Moolec Science SA(MLEC) - 2023 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2023, was $1,740,050, compared to $0 in the same period in 2022[6] - Cost of sales for the same period was $1,519,642, resulting in a gross loss of $1,519,642[6] - The net loss for the period was $1,591,003, compared to a net loss of $721,426 in the prior year, representing an increase of 120%[6] - The consolidated loss before income tax for the three months ended September 30, 2023, was $1,806,294, compared to a loss of $721,426 for the same period in 2022[57] - The basic and diluted loss per ordinary share for the three months ended September 30, 2023, was $(0.04), compared to $(0.02) for the same period in 2022[64] Expenses - Research and development expenses increased to $387,736 from $372,932 year-over-year, reflecting a growth of 4%[6] - Administrative expenses surged to $1,863,418, up from $314,565, indicating a significant increase of 493%[6] - Total administrative expenses for the three months ended September 30, 2023, were $1,863,418, significantly higher than $314,565 for the same period in 2022[61] - Research and development expenses for the three months ended September 30, 2023, totaled $387,736, compared to $372,932 in the prior year[62] - The charge for share-based payment plans recognized during the three months ended September 30, 2023, was $235,522, compared to $42,373 in the same period of 2022[52] - Key management personnel compensation for Q3 2023 included short-term employee benefits of $15,375 and share-based payments of $214,963, compared to $40,341 in Q3 2022[66] Assets and Liabilities - Total assets decreased to $22,491,999 as of September 30, 2023, down from $24,051,289 as of June 30, 2023, a decline of 6.5%[9] - Cash and cash equivalents fell to $853,594 from $2,527,673, a decrease of 66.3%[9] - Total equity decreased to $8,891,610 from $10,105,933, reflecting a decline of 12%[9] - Total financial assets as of September 30, 2023, amounted to $11,774,756, a decrease from $13,288,008 as of June 30, 2023[70] - Total financial liabilities as of September 30, 2023, were $12,757,356, slightly down from $12,873,549 as of June 30, 2023[70] - The net financial liability as of September 30, 2023, was $(982,600), a decline from a net asset of $414,459 as of June 30, 2023[70] Working Capital and Financial Position - As of September 30, 2023, the Group has a negative working capital of $9,316,239, primarily due to reorganization expenses and financial debts exceeding account receivables[21] - The company reported trade and other receivables of $10,920,899 as of September 30, 2023, compared to $10,454,301 as of June 30, 2023[70] - The company has a committed equity financing facility of up to $50 million with Nomura, which can be utilized over a 36-month period[45] - The Group's financial statements have been prepared on a going concern basis, indicating confidence in the ability to realize assets and discharge liabilities in the normal course of operations[26] Shareholder and Financing Activities - Moolec Science Limited issued shares to new shareholders, with an aggregate purchase price of $15,000,000 due within five years, accruing an internal rate of return of 13.20%[41] - The Group's management has entered into an agreement to issue a convertible note due 2026 to Grupo Insud, which is expected to improve the financial situation over the next 12 months[21] - The company has entered into an agreement to issue a convertible note to Grupo Insud for approximately $21 million, with a strike price of $6.00 per share[72] - The total amount from the convertible notes, including cash and in-kind contributions, is approximately $30 million[74] Inventory and Assets Valuation - Total inventories decreased to $390,293 as of September 30, 2023, compared to $465,748 as of June 30, 2023[43] - The net book amount of intangible assets as of September 30, 2023, was $8,330,685, down from $8,519,098 as of June 30, 2023[39] - The fair value of warrants as of September 30, 2023, was $389,961, down from $887,689 as of June 30, 2023[55] - Warrant liabilities decreased to $389,961 as of September 30, 2023, from $887,689 as of June 30, 2023[70] Supply Agreements - The company secured a supply agreement for approximately 15,000 tons of HB4® soybeans with Bioceres Crop Solutions, which may be upsized for a similar volume[73]