Evogene Ltd. Q1 2023 Earnings Call
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Ladies and gentlemen, thank you for standing by welcome to evidence first quarter 2023 results conference call. All participants are present in listen only mode.
Managements formal presentation instructions will be given it for the question and answer session.
Operator assistance during the conference Please press Star Zero.
A reminder, this conference is being recorded May 18th 2023, before we begin I would like to caution that certain statements made during this earnings conference call by evidence management will constitute forward looking statements.
Future events risks and uncertainties regarding business strategy operations and future performance and results of Atlanta I.
I encourage you to review other junk filings in the U S Securities and Exchange Commission.
We didn't know about it.
The statements in today's earnings release, which state that statements made in the earnings release and in a similar way.
On this earnings conference call that are not historical facts may be deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 for example, epogen as forward looking statements in this call. When he discusses the results of biomarker phase one clinical trial for Gen <unk>.
Ecology microbiome drug candidate BMC three P threes progress to phase one clinical trial.
We see four to six in advance and its preclinical trials might be biased expansion of sales into Canadian and European markets and introduction of new crops like small grains, and oilseeds registration lovey bio bio fungicides for fruit rot and powdery mildew with the U S E T H.
And L. A G suite you won that appeal.
Steel troughs potential collaboration of Atlanta with respect to with a P. H one candidate achievement of first milestone and I'm fine with this collaboration with core Capa.
Nomination of Neupogen targets and achievements greenhouse readout and it's weak blotch fungicide program canonic goal to expand second generation product sale and the receipt of royalty payments from variety licensing core terrorists territorial expansion and increased sale the potential commercial value of the.
Product of the Oxy divisions Grant program all forward looking statements made herein speak only as of the date of the announcement of results. Many of the factors that impact whether forward looking statements will come true are beyond the control of epogen and may cause actual results to differ materially from anticipated.
Our agenda is under no obligation to update publicly or alter our forward looking statements, whether as a result of new information future events or otherwise, except as otherwise required by law, we expressly disclaim any obligation to do so more detailed information about the risk factors potentially adversely impacting our performance can be found in.
Our report filed with the U S Securities and Exchange Commission that said I would now like to turn over the call to Rachel Pomerance evidence head of Investor Relations. Rachel. Please go ahead.
Welcome to <unk> earnings call in the first quarter of 2023 and thank you all for joining US My name is Rachel and I am the new Investor Relations director at imaging I'm excited to join these innovative team and help drive growth.
Call it investor relationships and effective communication.
Starting the call today is the president and CEO of Evergreen also Hermes, who will provide insight into our business model and the significance of our technological engines and the life science industry.
He will also provide updates on evidence subsidiaries.
Also joining offer on today's call are ducks building they'll hold them evergreens chief product officer will be discussing some of the recent improvements we have made to Allergan is a I think engine.
The hopper the CEO of a biomarker imaging subsidiary focusing on developing drugs. That's under human microbiome will follow offered to review and elaborate on biomarkers of activity and achievements.
Our CFO , Jan and bad well that or provide a financial summary and update.
But first it is my pleasure to introduce our main speaker, the president and CEO of Evergreen all feel hobbies.
Thank you Rachel and good day everyone.
Good day, and what have you ever done at the communities.
That accomplishment and provide you with an update on potential catalyst expected in the near future.
I would also say the Gulf South of our subsidiaries recent accomplishment.
Our technology and demonstrating the power of the value of our AI driven tech engine.
Underlying the product development process.
As you know it wasn't has been using its computational predictive biology platform the CPB.
The risk and accelerate the discovery and development of lifetime baseball.
The CPP is the foundation of our three pick engine.
Microphone <unk>.
So both the discovery and development of Michael baked product.
Okay.
<unk>.
So both small molecule based products and.
In general.
So both products based on genetic elements.
AI driven tech engine has addressed the main challenge in life Science based product development.
I think the winning candidate or candidates.
So that's another possible prospects.
Addressing the complex medical criteria to reach success in commercial products, many potential candidates exist when identifying.
Jean or small molecules.
Our tech engine has to find that neither in the Hastings.
And it was even a timeframe and post our competitors or passengers.
To accomplish and most importantly increase the probability of success.
Each of our three search engine.
<unk> has established a business ecosystem.
Excluding independent subsidiaries all strategic collaborations.
This focus on developing product.
Pacific Life Science market segments.
Benefiting from the second engine is the main competitive advantage.
I am pleased to introduce Dr Bell Ampligen.
The chief product officer.
He's leading the development of our <unk> engine.
With you more information in the latest Isaac engine development.
Fishman.
Neil.
Thank you Ofer.
The aforementioned are AI, driven pick and James are designed to serve as a powerful platform for directing and accelerating the discovery and development of life Science based products.
During the past year, we invested significant efforts in creating a user friendly dashboard.
Engines primary interface, facilitating seamless navigation across multiple applications within the discovery and development process.
That's the type of engine support.
These apps are sophisticated software applications internally developed to serve two purposes first they enable predictive outcomes by leveraging advanced algorithms.
According to desired product definition to narrow an extensive range of options to a practical number of high potential candidates second.
They integrate diverse data sources, both internal and from the public domain two facility.
Decision, making in the R&D processes.
We have recently invested in improving our AI engine infrastructures enhancing their fishing.
As you can see on the appeal to prospective partners and then I'll go into more detail I will start by describing the improvements made in my career boosted I took out James.
Which enables a discovery and development of microbes.
<unk> products for various industries, such as health care and active we have expanded the engines usability and statistical capabilities, mainly targeting to improve our ability to translate the microbial gene towards functions for example.
By revamping wonderful reps named Cori back unless we buy out quickly identified several new genes related to bacterial shelf space, enabling better prediction for commercial attributes early in the discovery process.
Moving onto capacity I took in gym, which facilitates the discovery and development of small molecule oriented products notable enhancements have been implemented.
Temperature has undergone substantial upgrades predominantly focusing on augmenting its automation scalability and speed.
These improvements allow us to amplify the volume of projects undertaken.
Thereby enabling more efficient collaboration with potential partners.
This aspect holds particular significance in light of anticipated upsurge in academicism project portfolio as well as evidence intention to expand their use of capacity into the pharma market segment.
Conclusion, I look forward to updating you on our ongoing journey of continuous improvement focusing on enhancing the robustness and the attractiveness of our touch engines to cater the needs of potential partners seeking to address a wide range of life science discoveries are dedicated efforts into refining and <unk>.
And our capabilities, ensuring that we remain at the forefront of technological advancements and providing exceptional solutions for our partners in the life science industry back to you Walter.
Thank you to you.
Before I review the interesting recent achievements of our subsidiaries.
I want to update on potential catalyst, we see at the emergency room in the near future.
And two.
To enter into business relationships in the U S.
Areas of activity not covered through our subsidiaries.
For product development, leveraging our pic engines.
Because once you've got improvements in our AI engine.
Strengthening our offering to potential partners and to our subsidiaries.
Making the defining to match them.
Our subsidiaries as listed in the new applicant presentation published T D.
Demonstrating the impact of our AI engine and the value of the subsidiaries and fifth.
And.
Raising external funds at the subsidiary level to fund its subsidiaries activity and demonstrate the inherent value this way.
With respect to our fab subsidiaries.
They have accomplished multiple achievements from the beginning of this year.
And we have several upcoming milestones, which we believe are significant value creators.
I want to start with a biomarker, which focuses on developing mix of bio based therapeutics for human health.
Bridging micro boost.
I'm delighted to announce that the $20 million financing round led by the tenant median investment function.
Let's go to the capital has closed.
They did have done at a post money valuation of $15 million.
This external and independent endorsement of biomarker validates our belief in Miami cause long term potential.
For more details on this investment.
But let me kind of activity and an achievement, we religion around here.
Heather, but let me kind of field.
Let's now move to Ww.
<unk> Leverages epigenesis microbes.
Thick engine.
To develop next generation <unk> optical products.
In addition to Epogen is majority ownership.
We're happy to emphasize this is a big barrier has two additional major shareholders.
And New York listed multinational Arctic giant.
And ICL and you know you've listed below 5 million rather than active company.
Which last year made a 10 million dollar of investment.
Under our safe agreement.
In addition to equity investment, but these two giants I didn't quote CFO .
They also conduct a collaboration with Sanofi valuable towards novel biological products development.
I'm delighted to announce this last month Mr. Amit.
Junk lavie value.
T O.
He's added.
A coffee professionals with expertise in leading teams and executing successful commercialization strategies.
Accident and health care sector.
I look forward with.
Excitement to walking together with Amit toward let me fix it.
With respect to the rebellious achievements this quarter I would like to start with its first product on the market drivers.
Charlie is a mutual best treatment.
This enhanced yield.
Americas 10 million acres.
Linguistic market bolstering switching for additional bushels per acre and significant.
For farmers.
Well I always has the potential to expand to additional asphalt in the future.
We are currently seeing high demand.
Exceeding our supply.
With our manufacturing partner we.
We have gained significant experience you Susan.
Overcoming various production challenges.
Fish capacity.
The experience has set us up well for the future and will enable us to ramp up production better for the expected jumped incentive for next year's season.
Looking ahead, we aim to bolt in sales into Canadian and European market.
And further crops, such as more grain and oilseeds.
Let me back it wasn't bio pesticides program continues to advance.
In October 2022, we submitted our registration package to the United States EPA for last 311, our novel Fungicide targeting food and poultry meat used.
The final stage before commercialization targeted for 2024.
The initial target market is for the treatment of reps, it's 200 million dollar market.
<unk> second by a fungicide products in the pipeline is loves three to one.
Yes don't meet your sort of thing has significant challenge traditional agriculture chemicals are increasingly band.
The results from recent drugs are promising and 'twenty 'twenty suite, we plan further field trials.
The initial target market is for the treatment of risk at 500 million dollar market.
Let me start with significant achievements demonstrate the power of evil Jan its technology and its Michael boost AI engine.
Let's now move on to Atlanta.
Excellent aim to discover and commercialize next generation models action crop protection products, including herbicides insecticides and fungicides leveraging the campus AI engine.
Major chemical companies such as the D. S. If buyers Cassandra and Syngenta dominate today's crop protection industry.
They look to smaller companies like Atlanta.
Developed new minor molecule candidate.
And Atlanta is exploring partnerships with this major industry players.
Besides the existence of weak today are flourishing.
There's not been a new commercial herbicide with a novel mode of action for over 30 years and act levels look to change that Atlantis.
Seeing interest in its product pipeline, especially our most advanced candidate H P. H, one and novel herbicides with a broad weed control spectrum as commercial doses rates.
We hope to update in the future on a strategic collaboration based on a P. H one since.
'twenty 'twenty excellence has worked closely with whatever she developed new herbicides accidental discoveries.
Discovers and optimize the candidate what Teva conducted testing and product development, we hope to update on 12 with in this collaboration in the future as well.
So student economics is focused on developing best in class medical cannabis products leveraging <unk> generates over a I think engine currently Cologne is advancing two business models.
Its unique capabilities to rapidly develop elite medical cannabis varieties addressing the changing demand of the medical cannabis market.
Yes, Sir.
It says among others.
Which canonic he's responsible end to end.
All expenses related to dispose of the milkman cultivation and sell.
With the end product to be introduced under the economic rent.
In this case the company would generate revenue from defense of the end products to pharmacies.
Second is the royalty model in which canonic license, it's a little of a life used to Boston, while all other expenses related to the cultivation production marketing et cetera are covered by the partner and the.
And thought that would be introduced under the Folgers brand.
In this case the company would generate income from royalties to be paid by the partner from its own revenue.
In line with its direct sales model Canonic recently launched six new second generation product in Israel as part of its hybrid serious.
In line with our royalties model last week, we announced that leading Israeli cannot be the door, where plantings lifetimes dwarf our varieties for Israeli itself.
Canonic main goal for the near term is to grow our second generation cannot be definitely well loved.
Lots of our surgeon generation products serious and increased license, while significantly reducing company expenses.
Let's now move to our last subsidiary Castor era.
Also in an integrated solution to enable large scale commercial cultivation of pastel beam.
Utilizing epogen and generate the AI engine.
This integrated solution.
Includes proprietary castor seed varieties.
Posted by Advil technical Knowhow and novel mechanical harvesting and the voting machines.
To address the global demand for stable Castor oil supply.
Castro seed varieties.
To maximize water efficiency and provide drought resistant, allowing for cultivation on marginal non urban land with minimal irrigation.
Cause terrorist advance castle velocities are developed using our general story I stick engine because terrorists orange commercial activity is mainly in Latin America, and Africa with a strong business partners.
The last six months, we have seen an increase in interest in using Castor oil.
Betsy source for Biofuels.
This led to a significant agreement signed at the beginning of this year with a major European based global energy company with cause terror supplying at least Castor varieties and gross protocol knowhow the customer market particular, recut stool for biofuel is rapidly growing and gaining attention.
And because the Iraqis are well positioned to be a key player in that market.
In the past few years, we have not emphasized customer activity when describing the emergent book.
But now with the growing demand so comfortably.
We've stayed with Castilla we become.
The body of the contributor to evidence continued success and shareholder value.
Last but not least as disclosed last week, our Oxy division since she was at 1.2 million Euro.
Thank you grant.
Develop oil seed crops.
Swaps with an enhanced C O two stimulation and dwell tolerance.
The program known as the E I see 2022 horizon for a lung support business addressing climate focused and sustainable crop development.
The overall budget under the program in $2 5 million Euro shared between the program partners.
This follows a successful 2021 proof of concept we took part.
With the EU Futura Agriculture consortium.
The Brooklyn aimed to create canola and rapeseed season.
Observe more atmospheric feel too.
We acquired 20% less water and less fertilizer mitigating climate change and conserving water resources.
The potential commercial value of such products for the food and animal feed and sustainable energy industry is significant and is a unique proposition in today's market.
In summary, the activity of evil, Jim and its subsidiaries.
Progressing very well.
Financial perspective.
Closely monitor declines difficulties in the financial market.
We are consistently advancing our strategy and ensure we remain self sufficient financially for the foreseeable future.
On average its balance sheet, we have consolidated $29 million for March 'twenty, two 'twenty three.
This amount does not include the 10 million dollar, but you owe me to recede from H.
<unk> investment in <unk> 2023.
I know that lavie value and biomarker, which recently have raised funds from strategic and financial investors.
Now self funding and do not require additional financial support from evil Jim.
We can target each subsidiary will have its own financial resources to support pizza activity until its success.
At the same time, it's emerging as a major shareholder we will continue to play a significant role in maintaining and building our pick N Gen, providing the subsidiaries competitive advantage.
Our long term plan is to realize value breaking out or I joined one or more of our peer group.
Depending on the market and other conditions and subject to SEC and other words of the garden and such transaction.
The recent external investment in la <unk> bio and for Omega.
With valuation well in access of evil James Cairns market cap.
Validates the significant inherent value within our subsidiaries and testify to the value initially created by evil, Jim Hey, Isaac engine.
We hope to announce additional success in the future.
I now invite bookstore is one by one because its CEO to join the call and elaborate on but let me cause of achievement.
Ron.
Thank you Ofer and to update you the Dominica made a significant progress last quarter with the closing of substantial financing grounded by some high hopes on top of them.
<unk> investment is a vote of confidence inbound capabilities and microbiome based therapeutics space.
We did have a gym 20 million was invested in the economy surround valuing us $50 million.
Ductile gene Bauer partner at some higher capital that receives her ph D from the Watson to do a science in Israel joined <unk> Board of directors.
The financing round was signed in December I mean, Paul It was officially closed after all we're gonna tell the approvals are obtained.
This investment serves as an external and independent endorsement of Omnicom.
And its marks a significant milestone twice and strategically positions us for growth in the years ahead.
Last week, we had the privilege of integrating a new lab and office space.
She can do facilities is essential to our company's growth and development. We're excited about the possibilities, enabling us to enhance our capabilities further and to support our research and development.
Before moving forward I want to update you on our recent programs and provide insights into our plans for the future.
As you May know about them. If that's currently focus on three proprietary therapeutic programs.
The most advanced program is in there.
Koji BMC 128.
So I'm wondering is the restaurant designs like the therapeutic consortium product that soon will begin our phase one P. O C code crowd in Israel for being too on 20 823 types of solid tumors in humans.
The phase one trial is designed to evaluate safety and Tolerability of team sees a P&C one 2018 in combination with an anti PD one checkpoint inhibitor opdivo.
Victoria cancer patients.
We have enrolled several patients in the study and aim to complete the trial later this year.
We plan to file an anda with the FDA.
One two and three or early 2024, and intending to begin our phase one b to a crowd for beam two on 28 in the U S. In the first half of 2024.
Our second microbiome therapeutic program focuses on some towards all disease IBD, whereas the lead candidates BMC to complete the restaurant designs optimized consortium of full life.
But the real strength.
In several preclinical animal studies BMC Cooper for students to reduce inflammation and tissue damage.
We aim to start to scale up the development process and GMP production of this product.
Part of the preparation for our expected clinical trials in the U S. In 2024.
This is important for me to emphasize my micro booster I pick engine has been instrumental in supporting the discovery process for our LDP programs and we eagerly anticipate future improvements.
A third program focus on Ibs, which was completed.
Discovery Phase four BMC 426, which is now beginning.
Being evaluated in preclinical studies.
The preclinical results are encouraging and we will update you as we advance.
That ends my summary, and beyond and that will now provide the financial update.
Hello.
I will now give a financial overview.
Average and maintained a solid financial position.
Similarly, $28 $8 million in consolidated cash cash equivalents and marketable securities as of March 31, 2023.
This amount does not include the $10 million investment in biomarker by its H C.
It was received during April of this year.
Approximately $8 $2 million of evidence consolidated cash as of March 31st 2023.
As appropriate.
Sydney luxury buyer.
We do not have any bank debt.
During the first quarter of 2023.
Consolidated net cash usage was approximately $6 6 million bottles.
Approximately $5 1 million barrels excluding luxury buyer.
Looking ahead to 2023, excluding any impact from foreign exchange differences and the change in market value of marketable securities.
Expect our consolidated cash burn rate to be between $27 million to $29 million.
Excluding the use of cash by Miami all of Empire.
We expect our consolidated cash burn usage during 2023 to be between $12 million to $14 million.
I want to highlight some specific items on the P&L.
Revenues for the first quarter was $641000.
Compared to $237000 in the same period the previous year.
The revenue increase was primarily due to revenues recognized with the collaboration agreement with emergent subsidiary Atlantis.
Cortez Huh.
From sales of Crinone ex medical cannabis products in Israel.
R&D expenses for the first quarter of 2023.
Our reported net of Nonrefundable grants received.
$4.8 million compared to $5 6 million in the same period in the previous year.
The decrease is primarily due to decreased R&D expenses and the ZIP bio due to the commercialization with inoculum product and a decrease in economics personnel expenses.
Sales and marketing expenses were approximately $800000 for the first quarter of 2023.
Compared to $908000 in the same period last year.
The main contributor to this decrease in expenses with a reduction in personnel expenses is kept on it.
General and administrative expenses were $1 $5 million in the first quarter of 2023.
Compared to $1 $6 million in the same period previous year.
Operating loss for the first quarter of 2023 or $6 million to $8 million compared to an operating loss of $8 1 million downloads in the same period in the previous year.
The decrease in the operating loss was due to the above mentioned.
Net loss for the first quarter of 2023 was $7 million compared to a net loss of $9 1 million in the same period in the previous year.
What's that all share and I would like to open the call for any questions you may have.
Operator.
Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment.
I've said before pressing the numbers questions will be pulled in the order. They are received please standby while we poll for your question.
Yeah.
The first question, it's from Brian Wright of Roth.
Please go ahead.
Thanks, Good morning, or good afternoon, I should say so to your cookbook.
Couple of questions whenever someone else with it.
You'd mentioned on biomarker that they were a couple of patients enrolled and.
28, just wanted to get a little more.
Doesn't mean like two two or two to just little more clarity on that.
And one can you take this question.
Yeah sure.
So thank you for your question yes.
And we enrolled a few patients already keep in mind that the entire phase. One study is estimated to be around 12 states and so we have and ward.
I would say I'm talking to a handful. So far you may remember from previous reports are our main.
Our objective is to enroll patients that are progressing on three types of solid tumors, either in non small cell lung cancer or RCC patients or melanoma all of them failed with immunotherapy and just after failing.
And then they can be enrolled in prosthetics.
Okay, great. So a handful that okay.
It sounds like you're on track there.
One of the two.
One quick question on the trial.
On the supply demand dynamics is that something you've considered maybe increasing the price or was it just a matter of if it's.
Maybe the market the prices the price and.
We then went in for next year.
Uh huh.
Jim.
It sounds like it wasn't very good and I'm I'm not sure that we understand the question, but with respect to travelers.
We are producing the product for the sales campaign.
A few months before this does he hasn't started and in a way we have kept up with the quantity. We can sell according to the quantity that we produce are and what they can share is that a weakness as we mentioned we.
We'll go through some challenges.
Challenges and struggles with the production process.
This year, but still it's and much higher quantity compared to previous year and the good news is just what we see is that there is a more.
More demand to compared to what we supply.
And the same.
And I think that the next year and with all the experience. We gain this year, we are going to produce a significant higher quantity.
What we are going to sell this year as it will be it.
Quite a significant amount compared to the previous year.
But yeah I think that's the big Big jump is going to be and to use it next year.
And we are planning.
Not just to sell in the U S. Like this year next year, we hope are supposed to start to sell them in Canada. We are waiting for the the Canadian improve them to start to sell this product, which we are up to receive it in the near future.
Giving you just wouldn't see but of course, we will announce it to swim and.
But those are progressing.
Other than what we expected this year and there is high expectations for for next year.
Sure thing.
No.
Hum canonic when they thought.
With the recent announcements with the licensing agreement.
How should we think about that.
As you know.
That's right.
It's more of your revenue now is going to come from.
Base sales.
<unk>.
Or or some from your direct sales.
What is nice about canonic, which is very different from many other companies in this field just in Israel.
We have the engine to produce varieties and the what we are doing is that usually we are conducting.
Conducting a variety and.
Yes.
And potentially cultivators, because we don't have the facility to cultivate to grow the product itself and we are the only greenhouses for research activity. So when we conducted a variety of debt. So we chose the most promising one and we decided.
This is going to be our product, but in doing so that we are in.
The company that's been cultivated for us.
Then the variety of conduct the test.
We're exposed to to the quality of our variety and then in some cases, there is tuition where they they asked to have a license to some of our the variety that we decided not to commercialize it because they believe that this is a high quality compared to what exists in the market. So.
We feel very positive.
Positive honest nutrition.
No.
More and more varieties, if maybe we decided that we are we are.
I'm not going to take all the way through commercialization. If you can still a benefit from this day variety through the you know other companies that we can grow the crop and we would be at risk.
Multiple on the marketing and we were to get royalty and.
And we don't see any direct competition between those products.
So I think that it could be a very interesting additional business model Brooklyn only activity.
And of course at the revenue we are going to generate will be lower but there is no risk and then there is no cost of goods sold so oh.
Every dollar that we are going to get from from this and Avenue. It would be in addition to the net profit because it as I said, it's a variety that we developed for a partner is variety that you develop already and we decided not to commercialize it but they believe that there is.
Still a significant commercial value and then we'd have to take it all the way through the market. So I think that through the through the years as we have more and more of this type of opportunity.
And then we'd be you know a company that they have that they can grow it cannot be but they don't have a high quality variety.
We will be more than happy.
To capture and at the end of utility and generate more.
Revenue broken out.
Okay. Thanks, a lot for the moment.
Thank you Brian .
The next question is from Van Cleef of Lake Street Capital. Please go ahead.
I'd like to start with just stare Oh for I appreciated your comments on emphasizing that that subsidiary and didn't have a couple of questions. On this specifically so my first question is in your updated presentation, you referred to having a to expecting a few hundred.
On the year as a 2024 production can you provide a bit of context to this is a few hundred tonnes a year in 2020 for expected is that either inventory or is that just like Wayne production data.
You know your own customers will be producing for you know for their customers.
So are you talking about seeds that we are planning to.
To sell to our partners.
You know we are building the inventory we have one group did grow for us seed in Brazil, and we have another group that can grow for us in Africa.
And numbers, if I'm, if I'm, referring to the same figure so we're talking about a few.
A few tens of thousands are that we are generating is tested for a four et cetera.
Okay. So that's so that's a few hundred tonnes a year in 2024 is a few hundred ton of seed for sale.
Yes.
Okay. That's great. Thank you.
You you also mentioned you know the benefits of Castor from a from the perspective of marginal land and negligible irrigation requirements in the context of the EU recent deforestation.
What distillation are you expecting that that your products will be broadly.
Slide on land that is considered.
Deforestation free.
And if so are you going to be able to if you will.
We validate that to the degree that that many regulators worldwide, because that's something that you're going be able to point to those regulators.
Or is that something you're still working through.
On what product you are talking about three because you're talking about sistema.
On Cal for a castor all hope it so at least from my understanding.
In the area, where we are growing our crop.
There is no any limitation, it's really the farmer decision what do you want to grow.
All of our variety are registered and they are a very you know we can start.
There's I think process.
Uh huh.
I don't think that we need to see my understanding I mean, I can stick with once again, but I don't think that we need any uh huh.
Uh huh.
Regulatory permission.
To sell the product in May.
And in South America, or in Asia, and Africa actually we are also and we start in doing so we are doing is already for few years and it's more quantity.
Now we are expecting to see significant growth, especially in Africa and.
And I think as we publish we engage with them and very big and.
Energy company that we solve them.
Grain, which are so the managed services, which we start to shift those the quantity only.
Only this year and we are expecting.
To start to recognize revenue from this activity.
In next quarter.
Great.
And the second part there.
Got it got it okay very helpful. Thank you.
One more for me on Lavie by element I'll pass. It on you you also have noted.
Reiterated in your presentation additional bio pesticides programs that are coming online.
So it doesn't have a large multinational company expected in 2024.
You can't name names, but can you clarify if this is what's one of the the existing collaborations that you have or is it.
Potentially.
As a new multinational partner.
With respect to the B bio.
In.
Thinking about the back end.
Pesticides.
And so there is more than one program that we are managing in this under this title.
I'm more than happy to.
For sure that.
There is more than one program that we are having ongoing discussions with potential partners.
And I can assure you that we're not talking just when our corn shareholders there isn't an interest.
We are coming from other companies as well.
And the and we are free.
Somebody mutation on on what we can do but here we have enough.
You know freedom to work with other companies.
And I really hope and believe that there would be some positive announcements in this direction.
In 2024, and hopefully maybe even in 2023.
Very good very good robust talk I'm not oh.
Alright, I will I appreciate you taking my questions. Good luck here in the coming quarter and I'll get back in line.
Thank you.
Okay.
Is there any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we poll for more questions.
There are no further questions at this time before I ask Mr. Ofer hobby to go ahead with his closing statement I would like to remind participants that a replay of this call is scheduled to begin two hours. After the conference in the U S. Please call 1888.
Two six and 310 in Israel. Please call 9103, 90 55901. Please call internationally. Please call nine seven to 390 55901, Mr. Hobbies would you like to make your concluding statement.
Well, we actually have a I think we have one other person. He wanted to ask a question as far as I can see.
Yes.
The question I must have dropped from the kiln.
Would you like to press star one to join the queue.
The next question is from Brett Reece of Janney Montgomery Scott. Please go ahead.
Ohio for.
My question was probably for for Rachel.
The company has been doing a lot of the right things.
And you know and yet.
The stock prices.
Penny stocks below a dollar.
Which limits institution that can buy even my own firm.
Rounds on.
This type of stock.
I'm just wondering.
If there's an opportunity.
Rachel.
So reach out to the key opinion leaders.
In the Red.
<unk> stock crowds and yes, I'm aware of.
Gerard a reputation that that some of these folks have.
But they are enthusiastic.
They.
Cause that's creative thinking and see they have a lot of power.
And you know the problem is sometimes married themselves to economically challenged entities.
With.
Every gene.
Do you have a company with sexy products on the right side of history.
No debt.
Our cash and a limited float.
And I'm just wondering pets.
That could be considered.
Thank you for a question if that's all right. We do have a let off her answer right. Thank you.
So I think that the since Richard just joined the company I would prefer that you would think.
This type of question and she will do so starting from the next quarter.
So I think the fact that we.
We decided to recruit and 10 a M.
Our manager I think it sends a clear message.
We believe this thing we need to invest much more in IR activity also an arbitration she kept activity things that maybe we didn't spend enough resources and attention in this direction, probably it was my mistake and the.
My expectation is that together with the ratio we are going to change it.
Start to see in the new as more and more articles about the evils in there it's more actually.
Right.
Articles in Forbes and.
I hope and believe there will be more.
Articles.
And yes, I'm planning to start to meet with investors and not when I have all of these amazing great News as you describe and thank you for this and there is more to come and I think that.
It really helped us in the next few quarters, you'll start to see also the P&L start to reflect the good news through you know.
The milestone payment.
Upfront payments from from collaborations our subsidiary going to conduct I think this is the excuse me. This all of this will happen.
Then.
We will be meeting with investors and with the right communication and additional IR and PR work, obviously to start to have also the understanding of the market for Penn, Virginia is doing and what our subsidiary we are doing.
We will start to have or so.
And and infused into the capital markets and we will start to feed it.
Changing changing momentum and direction.
Sure. So yes, we are able to work through this yes, we start to put more resources.
And attention.
And yes, and it's probably the most important thing we start to see I guess.
And stronger.
Muse from our own activity and our subsidiary activity and I Hope. This thing we will be able to communicate all of this the good stuff and to the capital market. So let's see next door to an important thereafter and I hope the thing first Richard we gave it to address this question and she will do it with a big smile.
Alright, Thank you for answering the question and welcome aboard Rachel Thank.
Thank you. Thank you so much.
Mr. Amit would you like to make your concluding statement.
Thank you all for joining the call today I look forward to updating you on our progress in our next call and I believe that there would be much to tell about thank you very much.
Thank you. This concludes <unk> first quarter 2023 results conference call. Thank you for your participation you May go ahead and disconnect.
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