Moolec Science SA(US:MLEC)2024-10-30 18:53Market Overview - The company operates in the global processed meat products ingredients market, estimated to be approximately US$30 billion[305]. - The serviceable obtainable market for the company's products could reach US$30 billion, contingent on successful product development and commercialization[352]. - The company has entered into contracts with customers in over 14 countries, indicating a broad international market presence[339]. Acquisitions and Partnerships - The company acquired ValoraSoy Food Ingredients for a total consideration of US$2.6 million, enhancing its capabilities in producing textured soy proteins[312]. - The acquisition of ValoraSoy Food Ingredients was completed for a total consideration of US$2.6 million, enhancing the company's capabilities in producing textured soy proteins and expanding its commercial network[336]. - The partnership with Insud for Microo Food Ingredients aims to produce animal-free ingredients, enhancing the company's R&D capabilities and expanding its product offerings[337]. Technology and Innovation - The company holds a growing international patent portfolio of 25 patents, both granted and pending, which supports its competitive advantage in molecular farming technology[307]. - The company has identified and sought patent protection for over 3 patents related to its food ingredients and meat replacement technologies, with 19 patents currently held and 12 applications pending[358]. - The company’s molecular farming technology is designed to produce animal proteins in plants, potentially increasing nutritional value while maintaining cost efficiency[324][326]. - The company has ongoing R&D projects focused on expressing proteins in host plants, with service agreements in place with various research institutions[361]. Financial Performance - Revenue increased from $905,049 for the year ended June 30, 2023, to $5,625,124 for the year ended June 30, 2024, representing a growth of 521.5%[397]. - Cost of sales rose from $1,048,354 in 2023 to $5,152,543 in 2024, an increase of 391.5%[398]. - Research and development expenses increased by $421,056 or 31.2%, from $1,351,217 in 2023 to $1,772,273 in 2024[399]. - Administrative expenses grew by $2,714,195 or 56.4%, from $4,808,655 in 2023 to $7,522,850 in 2024[400]. - Financial costs surged by $1,005,383, from $160,035 in 2023 to $1,165,418 in 2024, a rise of 628.2%[401]. - Net loss before income tax decreased from $52,023,422 in 2023 to $8,359,245 in 2024, a reduction of 83.9%[398]. - Net cash used in operating activities increased by $1,816,915, from $7,511,353 in 2023 to $9,328,268 in 2024[409]. - Cash and cash equivalents at the end of the year increased to $5,389,928 in 2024 from $2,527,673 in 2023[408]. Management and Staffing - The company’s management team consists of experienced PhDs and industry insiders, providing insights into scalable and sustainable demand fulfillment[327]. - As of June 30, 2024, the company employed 52 staff members, including 11 Ph.D. scientists, across multiple countries[379]. - As of June 30, 2024, the total number of employees increased to 52, up from 45 in June 30, 2023, representing a 15.6% growth[445]. - 88% of total employees were located in Argentina as of June 30, 2024, compared to 89% in June 30, 2023[445]. Regulatory and Compliance - The company has received regulatory approvals from USDA-APHIS for its GLA safflower and soybean Piggy Sooy products, eliminating the need for permits for their movement and release[368][369]. - The company has submitted a dossier to Argentina's Ministry of Agriculture for processing approval of GLASO, indicating ongoing regulatory efforts in the region[372]. Strategic Plans - The company aims to address supply chain vulnerabilities highlighted by geopolitical conflicts, which have affected the availability of animal-derived ingredients[315]. - The company is positioned to capitalize on the shift in consumer preferences towards health, sustainability, and ethical sourcing[314]. - The company plans to expand its sales and marketing team to educate consumers and respond to market trends as it grows its brand[353]. - The company is currently marketing GLASO, which is at the product launch stage, and expects to accelerate marketing efforts in the upcoming months[389]. Capital and Financing - The company plans to finance future capital needs through private placements, public offerings, and collaborations, as it relies on raising capital until sufficient revenue is generated[393]. - The company issued a convertible note to Insud for an aggregate principal amount of approximately US$21 million, with an initial cash payment of US$10 million[466]. - The convertible note will mature in 36 months and will initially accrue interest at 10.0% per annum, including a "payment-in-kind" feature[467]. - The company has the option to convert the principal amount outstanding under the convertible notes into ordinary shares at a strike price of US$6.00 per share if the trading price exceeds this for 10 trading days[467]. Governance - The Board of Directors consists of five members, with each director eligible for reappointment after a one-year mandate[434]. - The company has established an audit committee, a compensation committee, and a nominating committee, all operating under written charters[435]. - The company’s audit committee consists of three members, all of whom meet independence standards and financial literacy requirements[436]. - The compensation committee is responsible for evaluating the performance and compensation of the Chief Executive Officer and other executive officers[441]. - The nominating committee oversees succession planning for the Chief Executive Officer and other executive officers[443]. Legal Matters - The company is not currently involved in any legal proceedings as of the date of the report[471]. - The company entered into indemnification agreements with directors and executive officers to protect against liabilities incurred in their roles[468].