- | :--------------------------------- | :----------------------------------- | :------------------- | :------- | | Trade accounts payable | 3,421 | 3,525 | (104) | -2.95% | | Other accounts payable | 4,503 | 3,609 | 894 | 24.77% | | Deferred revenue | 990 | 906 | 84 | 9.27% | | Lease liabilities | 1,454 | 772 | 682 | 88.34% | | Loans | 4,722 | 3,905 | 817 | 20.92% | | Liability for Agricultural Research Organization | 1,552 | 1,140 | 412 | 36.14% | | Accrued liabilities | 463 | 401 | 62 | 15.46% | | **Total current liabilities** | **17,105** | **14,258** | **2,847** | **19.97%** | [Unaudited Interim Condensed Consolidated Statements of Loss and Other Comprehensive Loss](index=4&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Loss%20and%20Other%20Comprehensive%20Loss) For H1 2025, BioHarvest Sciences Inc. reported a net loss of $6,418 thousand, an improvement from prior year, driven by revenue growth | Metric | Three-months ended June 30, 2025 ($ thousands) | Three-months ended June 30, 2024 ($ thousands) | Six-months ended June 30, 2025 ($ thousands) | Six-months ended June 30, 2024 ($ thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Revenues | 8,515 | 6,027 | 16,375 | 11,371 | | Cost of revenues | 3,429 | 2,925 | 6,694 | 5,266 | | Gross profit | 5,086 | 3,102 | 9,681 | 6,105 | | Total operating expenses | (6,901) | (4,878) | (13,215) | (9,305) | | Operating loss | (1,815) | (1,776) | (3,534) | (3,200) | | Finance expenses (income) | 2,226 | 378 (1,467 income) | 2,807 (49 income) | 4,117 | | Net loss and comprehensive loss | (4,080) | (687) | (6,418) | (7,268) | | Basic and diluted loss per share | (0.24) | (0.04) | (0.37) | (0.48) | - Revenue increased by **44.01%** to **$16,375 thousand** for the six months ended June 30, 2025, compared to $11,371 thousand in the prior year period[6](index=6&type=chunk) - Gross profit increased by **58.58%** to **$9,681 thousand** for the six months ended June 30, 2025, from $6,105 thousand in the prior year period[6](index=6&type=chunk) [Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Deficit)](index=4&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20(Deficit)) Shareholders' equity shifted from positive to a $(4,223) thousand deficit by June 30, 2025, primarily due to comprehensive loss | Metric | As at December 31, 2024 ($ thousands) | Six-month period ended June 30, 2025 ($ thousands) | As at June 30, 2025 ($ thousands) | | :-------------------------- | :------------------------------------ | :------------------------------------------------- | :-------------------------------- | | Balance, December 31, 2024 | 1,330 | - | - | | Share based compensation | - | 316 | - | | Warrants extension | - | 549 | - | | Comprehensive loss for the period | - | (6,418) | - | | **Balance, June 30, 2025** | - | - | **(4,223)** | - The Company's shareholders' equity decreased by **$5,553 thousand**, moving from a positive balance of **$1,330 thousand** at December 31, 2024, to a deficit of **$(4,223) thousand** at June 30, 2025[7](index=7&type=chunk) - A 35-for-1 share consolidation was approved by shareholders on May 27, 2024, and became effective on June 3, 2024[35](index=35&type=chunk) [Unaudited Interim Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, BioHarvest Sciences Inc. saw a net cash increase of $1,353 thousand, driven by financing offsetting operating and investing uses | Cash Flow Activity | Six-months ended June 30, 2025 ($ thousands) | Six-months ended June 30, 2024 ($ thousands) | YoY Change ($ thousands) | | :---------------------------------- | :------------------------------------------- | :------------------------------------------- | :----------------------- | | Net cash used in operating activities | (2,883) | (2,536) | (347) | | Net cash used in investing activities | (1,272) | (2,155) | 883 | | Net cash provided by financing activities | 5,508 | 4,490 | 1,018 | | Increase (Decrease) in cash and cash equivalents | 1,353 | (201) | 1,554 | | Cash and cash equivalents at the end of the period | 3,727 | 5,168 | (1,441) | - Cash used in operating activities increased by **$347 thousand**, from **$2,536 thousand** in 2024 to **$2,883 thousand** in 2025[10](index=10&type=chunk) - Cash provided by financing activities increased by **$1,018 thousand**, from **$4,490 thousand** in 2024 to **$5,508 thousand** in 2025, primarily due to proceeds from loans[10](index=10&type=chunk) NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS [NOTE 1 - GENERAL](index=7&type=section&id=NOTE%201%20-%20GENERAL) This note details BioHarvest Sciences Inc.'s operations, technology, business units, going concern status, and war impact [Description of the Company and its operations](index=7&type=section&id=Description%20of%20the%20Company%20and%20its%20operations) BioHarvest Sciences Inc. is a Canadian biotech company, listed on Nasdaq, using its Botanical Synthesis Platform for products and CDMO - BioHarvest Sciences Inc. was incorporated on April 19, 2013, in British Columbia, Canada, and is publicly listed on Nasdaq (BHST) and various German stock exchanges (8MV0)[11](index=11&type=chunk)[13](index=13&type=chunk) - The Company utilizes its proprietary Botanical Synthesis Platform Technology to grow active ingredients from plants at an industrial scale, offering high concentrations, solubility, and bioavailability without genetic modification or environmental impacts of traditional agriculture[16](index=16&type=chunk) - BioHarvest Sciences operates two business units: the Products Business Unit (Nutraceuticals and Cosmeceuticals) and the CDMO Services Business Unit (Contract Development and Manufacturing Operations for plant-based active molecules)[17](index=17&type=chunk)[24](index=24&type=chunk) [Going concern](index=8&type=section&id=Going%20concern) Accumulated deficit and negative operating cash flows raise substantial doubt about the Company's going concern ability - The Company has an accumulated deficit of **$102,836 thousand** as of June 30, 2025, and generated negative cash flows from operating activities of **$2,883 thousand** for the six-month period, raising substantial doubt about its ability to continue as a going concern[18](index=18&type=chunk) - Management plans to fund near-term activities through capital fundraising, debt instruments (convertible, short-term, and long-term loans), and future revenues[19](index=19&type=chunk) [War in Israel](index=8&type=section&id=War%20in%20Israel) Company operations in Israel face geopolitical risks, with no material impact reported to date - The Company's principal operations and most key employees are located in Israel, which has experienced ongoing conflicts, including war with Hamas, Hezbollah, and recent hostilities with Iran[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - As of the issuance date of these financial statements, these events have had no material impact on the Company's operations[23](index=23&type=chunk) [NOTE 2 - BASIS OF PREPARATION](index=9&type=section&id=NOTE%202%20-%20BASIS%20OF%20PREPARATION) Interim financial statements adhere to IFRS and IAS 34, consistently applying prior annual policies, with no material impact from new IAS 21 - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS Accounting Standards) and IAS 34 Interim Financial Reporting[25](index=25&type=chunk) - The significant accounting policies applied in the annual financial statements as of December 31, 2024, are applied consistently in these interim statements[26](index=26&type=chunk) [New IFRSs adopted in the period](index=9&type=section&id=New%20IFRSs%20adopted%20in%20the%20period) Amendments to IAS 21 on exchangeability were adopted, with no material effect on financial statements - The Company adopted amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates" (Lack of Exchangeability), effective January 1, 2025, which introduce requirements for assessing currency exchangeability and estimating spot exchange rates[27](index=27&type=chunk)[28](index=28&type=chunk) - These amendments have had no material effect on the unaudited interim condensed consolidated financial statements[28](index=28&type=chunk) [NOTE 3 - LEASES](index=9&type=section&id=NOTE%203%20-%20LEASES) The Company leases Israeli facilities and equipment, recognizing right-of-use assets and liabilities, with recent extensions for Yavne and Rehovot - The Company leases facilities in Israel (Rehovot and Yavne) and certain property and equipment, with all leases accounted for by recognizing a right-of-use asset and a lease liability, except for low-value assets or leases of 12 months or less[29](index=29&type=chunk)[31](index=31&type=chunk) - On January 16, 2025, the Yavne manufacturing facility lease was amended until September 2025, with two 6-month extension options that the Company believes will be exercised[29](index=29&type=chunk)[30](index=30&type=chunk) - On June 1, 2025, the Rehovot laboratories and offices lease was amended until May 2028, with an option for partial or complete early termination, which the Company believes is probable[32](index=32&type=chunk)[33](index=33&type=chunk) [NOTE 4 - SHARE CAPITAL](index=10&type=section&id=NOTE%204%20-%20SHARE%20CAPITAL) As of June 30, 2025, BioHarvest Sciences Inc. had 17,333,430 common shares outstanding, reflecting RSU issuances, warrant extensions, and a 35-for-1 consolidation | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Common shares issued and outstanding | 17,333,430 | 17,327,716 | - On June 10, 2025, the Company issued **5,714** common shares in lieu of vested RSUs[34](index=34&type=chunk) - The Company extended the expiry dates of **493,239** Early Conversion Warrants and **257,143** Major Investor Warrants on April 11, 2025, and **9,794** Early Conversion Warrants on June 3, 2025, by an additional **24 months** in connection with new loan facilities[35](index=35&type=chunk) | Warrants Outstanding (June 30, 2025) | Exercise Price | Expiry Date | | :----------------------------------- | :------------- | :---------- | | 261,031 | $7.77 | October 30, 2025 | | 257,143 | $7.77 | October 30, 2027 | | 150,978 | $11.52 | December 28, 2025 | | 724,904 | $7.77 | October 30, 2025 | | 453,597 | $7.77 | October 30, 2027 | | 131,279 | $7.77 | December 22, 2025 | | 49,436 | $7.77 | December 22, 2027 | | **Total** | **2,028,368** | | [NOTE 5 - SHARE BASED COMPENSATION](index=11&type=section&id=NOTE%205%20-%20SHARE%20BASED%20COMPENSATION) For H1 2025, BioHarvest Sciences Inc. recognized $316 thousand in equity-settled share-based compensation, with options decreasing and some warrant expiry dates extended | Metric | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :-------------------------- | :------------------------------------------- | :------------------------------------------- | | Equity settled compensation | 316 | 328 | | Options Activity | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Options outstanding at beginning of period | 1,902,090 | 1,807,456 | | Forfeited | (16,310) | (14,119) | | Options outstanding at the end of the period | 1,885,780 | 1,902,090 | | Weighted Average Exercise Price (end of period) | $6.33 | $6.30 | | Weighted-average contractual life (end of period) | 6.03 years | 6.80 years (June 30, 2024) | - On April 11, 2025, the expiry date of **64,986** warrants, accounted for as share-based compensation, was extended by an additional **24 months** in connection with new loan facilities[40](index=40&type=chunk) [NOTE 6 - LOANS](index=13&type=section&id=NOTE%206%20-%20LOANS) BioHarvest Sciences Inc. has various loan facilities, including short-term loans, Convertible Loan A, and new investor notes, totaling $1,677 thousand and $3,925 thousand respectively, plus $1,733 thousand for unclosed facilities | Loan Category | As at June 30, 2025 ($ thousands) | As at December 31, 2024 ($ thousands) | | :-------------------- | :--------------------------------- | :----------------------------------- | | Current loans | 4,722 | 3,905 | | Non-current loans | 5,262 | - | | **Total Loans** | **9,984** | **3,905** | [Short-term loans](index=13&type=section&id=Short-term%20loans) The Company secured **$1,677 thousand** in 12-month short-term loans from private investors, bearing **16%** or **20%** annual interest - During the six months ended June 30, 2025, the Company borrowed **$1,677 thousand** in short-term loans from private investors[41](index=41&type=chunk) - These loans bear annual interest rates of **16%** (monthly payments) or **20%** (payment at term end) and have a **12-month** term[41](index=41&type=chunk)[45](index=45&type=chunk) | Metric | Six-month period ended June 30, 2025 ($ thousands) | | :------------------------------------ | :------------------------------------------------- | | Proceeds from drawing loans | 1,677 | | Accrued interest recognized in Profit or loss | 420 | | Repayment of principal and interest | (1,305) | | **Balance as of June 30, 2025** | **4,166** | [Unconverted portion of Convertible loan A](index=13&type=section&id=Unconverted%20portion%20of%20Convertible%20loan%20A) An unconverted portion of Convertible Loan A, totaling **$556 thousand**, is immediately due and accrues **9%** annual interest - As of June 30, 2025, an unconverted portion of Convertible Loan A, totaling **$556 thousand** (including principal and accrued interest), was due for immediate payment[43](index=43&type=chunk) - The Company accrues **9%** annual interest on the due amount until it is fully repaid, and lenders can demand immediate payment at any time[42](index=42&type=chunk) [Returning investor notes](index=14&type=section&id=Returning%20investor%20notes) The Company received **$3,925 thousand** from new returning investor notes with varying interest rates and extended warrant expiry dates - During the six months ended June 30, 2025, the Company received **$3,925 thousand** from new loan facilities (returning investor notes), bearing interest rates of **5%**, **10%**, and **12%** per annum over a **24-month** term[46](index=46&type=chunk)[47](index=47&type=chunk) - As additional compensation, the Company extended the expiry dates of **503,033** Early Conversion Warrants, **257,143** Major Investor Warrants, and **64,986** warrants held by lenders for an additional **24 months**[48](index=48&type=chunk) | Metric | Six-month period ended June 30, 2025 ($ thousands) | | :------------------------------------ | :------------------------------------------------- | | Proceeds from drawing loans | 3,925 | | Recognition of debt discount | (549) | | Amortization of debt discount | 59 | | Accrued interest recognized in Profit or loss | 90 | | **Balance as of June 30, 2025** | **3,501** | [Funds received for new loan facilities that were not yet closed](index=15&type=section&id=Funds%20received%20for%20new%20loan%20facilities%20that%20were%20not%20yet%20closed) The Company received **$1,733 thousand** for a new convertible loan facility, bearing **8%** annual interest, with conversion options after **12 months** - During the six months ended June 30, 2025, the Company received **$1,733 thousand** for a new convertible loan facility that had not yet closed[54](index=54&type=chunk)[55](index=55&type=chunk) - This facility will bear **8%** annual interest over a **36-month** term, with lenders having the option to convert into common shares after **12 months** at a discounted market price, subject to floor and ceiling prices[52](index=52&type=chunk)[55](index=55&type=chunk) | Metric | Six-month period ended June 30, 2025 ($ thousands) | | :------------------------------------ | :------------------------------------------------- | | Proceeds from drawing loans | 1,733 | | Accrued interest recognized in Profit or loss | 28 | | **Balance as of June 30, 2025** | **1,761** | [NOTE 7 - RELATED PARTIES TRANSACTIONS](index=16&type=section&id=NOTE%207%20-%20RELATED%20PARTIES%20TRANSACTIONS) This note details transactions and balances with related parties, including key management, showing increased management fees and accrued interest for H1 2025 - Related parties include the Company's CEO, CFO, Chairman of the Board, and Directors[56](index=56&type=chunk) | Compensation of Key Management Personnel (Six months ended June 30) | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change ($ thousands) | YoY % Change | | :------------------------------------------------ | :----------------- | :----------------- | :----------------------- | :----------- | | CEO Management fees | 402 | 204 | 198 | 97.06% | | Chairman of the Board Management fees | 314 | 231 | 83 | 35.93% | | CFO Management fees | 103 | 15 | 88 | 586.67% | | Directors Management fees | 107 | - | 107 | N/A | | Share based compensation to CFO | 3 | - | 3 | N/A | | Related Party Balances (As of June 30) | 2025 ($ thousands) | 2024 ($ thousands) | | :----------------------------------- | :----------------- | :----------------- | | Due to the CEO | 258 | 29 | | Due to the Chairman of the Board | 741 | - | | Due to the CFO | 259 | - | [NOTE 8 - OPERATING SEGMENTS](index=17&type=section&id=NOTE%208%20-%20OPERATING%20SEGMENTS) BioHarvest Sciences Inc. operates two segments: Products (nutraceuticals/cosmeceuticals) and CDMO Services, with Products generating significantly higher revenue and North America as the dominant market [Segment description](index=17&type=section&id=Segment%20description) The Company operates two distinct segments: Products (nutraceuticals/cosmeceuticals) and CDMO Services - The Company has two operating segments: the Products business unit (focused on nutraceuticals and cosmeceuticals) and the CDMO Services business unit (offering contract development and manufacturing for plant-based active molecules)[63](index=63&type=chunk)[68](index=68&type=chunk) [Segment information](index=17&type=section&id=Segment%20information) Segmental data for H1 2025 and 2024 details revenues, cost of revenues, R&D, and segment loss for Products and CDMO Services | Metric (Six months ended June 30, 2025) | Products ($ thousands) | CDMO Services ($ thousands) | Total ($ thousands) | | :-------------------------------------- | :--------------------- | :-------------------------- | :------------------ | | Revenues | 15,741 | 634 | 16,375 | | Cost of revenues | 6,439 | 255 | 6,694 | | Research and development | 1,891 | 691 | 2,582 | | Segment loss | 2,973 | 561 | 3,534 | | Metric (Six months ended June 30, 2024) | Products ($ thousands) | CDMO Services ($ thousands) | Total ($ thousands) | | :-------------------------------------- | :--------------------- | :-------------------------- | :------------------ | | Revenues | 11,221 | 150 | 11,371 | | Cost of revenues | 5,159 | 107 | 5,266 | | Research and development | 1,824 | 298 | 2,122 | | Segment loss | 2,724 | 476 | 3,200 | [Entity wide disclosures](index=18&type=section&id=Entity%20wide%20disclosures) Geographical revenue breakdown shows North America as the primary market, with significant growth in both Israel and North America | External Revenue by Location (Six months ended June 30) | 2025 ($ thousands) | 2024 ($ thousands) | YoY Change ($ thousands) | YoY % Change | | :-------------------------------------- | :----------------- | :----------------- | :----------------------- | :----------- | | Israel | 1,603 | 1,059 | 544 | 51.37% | | North America | 14,772 | 10,312 | 4,460 | 43.25% | | **Total** | **16,375** | **11,371** | **5,004** | **44.01%** | [Additional information about revenue](index=18&type=section&id=Additional%20information%20about%20revenue) No single customer accounted for **10%** or more of total revenue for the periods ended June 30, 2025 and 2024 - There is no single customer for which revenue amounts to 10% or more of total revenue for the three and six months ended June 30, 2025, and 2024[71](index=71&type=chunk) [NOTE 9 - SUBSEQUENT EVENTS](index=18&type=section&id=NOTE%209%20-%20SUBSEQUENT%20EVENTS) Subsequent to June 30, 2025, BioHarvest Sciences Inc. received an additional **$750 thousand** for a new convertible loan facility - After June 30, 2025, the Company received an additional **$750 thousand** as part of a new convertible loan facility[72](index=72&type=chunk)

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the team includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans to maintain quality and best practices in content production [5]

Financial Data and Key Metrics Changes - Revenue increased by 41% year over year to $8,500,000, aligning with guidance [6][24] - Gross profit rose by 65% to $5,100,000, representing 60% of total revenue, compared to 52% in the same quarter last year [24] - Adjusted EBITDA loss was $1,300,000, an improvement from a loss of $1,200,000 in the same quarter last year, with a percentage of revenue loss decreasing from 20.7% to 14.7% [26] Business Line Data and Key Metrics Changes - The direct-to-consumer health and wellness products division saw total active Vineyard customers reach approximately 65,000, with subscription customers being the majority [6] - The Amazon business accounted for about 20% of total sales, showing strong performance in conversion rates and repeat purchases [6] - New products contributed to 20% of incremental revenue growth, now making up 10% of total revenue [9] Market Data and Key Metrics Changes - Vinnia maintained premium pricing in the resveratrol market, with a 4.7-star average rating on vineyard.com [8] - The company is expanding its market presence with new product launches, including superfood teas and a hydration solution targeting the $13 billion electrolyte drinks market [11][17] Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA breakeven by Q4 2025, driven by product scaling and CDMO service growth [4][21] - A new HealthPros professional affiliate program is being launched to enhance market exposure and drive subscriber growth [14] - The company is focusing on continuous improvement in its botanical synthesis process, including digitization and automation [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching adjusted EBITDA breakeven, citing strong consumer engagement and product performance [26][29] - The company is optimistic about the potential of its CDMO services and the discovery phase for identifying promising botanical compounds [19][46] - Management acknowledged the impact of tariffs but indicated that it has been manageable through operational efficiencies [49] Other Important Information - The company is actively working on expanding its CDMO pipeline, with expectations to announce new contracts by the end of the year [44] - The hydration product is set to launch in October, with a focus on athletes and health-conscious consumers [83] Q&A Session Summary Question: Consumer product launches and expectations for the second half of the year - Management reported positive feedback on the 2X formula and anticipates continued momentum, particularly with the new HealthPro channel [33][36] Question: Update on the CDMO pipeline and specific opportunities - Management confirmed a significant pipeline with multiple leads and expressed confidence in announcing new deals soon [42][44] Question: Impact of tariffs on operations - Management stated that the tariff impact has been factored into projections and is manageable through cost efficiencies [48][49] Question: Overview of sales channels by year-end - The core direct-to-consumer business remains dominant, with plans to expand the HealthPros channel significantly [54][58]

Core Insights - BioHarvest Sciences reported a robust 41% year-over-year revenue growth for Q2 2025, reaching $8.5 million, driven by strong sales in its core VINIA® capsule business and new product launches [4][6] - The company aims to achieve adjusted EBITDA breakeven by Q4 2025, supported by continued growth in its product lines and a strong CDMO pipeline [3][4] Financial Performance - Total revenues for Q2 2025 increased to $8.5 million from $6.0 million in Q2 2024, with gross margins expanding by 800 basis points to 60% [4][6] - Gross profit rose 65% to $5.1 million, attributed to increased manufacturing scale and improved yields [7] - Operating expenses increased to $6.9 million from $4.8 million year-over-year, primarily due to higher marketing spend and costs associated with the CDMO services division [8] Net Loss and Cash Position - The net loss for Q2 2025 was $4.0 million, or $0.24 per share, compared to a net loss of $0.7 million, or $0.04 per share, in Q2 2024 [9] - Cash and cash equivalents as of June 30, 2025, totaled $3.7 million, up from $2.4 million at the end of 2024 [10] Product and Market Developments - The company has launched new products, including VINIA® Daily Chews 2X Formula, and secured a new CDMO contract for developing a plant-based fragrance compound [4][13] - Management expects to launch additional products and CDMO services in the second half of 2025, including an electrolyte drink targeting the $13 billion hydration market [4][13] Strategic Initiatives - BioHarvest is focusing on three growth initiatives: expanding its Health Pros affiliate program, launching a new electrolyte drink, and introducing an AI-enabled CDMO discovery phase [13] - The company continues to position its botanical synthesis technology as a commercial engine for high-value plant-based compounds [5]

Core Viewpoint - BioHarvest Sciences Inc. is set to release its financial results for the second quarter of 2025 on August 11, 2025, before market opening, and will host an investor conference call to discuss these results and provide a corporate update [1][2]. Company Overview - BioHarvest Sciences Inc. is a leader in Botanical Synthesis, utilizing its patented technology platform to cultivate plant-based compounds without the need for the actual plants [4]. - The company operates in two main business verticals: as a contract development and production organization (CDMO) for clients seeking novel plant-based compounds, and as a creator of proprietary nutraceutical health and wellness products, including dietary supplements [4]. Conference Call Details - The investor conference call will take place on August 11, 2025, at 8:00 a.m. Eastern Time, with dial-in options provided for U.S./Canada and international participants [2]. - A playback of the call will be available until August 25, 2025, with specific numbers provided for accessing the playback [3].

Group 1 - BioHarvest Sciences Inc. (BHST) shares increased by 5.6% to close at $7.29, supported by higher trading volume compared to normal sessions [1] - The company's proprietary technology platform for growing plant-based molecules without the need for the underlying plant has generated positive investor sentiment [1] - The stock has shown a 0.1% gain over the past four weeks, indicating a recent upward trend [1] Group 2 - The company is expected to report a quarterly loss of $0.11 per share, reflecting a year-over-year change of -175%, while revenues are projected to be $8.77 million, up 45.4% from the previous year [2] - The consensus EPS estimate for BioHarvest has remained unchanged over the last 30 days, suggesting that stock price movements may not continue without earnings estimate revisions [3] - BioHarvest Sciences Inc. holds a Zacks Rank of 3 (Hold), indicating a neutral outlook compared to other stocks in the Zacks Medical - Biomedical and Genetics industry [4] Group 3 - Ultragenyx, another company in the same industry, closed 5.9% higher at $28.01, but has seen a -28.9% return over the past month [4] - Ultragenyx's consensus EPS estimate has changed by -1.8% over the past month to -$1.28, which is a +15.8% change from the previous year [5] - Ultragenyx currently has a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to BioHarvest [5]