BioHarvest Sciences Issues Year End Shareholder Letter

Core Insights - BioHarvest Sciences achieved a significant milestone in 2025, marking its first full year as a NASDAQ-listed company with an annualized revenue run rate exceeding US$36 million and gross margins above 60% [1] - The company is focused on expanding its D2C Products and CDMO Services business units, aiming for continued growth and achieving adjusted EBITDA breakeven in the near term [1] D2C Products Business - The D2C Products business, particularly the VINIA® brand, has seen aggressive growth and product diversification, leveraging the 'VINIA Inside' strategy to enhance brand awareness and market penetration [2] - The VINIA Blood Flow Hydration Solution has received positive consumer feedback and is positioned to capture a share of the US$13 billion Electrolyte Hydration market [3] - Active users of VINIA products have exceeded 85,000, with over 90% of purchases being subscription-based, indicating a strong and predictable revenue stream [4] CDMO Services Division - The CDMO Services division reached a critical inflection point in 2025, securing partnerships across various industries and validating the commercial relevance of its Botanical Synthesis platform [5] - The division is working on two major new plant-based compounds, including a fragrance compound and a saffron-derived compound, with significant market potential [6] - The expectation is that CDMO revenues will surpass those of the Products division as the business continues to scale [6] Financial Strength and Growth - The company improved its balance sheet in 2025, raising approximately US$30.8 million through various financing methods, positioning itself for further growth and efficiency [7] - Increased analyst coverage and trading volume following the NASDAQ listing are seen as positive indicators for achieving a fair market valuation [8] - BioHarvest is fully funded for operational objectives and strategic capital investments, including the development of a new corporate campus and expanded manufacturing facilities [9] Future Priorities - The company's priorities include accelerating revenue growth, expanding margins, and reaching adjusted EBITDA breakeven while executing against a growing CDMO pipeline and expanding the VINIA product ecosystem [11]