Moolec Science SA(US:MLEC)2024-05-30 15:05Financial Data and Key Metrics Changes - Normalized revenues and other income increased year-over-year from nil to approximately $1.3 million, attributed to the consolidation of the soy protein ingredient business [31] - Costs of goods sold rose from nil to close to $1 million, resulting in a gross margin of around 18% [17] - SG&A and R&D expenses increased to $2.3 million from $1.4 million in Q3 2023, primarily due to non-cash items [17] - Cash position strengthened to approximately $4.3 million, bolstered by $2 million of additional funding received in April 2024 [18] Business Line Data and Key Metrics Changes - The company is in pre-commercialization stages for gamma-linolenic acid, safflower oil (GLASO), with trial production initiated and 600 acres contracted for production [14][31] - Piggy Sooy, a patented soybean platform technology, has achieved high levels of expression of animal meat proteins, with seeds exhibiting protein expression levels up to 26.6% over total soybean protein [24] Market Data and Key Metrics Changes - The global meat market is valued at $1 trillion, with traditional soy protein ingredients representing 70% of this market, equating to a $700 billion opportunity [11] - The company is focusing on food applications for Piggy Sooy, with significant interest from potential customers in the food industry [61] Company Strategy and Development Direction - The company aims to leverage its patented technology to create food ingredients that positively impact the food industry's environmental footprint and enhance food security [10] - Future commercialization of Piggy Sooy is planned for 2027-2028, with ongoing field trials and regulatory discussions with the FDA [13][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the regulatory approval of Piggy Sooy, highlighting its significance for the company's future operations and product development [20][37] - The company is closely monitoring the economic situation in Argentina, noting a decline in inflation rates and its potential impact on operations [48][50] Other Important Information - The company has received two U.S. patents for its SPC2 product, extending protection of its technology until 2041 [29] - The company is actively engaging with potential customers for GLASO, targeting markets such as dietary supplements and pet foods [39][40] Q&A Session Summary Question: Significance of USDA approval for Piggy Sooy and next steps - Management highlighted the achievement as a major milestone, allowing field trials without permits and initiating conversations with the FDA for further regulatory steps [35][37] Question: Customer commitments for Piggy Sooy - Management noted positive feedback from potential customers and ongoing sample deliveries, emphasizing the need for careful development and scaling [55] Question: Update on GLASO commercialization - Management confirmed that GLASO is in pre-commercialization stages, with active discussions with potential customers and plans to hit the market by early 2025 [39][40] Question: Impact of Argentina's economic situation on operations - Management indicated that while inflation is decreasing, the company has limited exposure to local currency costs, and a stable economic environment could benefit operations [48][50]