Steakholder Foods .(STKH) - 2021 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Research and Development (R&D) expenses for the first half of 2021 totaled $2.1 million, compared to $0.9 million in the same period in 2020, reflecting an increase in investment in R&D capabilities [19] - Operating loss in the first half of 2021 was $6.8 million, compared to $13 million in the same period in 2020, with 2020 including $10.1 million in public listing expenses [19] - Total comprehensive loss for the first half of 2021 was $7.7 million, or $0.06 per ordinary share, compared to $13.2 million, or $0.26 per ordinary share in the same period in 2020 [20] - Cash and equivalents at the end of June 2021 increased to $30.6 million, compared to $13.6 million at year-end 2020, primarily driven by the NASDAQ IPO [21] - Total assets increased to $46 million as of June end, up from $17.5 million at year-end 2020 [22] Business Line Data and Key Metrics Changes - The company expanded its portfolio from cultured beef to include cultured chicken and pork, significantly broadening its addressable market [11] - The acquisition of Belgium-based Peace of Meat in February 2021 enhanced the company's capabilities in cultured avian technology [11] - Development activities for hybrid foods commenced, representing a key step towards commercialization of cultured products [11] Market Data and Key Metrics Changes - The company is focusing on the U.S. market as a major target, with plans to establish a pilot manufacturing plant in Belgium in 2022 to scale up production [10][11] - The regulatory landscape for cell-based meat is evolving, with the U.S. being regulated by both the FDA and USDA, indicating a complex approval process [42] Company Strategy and Development Direction - The company aims to lead the cultured meat revolution by developing technology for a range of products, including 3D bioprinted tissue [10] - The near-term goal includes establishing a pilot plant in Belgium during 2022 and printing 100 grams of complex tissue using proprietary 3D bioprinting technology [15] - The company is positioning itself as a leader in the cultured meat sector, focusing on sustainability and efficiency in meat production [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in their ability to lead the cultured meat revolution and achieve long-term goals [9] - The company views the current regulatory environment as a priority for both the U.S. and EU, with positive interactions with regulators [44] Other Important Information - The company voluntarily de-listed from the Tel Aviv Stock Exchange in August 2021, focusing solely on its NASDAQ listing to enhance its international presence [14] Q&A Session Summary Question: Interest in U.S. production facilities - Management indicated that the U.S. is a major market focus and that as technology matures, there may be opportunities for production facilities in the U.S. [24][26] Question: Peace of Meat acquisition details - The acquisition upgraded the company's technology in avian protein and integrated previous activities under the Peace of Meat banner [31][33] Question: Cash burn situation - The company expects cash burn from operations to double, reaching approximately $1.8 million per month in the second half of the year [35][36] Question: FDA regulation details - The regulatory process in the U.S. involves both the FDA and USDA, with ongoing preparations for compliance as guidance becomes available [41][42] Question: Purpose of cultured meat production - The company aims to provide sustainable alternatives to traditional meat production to meet growing global protein demands while minimizing environmental impact [48][49]