Core Viewpoint - BioHarvest Sciences Inc. announces the resignation of Mr. David Tsur from its Board of Directors after over four years, and the appointment of Prof. Hezi Levy to the Board, effective immediately [1][2]. Group 1: Board Changes - Mr. David Tsur has been a member of BioHarvest's Board since 2021, contributing significantly to the company's strategic development during a period of operational expansion and product commercialization [2]. - Chairman Zaki Rakib expressed gratitude for Mr. Tsur's leadership and contributions, highlighting his role in supporting the company's growth and strategic evolution [3]. - Prof. Hezi Levy brings decades of leadership experience in Israel's healthcare system, having previously served as Director General of the Israeli Ministry of Health and played a key role during the COVID-19 pandemic [3][4]. Group 2: Prof. Hezi Levy's Background - Prof. Levy has extensive experience, including serving as Head of the Medical Corps of the Israel Defense Forces (IDF) and General Manager of Barzilai Medical Center, overseeing major healthcare operations [4]. - His medical expertise and executive leadership are expected to strengthen BioHarvest's governance as the company scales its direct-to-consumer products and advances its biotechnology CDMO platform [5]. Group 3: Company Overview - BioHarvest is a leader in Botanical Synthesis, utilizing patented technology to grow plant-based compounds without the need for the underlying plants [5]. - The company focuses on developing science-based therapeutic solutions in two main areas: as a contract development and production organization (CDMO) and as a creator of proprietary nutraceutical health and wellness products [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]