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]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 47% year-over-year to $7,900,000, exceeding guidance of $7,800,000, driven by balanced growth in the Vinia business [5][20] - Gross profit rose by 53% to $4,600,000, representing 58.5% of total revenue, up from 56.2% a year ago, primarily due to increased manufacturing scale and improved yield [20][21] - Net loss for Q1 2025 was $2,300,000, or $0.13 per share, compared to a net loss of $6,600,000, or $0.48 per share in the same quarter last year [21][22] Business Line Data and Key Metrics Changes - The Direct to Consumer Health and Wellness Products Division, led by Vinia, accounted for the majority of revenue, with total active subscribers exceeding 50,000 in the USA, and recurring subscribers making up 90% of revenue [6][13] - The Amazon channel represented 20% of the business, with improvements in customer conversion and repeat purchase rates [6] - The company launched new products, including a superfood tea lineup and plans for a hydration beverage, targeting significant market segments [9][12][60] Market Data and Key Metrics Changes - The company is expanding its reach into new consumer segments and channels, including international shipping and social media platforms like TikTok [42][43] - The market for non-GMO, plant-based compounds is growing, with increasing consumer awareness of health benefits related to blood flow and longevity [8][79] Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA breakeven at $11,000,000 to $12,000,000 in quarterly revenue by the second half of 2025, focusing on balancing growth with profitability [17][18] - Strategic investments will be made in expanding the direct-to-consumer portfolio, enhancing R&D processes, and building AI-powered tools for CDMO services [18] - The company is targeting a 20% adjusted EBITDA margin for its direct-to-consumer division and higher margins in the CDMO segment [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy and deliver life-changing compounds, highlighting the synergy between the direct-to-consumer and CDMO divisions [23][70] - The company is optimistic about the increasing interest from pharmaceutical companies in its botanical synthesis technology, which offers consistent and economically viable compounds [70][71] Other Important Information - The company raised $3,900,000 in debt financing during the quarter, increasing cash and cash equivalents to $3,400,000 [22] - The company is preparing to launch the olivoboscoside cell product in 2026, targeting significant market opportunities in liver health and cholesterol management [13][79] Q&A Session Summary Question: Can you provide details on the Phase two portion of the CDMO contract? - Management explained that Phase two involves moving from solid media to liquid media for cell conditioning, with an expected timeline of six to nine months [27][28] Question: How long will it take to narrow down targets with Tate and Lyle? - Management indicated that significant work is underway, with a comprehensive update expected by the end of the year [30] Question: Should we expect continued gross margin expansion as revenue grows? - Management affirmed the intention to drive continued gross profit margin improvement alongside revenue growth [31][32] Question: How many products contributed to revenue in Q1, and how many are expected by year-end? - Management noted that three product lines contributed to Q1 revenue, with expectations to increase to four by Q2 and five by Q3 or Q4 [36][38] Question: Will marketing costs drop due to increased ad inventory? - Management highlighted efforts to reduce marketing costs as a percentage of revenue while exploring new channels for customer acquisition [39][44] Question: Does the second quarter guidance include contributions from the CDMO business? - Management confirmed that the guidance includes revenue recognition from existing CDMO projects and potential new catalysts [45][46] Question: How many CDMO programs can be run concurrently? - Management stated that the current capacity allows for five to seven concurrent projects in stage one [49] Question: What is the long-term opportunity for the beauty product? - Management discussed a focused strategy on high-margin categories, including health and beauty, with plans for a launch in Q1 next year [60][61]