Summary of BioHarvest Sciences (BHST) FY Conference Call - August 12, 2025 Company Overview - **Company Name**: BioHarvest Sciences (BHST) - **Industry**: Biotechnology focusing on plant cell biology and health products - **Founded**: February 2007 - **Key Product**: Vinia, a Red Grape Cell Circulation Superfood - **Revenue**: Over $60 million from Vinia since entering the U.S. market in May 2021 [6][25] Core Business Segments 1. **Direct to Consumer (DTC) Business Unit** - Focus on health and wellness products sold directly to consumers - Current run rate of $34 million with a 60% gross profit margin, aiming for 65% [21][22] - 90% of sales are subscription-based with a 24-hour cash turnaround [21] - Vinia has received high consumer ratings (4.7 out of 5) [26] 2. **Contract Development and Manufacturing Organization (CDMO)** - Launched 16 months ago, with a gross profit margin of over 70% [23] - Three major contracts in development for life-changing compounds [23][49] - Unique optionality in the biotech space, allowing for diverse applications of technology [24][56] Technology and Innovation - **Platform Technology**: - **Mirror, Magnify, Multiply**: The process used to enhance the production of phytonutrients from plant cells [12] - Non-GMO methods to increase the levels of critical phytonutrients economically [10][20] - Unique patents and processes that allow for consistent production of plant-based compounds [10][21] - **Key Product Features**: - Vinia contains 100 times more piceid resveratrol than found in red grapes, which is 25 times more soluble than regular resveratrol [15][61] - Demonstrated clinical efficacy in improving blood flow and reducing oxidative damage [28][31] Market Position and Strategy - **Market Size**: The U.S. supplement market is valued at $56 billion, with a focus on science-based products [27] - **Consumer Demand**: Increasing interest in health and wellness products that offer scientifically backed benefits [34] - **Product Expansion**: Plans to launch new products in coffee, tea, and hydration categories, leveraging the same technology [35][38] Financial Performance and Projections - **Revenue Generation**: The manufacturing facility can produce $65 million in revenue annually with a one-time capital expenditure of $5 million [25] - **Adjusted EBITDA**: The company aims to achieve a positive adjusted EBITDA by Q4 2025 [55] - **Gross Profit Growth**: Increased from 32% to 60% over two years without price increases, maintaining a focus on democratizing health products [53][55] Partnerships and Collaborations - **Strategic Partnerships**: Collaborations with major companies like Tate and Lyle for developing non-nutritive natural sweeteners [40][49] - **Contractual Agreements**: Engaged with a NASDAQ-listed pharmaceutical company and other firms in the fragrance and nutraceutical sectors [46][50] Key Challenges and Solutions - **Industry Challenges**: Addressing the historical issues that led pharmaceutical companies to move away from plant-based solutions [8][11] - **Sustainability Focus**: Commitment to environmental sustainability while unlocking the potential of the plant kingdom [7][57] Conclusion - BioHarvest Sciences positions itself as a unique player in the biotech industry, leveraging advanced technology to create high-demand health products while maintaining a strong focus on sustainability and consumer health. The company is on track for significant growth through its innovative product offerings and strategic partnerships.