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]
BioHarvest Sciences Inc(BHST) - 2025 Q2 - Earnings Call Transcript