Financial Data and Key Metrics Changes - Total revenue for fiscal 2023 was 73.5million,anincreasefrom71.4 million in fiscal 2022, primarily driven by a 4millionincreaseinDoubleTeamsorghumsalesintheU.S.domesticmarket[15][16]−GAAPgrossmarginsimprovedsignificantlyto19.832.5 million in fiscal 2023 from 39.2millioninfiscal2022,reflectingafocusoncostalignment[17][71]−AdjustedEBITDAimprovedtoanegative9.3 million in fiscal 2023 from a negative 23.6millioninfiscal2022,markinga14.3 million improvement [18][95] - GAAP net income for fiscal 2023 was 14.4million,or0.34 per share, compared to a net loss of 36.4millioninfiscal2022[86]BusinessLineDataandKeyMetricsChanges−DoubleTeamsorghumsalesincreasedto6.5 million in fiscal 2023 from 2.4millioninfiscal2022,withexpectationsforfurthergrowthto11.5 million to 14millioninfiscal2024[10][70][108]−RevenuefromnondormantalfalfasalesintheMiddleEastandNorthAfricaincreasedby4 million, while sales in Australia decreased by 4.3millionduetoadverseweatherconditions[15]−Thecompanyanticipatesoverallsorghum−relatedrevenuetobebetween22 million and 23millioninfiscal2024,upfrom18.5 million in fiscal 2023 [108] Market Data and Key Metrics Changes - The company expects revenue from international operations to be between 45millionand50 million in fiscal 2024, compared to 43.6millioninfiscal2023[83]−TheU.S.forageoperationisprojectedtogenerateabout9 million in revenue for fiscal 2024, down from 10.8millioninthepreviousyear[83]CompanyStrategyandDevelopmentDirection−Thecompanyaimstobecomeabest−in−classseedcompany,focusingonoperationalexcellenceanddata−drivendecision−making[13][67]−ApartnershipwithShellfordevelopingsustainablebiofuelfeedstocksisexpectedtostrengthenthebalancesheetwithatotalof20 million in payments and debt assumption [4][80] - The company plans to launch a prussic acid-free trait for sorghum in 2025, alongside a second-generation post-grass herbicide trait [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of Double Team sorghum, expecting it to account for over 10% of U.S. sorghum acres in the upcoming year [73][108] - The company is taking a conservative approach to international operations, minimizing dependence on high-risk markets while still seeking growth opportunities [103] - Management highlighted the importance of maintaining margins and managing inventory effectively in a transitioning market [24][137] Other Important Information - The company has suspended investment in the stevia germplasm development program to focus resources on more promising areas [81][140] - The partnership with Vision Bioenergy Oilseeds LLC is expected to produce significant long-term opportunities for the company [80] Q&A Session Summary Question: Expectations versus reality for Double Team sales in 2023 - Management acknowledged that while Double Team sales grew significantly, they fell short of the $12 million target set previously, but expressed confidence in the product's market impact and future growth [113][114] Question: Impact of logistical delays on international sales - Management confirmed that logistical challenges have been a significant issue, particularly in the Middle East and North Africa, and emphasized efforts to streamline processes and improve fulfillment [126][127] Question: Future of non-Double Team sorghum sales - Management indicated that as Double Team gains traction, non-Double Team sales are expected to decline, but they will focus on maintaining margins in that segment [24][137]
