Q4 2020 Amyris Inc Earnings Call

Park this is the conference operator. Today's call Will begin momentarily. Thank you so much for your patience. Please continue to hold.

Pardon me. This is the conference operator today's call will begin momentarily. Thank you. So much of your patients. Please continue to hold.

[music].

Dead dead dead dead dead.

off off

Thursday Thursday

Thursday

good morning, and welcome to the Amorous fourth-quarter and full-year 2020 Financial results conference call. This call is being webcast live on the events page of the investors section of the Emirates website at America as reminder. Today's call is being recorded. You may listen to a webcast took this call by going to the investors section of Emirates website. I would not like to Tender call over to Hong keep them to keep and Chief Financial Officer of almonds. Go ahead.

[music].

Good morning, and thank you for joining us today with me are John mallow president and chief executive officer and Eduardo Alvarez Chief Operating Officer this morning. John will provide an update Eduardo will share operational performance highlights and I will review our financial results for the quarter and the full year.

Okay.

Okay.

[music].

Please turn to slide to please note that on this call, you will hear discussions of non-gaap financial measures including but not limited to underlying sales revenue gross margin cash operating expense and adjusted ebitda reconciliations of these non-gaap measures to the most directly comparable gaap. Financial measures are contained in the financial summary section slides of them being presentation or the press release distributed today, which is available on our website the current report on form 8-k furnace with respect to our press release is also available on our website as well as on the SEC s website during this call. We will make forward-looking statements about future events and circumstances including cameras, 2021 Outlook. Goals and strategic priorities anticipated transactions and other future Milestones as well as Market opportunities and growth prospects. These statements are based on Management's current text log.

Yes.

[music].

Okay.

Good morning, and welcome to the MRI fourth quarter and full year 2020 financial results Conference call.

This call is being webcast live on the events page of the investors section of the Emirates website, yet and the Arris Dot com as.

And as a reminder, today's call is being recorded.

You may listen to a webcast replay of this call by going to the investors section of Amyris website.

I'd now like to turn the call over to corn keeps to himself keep the Bell Chief Financial Officer of Sandler. Please go ahead.

Good morning, and thank you for joining US today with me are John Melo, President and Chief Executive Officer, and Eduardo Alvarez, Chief operating officer the.

This morning, John will provide a business update Eduardo will share operational performance highlights and I will review, our financial results for the quarter and the full year.

and actual results and

Future events May differ materially due to risks and uncertainties including those detailed from time to time in our filings with the Securities and Exchange Commission, including our 10-K for four year. Twenty-twenty cameras disclaims any obligation to update information contained any forward-looking statements whether as a result of new information future events, or otherwise month before we begin today, I'd like to know that included in our webcast. It's a slide presentation. We will refer to the slides will also be posted on the investor relations sections of a Marissa's website following the call. I'll know to call over to John John.

Please turn to slide two.

Please note that on this call you will hear discussions of non-GAAP financial measures, including but not limited to underlying sales revenue gross margin cash operating expense and adjusted EBITDA.

Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are contained in the financial summary section slides of the of companion presentation. All of the press release distribute of today, which is available on our website.

The current report on form 8-K furnished with respect to our press release is also available on our website as well as on the SEC's website during.

During this call we will make forward looking statements about future events and circumstances, including Amyris <unk> 'twenty 'twenty, one outlook goals and strategic priorities anticipated transactions and other future milestones as well as market opportunities and growth prospects. These statements are based on management's current expectation.

Good morning. Thank you hun. Thanks everybody for joining us this morning. I'll start by providing a business overview an update regarding our strategic transactions an update on a consumer business and its key growth drivers and lastly the few comments regarding the expansion of our strategic partnership technology pipeline.

And actual results and future events may differ materially due to risks and uncertainties, including those detailed from time to time and our filings with the Securities and Exchange Commission, including our 10-K for full year 'twenty 'twenty.

Let me start with an overview of 2020 almost to the day. It has been a full year since the World Health Organization declared COVID-19 a pandemic which leads to a widespread health and economic crisis as a result 2020 has been a year of extreme uncertainty. We are pleased that is it is also been one of the most productive years in our company's history where we have transformed our business accelerated our industry leadership and Advance our strategic position with our technology and humor and ingredients portfolio and also a much-improved financial position.

Amyris disclaims any obligation to update the information contained in the forward looking statements, whether as a result of new information future events or otherwise.

Before we begin today I'd like to note that included in our webcast as the slide presentation, we will refer to.

The slides will also be posted on the Investor relations sections of Amyris website following the call.

I'll now turn the call over to John John.

Good morning, and thank you hi.

I'm thankful for the continued support of our investors and the resilience collaboration and innovation of our teams and partners working. Jointly to meet the needs of consumers and respond wage Wars need for natural clean and sustainably sourced ingredients. We delivered eighty million dollars in total sales revenue in the fourth quarter and $173 million for the full year of 2020 in the fourth quarter. We delivered the third consecutive quarter of record product sales revenue while also expanding product gross margins. We continue to see strong growth in our consumer Brands and delivered 17 million fourth-quarter consumer Revenue that was equivalent to the total year of 2019 month for the full year of 2020. We delivered $52 in consumer Revenue nearly three times, 2019 Revenue.

Thanks, everybody for joining us this morning, I'll start by providing a business overview and up.

Date regarding our strategic transactions and update on our consumer business and its key growth drivers and lastly, a few comments regarding the expansion of our strategic partnership technology pipeline.

Let me start with an overview of 2020.

And almost to the day it has been of full year since the World Health organization declared COVID-19, pandemic, which led to a widespread health and economic crisis.

As a result 2020 has been a year of extreme uncertainty. We are pleased that is the is.

And there's also been one of the most of the productive years and our company's history, where we have transformed our business accelerated our industry leadership and advance our strategic position with our technology and Schumer and ingredients portfolio and also a much improved financial.

Our ingredient portfolio also did very well both in the quarter and full-year for 2024 year. We delivered $16 in ingredient Revenue demonstrating growth of over 26% versus 2019.

The financial position.

I'm thankful for the continued support of our investors and the resilience of collaboration and innovation of our teams and partners working jointly to meet the needs of consumers and respond to the world's need for natural clean and sustainably sourced ingredients.

strong Revenue growth expanding product gross margins combined with the completion of the first strategic transaction resulted in positive adjusted ebitda in the fourth quarter consistent with the expectation we have set

We delivered $80 million and total sales revenue and the fourth quarter and 173 million for the full year of 2020.

1020 we delivered six new ingredients that scale completed a successful children billion dollar Equity financing and benefited from significant reductions in debt and debt servicing costs money regarding debts. We have made further improvements during the current quarter and we are now at less than a hundred and fifty million in debt and expect to be below 100 million dead third quarter. We expect the momentum in our product Revenue along with a successful completion of strategic transactions to set us up for continued momentum in 2021. We achieve positive adjusted ebitda and the fourth quarter of 2020 with an expectation to be positive ebitda for the full year 2021 reflecting potential income from the Strategic transactions that I will discuss now.

And the fourth quarter, we delivered the third consecutive quarter of record product sales revenue, while also expanding product gross margins, we continue to see.

The strong growth in our consumer brands and delivered $17 million and fourth quarter of consumer revenue that was equivalent to the total year of 2019.

For the full year of 2020, we delivered $52 million and consumer revenue nearly three times 2019 revenue.

Our ingredient portfolio also did very well both in the quarter and full year for 2020 full year, we delivered $60 million and ingredient revenue demonstrating growth of over 26% versus 2019.

The strong revenue growth expanding product gross margins combined with the completion of the first strategic transaction resulted in positive adjusted EBITDA in the fourth quarter consistent with the expectation we had set.

We previously mentioned that we were actively working on three strategic transactions. We closed the first transaction, which was valued at 50 million with Thirty million of that received in December and try to be received in the first quarter of 2021 and the remainder in Milestone payments there after we recognize forty million dollars in Revenue as part of our fourth quarter results.

During 2020, we deliberate six new ingredients that scale completed a successful children of million dollar of equity financing and benefited from significant reductions in debt and debt servicing costs.

Regarding that we have made further improvements during the current quarter and we are now at less than $150 million and debt and expect to be below $100 million by the third quarter.

We would like to update you on the progress of the remaining two strategic transactions. The larger of the two is done with our focus turn to meeting the closing conditions. We are in process with HSR antitrust Clarence and are moving toward closing by the end of March is previously communicated. I can confirm the larger of the two transactions has an estimated value of over $500 this total value includes four components a significant upfront cash payment and earn-out through 2023 based on the earnings from this portfolio new molecules, that will be added to our development pipeline from this partner.

We expect the momentum and our product revenue along with the successful completion of strategic transactions. The set us up for continued momentum and 2021.

We achieved positive adjusted EBITDA and the fourth quarter of 2020 with an expectation to be positive EBITDA for the full year 2021, reflecting the potential income from the strategic transactions that I will discuss now.

We've previously mentioned that we were actively working on three strategic transactions, we close the first transaction, which was valued at $50 million with 30 million of that received in December and 10 value to be received in the first quarter of 2021, and the remainder and milestone payments thereafter, we.

The operating earnings from a 15-year production agreement were Amherst will continue to produce and Supply these ingredients.

The value of the final structure of this transaction is significantly higher than we have communicated previously the total value attributable to the aggregate of the three transactions is now expect to be well over five hundred million dollars up from the previously disclosed 450 million dollars this total value represents a combination of two hundred million in upfront payments and the remains in Milestone payments and royalty payments new molecules and the financial benefits of us entering into a 15-year production agreement to supply these products to the part where we remained the manufacturer of these ingredients. This does not include the future value of the commercialization of new molecules that we will be entering into development with these Partners wage.

We recognized $40 million and revenue as part of our fourth quarter results.

We would like to update you on the progress of the remaining two strategic transactions. The larger of the true is done with our focus turned to meeting the closing conditions. We are in process with HSR antitrust clearance and are moving towards closing by the end of March. It's previously communicated I can cause.

Firm the larger of the two transactions has an estimate of total value of over $500 million. This total value includes four components of.

A significant upfront cash payments and.

Earn out through 2024 based on the earnings from this portfolio new molecules that will be added to our development pipeline from the partner.

during the

The December 15th investor miniseries event. We discuss our Science and Technology platform and the power of our proprietary lab to Market process the scale and commercialize new agents at the heart of what we do is clean sustainably-sourced chemistry. We are cleaning up the World by making all chemistry clean and sustainable and we are leading this effort in Beauty a personal care and health markets where we believe there's the clearest demand drivers and the fastest time to Value creation for consumers investors and our planet by engineering that need to be strange and fermenting them in sugar cane syrup Amherst has pioneered the ability to convert basic plan sugars to hydrocarbon molecules to be used as clean sustainable in Phoenix for Consumer products. That is how we use what's renewable to recreate what's finite in a sustainable way in a sustainable way that costs less that wage.

The operating earnings from a 15 year production agreement, where Amyris will continue to produce and supply of these ingredients.

The value of the final structure of this transaction is significantly higher than we had communicated previously the.

The total value attributable to the aggregate of the three transactions is now expected to be well over $500 million up from the previously disclosed $450 million. This total value represents a combination of 200 million and upfront payments and the remainder and milestone payments and royalty payments new molecule.

And the financial benefit of us entering into a 15 year production agreement to supply of these products to the partner, where we remained the manufacturer of these ingredients and this does not include the future value of the commercialization of new molecules that we will be entering into development with these partners.

the Amherst technology platform

During the fifth the December 15th Investor Mini series of events, we discussed our science and technology platform and the power of our proprietary lots of market process, the scale and commercialize new ingredients at the heart of what we do is clean and sustainably sourced chemistry, we are cleaning up the.

with more than 15 years of research investment in technology commercial development and scientific breakthroughs. We have mastered the lab to Market capability to create unique natural ingredients for Consumer products. We currently have 13 ingredients in the market and another 18 in active development as a result of current transactions and Commercial activity. We expect to add up to ten new ingredients to our active development pipeline this year. We are now adding ingredients at a faster rate to accelerate our long-term growth.

Whorled by making all chemistry, clean and sustainable and we are leading the separate and beauty personal care and health markets, where we believe there's the clearest demand drivers and the fastest time to value creation for consumers investors and our planet.

We continue to be focused on Target in markets including clean Beauty health and wellness and flavor and fragrances. We also have ingredients in the pipeline that we expect to be applicable am more than one in Market. We have classify those in the various in markets category our first commercial ingredient took about forty months from strain to Pilot plant run off today. We averaged less than a year. Our cost of product development has dropped by 90% Our time to Market has reduced by 80% our R&D and process development functions may have been very productive this past year delivering six new ingredients versus a target of 223 and they have continued to expand our product development pipeline the 18 ingredient in the development pipeline are expected to come to Market in the next few years all of them commercial and in markets by 2025 at the latest while new opportunities are being added from our strategic.

By engineering, and the genetics of the strains and fermenting them and sugarcane syrup Amyris has pioneered the ability to convert the plant sugars the hydrocarbon molecules to be used as clean and sustainable ingredients for consumer products.

That is how we use.

And what's renewable to recreate what is finite and of sustainable way and the sustainable way.

It costs less that is the Amyris technology platform.

With more than 15 years of research investment and technology commercial development and scientific breakthroughs, we have mastered the lap the market capability to create unique natural ingredients for consumer products. We currently have 13 ingredients in the market and another 18 and active development as the result of current.

Transactions and commercial activity, we expect to add eight to 10, new ingredients to our active development pipeline this year.

We are now adding ingredients at a faster rate to accelerate our long term growth.

Two partners and collaborators. We believe that we are three to five years ahead of other companies in the sector as it relates to number of ingredients commercialized number of ingredients and develop with a proven Pathway to scale the recurring revenue and recurring Revenue growth from our portfolio and the gross margin profile.

We continue to be focused on target and markets, including clean beauty health and wellness and flavor and fragrances.

We also have ingredients and the pipeline that we expect to be applicable to more than one and market. We have classified those and the various end markets category.

Our first commercial ingredient took about 40 months from strain the pilot plant run and today, we average less than a year our cost of product development has dropped by 90% are trying to market has reduced by 80%.

Power of our lab to Market process is more evident than ever before with the insights. We've gained from the recent processes around the Strategic transactions our technology platform presents tremendous value as synthetic biology recently gains momentum as the clearest path almost the only path for addressing modern-day societal problems. We strongly believe that we have an engine for continuous value creation the more molecules. We scale the more efficient we become and the more value we generate from our technology. It's a great example of the impact of the network effect wage biological engineering we are truly enabling the ESG agenda for our partners.

Our R&D and process develop and functions have been very productive this past year, delivering six new ingredients versus the target of two to three and they have continued to expand our product development pipeline. The 18 ingredients and the development pipeline are expected to come to market and in the next few years all of them commercial and <unk>.

The market by 2025 at the latest while new opportunities are being added from our strategic partners and collaborators. We believe that we are three to five years ahead of other companies and the sector as it relates to number of ingredients commercialized number of ingredients and developer with a proven pathway to scale.

During the February 9th investor mini-series event. We discussed are clean Beauty Consumer Portfolio the molecules or ingredients that we develop to our science are the foundation consumer Brands a hero ingredients such as squealing from sugarcane is a building block for the product formulations in Our Brands. This is the unique connection. We have at Amherst between the scientists are ingredients and our consumer product portfolio these synergies and value-add are oftentimes Miss understood and undervalued.

The recurring revenue and recurring revenue growth from our portfolio and the gross margin profile.

The power of our lapse of market process is more evident than ever before with the insights. We've gained from the recent processes around the strategic transactions and our technology platform presents tremendous value and synthetic biology recently gained momentum as the clearest path almost the only path for addressing modern day.

We are well-positioned with bioscience as are clean Beauty skincare brand as well as with pipette are clean baby and Family Care brand skin care is the largest portion of the globe market and also the fastest growing Beauty segment.

Hey, societal problems and we strongly believe that we have and engine for continuous value creation. The more molecules, we scale the more efficient we become and the more value and we generate from our technology. It's a great example of the impact of the network effect and biological engineering, we are truly enabling the E S.

We are heading we are adding for new brands this year that will address other fast-growing large segments including hair care with javian and clean color Cosmetics Woodrow's think we are also adding to Specialty skin care Brands including Terra Sana for acne and other skin treatments and cost of Brazil a clean luxury skincare Brant yesterday morning. We announced the acquisition of cost to Brazil. This is a brand that is in the luxury skincare Market with amazing formulations that involve very unique natural ingredients from the Amazon region in Brazil our objective with this brand will be to improve the formulations using squalane as the foundation and to eventually make some of the amperage on sourced ingredients using our science and fermentation while creating give back mechanisms to support the communities where these ingredients originated from this is dead.

G agenda for our partners.

During the February 9th Investor of Mini series event, we discussed our clean beauty consumer portfolio, the molecules or ingredients that we developed through our science are the foundation of our consumer brands of hero ingredient such it's quite length from sugarcane is a building block for the product formulations and our brand.

This is the unique connection we have of Amyris between the science, our ingredients and our consumer product portfolio, the synergies and value add are often times misunderstood and undervalued.

We are well positioned with bioscience as our clean beauty skincare brand as well as with pipette, our clean baby and family care brand skincare is the largest portion of the global beauty market and also the fastest growing beauty segment.

In reality, not just the story or another publication and 2020. We delivered excellent performance across our consumer business with much stronger than planned direct-to-consumer overall our consumer business tripled in 2020, exceeding our Target of doubling our consumer business. Annually, we expect the consumer business to once again much more than double in 2021. We are executing on four key drivers to deliver. This year's growth first new brands. We are expanding our portfolio by at least for new brands this year off with each of them. Well positioned to become category leaders and eventually billion-dollar brands from evaluation standpoint. I can tell you the formulations for each of our new brands are outstanding found much better performing than what's in the market today. They also have the benefit of being the cleanest and most sustainable in their respective categories, but Prestige share market is experiencing significant role.

We are heading we are adding four new brands. This year that will address other fast growing large segments, including hair care with J P and and.

And clean color cosmetics would rosy Inc.

We are also adding to specialty skincare brands, including terrorists Sada for acne.

And other skin treatments and cluster of Brazil, a clean luxury skin care brand.

And yesterday morning, we announced the acquisition of cost of the Brazil. This is a brand that is in the luxury skin care market with amazing formulations that involve very unique natural ingredients from the Amazon region, and Brazil. Our objective with this brand will be to improve the formulations using squalene as the foundation and to eventually.

<unk> makes some of the Amazon sourced ingredients, using our science and fermentation, while creating give back mechanisms to support the communities where decent gradients to originate from this is ESG and reality not just the story or another publication.

Fueled by consumers demanding clean sustainable hair care products like shampoo conditioner and scalp.

here

And 2020, we delivered excellent performance across our consumer business with much stronger than planned direct to consumer growth.

we expect the color Cosmetics Market to experience a real Revival later this year as we move into the Roaring Twenties and we expect rozanc to be perfectly timed in position with clean best-performing color Cosmetics the benefit from this consumer momentum.

Overall, our consumer business tripled in 2020 exceeding our target of doubling our consumer business annually, we expect the consumer business to once again much more than double in 2021, we are executing on four key drivers to deliver this year's growth first new brands, we are expanding our ports.

Secondly, exclusive formulations and ingredients. We are very excited about the Breakthrough with our apni formulation. This is a product that is expected to eliminate over 90% of all births in four weeks or less. It's a single product and not a treatment regimen for several different products. The symbol product removes acne and nourishes your skin leaving you looking healthier and more confident than ever. We really like the idea of a single focus on a clear problem like acne where the before and afters and the clinical data is so compelling for selling through social media channels. We are limited formulation to the terrorists on a brand and shoot a three other brands that we will work with on a private label basis to ensure maximum reach as we focus on quick market share gains in the eleven billion dollar Acme Market, we have several of these opportunities for exclusive breakthrough formulations in the pipeline including a collagen production enhancer that we believe has the potential to be dead.

Palio by at least four new brands this year with each of them well positioned to become category leaders and eventually billion dollar brands from a valuation standpoint, I can tell you the formulations for each of our new brands are outstanding and much better performing and what's in the market today. They also have the benefit of being the cleanest and.

And most sustainable and their respective categories. The prestige hair market is experiencing significant growth fueled by consumers demanding clean sustainable hair care products like shampoos, conditioner, and sculpt health care.

We expect the color cosmetics market to experience of real Revival later this year as we move into the Roaring twenties, and we expect Roes, Inc to be perfectly time and position with clean best performing color cosmetics the benefit from this consumer momentum.

In the market, we will be focusing the terrorists on a brand as our treatments brand focused on the foreskin conditions. We all want to make better in a sustainable way acne Brownsburg like melanoma red irritations like eczema and aging

Secondly, exclusive formulations and ingredients, we are very excited about the breakthrough with our Acme formulation. This is a product and is expected to eliminate over 90% of all acne and four weeks or less its the single product and not of treatment regimen for several different products, the simple product removes acne and nurse.

our primary source of Revenue is our direct-to-consumer business and we do this well, consumers will go back in stores when they feel it's safe to do. So, our focus is reaching the consumer where they are. We are significantly expanding our store count by over two thousand locations this year's and more than tripling our total selling space and Retail this includes significant expansion in the number of Sephora stores for bioscience and expansion and Target stores and CVS for page that

As your skin, leaving you looking healthier and more confident than ever we really like the idea of the single focus on the clear problem like acne, where the before and after and the clinical data is so compelling for selling through social media channels. We are limiting this formulation to the terrorists on the brand and shoot at three other brands that we will work with.

On a private label basis to ensure maximum reach as we focus on quick market share gains and the $11 billion acne market. We have several of these opportunities for exclusive breakthrough formulations and the pipeline, including a college and production enhancer. The we believe has the potential to be the best and the market.

Fourthly International China has an incredible appetite for luxury and Beauty. The Chinese consumer is Shifting to clean Beauty at a faster Pace than any of us could have imagined them are focused on capturing this consumer and ensuring they have the best skincare while making our planet healthier. We are already experiencing this in our ingredients business. China is one of the fastest growing markets for home line in the world. We expect it to take the lead from Japan our current big Australian market and this will happen over the next two to three years. We want our consumer Brands to benefit from this transition off and leave the Chinese consumer to clean in addition to trying to we are launching our direct-to-consumer business in several European countries. Let me summarize. Our future is clear of firstly. We are the first company in our sector to become fully self-funding through our strategic transactions an Innovative way to monetize molecules without giving up the manufacturing value this month.

We will be focusing of the tariffs on the brand as our treatments brand focused on the force skin conditions, we all want to make better in a sustainable way acne brown spots like melanoma, red irritations like XOMA and aging.

Thirdly significant expansion of selling doors, and selling square footage space and retail our primary source of consumer revenue is our direct to consumer business and we do this well we believe consumers will go back and stores when they feel it's safe to do so our focus is reaching the consumer where they are we are.

Difficulty expanding our store count by over 2000 locations this year and more than tripling, our total selling space and retail. This includes significant expansion and the number of sephora stores per bioscience and expansion and target stores and see the S. Four pipettes.

Is the Golden Goose we have the most effective synthetic biology platform in the world and we control the industry.

Fourthly International China has an incredible appetite for luxury and beauty the Chinese consumer is shifting the clean beauty at a faster pace than any of us could have imagined and we are focused on capturing this consumer and ensuring they have the best skincare, while making our planet healthier we are already experiencing this and our.

Bottleneck which is scaling up and manufacturing of Highly engineered chemistry. Secondly. We are adding eight to ten new ingredients to our development pipeline this year. This includes a significant new partnership with one of the world's leading meat producers to focus on zero carb protein production from fermentation wage are Contracting face of this new partnership and we'll expect to announce when we close during the second quarter. This partnership will will look very familiar to you are partner is funding the development of molecules we have for early targets. We will do the development scale up and produce long-term. Our partner will fund the development and is responsible for the commercialization. They themselves would be that consists of the technology. This is very much how we became leaders in flavors and fragrances and how we expect to continue growing and clean chemistry and Marcus we where we do not participate Downstream. Yep.

China is one of the fastest growing markets for squalene and the world. We expect it to take the lead from Japan, Our current biggest squalene market and this will happen over the next two to three years, we want our consumer brands the benefit from this transition and lead the Chinese consumer to clean and.

In addition to China, we are launching our direct to consumer business and several European countries let.

Let me summarize our future is clear.

Firstly, we are the first company and our sector to become fully self funding through our strategic transactions and innovative way to monetize molecules without giving up the manufacturing value. This is the golden Goose, we have the most effective synthetic biology platform and the war and we control of the industry bottleneck, which is scaling up and.

Christian here is simple. We believe there's a need for plant-based protein fermentation based protein as the most sustainable Source. We also believe consumers will continue to eat meat off and we need to make meat production zero-carbon and that is exactly what we can do by bringing synthetic biology in partnering with one of the world's leading news producers that understands the market to suck by change and how to take carbon out of the system.

Manufacturing of highly engineered chemistry.

Secondly, we are adding eight to 10, new ingredients to our development pipeline. This year. This includes a significant new partnership with one of the world's leading meat producers to focus on the zero carbon protein production from fermentation, we aren't the contracting phase of this new partnership.

We are commercializing 325 you ingredients annually last year. We delivered six fourthly. We are continuing to lead the sector in Revenue growth. We expect to deliver under law Revenue in the shorter than forty million dollar range and total revenue of around four hundred million dollars this year. We have built one of the best-performing brand portfolios where the focus on Iraq becoming the leader and clean Beauty. Our fifth point is we are delivering talk to your performance on the key brand metrics where we are well on our way to Growing our traffic by over 1 million consumers monthly to our direct-to-consumer properties, and we believe this is a platform that can scale as we add Brands and fill specific consumer needs to reach of artistic growth categories and helped Beauty and wellness markets. We have a clear path. We're focused on execution and we're delivering results to the bottom line with that. I will turn the call over to age.

And we will expect to announce when we close during the second quarter. This partnership will will look very familiar to you. Our partner is funding the development of molecules. We have four early targets, we will do the development scale up and produce long term our partner will fund the development and is responsible for the commercialization day themselves would be.

The big consumers of the technology. This is the very much how we became leaders and flavors and fragrances and how we expect to continue growing and cleaning chemistry and markets, where we do not participate downstream. Our mission here is simple we believe there's a need for plant based protein fermentation based protein as the.

The most sustainable source. We also believe consumers will continue to eat meat and we need to make meat production zero carbon and that is exactly what we can do by bringing synthetic biology and partnering with one of the world's leading meat producers that understands the market the supply chain and how to take carbon out of the system.

Eduardo thank you, John. Please turn to slide 8. I am pleased to report a successful and safe fourth quarter.

Thirdly, we are commercializing three to five new ingredients annually last year, we delivered six fourthly, we are continuing to lead the sector and revenue growth, we expect to deliver underlying revenue and the $240 million range and total revenue of the brown $400 million this year.

Today, I will focus my comments around four key points first. I would provide a COVID-19 and safety update.

Then I will cover operational results summarizing how we have supported the growth in Amorous ingredient and consumer businesses.

We have built one of the best performing brand portfolios, where the focus on becoming the leader in clean beauty. Our fifth point is we are delivering top tier performance on the key brand metrics, where we are well on our way to growing our traffic by over 1 million consumers monthly to our direct to consumer properties.

I will close with an update or of our plan construction and describe our plan to deliver key operational priorities for 20 21.

Let me start by saying that we are all very pleased that we have had zero safety incidents in the fourth quarter.

And we believe this is the platform that can scale as we add brands and fill specific consumer needs to reach of our key growth categories and health beauty and wellness markets. We have a clear path, we're focused on execution and we're delivering results to the bottom line with that I will turn the call over to Eduardo and why.

and that we have sustained a very low incident record overall in 2020 without any major incidents despite a significant increase in the overall hours worth

our street safety protocols for COVID-19 allowed us to continue operations without interruption and we have had zero cases of transmission among employees.

No.

Thank you John Please turn to slide eight.

I am pleased to report of successful and say fourth quarter.

Our ingredient revenue for the fourth quarter grew 29% versus the same quarter in 2019.

The date I will focus my comments around four key points.

First I would provide of COVID-19 and safety update.

from an operational standpoint we manufactured

And then I will cover operational results summarizing how we have supported the growth and amyris ingredient and consumer businesses.

at higher volumes of product and scale to record levels of ingredients and products to support this growth.

I will close with an update of all of our plant construction and describe our plans to deliver key operational priorities for 2021.

Let me highlight three examples of this.

We produce 60% more in 20 2020 than the previous year.

Let me start by saying that we are all very pleased.

Many of the top Global brands have reformulated their hair care and cosmetic products using our Hemi squealing as a result of legislation passed in 2019 that banned in non-sustainable ingredient called cyclomethicone.

And we have had zero safety incidents in the fourth quarter.

And that we have sustained a very low even sit and record overall in 2020 without any major incidents.

Despite the significant increase in the overall hours worked.

Are Hemi squealing just has higher efficacy and is better for consumers and for our planet?

Our strict safety protocols for COVID-19, and allowed us to continue operations without interruption.

Similarly as John mentioned or sugarcane squealing production volumes were up 40% compared to last year.

And we have had zero cases of transmission among employees.

Our ingredient revenue for the fourth quarter grew 29% versus the same quarter in 2019.

We continue to see here and year increases in demand including China for sustainable squealing that saves sharks.

From an operational standpoint, we manufactured.

Finally, we successfully completed the natural flavor production campaign that was mentioned in our third quarter results announcement.

At higher volumes of product and scaled to record levels of ingredients and products to support this growth.

Let me highlight three examples of this.

And we sold out all the volume produced importantly, we produce 15 times more volume in this campaign than the first campaign life here showing that we are gaining momentum and economies of scale.

We produced 60% more hemi squalene in 'twenty and 2020 than the previous year.

Many of the top global brands have reformulated their hair care and cosmetic products using our hammy squalene as a result of legislation passed in 2019, the band and non sustainable ingredient called cycle of Matthew Cohn.

In 2020. We also made significant process progress developing and scaling new products.

40 year, we introduced six new ingredients for of this in the fourth quarter. Let me share some of this progress.

Our heavy squalene just has higher if the efficacy and he is better for our consumers and for our planet.

We launched our partnership with Eatery for a novel RNA vaccine. We have made significant progress on our next step is to enter clinical Phase 1 trial for it.

Similarly.

As John mentioned, our sugarcane squalene production volumes were up 40% compared to last year.

We continue to see year on year increases in demand.

Including China for our sustainable squalene that saves Sharks.

We also demonstrated squirrel in production at 99% Purity, which is the highest in the market.

Finally.

We scaled are first cannot be noted ingredient CBG and we sold out the entire fourth quarter production volume.

We successfully completed the natural flavor production campaign that was mentioned in our third quarter, we sold the announcement.

We also set up the supply chain for a first shipments of methanol for applications with leading clean Beauty Brands and with distributors.

And we sold out all of the volume produced importantly.

We produce 15 times more volume in this campaign and the first campaign last year.

But in addition to scaling production for ingredients, we're also expanding our capability to support the growth of our consumer Brands. We leveraged our new year. Solutions to support the tremendous growth in our direct-to-consumer operations in Readiness for the holiday season.

Showing that we are gaining momentum and the economies of scale.

In 2020, we also made significant process progress developing and scaling new products.

For the year, we introduced six new ingredients for all of this in the fourth quarter net.

For example for bioscience compared to 2019 holiday season, we process a hundred and 30% more e-commerce orders during the holiday season.

And we share some of this progress.

We launched our partnership with Eatery four of novel RNA vaccine. We have made significant progress on our next step is to enter clinical phase one trials for it.

We expanded our customer service activities and deploy live video chats and other digital capabilities to significantly improve and differentiate the experience for our consumers.

We also demonstrated squalene production at 99% purity, which is the highest in the market.

We scaled our first cannabinoid ingredient CPG and we sold out the entire fourth quarter production volume.

We remain focused on operational efficiencies that improve our margin and we were able to drive down during the fourth quarter. The costs of former gredients to the lowest level yet squealing is one of these examples where we achieve better efficiency and deliver unit cost Savings of 23% compared to the previous quarter.

We also set up the supply chain for our first shipments of clean ethanol for applications with leading clean beauty brands and with distributors.

But in addition to scaling production for ingredients, we're also expanding our capability to support the growth of our consumer brands.

We also capture keep savings across many of our key raw material costs. And for example, our Pharmacy in unit costs were 26% lower than the previous quarter wage aren't as far as in he's a key raw material to four of our products.

We leveraged <unk>.

Our new ERP solutions to support the tremendous growth in our direct to consumer operations in readiness for the holiday season.

For example for Bioscience compared to 2019 holiday season, we processed 830% more e-commerce orders during the holiday season.

We're also strengthening our commitment to sustainable production in December. We received a chain of custody certification.

We expanded our customer service activities.

We are the first biotechnology company to be awarded.

And deploy live video chats, and other digital capabilities to significantly improve and differentiate the experience for our consumers.

He's been super certification the ball super standard ensures the sustainability claims along this sugarcane supply chain are traceable from birth to end consumers providing Clarity and credibility to our consumers and partners that we produce products using sustainable ethical unfair Trade Practices as John mentioned he is G is in the core of what we do.

We remain focused on operational efficiencies that improve our margin.

And we were able to drive down.

During the fourth quarter, the cost of four ingredients to the lowest level yet.

Squalene is one of these examples where we achieve better efficiency and the lever unit cost savings of 23% compared to the previous quarter.

Finally, I am placed and please do give you an update on the progress that we've made on our Brazil construction plans are vulnerable. We have launched the Civil Faith instruction. And the project is proceeding On Target and on time while adhering to the street safety protocols that COVID-19 requires.

We also captured key savings across many of our key raw material costs and.

For example, our pharmacy and unit costs were 26% lower.

And the previous quarter harnesses financing ease of key raw materials to four of our products.

We're also strengthening our commitment to sustainable production and.

Now closed by reaffirming our three operational priorities to drive improved growth and efficiency in 2021.

In December we received both sucrose chain of custody of certification.

We are the first biotechnology company to be awarded.

First we remain on target to complete construction of our plant at Barbara Bonita by the end of the year second. We will Target the successful scheduling of four of our newest products.

This has been the sucrose certification.

The bumps Sucre standard.

Ensures the sustainability claims along the sugarcane supply chain are traceable.

From farmer.

Third we will continue to improve our operations and Supply Chain management capabilities with particular attention to scaling our consumer fulfillment and production capabilities with that. I will turn the car over to hand to review the financial results and

And consumers, providing clarity and credibility to our consumers and partners that we produce products using sustainable ethic.

Ethical unfair trade practices as John mentioned ESG is.

In the core of what we do.

Thank you. Oh, please turn to slide 9 and pleased to report that we had a very successful quarter with record sales revenue expanded gross margins and positive adjusted ebitda. We delivered record total sales revenue for the fourth quarter of a million. This was nearly doubled versus the prior-year quarter. We delivered product revenue of $35 million five million in collaboration and grants and forty million from the previously announced dividend Pharmacy in strategic transaction.

Finally, I am placed and please to give you an update on the progress that we've made on our Brazil, the construction plant and Barra Bonita.

We have launched the civil face of construction and the project is proceeding on target and on time, while adhering to the strict safety protocols.

COVID-19 requires.

I will now close by reaffirming our three operational priorities to drive improved growth and efficiency in 2021.

First.

Product revenue of $35 million was a new record and increased 71% compared to the prior-year quarter driven by a record quarter for Consumer which which $70 million in revenue and off and 61% year-over-year growth delivered as much revenue in the fourth quarter as it did during the entire year 2019 ingredients revenue of 18 million in the home group 29%

We remain on target to complete construction of our plant at Barra Bonita.

By the end of the year.

Second.

We will target the successful scaling of four of our newest products.

Third we will continue to improve our operations and supply chain management capabilities.

With particular attention to scaling our consumer fulfillment and production capabilities.

gross margin of 66% of Revenue improved from 56% in the prior year quarter and increased margin contribution by $30 year-over-year product-related goes marja, six million for the prior-year quarter with the remaining $24 million primarily attributable to the year-over-year impact from strategic transaction.

With that I will turn the call over to Han to review the financial results Hen.

Thank you Eduardo.

Please turn to slide nine.

And I'm pleased to reported we had a very successful quarter with record sales revenue.

Expanded gross margins and positive adjusted EBITDA.

This is basically the difference between the aforementioned forty million from the pharmacy and transaction - combined proceeds or fifteen million from vitamin E and the Levante collaboration in Q4 of 2019.

We delivered record total sales revenue for the fourth quarter of $80 million. This was nearly doubled versus the prior year quarter, we delivered product revenue of $35 million 5 million and collaboration and grants and $40 million from the previously announced EBITDA and pharmacy and strategic transaction.

Cash operating expense of $50 increased by $5 million or 10% versus the prior-year quarter primarily due to selling and marketing investments in our consumer Brands and new R&D program. Do you any expense improved in finance HR and legal increased expenses in selling are related to the Fulfillment and distribution do too much increased sales activity also Q4 of last year benefited from a one-off credit to R&D lease expense T. Any expense continue to be down due to COVID-19 travel restrictions.

Product revenue of 35 million was the new records and increased 71% compared to the prior year quarter.

Driven by a record quarter for consumer, which reached $17 million and revenue and 161% year over year growth delivered as much revenue and the fourth quarter as it did during the entire year 2019 and.

<unk> revenue of $18 million and the quarter grew 29%.

Gross margin of 66 per cent of revenue improved from 56% and the prior year quarter and increased margin contribution by $30 million year over year.

Adjusted ebitda was positive 1 million and improved $26 million year-over-year due to higher Revenue improved product gross margins and income from the queue for strategic transaction.

Product related gross margin grew 6 million fears of the prior year quarter with the remaining $24 million, primarily attributable to the year over year impact from strategic transaction.

For Gap not doing things off. Mine is under the nine million improved 31 million and GAP EPS of -44 cents improved Twenty One cents adjusted net earnings or by the seven million improved thirty-four million compared to the prior-year quarter and adjusted EPS of mine is 3 cents improved $0.31 compared with Q4 of 2019 throughout 26g. We did extensive work on improving the balance sheet by simplifying and reducing debt and diversifying our shareholder base December 31st death of a hundred and seventy seventy 1 million wage significantly reduced by $127 million from 287 million at the end of the prior-year resulting in much reduced debt servicing expense interest expense or six million was down eight million or 56% compared to the prior quarter.

This is basically the difference between the aforementioned 40 million from the pharmacy and transaction minus combined proceeds of 15 million from vitamin E and the Levant collaboration and Q4 of 2019.

Cash operating expense of $50 million increased by $5 million of 10% versus the prior year quarter, primarily due to selling and marketing investments and our consumer brands and new R&D programs.

G&A expense and improved and finance HR and legal increased expenses and selling all related to the fulfillment and distribution due to much increased sales activity.

Also of Q4 of last year benefited from a one of credits to R&D lease expense.

T and <unk> expense continued to be down due to COVID-19 travel restrictions.

Let's turn to fly 10.

Adjusted EBITDA was positive $1 million and improved $26 million year over year due to higher revenue improved product gross margins and income from the Q4 strategic transaction.

For the full year. We also achieve new record sales revenue total revenue of 173 million grew 13% versus the prior-year record product revenue of 112 million increased said the 2% versus the prior-year driven by record consumer revenue and record ingredients growth up 197% and 26% respectively.

Q4, GAAP net earnings of mine is one of the 9 million improved $31 million and GAAP EPS of minus <unk> 44 cents improved 21 sets adjusted.

Adjusted net earnings of minus 7 million improved 34 million compared to the prior year quarter, and adjusted EPS of minus <unk> and.

Those margin of 56% of Revenue improved eleven million compared to the prior-year product-related gross margin grew thirty-seven million year-over-year with a twenty-three million improvement from consumer and a $40 million increase in margin contribution from ingredients.

Improved 31 cents compared with Q4 of 2019.

Okay.

Throughout 2020, we did extensive work on improving the balance sheet by simplifying and reducing debt and diversifying our shareholder base the.

In 2019, were you call at higher income from collaboration and transactions resulting in a year-over-year variance of -26 million. This was mostly due to the vitamin E transaction Levante collaboration wage in 2019.

<unk> 31st depth of 170 $671 million was significantly reduced by $127 million from $297 million at the end of the prior year, resulting in much reduced debt servicing expense.

Cash operating expense of 181 million decreased by 1 million or 1% compared to the prior-year primarily due to decreases in G&A and R&D expenses partly offset by Investments redirected to marketing expense to support consumer brand growth.

Interest expense of 6 million was down 8 million of 56% compared to the prior year quarter.

Let's turn to slide 10.

For the full year, we also achieved new record sales revenue total revenue of 173 million grew 13% versus the prior year record product revenue of $112 million increased 72% versus the prior year driven by record consumer revenue and record of ingredients growth up 190 <unk>.

Adjusted ebitda of mine is 95 million improved eight million compared to the prior compared to the prior-year primarily due to higher revenue and improved gross margins Baptist expands or 48 million was down 11 million or 18% compared to Prior year due to lower average debt and improved interest rate. We made most improvements to death in the second half of twenty G20 as a reference second have interest expense was down eighty million or 58% versus the year prior lastly as of December 31st our cash position. What's 30 million?

7% 10, 26% respectively.

Gross margin of 56% of revenue improved $11 million compared to the prior year.

Product related gross margin grew 37 million year over year with of $23 million improvement from consumer and a $14 million increase and margin contribution from ingredients.

And 2019, we recorded higher income from collaboration and transactions, resulting in a year over year variance of minus 26 million. This was mostly due to the vitamin E and transaction Levonne collaboration revenue and 2019.

Let's move to slide 11 Grand or two previous pages. I already commented on the delivery of record Revenue both in the quarter and for the full year from continued strong growth in both consumer. And in fact sequentially each quarter of 2020. So improved underlying total sales building from 24 million in q1 to Thirty million in Q2 2:30 for three months and finally to forty million in for your for was a very strong quarter for our Consumer Portfolio due to the holiday shopping season and continued strong consumer traffic on a recall most channels for four year 20 twenty two thirds of biosciences Revenue came from online sales. We previously announced our partnership is super ordinary for biosciences entry into Chinese. We shipped our first order in queue for the pet. Also continue to grow its core clean baby and mother care products and had its best quarter yet in Q4.

Cash operating expense of $181 million decreased by 1 million of 1% compared to the prior year, primarily due to decreases and G&A and R&D expenses, partly offset by investments redirected to marketing expense to support consumer brand growth.

Adjusted EBITDA of minus 95, new and improved $8 million compared to the prior year.

Compared to the prior year, primarily due to higher revenue and improved gross margins.

Interest expense of 48 million was down 11 million or 18% compared to prior year due to lower average debt and improved interest rate.

We made most improvements to that and the second half of 2020 as a reference second half interest expense was down $80 million or 58% versus the year prior.

ingredients

So the first commercial production run or CBG from fermentation, which fully sold out during the fourth quarter and sales of rep em were also strong complemented by strong vanilla on Revenue.

Lastly, as of December 31st our cash position was $30 million.

Let's move to slide 11.

Please sent a slight 12 I have commented on the various key financial metrics already the key takeaways from this page as relates to our full-year 2020 performance can be summed up with five simple points first. We continue to significantly grow Revenue second. We enhance product margins from growth in consumer and efficiencies and ingredients third operating expense was down from the reduced GNA expense redirected to the growth of Our Brands forth as a result adjusted ebitda was up to date and fifth we much improved the balance sheet with that down significantly resulting in lower debt-servicing expense.

On the two previous pages I already commented on the delivery of record revenue both in the quarter and for the full year from continued strong growth in both consumer and ingredients.

Sequentially each quarter of 'twenty and 'twenty saw improved underlying total sales building from 24 million and Q1 to 40 million and Q2 to 34 million and Q3, and finally to $40 million in Q4.

Q4 was a very strong quarter for our consumer portfolio due to the holiday shopping season, and continued strong consumer traffic on our e-commerce channels.

For full year 2022 thirds of Biosciences revenue came from online sales.

We previously announced our partnership with Super ordinary for Biosciences entry into China.

Do this last point? We have continued to make progress as your mentioned during the first quarter of this year and our death as of March 1st is now below a hundred and fifty million.

We shipped our first order in Q4 the.

The pet also continued to grow its core of clean baby and mother care products and had its best quarter, yet and Q4.

Let me now turn to the outlook for full year 2021. We have a number of activities on the way to continue to support the growth of our business and to ensure we execute effectively on the Strategic transactions with the addition of new brands and the continued development of our product development pipeline. Our current outlook for 2021 is that we expect underlying total revenue. This is consumer ingredients and preparation and grants to be in the 240 million range when adding the potential of the 2021 strategic transactions total reported revenues expected around four hundred million.

The ingredients saw the first commercial production run of CPG from fermentation, which fully sold out during the fourth quarter and sales of Rep and were also strong complemented by strong vanilla and revenue.

Please turn to slide 12.

I have commented on the various key financial metrics already the key takeaways from this page as it relates to all of our full year 2020 performance can be summed up with five simple points first.

We continue to significantly grow revenue.

Second.

We enhance product margins from growth and consumer and the efficiencies and ingredients third operating expense was down from the reduced G&A expense redirected toward the growth of our brands.

We expect these transactions strategic transaction to be mostly accretive to revenue and earnings resulting in positive full year adjusted ebitda. Obviously a full assessment will be made up on confirmation of this transaction as a result of which we may update our full-year 21 Outlook.

Fourth.

As a result of adjusted EBITDA was up and.

Fifth we much improved the balance sheet with debt down significantly, resulting in lower debt servicing expense.

As it relates to phasing of Revenue over the year, we expect a phasing of underlying total revenue to be 35% in the first half of 21 and 65% to be generated during the second half of time reflecting a continued quarter-on-quarter growth trajectory along with the impact from the addition of new brands. We expect to continue our work on the balance sheet and expect that to reduce further to below a hundred million Q3 of twenty Twenty-One with that. I'll turn the call back over to John John.

Peter This last point, we have continued to make progress as Joe mentioned during the first quarter of this year and all of that as of March 1st is now below $150 million.

Let me now turn to the outlook for full year 2021.

We have a number of activities underway to continue the sport.

The growth of our business and to ensure we execute effectively on the strategic transactions and the addition of new brands and the continued development of our product development pipeline.

Current outlook for 'twenty and 'twenty. One is that we expect underlying total revenue. This is consumer ingredients and collaboration and grants to be and the $240 million range.

Thanks, hun consumers are demanding natural products that are clean and sustainably-sourced. This is true for all consumer goods including Beauty Personal Care health and nutrition markets month. We deliver better performing molecules at a lower cost and our sustainably-sourced. This is our no compromise promise for customers and consumers that is delivering industry-leading growth and margins.

And adding the potential of the 'twenty 'twenty, one strategic transactions total reported revenue as expected around $400 million.

We expect these transactions strategic transaction to the most of the accretive to revenue and earnings resulting in positive full year adjusted EBITDA.

Obviously, a full assessment will be made upon consummation of the strategic transaction as a result of which we may update our full year 'twenty one outlook.

to make

The world sustainable. Our company needs to be sustainable the simplification and growth of our portfolio and our continued operational performance enables us to become one of the first companies in our sector to become financially self-sustaining. We're very excited about the year ahead, and I look forward to hearing your questions Chad. Can you please turn the call to questions now? Certainly, thank you. We will now begin the question-and-answer session to ask a question. You may press * then one on your telephone keypad. If you were using the speaker phone, please pick up your handset before pressing the keys to withdraw your question, please press * then two. We ask that you please limit yourself to one question and one follow-up at this time pause momentarily to assemble our roster.

As it relates to phasing of revenue over the year, we expect the phasing of underlying total revenue to be 35% and the first half of 'twenty, one and 65 per cent to be generated during the second half of 'twenty one.

Reflecting a continued quarter on quarter growth trajectory along with the impact from the addition of new grants.

We expect to continue our work on the balance sheet and expect debt to reduce further to below a 100 million by Q3 of 2021.

With that I'll turn the call back over to John John.

Thanks, John.

Consumers are demanding natural products that are clean and sustainably source. This is true for all consumer goods, including beauty personal care health and nutrition markets, we deliver better performing molecules at a lower cost and our sustainably source. This is our no compromise promise for customers and consumers that is delivering.

And the first question will be from Craig Irwin with Ross Capital Partners, please go ahead good morning and congratulations on the really impressive quarter.

Thanks. I wanted to ask a little bit about the the 2021 guidance. There's been a lot of fundamental Improvement in the core business with your margins again work very strong. Can you maybe frame out for us the relative contribution of the cost and the other Acquisitions to achieving every profitability on the platform is this really leverage of the combined combined entity that gets you to positive full year or am potentially looking at a very nicely creative transaction when you consummate the cost of Brazil or acquisition?

The industry, leading growth and margins.

And can make the world sustainable our company needs to be sustainable the simplification and growth of our portfolio and our continued operational performance enables us to become one of the first companies and our sector to become financially self sustaining and we're very excited about the year ahead and I look forward to hearing your questions.

Chad can you please turn the call to questions now.

Certainly thank you.

We'll now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad. If you were using the speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.

Craig I'll I'll I'll start and then have Honda make sure I'm correct and additive so and thank you for being on the call Craig. So the first thing I would say is the brands were acquiring are accretive from day one. Um, secondly, you know, these brands are not necessarily generating significant revenue and that is why we requiring and then plugging them into our system. Uh, and if I think about cost the plus terrorists on or just as two examples and we can add a new one thousand creating rozanc and Jonathan Van Ness the way we look at it is we start with the fact that you know, our current return on ad spend is some of the industry's best and our efficiency and acquiring customers and really converting those customers to revenue and then repeat purchase. It's really what's made our platform for Consumer one that we believe we can be across

We ask that you please limit yourself to one question and one follow up.

At this time, we will pause momentarily to assemble our roster.

And the first question will be from Craig Irwin with Roth Capital Partners. Please go ahead.

Good morning, and congratulations on the really impressive quarter.

Thanks, Greg.

I wanted to ask a little bit about the the 'twenty 'twenty, one EBITDA guidance positive EBITDA.

There's been a lot of fundamental improvement in the core business and your margins again were very strong.

Can you maybe frame out for us the relative contribution of the caster and the other acquisitions to achieving EBITDA profitability on the platform.

Is this really leverage of the combined combined entity that gets you the positive full year EBITDA.

Or.

From day one on any of the Acquisitions that that were making then if I think about relative contribution, I think the biggest contribution we expect for the year will come from Terra Sana and the acne product. I think the focus on that product and its efficacy and the ability to break through the consumer will be super strong and we expect to have that product in Market by June. The other thing we like about it is that Thursday. It's a formula that will be exclusive to us. It'll be us two or three other brands very controlled and we think that will generate significant cash and will be a big contributor to Thursday for the year. I think Kosta will fall right behind that then I think rose pink and jvn will also will also contribute pretty significantly and what that does is the combination of new brands, uh, in in the mix this year, you know will add over thirty million of Revenue with significant profit. Yep.

Are we potentially looking at a very nicely accretive transaction when.

When you consummate the cost of Brazil acquisition.

Craig I'll I'll I'll start and then have high and make sure I'm correct and additive.

So and thank you for being out of the call Craig. So the first thing I'd say is the brands. We're acquiring are accretive from day one.

Secondly, you know these brands are not necessarily generating significant revenue and that is why we're acquiring and and plugging them into our system.

And if I think about cost the plus.

Plus terrorists on or just as two examples and we can add the new ones, we're creating Rosa, Inc, and Jonathan Van Ness of the.

The way we look at it is we start with the fact that our current return on AD spend and if some of the industry's best and our efficiency and acquiring customers and really converting those customers to revenue and and repeat purchase is really whats made our platform for consumer one that we believe we can be accrue.

because it's being

Added leverage to our existing platform. So I hope that helps great Craig. I think that's kind of one way to think about it is the brands are accretive they recruited from day one. And yes, they're going to add a significant Improvement wage, but don't forget that are based business bio-science, uh, the pipette brand and the ingredients are are now just really contributing in a span e margin wielding every quarter, right? So don't underestimate the amount of contribution. They make what the growth rings and then obviously the third part is what the one-time transactions bring in the car facts. You better this year high know I think that's a good summary. I was going to add that last point you made number three, which is indeed the the accretive nature of the Strategic action to both revenue and and and earnings, but I think you summed it up well,

Peter from day, one on any of the acquisitions that we're making and if I think about relative contribution and I think the biggest contribution we expect for the year will come from terrorists Sona and the acne product, we think the focus on that product and its efficacy and the ability to break through the consumer will be super strong and we expect to have that prop.

And market by June the other thing we like about it is that it's and it's a formula that will be exclusive to us it'll be us two or three out of the brands very controlled and we think that will generate significant cash and will be a big contributor to our EBITDA for the year I think costa.

And will fall right behind that and I think Rosa, Inc, and JV and will also will also contribute pretty significantly and what that says is the combination of new brands.

Thank you. My follow-up question. I wanted to ask about the six molecules. You launched in the fourth quarter. Can you maybe share with us what your Revenue expectations are in the guidance issued for 2021 Revenue guidance, you know, how do you expect to qualify the success of these molecules over the course of the year and then you know, what should we think about the the markets for the eight to ten that you mentioned that will probably be launched over the course of this year. We talking. Clean Beauty and health and wellness flavor and fragrance or maybe a new market for some of these

And in the mix. This year, you know will add over 30 million of revenue.

With significant.

Profitability, because it's being added and leverage through our existing platform. So I hope that helps Greg Craig I think that's kind of one way to think about it is the brands are accretive the accretive from day, one and yes, theyre going to out of significant improvement, but don't forget that our base business bioscience.

The pipette brand and the ingredients are now just really contributing and expanding margin really every quarter right. So don't underestimate the amount of contribution they make what the growth rings and then obviously the third part is what the one time transactions bring and the impact to EBIT This year.

Yeah, two different parts pranks. I'll answer the first part which is simply we're not breaking out Revenue by molecules. What I can tell you is all molecules. We launched last year are actually sold out in 2021. So our big issue right now is not necessarily demand growth or even cash from those thoughts. It's actually the capacity which is why either Wireless point on really keeping focused on our new plant about who need to plan as our key project for this year wage is really super critical. It is on track. It'll be completed by the end of this year and that will really open up, you know, a significant opportunity for more expansion next year for the molecules we make so Monday, we're not breaking up individual Revenue, but we can confirm for you that the molecules we launched last year. We are obviously like we have year-on-year significantly increasing the wage.

Hi.

No I think John that's a good summary, I was going to add that last point you made a number three which is indeed the of the accretive nature of the strategic transaction to both.

Revenue and earnings, but I think you summed it of oil.

Thank you.

My follow up question I wanted to ask about the six molecules shoot launched in the fourth quarter can you maybe share with us what your revenue expectations are in the guidance you issued.

For 2021 revenue guidance.

You know how do you expect to quad.

Qualify the success of these molecules over the course of the year.

And then what should we think about the the markets for the age of 10 that you mentioned that will probably be launched over the course of this year and are we talking predominantly clean beauty and health and wellness flavor and fragrance or maybe a new market for some of these.

Option of those molecules and all of that is currently lined up and sold out for twenty Twenty-One. I think when it comes to you know, the the the the the the second part of your life in the 8th to 10th in the eighth of ten, you know, their new molecules being added to the development Pipeline and the way to think about that. There's a pretty good mix of what I'll call them flavored flavor health and nutrition and Beauty. So there's a mix almost a third a third of the molecules going into the pipeline in the eighth of 10 and 5/8 of ten. Look. I think there's some quick wins there that will see commercializing at the end of the 2023 beginning of twenty-four as we sit during the call. We're now at a point where most of what we're adding to the phone line. Not all but most can really develop and go to scale within a year of entering the development pipeline.

Yeah, the two different parts of Craig So I'll answer the first part which is simply.

We're not breaking out revenue.

By molecules, what I can tell you is.

All of the molecules, we launched last year.

Are actually sold out in 'twenty and 'twenty, one so our big issue right now is not necessarily demand growth or even cash from those molecules. It's actually the capacity, which is why <unk> wireless point on are really keeping focused on our new plant the basketball and eat the plan is our key project for this year.

<unk> is really supercritical. It is on track it will be completed by the end of this year and that will really open up a significant opportunity for more expansion next year for the molecules. We make so we're not breaking out individual revenue, but we can confirm for you that the molecules. We launched last year. We are obviously like we have here.

Great.

Chicken for checking my take my questions. Congratulations on on the progress.

Thank you, Craig. Thanks Rick. And the next question will come from calling Rush with Oppenheimer, please go ahead. Thanks so much guys, you know, can you take us back to the the cash walk from here to the the the hundred million dollars of debt in the third quarter of so you guys ended the year with Thirty million in cash and they're going to have some cash walking coming in the door here, but just won't underneath the Cadence of that here over the next few quarters.

The on year Cigna.

Significantly increasing the production of those molecules and all of that is currently lined up and sold out for 'twenty and 'twenty, one I think when it comes to the.

The.

The the the second part of your question the eight to 10.

And the eight to 10, you know their new molecules being added to the development pipeline.

And the way to think about that Theres, a pretty good mix of our what I'll call of flavor and flavor health and nutrition and beauty. So theres a mix of almost a third a third of the molecules are.

Yes, or no, not a problem at all. So we finished the year as we said at at around a hundred and seventy-one. We also said that we have already made progress this current quarter bye-bye. That so we're actually now below a hundred and fifty million. So to get to that we have certain certain instruments come up as part of life from you know maturity this year by the middle of the year and then you know, of course it's part of the Strategic transactions. We will we will use proceeds to to further reduce them. We said all along as as as as that being part of the objective, so that's why we see a clear path from where we are right now, which is already below where we finished a year to talk to, you know to the third quarter being below 100 million.

Going into the pipeline and the eight to 10 and out of the eight to 10 and look I think there's some quick wins there that we'll see commercializing at the end of the 'twenty and 'twenty three beginning of 'twenty four and as we sit during the call. We're now at a point, where most of what we're adding to the pipeline not all but most can really develop and go to scale within of.

Year of entry and the development pipeline.

Great. Thanks, again for taking my taking my questions. Congratulations on the on the progress.

Thank you Craig Thanks, correct.

And the next question will come from Colin Rusch with Oppenheimer. Please go ahead.

Thanks, so much guidance hung.

Okay, the only the only thing I would add on 1 second, I would just add that this was in the release but just to emphasize since December we've generated a little more than 48 million in Warren conversions in addition to the thirty million that we ended up the balance with at the end of the year plus, you know, we've got a pretty clear path invisibility to a significant amount of cash generation through the year, right? So not only are we moving debt-to-equity for some of the outstanding debt. We're also Jeff significant cash both from warrants and the transactions and then obviously the operating cash from the from the continued Revenue growth.

Can you take us through the the cash walk from here to the the the $100 million of debt and the third quarter of just you guys ended the year with $30 million of cash.

And they're going to have some cash walking come in and the door here, but just want to understand kind of the cadence of that here over the next few quarters.

Yeah.

Yeah sure no not a problem at all so we finished the year as we said at the at around 171. We also said that we have already and make progress is current quarter bye bye and poodle, reducing death, so we're actually now below $150 million.

So to get to that we have.

And certainly instruments come up as.

And as part of.

Maturity this year by the middle of the year and then of course as part of the strategic transactions. We will we will use proceeds to further reduce debt, which we've said all along as the.

And that's helpful guys. And then if you bring up this new capacity, can you talk about the the value of the flexibility of the the facility in terms of producing different molecules in your ability to serve all these different end markets. It seems to me that one of the challenges that you guys have is the diversity of Revenue here and and optimizing capacity for that. And then if you just give us a sense of you know, full Revenue potential in the products, I bought this new capacity fully rent.

And as that being part of the objective. So that's why we see a clear path from where we are right now which is already below where we finished the year too.

Two of two.

To the third quarter being below $100 million.

Okay.

And the only thing I would add a call and one second I would just out of it and this was in the release, but just to emphasize since December.

Yeah, you know the there's two things going on calling it is you know, they're they're all fermentation. So the good news is the fermentation process is pretty consistent, but they are different month olds and we do need to have Separation by Tank, which is one of the key benefits of this new this new Factory. The other thing to keep in mind is the revenue the factory. So the revenue off all the factory very significantly by the mix in the portfolio i e the revenue each unit generates. And as you know, we've been significantly upgrading the average revenue generated per molecule in our portfolio. So, you know a year ago, I would tell you a $17 investment which is the total investment for our for our fax could generate hundred million dollars of Revenue per year and obviously have a full pay back in one year. The reality now is as the average selling price wage.

We've generated a little more than 48 million and warrant conversions. In addition to the 30 million and that we ended up the balance with at the end of the year.

You know we've got it.

Pretty clear path and visibility to a significant amount of cash generation through the year right. So not only are we moving.

Debt to equity for some of the outstanding debt were also generating significant cash both from warrants and the transactions and then obviously the operating cash.

From the from the continued revenue growth.

Okay. That's helpful guys.

And then as you bring up this new capacity can you talk about the the value of the flexibility of the the facility in terms of producing different molecules and your ability to serve all of is different and markets. It seems to me that one of the challenges and you guys have as the diversity of revenue here and and optimizing capacity for that and then if you could just give us a sense of you know.

Has gone up in the mix of moloch.

We have and as obviously we have more exposure in these exclusive molecules for our own retail business, you know, we're now at a point where from the ingredients side and the back side of our business, you know, we probably have three to four hundred million of Revenue generation Potential from a $17 investment. If I think about the mix of products the volume and the end markets they go into so it's a it's a pretty potent plant. And again think of the plant as different production lines that we can expand on and each month. Hey having the ability to be separated so we can run, you know up to six or eight different molecules at the same time without having any cross-contamination or issues and really maximize utilization of the factory. So the other thing I would say is based on entering into this fifteen-year Supply arrangement with the partners that were establishing.

Revenue potential and the product side with this new capacity fully ramped.

Yeah, you know the there's two things going on call and.

It is.

They're all fermentation and so the good news is the fermentation process, it's pretty consistent but they are of different molecules and we do need to have separation by tank, which is one of the key benefits of this new of this new factory. The other thing to keep in mind is the revenue the factory of the revenue potential of the factory very significantly.

And the mix and the portfolio I E.

And the revenue each unit generates and as you know we've been significantly upgrading.

The average revenue generated per molecule in our portfolio. So you know a year ago I would tell you a $17 million of investment which is the total investment for our for our factory.

Could generate $300 million of revenue per year, and obviously have a full payback and one year. The reality now is as the average selling price.

You contracts with for a portion of our portfolio the combination of those Supply contracts and then the growth in our portfolio says, you know by the end of 2022 month or call at the beginning of 23 will need a new plan. So our Focus will be once this plan is done start construction on third one and we see that as really just continuing to provide the infrastructure to continue to make these clean sustainable ingredients available. I hope that helps call him thinking about the mix what the mix does to revenue per plant and how we think about demand and capacity over the next few years.

Has gone up and the mix of molecules, we have and as obviously, we have more exposure and these exclusive molecules for our own retail business. You know, we're now at a point where from the ingredient side and the product side of our business and you know, we probably have three to 400 million of revenue duration.

So from a 17 million dollar of investment if I think about the mix of products the volume and the end markets. They go into so it's a it's a pretty potent plant and.

Yep, it does. Thanks so much guys.

And again think of the plant as a different production lines that we can expand on and each tank, having the ability to be separated. So we can run you know up to six or eight different molecules at the same time without having any cross contamination of our issues and really maximizing the utilization of the factory. So.

And the next question will come from a mid Dale with HC Wainwright, please go ahead. Thank you morning. And I appreciate you taking my questions about when we think about or when investors think about growth Beyond 20 21 John, you know, this High thirty percent level growth is is that sort of the base case from here?

The other thing I would say is based on entering into this 15 year supply arrangement with the partners that we're establishing these new contracts with for a portion of our portfolio. The combination of those supply contracts and then the growth and our portfolio says you know by the end of 'twenty two.

Welcome it I think the way to think about it is it's clear that in 2020 with Kobe as much as there were a lot of benefits from that especially in our consumer business. There are also a lot of barriers, right and I think one of the biggest barriers was Innovation and a lot of the brands especially when it comes to food and nutrition so, uh, I I think Thursday is a baseline. I would expect year-on-year top line of 50% or better as we go forward and I think I said in a recent call that when you think about the mix with the Acquisitions were making and the focus in our portfolio both in you know, what to think about it is its direct-to-consumer and everything that's held Beauty and wellness including ingredients apply to other bracket and its Partnerships for everything else when you look at that mix and when you look at what we're doing with the technology, I mean like I think again I said publicly I expect, you know, five hundred million with Note

<unk> two or call at the beginning of 'twenty three we'll need of new plants. So our focus will be once this plan is done start construction of a third one and we see that as really just continuing to provide the infrastructure to continue to make these clean sustainable ingredients available I hope that helps call and thinking about the.

Mix and what the mix does the revenue per plant and how we think about demand and and.

The city over the next few years.

Yeah. It does thanks, so much guys.

And the next question will come from Amit Dayal with H C. Wainwright. Please go ahead.

Thank you good morning, and I appreciate you taking my questions.

When we think about or when the nurses think about beyond 2021 John.

issue as we end

2024 the reality is we've got quite a bit of growth built-in that should exceed our expectations as we continue building out the business. But yeah, I think about 30% is definitely the bottom 50% annually or more as a Target growth that you should seek delivered this year without an issue.

This high 30% level of growth is sort of is that sort of the beer skus from here.

Looking at I think the way to think about it as it.

And it's clear that and.

'twenty and 'twenty with Covid as much as there were a lot of benefits from that especially in our consumer business. There are also a lot of barriers right and I think one of the biggest barriers was innovation and a lot of the brands, especially when it comes to food and nutrition. So.

Thank you for that and these ingredients that are in development these going to be part of your collaboration revenues or or other some of these also organic company efforts.

I think 30 is a baseline I would expect a year on year top line of 50% or better as we go forward and I think I said and a recent call that when you think about the mix the acquisitions, we're making and the focus and our portfolio of both and you know the way.

All the ingredients I reference the eight to ten are all collaboration based meaning they they will all be accretive to the collaboration Revenue line. None of the one that I referenced our ingredients that we're developing ourselves and self-funding.

The way to think about it is it's direct to consumer and everything that's helped beauty and wellness, including ingredients supply to other brands and it's partnerships for everything else. When you look at that mix and when you look at what we're doing with the technology I mean like I think I got I said publicly I expect you know 500 million with no issue as of.

Understood and then you know just from a high-level macro perspective, you know with sort of agriculture-related cost and ingredients from the agriculture traditional agricultural side continued to Trend higher. You know, how do you see sort of fermentation sort of coming in and you know replacing some of those higher costs ingredients that have traditionally been sourced from birth culture efforts.

We in 'twenty and 'twenty four the reality is we've got quite a bit of growth built in and that should exceed our expectations. As we continue building out the business, but yeah, I think about 30% is definitely the bottom 50% annually or more as a target growth that you should see delivered this year without an issue.

Can you give me an example?

Like for example, you know on the on the scroll in front you you made a big difference in terms of how it is, you know, replacing traditional sources. Are you seeing them and pull for fermentation based? Uh-huh offerings, you know relative to maybe what might have traditionally been sourced from agricultural sources is that driving a lot of this traction that you're starting to see from the customer site?

Understood. Thank you for that and these eating ingredients that are in development and.

And he is going to be part of your collaboration revenues or the sum of these also.

Organic company efforts.

All of the ingredients I referenced the eight to 10 are all collaboration base, meaning that they will all be accretive to the collaboration revenue line and none of the ones I referenced our ingredients that we're developing ourselves and self funding.

It is so I Now understand so you're basically saying look stuff that people traditionally got from agriculture, whether trees plants or for that matter animal is that driving the demand and without question. I think people are looking at you know, there's a lot of demand for certain products around the world, especially in personal care and beauty and you know, the the the constant pull from those ingredients. I think Ellen is a perfect example really stresses the whole supply chain. So the idea is it's okay to Source something Dylan from Farm because frankly you gotta have to keep communities also sustainable, but to meet the world's growing demand we need to turn to fermentation because fermentation is really the only way to make natural in a sustainable way and deliver high-purity high-performing ingredients and that is at the heart of what's driving a lot of our growth

Understood and.

And then just from a high level of macro perspective.

Sort of.

Agriculture related cost and the ingredients from the agricultural traditional agricultural side.

Continuing to trend higher.

And you see sort of fermentation and sort of coming in and replacing some of those higher cost ingredients that type of traditionally being sourced from agriculture.

Efforts.

And can you give me an example.

Like for example, you know on the on the Squalene from you you made a big difference in terms of how it is replacing traditional sources.

Are you seeing a demand pool for fermentation Beast Oh.

The offerings.

Relative to maybe what might have traditionally been sourced from agriculture and sauces.

Understood I have some follow-ups on that, but I'll take care of. Thank you so much.

Is that driving a lot of this traction that youre starting to see from the customer side.

Thanks, and it the next question will be from Lawrence Alexander. Jeffrey's please go ahead.

And it is so I don't understand it and and so you're basically saying look stuff that people traditionally got from agriculture, whether trees plants or for that matter of animal.

Good morning, two questions first on the Milestones that the and and and the commercial transaction. Can you give a flavor for what the ongoing Revenue stream should be for 2020 to 2025. Are we looking at say twenty to Thirty million a year in net sales being locked in with these transactions off and how much of that pipe that 500 million is just bartering for molecules being given back to Amorous and secondly on the fermenting protein. Can you flesh out at least pointing us towards thinking about you doing a fermentation protein platform or a or are you venturing into lab cultured knees and are you using carbohydrates as a feedstock or are you moving to methane?

Is that driving the demand and without question I think people are looking at you know theres a lot of demand for certain products around the world, especially and personal care and beauty and you know the the the.

Constant pull from those ingredients I think vanillin is the perfect example, really stresses the whole supply chain. So the idea is it's okay to source something the island from farm because frankly, you got to have to keep communities also sustainable but to meet the world's growing demand, we need to turn to affirm intake.

And because fermentation is really the only way to make natural in a sustainable way and deliver high purity high performing ingredients and that is at the heart of what's driving a lot of our growth.

Great Lawrence Lawrence. Thanks for being on the call. I mean first of all on your first question. There is no bartering for ingredients coming back and the way to think about it is we are locking in a 30 to 40 million of built-in revenue from the manufacturing deal annually for the next couple of years. And I'd expect that Revenue base to grow year-on-year over the 15 year. If we think about what the growth of that portfolio has been, you know, uh, based on the production type relationship, you know, I would expect 30 to 40 million a year that grows at a steady 10 to 20% a year without fail and that's that's the outcome of the production side of that deal which I think is one of the greatest benefits for us how we think about locking up baseload for our plants regarding regarding the protein side. We're not going to go into the job.

Right understood.

And I have some follow ups on that but I'll take that offline. Thank you so much.

Thanks, Amit.

The.

The next question will be from Laurence Alexander of Jefferies. Please go ahead.

Good morning.

Two questions first on the milestones that the and the commercial transaction can you give a flavor for what the ongoing revenue stream should be for 2022 to 2025 are we looking at say $20 million to $30 million a year.

And our net sales being locked in with these transactions and how much of that pipe of the $500 million just bartering per molecule is being given back to amyris.

And secondly on the preventing protein.

And you flesh out or you at least pointing us towards thinking about you're doing a fermentation of protein platform or less.

Or are you of entering into lab cultured meat.

Cultured meat business we are focused on really molecules to help either the supply chain or fermentation based protein molecules that can be used to form a relations to deliver great protein for consumers, right? So those are the two areas where we're focused on and you know, it's pretty broad ranging for instance. One of the issues with needs today is it's typically transported in bulk Vic carcasses that are moved from the the Brewer the folks growing the meat to where the in markets are and actually that's not the most efficient or effective way to do it. So breaking bulk at the source is enabled only by a natural preservative that can be applied to the meat and so we have natural preservatives in our portfolio that are fermentation based that we believe could make a huge difference to how the supply chain works in the amount of carbon emissions and the overall supply chain.

And are you using.

Carbohydrates or the feedstock or are you moving to methane.

Great Laurence the Lawrence Thanks for being on the call and first of all on your first question. There is no bartering for ingredients coming back and the way to think about it is we are locking in.

30 to 40 million of built and revenue from the manufacturing deal annually for the next couple of years and I'd expect that revenue base the grow year on year over the 15 year period, if we think about what the growth of that portfolio has been you know.

Based on the production type.

The relationship.

And I would expect 30 to 40 million of year that grows out of steady 10 to 20 per cent of year without fail and that's that's the outcome of the production side of that deal, which I think is one of the greatest benefits for us and how.

Do we think about locking up a base load for our plants.

So we're looking at it broadly acknowledging that there's going to be meat consumption for a long time to come and our mission should be to take the CO2.

Regarding.

Regardless of the protein side, we're not going to go into the cultured meat.

Two out of that out of that supply chain. So I hope that helps Lawrence.

<unk> business, we are focused on really molecules to help.

It does. Yeah actually. Thanks.

Either of the supply chain or fermentation based protein molecules that can be used the formulations are to deliver great protein for consumers right. So those of the two areas, where we're focused on and you know its pretty broad ranging for instance, one of the issues with meat today is it's typically transfer.

And the next question will come from Graham Tanaka with Tanaka Capital Management, please go ahead. Thank you. Thank you all very nice here and and great progress and Lounge areas. I was wondering if I could ask if you could elaborate a little bit more on the vaccine and Advent efforts and particularly a prior references to Government funding maybe talk about time size industry interest and how serious is government support in the US and overseas. Thanks and thanks for being on the call. So I mean two things on vaccines right as we said first we've now now obtained preclinical data on our our innate platform that demonstrate from an efficacy perspective. It's as good as anything in the market, but more importantly that the way the tax the vaccine is assembled the actual formulation how we use the adjuvant?

<unk> in both the carcasses that are moved from the the grower the folks are growing the meat to where the end markets are and actually that's not the most efficient or effective way to do it so breaking bulk at the source.

Is enabled only by a natural.

And who pooh-poohed preservative that.

That can be applied to the meat and so we have natural preservatives and our portfolio that are fermentation base that we believe could make a huge difference to how the supply chain works and the amount of carbon emissions and the overall supply chain and so we're looking at it broadly acknowledging that there's gonna be meat consumption for a long time to come and our mission should be the take the C O two.

And in some other aspects including freeze-drying actually significantly change the supply chain complexity and the scale-up complexity of the vaccine and really in a month to have what I believe will be the key RNA technology for all future use of RNA and so our focus is getting the technology developed enabling it to get the scale Thursday. We're moving to human clinical space one very rapidly. And then again with that data in our hands really become the enabler and the axis of wage for other companies to be able to really make our end as potent as it should be and as flexible as it should be to deal with pandemics and deal with other treatment issues that we believe are any vaccines will be good for in addition to that. We have the squalene, which is obviously a key component in the vaccine as well as other vaccines wage.

Out of that out of that supply chain. So I hope that helps Laurence.

And Doug Yeah actually the thing.

And the next question will come from Graham Tanaka Tanaka Capital Management. Please go ahead.

Thank you. Thank you all a very nice year and great progress and all in all areas.

I was wondering if I could ask if you could elaborate a little bit more on the vaccine and adjuvant efforts and and particularly the prior references the government funding.

Maybe talk about timing and size.

Industry interest and the how serious is the government support.

And the U S and and overseas.

Okay, great and thanks for being on the call. So two things on vaccines right. As we said first we have now.

And now with pain.

Clinical data on our RNA platform the demonstrates from an efficacy perspective.

He adjuvant so in both the government has been very interested in enabling us manufacturing of those two components the RNA vaccine age. So and then the subcomponent the squalene for the adjuvant. We have not disclosed the total number so I'm not going to put it out there. But you know, it's pretty pretty significant on the other hand. I think we said publicly that the scale of of rrna vaccine is about 10x lower cost than what's currently in the market. So and I'm putting that out there as a reference so that you know, it's a billion dollar funding because our vaccine doesn't require a billion dollars to scale right and then regarding the interest of governments. Look I could tell you the Portuguese government as an example. They are very focused on really having a sustainable solution not only for their country, but the Portuguese as an example see the African continent and the Latin American markets as to fan club.

It says good is there anything and the market, but more importantly that the way the attack the vaccine as a symbol of the actual formulations and how we use the adjuvant and and some other aspects, including freeze drying actually significantly change the supply chain complexity and the scale up complexity of the vaccine.

And really enable us to have what I believe will be the key RNA technology for all future use of RNA and so our focus is getting the technology developed enabling it to get the scale, we're moving to.

Human clinical phase one very rapidly.

And then again with that data in our hands are really become.

sick markets that don't have

A great solution today and that we see this platform being able to enable that so, you know, it's a very interesting technology. We got lucky and locked in something that we have been working for several years. We made a bet on our end before RNA was proven to be the future of vaccines and that that seems to be playing out. I think we really want to advance the human clinicals we could get the next round of data and then we want to focus on commercializing and scaling it up. And again, our focus is funding that through government sources non-equity dilute of capital to ensure that we can be in that business and create a future in the health side of our business without taking significant exposure for our investors. I hope that helps

Honestly a key component in.

Of the vaccine as well as other vaccines are key adjuvant. So in both the government has been very interested in and enabling.

The U S manufacturing of those two components the RNA vaccine itself and then the sub component of the squalene for the adjuvant.

We have not disclosed the total numbers, so I'm not going to put it out there, but you know it's pretty pretty significant on the other hand, I think we said publicly that the scale up of our RNA vaccine is about 10 X lower cost than what's currently and the market, so and I'm, putting that out there as the reference so that you don't think it's a billion dollar funding.

Yeah, yeah, just just if you could be a little bit further on the timing of the various phases phase one phase to phase three for human clinicals and when you might come out with an improved vaccine and and and secondly, does this enable Amorous to retain 100% of the intellectual property and ownership.

And because our vaccine doesn't require of $1 billion of scale right and then regarding the interest of governments look I could tell you the Portuguese government. As an example, they are very very focused on really having a sustainable solution not only for their country, but the Portuguese as an example, C. The African continent and the Latin.

American markets as two fantastic markets that don't have a great solution today and that we see this platform.

Can only have an exclusive sure Graham we currently have an exclusive license that enables us to keep ownership of the technology. So that is our faith. I think secondly and we have that not only for what I'll call SARS type treatments, I believe and I've been talking to the medical community a lot. There is a need for a universal sarja vaccine a platform that enables us to respond to the different SARS virus is over time and that's really what we're doing on the SARS and current pandemic front and then we have a license and rights to additional indications and there are obviously more indications than SARS that a that uh, a r n a vaccine can apply to regarding timing. Look I we we are going to be heavy into phase one human clinicals around mid-year and then I expect by the end of this year to have enough data to be able to really make choice.

Being able to enable that so you know.

It's a very interesting technology, we got lucky and locked and something that we have been working with for several years. We made a bet on RNA before RNA was proven to be the future of vaccines and that's that seems to be playing out I think we really want to advance the human Clinical's. We wanted to get the next round of data and then we want to focus on commercializing and scaling.

And again, our focus is funding that through government sources non equity dilutive capital to ensure that we can be and that business and create the future and the health side of our business without taking significant exposure for our investors I hope that helps.

Yeah, Yeah, just just if you could elaborate a little bit further on the timing of of the various phases phase one phase two phase III for human Clinical's and.

When you might come out with and approved vaccine.

So surround Regulatory and commercialization and how how fast that goes through through regulatory. I think depends a lot on the moment, right? I think what we've seen over the last year is immediate support and advancement, you know, if we can maintain that kind of focus on creating a a real systemic and sustainable response 2002 pandemic some SARS diseases I think will be true fast. If not, I can't predict it. But that's that's kind of the biggest variable. We have as we go through the end of this year.

And secondly, does this enable amyris to retain 100% of intellectual property and ownership.

And we can return and we have an exclusive.

Sure Grant and we currently have an exclusive license that enables us to keep our.

Ownership of the technology. So that is ours today, I think secondly, and we have that not only for.

What I'll call Sars type treatments like I believe and I've I've been talking to the medical community a lot. There was the need for a universal Sars vaccine and a platform that enables us to respond to the different Sars viruses over time, and that's really what we're doing on the Sars and current pandemic front, and then and we have a license.

Quit so perhaps potential Revenue by what early 2022 is that the possibility? Yeah, look I think twenty-two is possible that we see positive Financial impact from the RNA platform and and and almost say if everything goes well, that's what we're going to see if there's some major disruption that changes the focus of World Health Organization governments to having a real response system to pandemics then then then the time you may change but if the if what we see continues and the focus of governments and the support and the weight of governments and agencies stays as is I would expect to see some first material Revenue as we go into 22 into 22.

And rights to additional indications and there are obviously more indications than Sars that a of that a RNA vaccine can apply to regarding timing look I. We we are going to be heavy into phase one human clinical around mid year, and then I'd expect by the end of this.

Year to have enough data to be able to really make choices around regulatory and commercialization and then.

How fast that goes through come through regulatory I think depends a lot on the moment right I think what we've seen over the last year is immediate support and advancement.

Great.

It just says I can throw another quick quick question on monoclonal antibodies. You did not mention that earlier. I'm just wondering if you're making progress on that front.

You know if we can maintain that kind of focus on creating a a real systemic and sustainable response system to the pandemics and Sars diseases, I think will be true fast if not I can't predict with but that's that's kind of the biggest variable we have as we go through the end of this year.

Look our focus on the monoclonal antibodies has been identifying Target antibodies and what I'll call Discovery companies to partner with because having a great platform or anybody's without having a treatment or therapy that is really impactful and has a clear road to Market isn't super exciting, right? So that's where we're putting our energy. We are engaged in several discussions wage and you know more more to come to see her but our focus and what we want to we want to share with you is once we've locked in a couple of therapies that we think will be meaningful and we actually have them in developing in our platform. That's when we will the making material announcements around the antibody platform.

Great so perhaps potential revenue.

By what early 2022 was that the possibility.

Yeah look I think 'twenty two is possible that we see positive financial impact from the RNA platform and.

And I'd almost say if everything goes well that's what we're going to see if there's some major disruption that changes the focus of world health organizations and governments to having a real response system to pandemics than the than the timing may change, but if the if what we see continues and the focus of the government stimulus.

So the later you just pick news on that front. What second third quarter this year or later? Yeah, I'd say second half of this year, right? We've got a lot going on in the first half months. We've got active discussions that could move faster, but just to keep everything measured here. I'd say second half of the year is when I'd expect us to have something more material in a commercial path for the the antibody technology. Great. Thank you. Good luck. Thanks.

Support and the weight of those governments and agencies stays as is I would expect to see some first material revenue as we go into a 22 end of 'twenty two.

Great. Thanks, and just if I can throw one other quick a quick question on monoclonal antibodies and did not mention that earlier I'm, just wondering if youre, making progress on that front.

Look our focus on the monoclonal antibodies and that's been identifying target antibodies and what I'll call. The discovery companies to partner with because having a great platform for antibodies without having a treatment or a therapy.

Thanks Ram. Ladies and gentlemen, this concludes our question-and-answer session or like to turn the conference back over John mellow for any closing remarks. Thanks Chad. Thanks for joining us today and for your continued interest and support help with behind well over the time we expected but I really appreciate the questions and engagement. If we didn't get to your question, please follow up with our investor relations team and I'm not sure to get back to you with a response. We really wish everyone best of luck. And please stay safe and healthy and let's get through. Hopefully getting back to some Life as we get back twenty Twenty-One and let's make it a great year for all of us. We look forward to speaking with you during one of our upcoming investor conferences. Thank you and have a good day friends has now concluded. Thanks for turning today's presentation. You may now disconnect.

That was really impactful and has a clear road to market isn't super exciting right. So that's where we're putting our energy we are engaged and several discussions and you know more and more to come this year, but our focus and what we want to we want to share with you is once we've locked in a couple of therapies that we think will be meaningful and we actually have them and developing and our platform.

Form that's when we will the making material announcements around the antibody platform.

Some of the later and you can expect news on that front and what.

The second and third quarter of this year or later, yeah, I'd say second half of this year right. We've got a lot going on and the first half of we've got active discussions that could move faster, but just to keep everything measured here I'd say second half of the year is when I would expect us to have something.

More material and a commercial path for the antibody technology.

Thank you good luck thanks.

Thanks Ram.

Ladies and gentlemen, this concludes our question and answer session and I'd like to turn the conference back of the John Melo for any closing remarks.

Thanks, Chad Thanks to everyone for joining us today and for your continued interest and support.

We've got well over the time, we expected, but I really appreciate the questions and engagement. If we didn't get to your question. Please follow up with our Investor Relations team and we'll make sure to get back to you with the response, we really wish everyone and best of luck and please stay safe and healthy and the let's get through hopefully getting back to some life as we get.

Thursday

Through 'twenty and 'twenty, one and let's make it a great year for all of US. We look forward to speaking with you during one of our upcoming investor conferences. Thank you and have a good day.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Yeah.

[music].