Moolec Science SA(US:MLEC)2023-05-31 22:49Financial Data and Key Metrics Changes - The company received $10 million in proceeds following its business combination with LightJump and subsequent listing on January 3, facing a high level of redemptions in line with market trends [9] - As of March 31, the company had $6 million in cash and cash equivalents, managing its cash position efficiently while implementing initiatives to generate positive operating cash flow [10][11] - The company has historically low cash burn while progressing in R&D projects, expecting this trend to continue throughout 2023 with no significant increases in R&D and moderate increases in administrative expenses [42] Business Line Data and Key Metrics Changes - The company has made significant progress in its Molecular Farming technologies, with safflower seeds achieving expression levels of approximately 60% GLA oil, which is 10% above initial projections [25][66] - The scale-up of genetically modified safflower seeds has increased from 0.7 hectares to 27.4 harvested hectares, representing a 42x extension [24] - The company has also planted 20 hectares of GLASO seeds, expecting to harvest in October 2023, equating to a 25x expansion of transgenic seeds [25] Market Data and Key Metrics Changes - The total addressable market (TAM) for the company's products is expected to reach approximately $827 billion by 2025, indicating a massive growth opportunity [32] - The serviceable addressable market (SAM) is approximately $37 billion, driven by double-digit growth figures in the alternative protein industry [34][35] Company Strategy and Development Direction - The company aims to integrate upstream and downstream capabilities, focusing on sustainable soybean procurement and the development of texturized vegetable protein (TVP) as a food ingredient [26][31] - The company has signed a memorandum of understanding with Bioceres Crop Solutions to secure raw material costs with deferred share-based payments over three years, which will significantly decrease raw material cash expenses [44][45] - The business plan execution consists of four stages, with the final stage aiming to incorporate animal proteins into Moolec's molecular seeds [37][39] Management's Comments on Operating Environment and Future Outlook - Management highlighted the completion of regulatory approvals for GLA safflower plants, which increases awareness of Molecular Farming as a safe technology and sets a precedent for future regulatory approvals [52][53] - The company is navigating a challenging financial market but is focused on increasing operational cash flow while deferring share issuance [43] Other Important Information - The company has negotiated payment schedules for listing expenses and issued $2 million of debt at a 0% interest rate to manage cash needs in the short term [11] - The acquisition of a state-of-the-art soybean processing facility with a capacity of 10,000 tons per year is fully operational and aims to enhance the company's product offerings [6] Q&A Session Summary Question: Can you talk about Molecular Farming technologies first quarter results? - The company is focused on Molecular Farming technologies and has made significant progress in safflower seeds and soybeans, with promising results in expression levels [15][19] Question: How does the GLA expression levels at 60% compare to current standards? - The expression level is a critical KPI for the company, and achieving 60% is a positive outcome that has practical implications on production economics [79][80]