Q3 2022 Yield10 Bioscience Inc Earnings Call
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Welcome to the third quarter 2022 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 to ask a question simply press Star then the number one on your telephone keypad.
If anyone should require operator assistance during the conference. Please press Star Zero as a reminder, this conference call is being recorded I would now like to turn the conference call over to your host Youll 10, Vice President of planning and corporate Communications Lynne Brum.
Thank you Regina and good afternoon, everyone welcome to the yield 10, Bioscience third quarter 2022 conference call. Joining me on the call today are president and CEO , Dr. Oliver Peoples, Vice President of research and Chief Science Officer, Dr. Kristi, Snell, and Chief Accounting Officer, Chuck Hazard.
Earlier this afternoon <unk> issued our third quarter 2022 financial results. This press release as long as as well as slides that accompany today's presentation are available on the Investor Relations events section of our website at El pen bio Dot com.
Let's 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 such forward looking statements are subject to a number of risks and uncertainties that could.
Cause the actual results to materially differ from those anticipated. These risks include risks and uncertainties detailed in yield ten's filings with the SEC.
Company undertakes no obligation to update any forward looking statements in order to reflect events or circumstances that may arise. After the date of this conference call and now I'll turn the call over to Holly.
Thanks Lynn good afternoon, everyone. Thanks for joining our call.
2022 is progressing we are making solid progress operationalize the nerve block launch Kevin we had the pottebaum crop with a near term focus on the Biofuels feedstock market today.
I could not be on our recent accomplishments.
We'll also provide an update on our drilling contracting and see production winter field trials with a focus on development of herbicide tolerant camelina variety.
Review key drivers in the biofuel feedstock market.
The third quarter financials.
And summarize key milestones.
We'll then open the call to questions.
Let's turn to slide three youll.
Tonnes crop innovation platform.
Our innovation platform the trait factory centered around the oil seed Camelina syncrude.
The increased carbon capture and direct increased carbon to the seed produced decarbonising seed products.
We are currently working to establish <unk> as the new platform crop to produce low carbon petroleum replacements and good products.
Turning to slide four for Youll translation of gambling.
Enabling the large scale production of Camelina green as a source of Decarbonize in key products requires us to build strong long term working relationships with farmers.
Our companies are the most important players in this new value chain.
After all the old alone.
So Greg Gordon needs to develop the vision for this crop to enable seamless integration into carbon copy and chemical rotations.
Unintegrated herbicide trait package for Camelina is our key goal. This herbicide trait package you will need to include robust tolerance with kind of cleanup for the over the top herbicides to maintain grass and broadleaf weed control.
Told us to file residues from previous crops to secure large acreage blocks.
Lack of broadleaf weed control will not only impact camelina production, but can increase week pressure for the next crop in that field.
So this is very important to farmers.
Camelina is naturally call up to question our.
Grass herbicide and some close them containing products are already labeled for use in camelina production.
As you will see later in this call Christina.
Christine and her team have made great progress developing broadleaf weed control and herbicide tolerance traits in Camelina.
In addition to herbicide tolerance develop new varieties increased coal tolerance for planting farther north and west.
Only maturing there it is with short cycle times integrations into corn and soybean rotation and Midwest.
Are also going to be very important to expand rotations.
As these traits are developed and commercialized overtime, we plan to add in our proprietary traits to increase seed oil and seed yield I'll provide additional upside to growers and security even more acres.
Turning to slide five yield Ten's business model.
Our business model is to develop elite camelina seed varieties contract.
<unk> of camera integrated with farmers and supply customers. The new New awards include space under offtake agreements with.
With our current elite variety is progressing towards commercialization and our two proprietary value added camelina seed product trades and development <unk>.
<unk> to establish and grow a large seed products business.
Our lead product is low carbon feedstock oil to meet increased demand from the biofuel sector.
Yes, the early stage of commercial stage and working steadily on partner royalties to a secure off take agreements.
We believe this will be followed by the launch of Omega three Cambria produce Omega three oils with nutrition.
PHA Bioplastics cavalier to supply the growing demand for biodegradable zero waste plastic packaging.
Combined these products represent significant revenue opportunities.
Let's turn to slide six advancing the business.
We're making solid progress executing our plan to launch our camelina seed products business.
The team is engaging regulated with potential supply chain partners to form alliances that will support our capital light business model.
During the third quarter, we secured multiple growth for contract slightly electrocom Leila for grain and seed production areas.
Areas of Southern Canada, and Idaho.
Lots of implanted and range in size from 30 to 160 acres.
We're also ramping up commercial quality winter variety seed production and the winter season in the U S and Canada as well as in Contra season in South America, where spring varieties to supply seed for future grain production contracts.
As we build their business around Camelina. Our research team has done an outstanding job progressing new seed varieties and our pipeline looks great.
In 2022, we've exited an intensive effort to field test herbicide tolerance and downy mildew resistant straights.
ALLETE herbicide tolerant spring have legalized medical firms performance criteria and we have selected lead lines for concert season testing with Steve Scala.
By the end of the third quarter all of our Springfield testing sites were harvested data has been collected and analyzed by our team.
This will allow us to generate further proof points and luxury and the lowest identify camelina Kathleen alliance for commercial development.
Our 2020 through 2023 winter fill program is underway with planting completed the gross sites in the U S, Canada, Argentina, Uruguay and Chile.
This program is expected to provide us with important data on winter and spring varieties.
And a variety of geographies.
Let's turn to slide seven for overview of our elite germplasm.
We are establishing our <unk> commercial activities in close cooperation with our growers with focus on three early commercial account, Illinois, which currently do not have the herbicide tolerance trait package.
These lines include the genome edited spring, allowing easy line two on winter lines, <unk> and WD suite that are produced using a building procedure.
These will be replaced by herbicide tolerant varieties once they are developed and approved.
I'll note here that <unk> was recently designated as nonregulated by regulatory authorities in Chile.
In the U S and Argentina. It is previous previously and determine the EZ line a few does not meet the definition of a regulated article.
We plan to apply for this segment designation for <unk> 902 in Canada. Once the expected updated CFA regulations go into effect, which is anticipated to happen soon.
Please turn to slide eight for a winter grain contracts I think seed production.
I am pleased to say that we have successfully completed our growth contract activities for the winter 2022 2023.
<unk> are clustered in Lasalle layers of El Gallo gold.
Outside of Manitoba provinces with additional doors in northern.
Idaho.
If you recall last year, we conducted sea production of 17 acres on one farm located lots of SaaS.
Listed was cleaning tested in bags and deliver to the farm from mid September through October .
Admittedly it was a very tight tolerance protein.
Plus we have contracted range for 30 acres to 160 acres, which represents a significant increase in acres from last year.
I want to remind you all that were still in the development stage, where our key goal is to gain experience and build operating capability.
We are working closely with the gores participating in the Windsor program unexpected harvest to begin in late summer 2023.
Some of the seed harvest is entirely portable crushing consolidated earmark for seed production to provide us with the inventory of <unk> contracts in 2023 and probably beyond that.
In addition to work and see production in the U S and Canada. We also established production relationships in Chile.
Access an incision unconscious season's seed production now.
I will now pass the call over to Christie.
Thanks Ali and good afternoon, everyone.
Let's start with our field report on planting for the winter 2000 22020 season.
Please turn to slide nine.
Our winter field testing program includes well over 20 sites located in the U S and Canada with additional sites in South America.
The photos on the slide shell.
And our plants are still small, but we will continue to grow until the weather turns consistently cold and there is snowfall.
In the spring when temperatures rise consistently above freezing in the snow melts.
<unk> two will resume growth flower and are expected to be ready for harvesting in to early summer.
Depending on planting latitude and local climate conditions.
Yellow pins on the map in Georgia, and Arizona are the winter conference season locations of our spring Camelina herbicide tolerance skill studies for over the top weed control. We are conducting further herbicide testing of our lead spring Camelina lines. In these studies and are scaling up feed for more extensive plan.
<unk> and Trialing in spring 2023.
We are also conducting and granted me trials of winter Camelina.
The objective of this work is to develop standardized protocols to achieve the best germination and establishment and yields winter Camelina.
This work is taking place across a broad geography indicated by the blue pins on the map, where we believe passing winter Kimberly and that can be economically viable.
Winter wheat crop trust and by growers to be extremely cold tolerant, we had planting winter camelina side by side with winter wheat and in certain locations to compare it's cold tolerance with benchmark crop.
We have also planted several demonstration sales, which will be suitable for hosting grower events in 2023.
Let's turn to slide 10.
Growers want broadleaf and grassy weed control for Camelina, and we have made significant progress developing and testing week controlling spring camelina.
Timeline on this slide shows our progress towards producing over the top spray broadleaf weed control and testing our herbicide progressing weed control in Camelina.
The yellow boxes with green check marks indicate work has been completed and.
In 2022, we verified robust broadleaf herbicide tolerance and engineered spring camelina events.
In the greenhouse and appeal.
There is a drought photo on the top right hand corner of the slide showing our spring 2022 research field trial, where we achieved robust herbicide tolerance engie.
Engineered lines survived commercial levels of herbicides spray and thrive throughout the growth season, while the control line of sight.
We have obtained <unk> yield in oil data for lines from that trial and has selected several commercial quality lines to enhance we have also ramped up regulatory efforts for our over the top herbicide tolerant lines based on the positive test results, we sustained this year.
Our focus over the next few months will be on contract season field work indicated by the peripheral box with our best lines for product development trials seen scale up.
In spring 2023, we plan to conduct larger scale field work for product development and herbicide label Amendment.
Yes.
Let's turn to slide 11.
Group, two herbicides, such as <unk> and <unk> are commonly used in some areas that we're targeting for camelina growth and can persistent soil for months following application.
Group, two herbicides negatively affecting growth of Camelina.
We previously demonstrated that our Camelina line in our Germplasm collection has tolerance for Emmis and our Springfield tests.
We are now developing broader group two herbicides soil residue tolerance for both <unk> and <unk> that will expand the acreage accessible to camelina.
We have successfully stack the trade for group two herbicides soil residue tolerance with the trade for over the top herbicide sprays tolerance described in the previous slide.
Our best Germplasm.
We have also obtained early positive greenhouse results showing tolerance is at Hughes and our over the top herbicide in many lines.
Over the next few months, we will perform more extensive greenhouse herbicide tolerance test on the best lines indicated by the purple box on the slide.
We plan to initiate the regulatory process for these lines in the new year and are on schedule to move plants with factor beside traits into research field trials in spring 2023.
As I wrap up I'd like to acknowledge the yield 10 R&D team. They had put in a tremendous effort generating herbicide tolerant events in camelina and testing them in the greenhouse and field trials.
This work has positioned us well for further field testing of our best commercial quality Camelina lines in 2023.
I'll now hand, the call back over to Ali.
Thanks, Christy congratulations to the team for their significant accomplishments I used to getting the spring program and transitioning quickly into planting the winter program.
Let's turn to slide 12, biofuel feedstock oil focus.
By 2032, there've been several tailwind for interesting vegetable oil production for Decarbonising Biofuels production of soybean and canola alone cannot meet this growing demand and still support food production.
This will require new ILC crops like Camelina, a new crop rotations to used vehicles, which are less productive for soybean canola and double cropping to use land otherwise my follow.
We believe that Youll tend to kind of lean I can play an important role in this area.
Let's turn to slide 13, our business model for the biofuel value chain.
The business model, we are building for the biofuel feedstock oil market as one of their yield town plays the role of the Camelina Green originator producer.
Producing elite Camelina seed based on a novel genetic traits.
Deploy proprietary camelina seed on the farmer's land under contract with the right to purchase the company integrated harvested.
Also plan to engage in offtake agreements for logistics and seed crushing as well as supply agreements to provide feedstock oil to biofuel cliffs.
Let's turn to slide 14, establishing the counting the value chain.
The Google contract signed in 2022 are an important first step in establishing the cabinet in the value chain.
Where do you expect to learn from their experiences with coming over the next several months and continue to build relationships with growers and seed retailers in 2023 years to enable planting of more acres for grain production.
We envision significantly expanding annual policy makers with the introduction of appropriately tolerant varieties affinity crop rotations.
And for use in public coffee.
Let's now turn to slide 15 for a brief overview of PHA Biopolymers and Omega three programs.
Although currently focused in biofuel feedstocks, we continued to make progress on our two future Steve product trades.
The <unk> area. Our efforts are focused on optimizing the PHA traits to enable PHA bioplastic production in California seats, which can be process to produce <unk> products.
Bioplastic biofuel feedstock oil and protein meal.
Total Camelina line with risky 2015 was Golar eco scale this year to produce PHA Camelina green.
Process and business development purposes.
So pega window Camelina lines will be tested for the first time in our winter program.
Meanwhile, the R&D team is continuing activities related to create optimization.
Well I'll talk to fish oil in the Omega three market.
Although more specialty market Camelina has proven to be an excellent platform for producing Omega three oils and theres a large opportunity in the Omega three fish oil market driven by reduced supply of oil from harvest important fish on growing demand in agricultural feed our nutraceutical markets.
We announced today that we've extended our collaboration with Boston said further as we advance the program we have prioritized the development of the EPA came out of the world.
Sorry, if the EPA composite of Omega three and look forward to deploy at least camelina with robust technology package that will combine phase to drive economic performance in the production of high quality Omega three oil.
Now, let's turn to slide 16, the licensing opportunities with non exclusive research license agreements in place with <unk> and who are testing location soybeans.
<unk> is simply an extension of the research license for an additional year to study <unk> in potato.
And the research license with forage genetics sorghum expired in the third quarter.
Photos genetic indicated the permanent terminated or sold on breeding and development program entirely.
The research license with Baird is scheduled to expire in December we anticipate having a meeting with bear to view that most recent good results under <unk> and to determine the interest in development <unk> and slightly.
On the license we have the right to negotiate the commercial license.
We are following up on the industry interest in oil content traits, including <unk> thousand seven for soybean and canola under seeking partners suggests the credits and call.
The Green platform off result represents a unique opportunity driven by interested is identifying novel performance rates.
I will now turn the call over to Chuck to discuss third quarter financials.
Thanks Ali and good afternoon, everyone.
We ended the third quarter was $7 4 million in cash cash equivalents and investments.
But our cash on hand, together with expected revenue from our current government grants will support.
Our operations into the first quarter of 2023.
Continue to have no debt on our balance sheet.
Net operating cash usage was $2 7 million for the third quarter of 2022 as compared to 201 million for the third quarter of 2021.
For the full year 2022, we continue to estimate total net cash usage of 12 to $12 5 million to fund our operations, including our committed research and development activities and our preparations for the future commercial launch of our <unk> products.
Let's now review the third quarter of 2022 operating results for the third quarter of 2022, the company reported a net loss after taxes of $3 5 million as compared to a net loss after taxes of $2 4 million for the third quarter of 2021.
Total research grant revenues in the third quarter were consistent at 111000.
In comparison to 92000 in the third quarter of 2021.
And in the third quarter of 2022, R&D expenses were $2 1 million as compared to $1 6 million in the third quarter of 2021, and G&A expenses were $1 5 million in the third quarter of this year and that was unchanged from the third quarter of last year.
For the nine months ending September 32022 Grant revenue was 363000.
R&D expenses totaled $5 9 million and G&A expenses totaled $4 7 million or net loss after taxes was $10 3 million.
For more details on our financial results. Please refer to the earnings release and our 10-Q.
Thank you.
Thanks Chuck.
Turn to slide 18 and upcoming milestones.
You can see our technology team has made terrific progress this year executing on the development scale up of new Camelina lines for commercial production.
We're also very excited to be well aligned with strong tailwind in biofuels.
As we progressed into the end of 2022, we will continue to focus on executing our key milestones including.
This filing our commercial activities targeting the renewable diesel in aviation biofuel markets engaging with doors to introduce the benefits of growing Cavalier and.
And continuing to build a differentiated elite camelina germplasm collection, collecting and analyzing data from a 2022 field testing program executing.
Executing on seed production and building inventory for future <unk> contracts.
As we continue to advance the optimization of our PHA Bioclastic progressed to commercial launch plan tumbling Omega three oils.
We're very busy in business development as I reach the prospective partners across the entire value chain with the goal of executing strategic industry collaborations and we continue to build and expand our intellectual property portfolio with that I would like to turn the call back over to Lynn for questions.
Thanks, Shortly Regina we are now ready for questions.
At this time, if you'd like to ask a question simply press Star then the number one on your telephone keypad. Our first question will come from the line of Anthony Vendetti with Maxim Group. Please go ahead.
Yes. Thanks.
Wanted to focus on.
Progress you've been making in discussions with some of the players in the value chain.
It seems like.
All of the.
Yeah.
All the developments.
In terms of Camelina are are proceeding according to according to plan can you just tell us about the discussions you are having.
And where they're at and just in general.
With the players in the supply chain.
Yes so.
First of all I appreciate you recognizing just the terrific progress the team has done executing on the commercial side with Camelina. That's obviously a big piece of these discussions also with third parties.
We are.
So be careful what I say here we are.
We're moving forward with multiple discussions with multiple parties across that value chain at this stage.
But as you know as they until one of these things is sort of over the transom signed.
So it really isn't an awful lot I can say about it but I would say.
We are definitely making very very good progress.
Always difficult to.
No one of these things will finally be executed and signed but obviously, we look forward to communicating up in the future.
Okay, Great and then just as a follow up.
How much more investment do you think is required to develop new seed varieties.
Or.
Maybe just talk a little bit about about that and then any.
Any any.
Any any other options that you're looking at.
Besides besides grant revenue, whether it's licensing or partnership opportunities.
In terms of.
In terms of near term revenue opportunities.
Yes, so in terms of our guidance in terms of money required in this company is the program that we've laid out.
And have been executing we've given guidance of between 12% and $12 five that hasn't really changed at this point.
Assuming partnerships kick in.
That number could well change because obviously these partners are interested in scale.
Of course, you would expect things to change along with that.
I would say in terms of revenue, we definitely see more opportunities for additional grant revenue on those those are things that are being discussed internally.
Through this new climate Bill there seems to be some interesting potential there, but we have to wait and see how all that shakes out.
In terms of where we're at.
With licensing I think obviously, we did mentioned they are coming to the end of its agreement on a secret both in three and four trades and obviously, we expect a data readout from Bayer.
And then not too distant future.
As a consequence of the agreement that you do have the right to negotiate a commercial license or the extension of that work.
And mind, the Bayer agreed.
Agreement was already extended we did add in the <unk> thousand four trait after which was discovered at the <unk>.
But we look forward to the conversation look better and then obviously if something interesting happens. There then we'll be looking forward to communicating that as well.
Okay. So just to just to clarify on that that they sort of have like a right of first refusal they get the first opportunity if something doesn't work out with them.
Is it correct to say that you have to negotiate with someone else.
Actually so those agreements all of those agreements we struck with all of those companies are non exclusive and we have the right to negotiate with anybody.
I think what we have an obligation to do is to of course inform other parties interested in that product.
If in fact, there is someone.
Who has entered into a definitive.
<unk> agreements discussions.
Okay.
Obligations that you have.
Okay, and then last question before I jump back in queue.
Can you talk a little bit about the biofuel opportunity.
Specifically.
Yeah. So.
I would say, it's pretty clear to us that.
When you look at that value chain and the value chain really starts with it's going to have to start with the oilseed crops I mean theres no question.
Youre going to see opportunities for increased.
Troy and canola yields to increase seed oil content in the soil Cola, but ultimately when you start looking at.
6 billion gallons by 2030, I believe the numbers and Thats just for Audi renewable diesel.
And yes. It is 3 billion gallons for aviation Biofuels and you see that being boosted 2000 9 billion gallons by 2050, <unk> mean, it's pretty clear that this.
This is not what we're going to slow way it could come from Carlos Angola and soybean.
Norway.
Just to give you an example, I think.
Six 6 billion gallons is like adding another 60 million acres of soybeans, which is currently 85 million acres.
And of course that 60 million additional acres doesn't really exist. So you will see incremental increases on those crops are sure and you'll definitely see.
Drive towards higher oil and potentially higher yields as well, obviously, but I think it what it really means is this is going to have to really rely on new crops that can often offline by offering different operating differently.
Rotation benefits to the GOR.
Or potentially different timing and that's really the big thing around these oilseed cover crops is basically the ability to use those crops. When you would otherwise probably believe leaving alone follow on of course cover crops of these benefits.
In terms of sustainability.
Proving soil carbon keep.
Keeping moisture in the soil reducing nutrient runoff.
But ultimately our cash cover crops camelina or other oilseed crops.
Spending class and even potentially Colorado, if it can be fitness seamlessly until those rotations.
Offers the GOR additional revenue.
And at the same time as increasing availability of oil for Biofuels. It also mpc's protein productions, which is of course, another area, where we see growing demand based on global population growth.
Alright, great. Thanks for that thanks for that update I appreciate it I'll hop back in the queue.
Thank you Tony.
Excuse me.
Again to ask a question simply press Star then the number one on your telephone keypad. Our next question will come from the line of Ben <unk> with Lake Street Capital markets. Please go ahead.
Alright, thanks for taking my questions.
On the first question for you.
Is about your comment in your prepared remarks about trying to establish a capital light business model within the Camelina in kind of broad biofuel opportunity.
Can you kind of help characterize how.
How you define capital light business model.
For this product.
And kind of help us understand that.
Parts of the.
Part of that model that you would ultimately be responsible for versus your processing an energy company appears as you see it today.
Sure. So let me know.
Obviously, the obviously the piece that we're obviously investing and then turned to orders obviously the genetics.
Great.
They're going to be packages.
Yes.
The modules modules with the growers and ultimately the GOR relationships.
Grew our contracts at the end of those newer contracts of course those.
Hours of golf business school of grade.
Green than would typically be moves to to either to elevators on by some of the big.
Crushing companies.
Or ship directly to some processing facility and definitely there is a real interest in.
Production costs, two processing facilities to mitigate some of the logistics and what have you what we want to avoid and just lets be very specific about this is this basically what happened to <unk> whereby the went out in contracted acres and ended up building up a lot of inventory of grade.
I think ultimately I believe we sold somewhere around $40 million worth of green to EDM.
With the high oleic soybean.
So obviously, we are simply not intending to do that it doesn't make a lot of sense to us.
No what's missing in the biofuel market as new feedstocks in other words, new sources of oilseed grade that can be processed and existing infrastructure to produce oil and protein.
Bruce and oil that can actually fit readily into the biofuel into the biofuel markets, obviously camelina already has with its credits.
And obviously it looks like it's going to have a very attractive Ci score and so really the whole issue is is the demand is for new sources of oilseed grain and therefore, our view is that.
Given the supply constraints given the demand profile.
So both crushers, but as well as basically.
The end users the fuel companies.
Should be able to have them on the right. The offtake from the GOR. So that we get paid when the green comes out of the farmers Ben and goes to the facility. So that's really the idea here.
We should not be building.
Working capital to manage student the tree, that's not really a business we need to be.
Okay, Alright, very good that's helpful. Thank you.
I have a quick question on clarifying question on the map that you laid out on slide nine and then a follow up somewhat.
Clarifying question is.
There is a pretty dramatic expansion. It appears of your testing program from last year, and particularly into the plains and upper Midwest.
And I'm curious that that expansion is that for the.
Is this math entirely kind of the lead varieties or does that expansion also include the <unk>.
<unk> two <unk> three and <unk> thousand 900, <unk> that you referred to later in the presentation.
Yes, so so Chris you want to take that.
The field trial program.
Yes.
Blue pins, our winter lines in that R&D W. D. H two wth III that you mentioned.
We are offset tightened testing some exceptions and.
Other line side and other trials.
The yellow ones are the sites are.
Herbicide tolerant.
Trials that was our spring lines.
And we've really expanded into the Midwest. This is a good area to rotate with soybean or corn and so we're testing the performance of our some of our lines in.
We're starting to test the performance of our lines of some of those areas as well.
Yeah. So just so you know these are small scale fuel prices are not large scale. Most of the large scale is southern Manitoba southern La Bella.
Someone Idaho.
Okay. Okay perfect. Thank you guys.
We are screening.
Got it got it.
Question not sure who this is best addressed to but on herbicide tolerance and you know as you look to expand further south.
Do the herbicide tolerance traits that you are in developed now are those suitable for the more southern geographies in this map or are you going to need to expand your herbicide tolerance too.
To include other other chemistries.
Yes, so when you lose that.
Go ahead go ahead Christie.
Yes, really the reason we are growing in the southeast here is after contra season scale up it gives us the ability to add another season. So we're taking advantage of the temperature in the south.
It isn't necessarily developing a variety for the southern area.
Yeah, Yeah, So Ben I think the.
The question here. So basically when you look the issue really is mainly that the soil residues.
But obviously in the corn belt, there's a lot of HPV herbicide used in PPO herbicides those are different from the class twos are still used in the Pacific northwest.
Obviously, you would ultimately bought tolerance to one or both of those and the Kent will get along with an over the top.
Three herbicide, so that will be particularly important for integration until rotation, which would be core followed by comments then followed by soy because again some of the HPV resins, usually going to be a problem.
And some of those areas and again, we can discuss where we're at all or not but obviously, that's something that we're very cognizant of and.
<unk> been working on a plan to address.
Okay, Alright fair enough, so youre, taking advantage of the temporary winners of.
Central Minnesota.
Got it very good.
A lot of a lot of very good updates throughout this call. Congratulations on all the progress. Thanks for taking my questions and I'll get back in line.
Yeah, Thanks, a lot.
Once again for any questions. Please press star one on your telephone keypad again that is star one.
We have no further questions at this time I'll hand, the conference back over to Lynn for any further remarks.
Thank you Regina and I will now call the.
Turn the call back over to Ali for his closing remarks.
Thanks Lynn.
I'd like to personally thank all of you for joining us on the call Tonight, and especially our shareholders for your continued support.
In 2022, we've met important milestones, including deploying herbicide tolerant traits in camelina and engaging doors under contracts because we start to build relationships.
Lie on tanker supply chain from the biofuel market I want to thank everyone at <unk> for the contributions that are keeping us on track to each of goals.
And I'm, particularly proud of the way that this team small as it may be has just done a terrific job of executing have a.
Thank you.
That will conclude today's call. Thank you all for joining you may now disconnect.
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