Q4 2020 Yield10 Bioscience Inc Earnings Call
[music].
Greetings and welcome to the fourth quarter and full year 2020 financial results and business update conference call for yield 10 bioscience during the call participants will be in a listen only mode.
The presenters will address questions from analysts today.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder of this conference call is being recorded.
I would now like to turn the conference call over to your host yield 10, Vice President of planning and corporate Communications Lynne Brum.
Thank you Hector and good afternoon, everyone welcome to the yield 10, Bioscience fourth quarter and full year 2020 conference call joining.
Joining me on the call today are president and CEO, Dr. Oliver people.
This president of research and Chief Science Officer, Dr. Kristi, Snell, and Chief Accounting Officer, Chuck Heather.
Earlier this afternoon, Youll kind of issued our fourth quarter and full year 2020 financial results.
The press release as well as slides to accompany today's presentation are available on the Investor Relations events section of our website at yield 10 bio dot com.
Please turn to slide two please.
Please note that as part of our discussion today management will be making forward looking statements. These statements are not guarantees of future performance and therefore, you should not place undue reliance on them.
Investors are also cautioned that statements are not strictly historical constitute forward looking statements.
Forward looking statements are subject to a number of risks and uncertainties that could cause the actual results to differ materially from those anticipated.
These risks include risks and uncertainties detailed the yield ten's filings with the SEC and in fact I'll note that we filed our 10-K for 2020 of this afternoon. The company undertakes no obligation to update any forward looking statements in order to reflect the events or circumstances the mirror.
It's after the date of this conference call now I'll turn the call over to Ali I think Glenn.
Good afternoon, everyone and thanks for joining our call.
Throughout 2020 unintended the 2021 we have made strong progress advancing yield times business.
The I'll provide an update on this progress Christy will highlight the recent R&D accomplishments and the activities planned for 2021.
After which I'll review the financing financials and summarize the key milestones for each one of you on and beyond.
We will then open the call for questions.
We've got a lot on in 'twenty 'twenty. Despite the uncertain outlook at this time last year due to COVID-19.
Thanks to our team we proceeded with the purpose of adapting to the situation of set unfolded throughout the year.
Now, let's turn to slide three advanced of yield times business.
Our focus here on several key accomplishments the set us up on the path to crystallize the strategic vision for yield 10 is the find our targets for product development aimed at the markets with significant revenue potential.
We diversified the board of directors with the addition of industry veteran Sheri Brumm.
We significantly strengthened our balance sheet the extend the cash runway to achieve volume builds it felt the milestones.
We raised $5 3 million of offerings completed in August 2020, we on these federal year 2020 was $9 7 million cash.
This was followed in January by 12 million raised in the public offering which included investments of the institutions retail investors and Joshua.
He was also of $3 $9 million in warrant exercises and the early 2021.
We have engaged their first major AG player base in South America ascending of research license with G M for testing traits in soybean.
We advanced the kind of a lean of business by securing exclusive commercialization rights. The signing of collaboration agreement with Roth of them said research for development of Doj plus EPA Omega three oil technology.
The technology aimed at sustainable aquaculture feed is well advanced with multiple years of field trials in the southern feeding studies completed.
This platform provides further differentiation for yield 10 in Camelina, that's high product revenue potential filling a gap in our product portfolio between current camelina seed products on our PHA Bioplastics bought form part of the in development.
We obtained the positive response to them on a regulated letter from USDA APHIS for Christmas 60007 in Camelina and canola.
In January we reported the proof of concept milestone for producing PHA bioplastic infield go on in Camelina.
Having secured an option on the Omega threes technology and achieve proof of concept for PHA production yield.
<unk> believes it is now in control of two high volume of sustainable Camelina product technologies, providing strong market differentiation.
And we are now positioned for the advanced our business forward utilizing camelina as a plot for on crops to produce fuel food of PHA bioplastics.
Now, let's turn to slide four.
I believe it's in the emerging crop.
We're very excited about the Camelina camelina is on oilseed crops similar to canola.
Today, It is a source of oil and meal for food and feed juices.
It has the potential both as a rotation crop with the policies and the canola and there's a really a cover of crop with the corn and soybean and double cropping systems.
The decrease nutrient runoff and restore soil carbon.
I mean, the oil is used as the nutritional oil at all sorts of perpetual as a low carbon index oil for a new well diesel.
Going forward Camelina as high potential as a thought for them for producing a drop in replacement for Omega three fish oils and this of disruptive technology for producing phe bioplastics at little cost.
Well, let's start to slide five the mall.
The opportunity for example in the products.
We estimate that there is for 2 billion in annual revenue potential for producing oil meal in PHA bioplastics in camelina by 20th Alrighty.
Or at least kind of molina used to produce oil and meal.
The see the potential for 300 to $500 in product revenue per acre and the market in the hundreds of millions of about 23.
All of the potential here may be greater than what we are indicating we believe the higher value Omega three of Phe bioplastic varieties will eventually be used to supply. These current markets.
For all my guess the oils, we see a doubling of the value per acre or about 600 of $900 in product revenue depending on the seed yield.
Because of the volume of sustainably produced Omega three oils.
I'll note that it takes or other small commercial acreage of free hundreds of thousands of the 700000 acres to get to a level of revenue that would be extremely attractive for yield 10.
The right sized as the foundation for yield tons gross.
For BHA Bioplastic, we would aim to produce oil and meal on P of Chi for her.
The value product mix and not the scale of two to formulate acres annually on twenty-three of revenue potential in excess of $1 billion.
We believe that this is a unique opportunity for agriculture is directly linked to farming with the market that will likely always be product constrained given the scale of the current petroleum plastic materials it will replace.
Now, let's turn to slide six the licensing opportunities.
With our increased internal focus on Camelina, we believe the best way for them Youll start to capture value from our performance strength discoveries from our green plot for them and the large acre commercial crops like soybean corn Cola is true licensing to leading seed companies the dominant in this space.
We currently have for non exclusive research license agreements of AG majors, the progressive traits on specific crops with the option to negotiate the commercial license.
<unk> on the slide indicate the term of the research license agreements.
In 2020, we completed several of them early development work and canola and corn.
But on reviewing our priorities for 2020, one we decided just to the first part of the work the niche crops and plan to seek partners for development of performance traits in those crops on.
On the call over at the Christie.
Thanks, Ali and Hello, everyone.
Our research team made good progress with testing and deploying our trade from the 'twenty 'twenty with our objective of do you think camelina platform crop.
The make of fatty acids in PHA biopolymers.
Now, let's turn to slide seven.
And the 2020 season, we plan in Camelina plants containing genes to produce PHA and team.
It's the work is based on technology, we developed and filed for patents in 2019.
January we announced that we achieved a proof of concept milestone for producing PHA can yield ground camelina plants.
He indicated that our engineered camelina lines produced up to 6% ph M C.
We have selected our two best PHA candidly in the lines for scale up in the field in 2021.
After harvest, we plan to extract the PHA from the seed for product prototyping.
Our team views the production of 6% PHA on seats, it's a very exciting result, we.
We will continue our R&D efforts to increase <unk>.
Yield in the state.
To achieve 10% and over time get the 20%.
On the technical basis, we believe this will be achievable.
And our 'twenty 'twenty field, where we conducted the feed scale up for a CRISPR triple edited E. Reading My notes from Camelina line designed to increase the heat oil production and the.
The spring of 'twenty 'twenty, we plan of E. Three nine O two at the site in the U S West.
We harvest of the scene and use some of it to conduct the second cycle of seed scale up in California over the winter.
We have analyzed the feed from the spring planning and see oil content of increases of 5% consistent with prior cats.
We are planning additional seats scale of this with the flying in the spring 2021.
In 2020, we also focused on developing our elite Camelina germplasm and identified the agronomic traits stack, we want to build into our collection.
Element is underway to deploy herbicide tolerance of disease resistance and our Camelina variety.
The enable large acreage deployment.
For some time, we have been scaling up our winter Camelina lines, it's well, it's spring in winter of double tap white lines.
Both have white lines of varieties that will capture and sustained stable genetics in performance.
We will continue to work with these lines from 2021.
Ultimately, we'd like to see the development of hybrid Camelina and are working through the development plan to achieve that outcome.
We are building our candidly in the germplasm collection of through internal development, and we are open to and licensing for suitable tree.
Now, let's turn to slide eight.
In 2020, we continued yield the valuation of our yield trait T 3000, it for and.
In our state 3000 for Camelina yield that we collected data showing strong evidence of 83000 for increases.
Oh, the synthesis of efficiency.
The majority of Camelina seed 3004 lines produced higher seed yield and the controls.
Mystical interpretation of the yield results was complicated by the variability within the trial.
We also continued evaluation of one of our oil states the 3007 <unk>.
This is a complex target and there are three versions of the scheme in the Camelina genome.
We previously made many CRISPR knockout lines with various combination of edits, let's say 2007.
We feel test of lines in 2020 with some combination of the 3007 of edits.
The trial results of enabled the selection of lines for further trade stacking and sales testing.
The additional testing is planned in 2021 and for 3000 and for for seed yield.
The C 3007 for increased soil content.
These traits the complement our work on <unk> 902, and three of iOS or PHA.
The continuing to build our IP portfolio, which currently includes 21 patent families U S patents for granted on December 15th of 'twenty 'twenty for our yield trait he 3000 of three.
And on January of 'twenty, 'twenty, one for our oil traits <unk> thousand seven.
Now, let's turn to slide nine and looking forward to our R&D priorities for 2021.
Permitting is underway in the U S and Canada for our 2021 field trials.
The plan to do more scale up of our E. Three nine O two N kha Camelina line.
We will also continue field testing of our Camelina germplasm and novel yield in oil trade.
We are developing advanced commercial camelina variety and we're working to incorporate herbicide tolerance the interest of.
The yield in oil content traits.
We're also designing our camelina our platform Camelina variety is for nutritional oils N PHA traits.
Our current events for PHA Camelina will allow us to scale them up extract polymer in the pie.
A lot of material for testing.
We are also developing commercial events for PHA, Camelina, which the agronomic performance that will enable large acreage deployment.
It's all each day did you make us free technology is strategically important for our portfolio.
We are continuing to support the development of the Mega three Camelina Roth instead expect to provide an update on this program in our first quarter call in May.
Our team of lots of continued to support our partners, who are evaluating our yield traits and other commercial crops.
We continue to see interest in our metabolic engineering approach to identify targets and plans.
Can you just speak further engagement and collaboration around our grain platform.
Now, let's turn to slide 10.
The slide summary, summarizes the history and timelines for our E. Three nine O two line with higher oil content.
The 2018, we received confirmation from USDA APHIS. The agency did not consider this flying for deregulated.
The scientists exhibited consistent increased oil content agronomic performance and seed yield as we get scaled it up.
Getting multi acre site.
Challenging due to higher anticipated prices for wheat, and other crops, but we are working to secure location for scale out from 'twenty to 'twenty one.
If we can secure the acres will crush harvest and see the produce oil for sampling and other business development activities.
Net now, let's turn to slide 11.
Our PHA lines or based on unique type of technology for deploying the trade that is the subject to the patent we filed in 2019.
In 2020, we planted the seed for our PHA lines for the first time in the field.
While the plants for a little late to emerge so they did well during the season, producing the seed yield and up to 6% PHA I've seen weight.
Based on this result, we have chosen two lines to take forward for scale up in our 'twenty one.
Okay.
T J will be extracted from harvest and see to produce material for product prototyping.
I would like to thank our team for their hard work and for staying focused on our objectives in 2020.
This has positioned us to generate a range of data and proof points in the coming months to further develop our camelina technology for specialty products all.
The back to you.
Thanks Christy.
Please turn to slide 12 on let's cover a few financial highlights.
We only 2020 with $9 7 million in cash cash equivalents of short term investments.
In addition, during first quarter 2021 you raised net proceeds of $12 million from a public offering of common stock.
And $3 9 million from the exercise of warrants.
On a pro forma basis, we started the 'twenty to 'twenty, one with approximately $25 6 million, which we currently estimate will take us up to 20 of 23, providing a two year run rate.
This accomplishment of better aligns our balance sheet with their business strategy you have no debt on our balance sheet.
Our net operating cash usage was $2 3 million of for the fourth quarter on the $8 7 million for the full year of 2020, consistent with our guidance provided in 2020.
We expect for cash on hand, together with expected revenue from our current government grants will support our operations into early 2023.
We estimate that our net operating cash usage for the full year 2021 will be within the range of 10 to 11 million the.
This includes potential hires and see the operations business development and regulatory affairs as we direct this investment towards executing our business flow.
Let's now review of the fourth quarter until year 2020 operating results.
The company reported a net loss of $2 6 million for the fourth quarter of 'twenty 'twenty.
For a net loss of $6 8 million for the fourth quarter of 2019.
Total of research grant revenues in the fourth quarter of 2020 about.
195000 doses of 140000 in fourth quarter of 2019.
Our ability to conduct research on the D League front was not affected on the significant way in fourth quarter on we expect to be able to conduct the researchers pond in the months of HUD.
In the fourth quarter of plenty of 'twenty research and development expenses were $1 4 million on general and admin expenses were one point for me.
For the full year 2020, the company reported the net loss of $10 2 million of $4 30 per share as compared to a net loss of $13 million of $35 50 per share in 2019.
Net revenue was 799000 for the full year 'twenty 'twenty.
As compared to 806000 in 2019.
For the full year 2020 research and development expenses were $5 4 million on G&A expenses were $5 billion.
For more details on our financial results. Please refer to the earnings release.
The snow onto slide 13 upcoming milestones.
The 'twenty to 'twenty, one we will continue to focus on the following milestones completed permitting for 2021 field tests of the scale up of <unk> hundred 92 of the PHA Camelina lines we.
We will continue to develop of elite family the germplasm collection.
We'll progress the business upon for Camelina products, which will include the advancing the commercial launch plan for Camelina DHA EPA Omega three oils.
We will broaden our capabilities, particularly in regulatory affairs seed operations of business development, either through hiring or other arrangements on.
On to secure strategic and dish collaborations to address the market opportunities across the value chains of enabled by our trades on products.
<unk> revenue based on generating commercial credit licensees on expanding of the intellectual property portfolio, which is crucial for a small company.
With that I'd like to on the call what bulletin for questions.
Thanks Ali for.
The Hector we're ready for questions.
Thank you.
At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up of your handset before pressing the star keys on.
The moment, please while we poll for questions.
Your first question comes from the line of Anthony Vendetti with Maxim Group. Please proceed with your question.
Thanks I.
I was wondering if you could talk a little bit more about the raw from stead.
Our collaboration just if at all if you could just give us a little more background on <unk>.
On the the.
The the progress there and then any type of of milestones we should be looking for in 2021.
Yeah. So you know we were very fortunate to have secured the <unk> rights for that technology.
Apologies.
It's really been developed by what we believe is the world's scientific leader in the field of Omega three production in crops.
And he has actually developed tomo.
Kind of Molina to produce high levels of both EPA and DHA to essential Omega three fatty acids, that's pretty unique in the crop space.
And so he has filed patents on that yes, it's executed for four years of field trials in three different geographies on the.
We've done extensive I wish the product testing.
Both on agriculture feed but also on the human clinical studies with very interesting results. So you know they're still of lot of upside in what he is doing.
On the yield 10 is supporting not ongoing research.
She looks to further improve our technology.
Technology targeting essentially the gold standard of fish oil, which is southern hemisphere fish oil there were cognizant of achieving somewhere around 30% of the total oil being EPA and DHA fatty acids split roughly 50% each.
On on hopefully you'll make good progress on that but as we you see thumbelina today.
We look at it as really.
The gold standard potentially of a vegan aquaculture feed for increasing solid production globally.
So we're very excited about this platform on we're very fortunate that the professional Napier from the scientist behind US, but also joined our scientific Advisory Board.
On on milestones going forward this year and on.
On whats going on the there was a significant ramp up in business development activity, particularly outreach in South America.
Where we see Chile as the likely.
Initial market, it's about 30% of global farm salmon production today. It has the goal to expand that further.
And they've also got a goal to essentially replace harvest each fish oil and meal.
With the essentially a sustainable renewable replacement on the fuel handling that is just tremendously well positioned for that.
And so we were very busy on the business development side of the Si.
The interest at Roth of sides are still dealing with some issues.
The issue is because they were just north of London.
On the U K, so they've had some challenges.
Beyond what we've had but we couldn't be more excited to be working with the great team, though on the great leader.
On the it's a very exciting platform for us.
Okay, Great and then just on the of the PHA Bioplastics.
What should we be looking for in 2021 on the on that front.
Yeah. So the same thing I mean, basically now that we've you know of Christy on the team of just done a tremendous job of getting to that kind of a first key.
On the commercialization path with the first successful field trial with the new technology.
Obviously, beginning the process of scaling up that seat for the best lines. We have available will allow us to not only scale. Even further on the subsequent to year, but also the begin doing some product prototyping you know unlike the sort of space for for for commodity for trades for commodity crops, where you're really dealing with two of three major companies.
From you'll look at the whole Bioplastics space you look at the water treatment space on the areas for Emeline of base Phe Bioplastics can be incredibly valuable.
The number of prospective partners for collaborators in terms of the business.
As you know, it's it's it's magnified by 100 fold. So we're very excited about it. It's a great result by the science team on as you know Youll kind of has a very deep history in ph as including the entire value chain.
We're certainly well aware.
Of the tremendous investor interest out there driven by companies like Panama scientific and others, who have really.
Have done very well in recent public market offerings.
And so we're well aware of the excitement, but we also have a tremendous history of the space.
And we feel that we've got what will ultimately be the law.
Large scale low cost answer.
Okay and then lastly is just on the research license partners for corn or or any of the other.
Food.
Ending up to be a feed or food products.
Yeah so of that.
That work is still ongoing with all of them I mean basically are obviously the the the only yeah. It can probably provide you is that we.
We are getting more interest I think is largely driven by.
Thank you.
Industry has now been consolidated for two or three years and what we're seeing is generally more interest in Eugene targets for improving crop performance of productivity. So we have some conversations going on for access although jeans on the well, it's just tough to let the business development activities. It gets of course, but certainly with a very.
The clear vision for our family in the products business under yield patents control, we're very open to providing access to a discovery tool and to treat genes that we've identified in any of these drops on the research license agreements as the best ways to capture value from the allowing us to focus internal resources on the P. J Campbell in the prana.
The business.
Okay, Great I'll hop back in the queue. Thanks very much.
Thank you.
Your next question comes from line of Amit Dayal with H C. Wainwright. Please proceed with your question.
Hi, guys. Thank you for taking my questions.
With respect to the clinical data from the bakery feed this program.
Was this data publicly shared in some fashion.
If not.
Could you.
Maybe give us some color on what kind of improvements were achieved.
You wanted to.
And we publicly announced the PK data.
6% DHA in the field.
For the other traits that we grew.
Grew in the field last year, a 3000 and for me.
We saw nice increases statistically significant increases in photosynthesis and we also saw the trend of increased yield and lines.
One of the other trades that we Trialed last year was our increased oil trade secret thousand and seven.
And there. This is a complex trade there are three genes that are components of the straight.
And we're working to.
Figure out what's the best combination is to.
Implementing camelina. The one thing we've been very encouraged about there are third party university resolve that have demonstrated that knocking out. The 3007 on combinations of say 3007 really has a great increase on significantly increasing oil content on especially for.
Novel ways, So that's pretty much the summary of what.
What we obtained in the in the field last year.
Yeah.
One of the one final point would be the other things that <unk> 902, which is the first high oil line, we're seeing consistent performance.
Compared to last year. We're also seeing the same oil the oil content increase which is very encouraging so it some.
And one of the things we've learned is that the composition of changes are a lot easier to get data on statistically the on a yield which is obviously a very challenging trade subject to the variation of every growing season.
Okay.
Hum.
And with respect to sort of the 2021 outlook.
The we're modeling force really modest revenues from mostly from the product side.
Materializing. This year do you think that's still possible or.
No windows potentially depending on the how some of these efforts.
Yeah, I think I'm on I think as you know we haven't really provided a much in the way of guidance on that I mean, I think we'd be pretty clear about what our goals are is the is the go down that path in the bigger.
The Sox securing of revenues in.
In addition to the ground that we already have but.
But we haven't really provided additional guidance on all of them.
<unk>.
Well, we all of a lot more clarity on that as we ramp up of the business development activities around the the family of products, where we're at with that right.
Right now.
We are planning to scale up seats for for larger scale of production at.
And obviously the then.
That would be to sell that product from the from the seats. So you know were able I think it will be able to flow provide a lot more color on that as we as we go forward into the Q2 and Q3 and we planted.
Right understood.
And then for the <unk> 2021 field trials are we pursuing similar sort of metrics and you know the improvement efforts et cetera.
Previously he was there anything different you're maybe looking for with respect to the trials you see.
Okay.
Well, we are we are scaling up of some lines are the larger acreage than we have the Florida. We're scaling up the two at 8-K lines that we talked about at least a selected and we're also scaling up the three nine out of two and then another line that we're working on.
Yeah. So I think this year, what we've got to do is we've got on you know we'd be of.
We also have the marriage of resources fairly carefully so we've decided that those things that are most crucial for the business.
The progress of the business strategy now on until we're focusing on doors initially.
And we've also I think recognizes a company of that ultimately for large acreage deployment, we will need essentially to avoid the farmer with convenience, which comes in the form of herbicide tolerance range. So christy on their team.
Our of shifted resources of a large focus on what we call elite germ plasm, incorporating herbicide tolerance of disease resistance. In addition to our yield on oil content traits. So we've shifted the technology resources to music business goals that we're now pursuing on the product side.
Yes.
That's on that guys. Thank you so much.
Okay.
Your next question comes from line of Ben Clevie with Lake Street Capital Markets. Please proceed with your question.
Alright, and the high.
Hi, Hi, Alex Thanks for taking my questions everybody. So got a few of the first one is in regards to the sort.
The research agreement with Monsanto I wanted to make sure I'm reading that slide correctly does the 3000 and free.
Agreement and in kind of mid 2021, or the or is that extended the 'twenty 'twenty two.
Kind of along the same timeframe as the 3000 and for them.
Yes, so we basically when we initially got into a relationship with what was then what's out on over there. It was it was just for the seafood thousands free and not where do they would've ended the essentially mid this year.
However, as part of the CS 3003 Research program, we discovered seafood thousand for on and we did the obtained some interesting data in Camelina with C 3000 and for us.
On the.
Essentially based on that we were able to.
Extend the relationship with Monsanto, who then of course wanted to test both the C, which one obviously works by the.
On so you know that's sort of that's off the both go out into 'twenty 'twenty two at all on the on.
Quite frankly, we're very pleased with the interaction we have with the folks at there.
And as the sad part of the overall.
We see growing interest in the AG space, we are definitely hearing.
Interest and the additional gene targets.
But with many companies not the specific with the.
Got it okay. Thanks, that's helpful.
Next question.
On the <unk>.
On.
The the trials from 'twenty 'twenty the debt.
Of course, you just you just commented on outside of the PHA Biomaterials I'm, specifically wondering about the canola trials.
It sounds like you're not what can provide specific numbers, but I'm wondering if directionally you can compare the trials from 'twenty to 'twenty versus the trials from 2018 did the did the results of the improvement did they decline where where the in line can you give us some sort of clarity there.
So so bang on that issue, we weren't actually trialing. The the the 50000 for canola and see if he thought we were just scaling them up for trials next year of to get sufficient yield growing seat.
However, as part of our focusing of resources on Camelina products going forward.
We are essentially starting to look for partners for all the we decided that it's the more productive use of our resources to invest in Camelina, where we have full control of the business on me.
We also recognize the that we need partners the stronger capabilities in canola the rehab. So we're looking for partners.
Okay.
Okay got it.
On the right yeah.
I would take that point for sure.
Last question for me on the Omega three Camelina initiative, and specifically incorporating the herbicide tolerance.
Are you looking to are you looking to incorporate tolerance to no glyphosate phosphonate or is it something else and in doing so are you going to be able to maintain the non GMO structure or is that going to require GMO designation.
It's already of GMO traits. So you know the way we are just two things I think the to be perfectly clear on.
First of all I think the whole question of their own GMO given the we're all getting G awards using accounts of COVID-19 vaccine, where the risks in the form of.
Transient the messenger RNA expression from from Madonna and all of them are through the genetically engineered virus.
In the case of Astrazeneca and J&J at all quite frankly, what we are seeing is I think there was a general.
Change in thinking around the whole use of genetic engineering technologies now we will have to see how that plays out but the big issue in Aqua feed is really two things one of dwindling supply of the feed to support the growing demand for high quality Omega three oils and other.
Of course, as having tremendous negative repercussions all around the cost of Africa.
Peru, Oh way through Asia, as well, especially where you've got these massive factory operations literally harvesting of refreshing the ocean on.
Unfortunately, along with harvesting all the finish of the hub of harvesting tremendous amounts of the Mercury piece.
Pcbs and now increasingly plastic micro particles of the ball things.
Because basically you know of society has been using the auction as a dumping ground. So when you look at farm salmon on you.
If you measure of the the Mercury levels, you'll find the Luckily one third of the Mercury levels.
Our present in the essentially harvest eat salmon fish, so clearly tremendous drivers there I think the big driver is health and wellness we.
We believe that the the society as a whole is more interested in the sustainability and health and wellness benefits, which is what's going to come from what we see as our Omega three.
Pieces for what will ultimately be.
A dedicated Aqua feed supply system based on engineered camelina, so it's going to be GMO, and because it's going to the GMO you're going to take all of.
On the advantages of all of the all the other GMO technologies to enable the farmers to adopt this rapidly and get the best productivity with the lowest carbon footprint possible.
Okay got it and I guess, let me ask you for one quick follow up question, then I'll get back in line on my.
My question on that was was in the context of of cut.
Kind of from a regulatory timeframe, so I guess.
Follow up and then integrating herbicide tolerance into the into this crop do you think this is going to have you know of meaningful pushed to the right here from a regulatory perspective or because you know these traits are due do exist and the regulatory man are you going to be able to stack them in relatively efficiently.
You know I think because our current view is that we.
Based on conversations of the regulatory folks Christy I think the belief that if we use things that are well known and well understood have been approved for other crops that the.
Path forward for those of maybe a lot simpler.
Depending on the geography, you're in obviously, we don't plan to grow this in France.
But I think in North America, and South America.
With us.
Got it okay very good well I appreciate you all taking my questions and I'll jump back in queue.
Yeah.
Thanks, Dan.
Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to Lynne Brum.
Thanks, Hector and I will turn the call back the Ali for closing remarks, so I'd like to personally. Thank all of you for joining us on the call Tonight on especially our shareholders for your continued support.
With the agreement in place of the Roth of <unk> said for the Omega three oils technology and promising first field data on the PSC Bioplastic Camelina.
I'm proud of the progress on our grain platform for very excited about the prospects for our business I want to thank everyone at yield 10 for setting us on track to treat your goals from 'twenty to 'twenty one of.
And the nice evening everyone.
Ladies and gentlemen, thank you for your participation you may now disconnect.
Yeah.
Please go ahead Sir.
[music].
Yeah.
[music].