Q3 2023 Evogene Ltd Earnings Call
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Ladies and gentlemen, thank you for standing by and welcome to <unk> third quarter 2023 results Conference call. All participants are present in a listen only mode. Following management's formal presentation instructions will be given for the question and answer session for <unk>.
Greater assistance during the conference. Please press Star Zero as a reminder, this conference is being recorded November 15th 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 that relate to future events risks and uncertainties regarding business strategy operations and future performance and results of Apple jet.
I encourage you to review Epogen filings with the U S Securities and Exchange Commission and read the note regarding forward looking statements in today's earnings release, which states that statements made in the earnings release and in a similar way on this earnings conference call that are not historical facts.
Maybe deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
For example, Allergan is using forward looking statements in this call when it discusses the additional orders for cars stairs Castor seeds and new collaborations to generate cash flow for the group.
Oh, my God advances and preparing for a pre IMD meeting for B M. C 128 expected tests of love 321 in field trials by several multinational companies and customers' ability to mitigate production risks and to retain additional.
Seed production subcontractors.
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 Apple jet and may cause actual results to differ materially from anticipated results.
Epogen is under no obligation to update publicly or alter the 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 pea.
Performance can be found in our reports filed with the U S Securities and Exchange Commission starting the call today is the president and CEO of F O Jan Ultra hobbies joined by ever Jones, CFO, Yeah, Ron L. Dot that said I would like to turn over the call to ultra hobbies, president and CEO of <unk>.
A vote yet Mr. Javier Please go ahead.
Thank you and good day, everyone today I will review.
You too.
The beaches and recent achievements.
I mean, it's just provide an update and Joseph.
Essentially catalyst expected in the near future.
I will discuss some of our subsidiaries and recent accomplishments.
Positive impact on imaging.
Bear in mind that that was subsidiaries leverage evidenced technology as the main competitive advantage and the accomplishments demonstrate the power and the value of our meeting.
I didn't check engine underlying their photos.
Got it.
But first I would like to start with the person that knows in light of the war with us.
The recent events and he's been sucking October seven 2023.
He has brought significant changes to our nation.
We find ourselves at the time of the phone inflection.
Our Hearts go out to all those.
Directly and indirectly impacted but he doesn't even ex <unk>.
Paul just to remember and honor the memory of the Beech last month.
The church member of the imaging group and his wife Orly.
Tragically lost their lives during Easter effect on these men.
It makes it so that the rest of the piece.
And made their memory serves it should be.
Our People's enduring strengths and museums.
I want to emphasize that did close only deepen our result.
It's rod and generally our business forward.
Getting back to epogen ongoing operation statutes and.
Amidst the challenges.
Congrats it would be the other subsidiaries <unk> strong commitment to innovation and progress.
Our strategic focus remains strong and our dedicated team continues to work tirelessly to achieve our objectives for 2023 instead of course for 'twenty 'twenty four.
I would now like you view epogen positive financial statues, beginning with our cash balance at Ross Campbell Gin and he succeeds me in our new temps financing strategy.
At the end of the third quarter Epogen had a cash balance of $37 2 million dollar.
This included the book value of $7.1 million.
But let me call it $14 6 million dollar and evil Jan to Bezeq is X plans because they are in Bologna, with a $15 $5 million.
It's worth highlighting the epigenetic cash balance does not yet reflect the current and expected revenue from this data.
On the other hand, our cash balance at the end of the quarter is influenced by the significant upfront costs.
Food producing customer in Brazil.
England Africa.
Additionally, it's important to mention that.
The value of the cash balance does not yet include an additional $2 $5 million.
Expected in January 2024.
As part of the pending commercial agreement with Teva.
Announced by the company in July. Furthermore.
We anticipate additional orders that folks are staying rather testing season.
And new collaboration to generate the cash flow for the group throughout 'twenty 'twenty four and on.
Further enhancing our financial stability.
Our revenues for the current culture.
Which dose of three.
$3.8 million demonstrate the successful execution of evil Genesis would be this modern joint cash and value from the X D. Our subsidiaries, notably these revenues include approximately.
He will 0.9 median butler from.
Central specialty.
And $2 5 million dollar generated by <unk>.
This is Pete in the swing of each one of us when we spoke to them.
Disciplined operations, not only adds value to deep value for the benefit of shareholders, but also fun its ongoing operations and reducing the need for additional funding from the visa xylem shareholders.
Turning ampligen ongoing activity in the past and culture we.
Continually improving our street.
And Jim's, adding new applications and upgrading existing features.
We intend to make our AI engines, it's extensible and user friendly as possible and so based on feedback from our partners, we continuously improve the U a E.
That's why I emphasized that in previous calls.
Our strategy for capturing value from our AI engine.
The ball around utilizing or licensing does amgen neighborhoods for product development.
It wasn't employed two main business structure.
To execute this strategy in order to generate revenue and value the first collaboration with leading companies.
Ampligen collaborate with industry leaders to develop defined product by utilizing epigenetic.
Hey, Isaac engine.
Typically our partners taking the lead in.
The staged development and product commercialization.
Good thing structure Epogen can benefit from the following revenue really.
Some payments R&D speed.
Milestone payments and most importantly, royalties from our partners and products.
Yeah.
The second business structure is establishing independent subsidiaries.
Dedicated to a specific commercial field within the life science market.
Did you read the whole license to use epigenesis unique AI engine.
Other developments.
This structure evidence in Venice Beach from the following revenue stream.
License fee for the use of our AI engine dissidents to ampligen as to shareholders and most importantly, when an exit and then of course as long as epogen remain a major shareholder it's significant one time payments is expected.
In past years.
Our efforts focused mainly on establishing and supporting the activities of our subsidiaries.
We proudly reported their delivery of virus and prestige results, which most recent I will dive into shortly.
As stated in previous calls during this year, we invested in establishing collaborations directly between epogen and industry leaders.
To leverage our AI engine for product development.
We are very excited with the initial fruits of this initiative.
As demonstrated by the recently reported collaboration with colors pharma.
And then with young University team.
Pioneer crustacean gene editing technology, aiming to enhance crustaceans rates.
The collaboration is powered by a grant from the Israeli innovation authority and utilize epigenesis generates an AI engine.
We hope and believe that this collaboration marks the beginning of the test to additional collaborations in the near future that will benefit from hours to be thick engine and generates significant revenue and value from evil Jim any sponsors.
Now I would like to review the main achievements of our subsidiaries in the last few months.
Who as part of their competitive advantage are all using Apple gymnastics engine under exclusive license for the program development.
I would like to start with the two subsidiaries using micro mist AI to accelerate and de risk the further development.
And biomarker.
Let me babble.
Forefront of next generation ideological products.
With epogen, if its major majority shareholder.
Worth nothing that lumpy Baidu has two additional significant chip on the course together and looked at the internal technical leader and ICL global mineral and active company.
Their equity investment both spoke turbine ICL.
Actively engaged in collaborative efforts with the B bio.
Jean and develop novel Agriculture biological solutions.
In July the feed value announced that it entered another license agreement with Teva.
The agreement Glen called timber.
Let's give rise to develop further and commercialize to open up these values, leading both fungicides product candidate.
311, and loves 312.
How do you think fruitful.
The agreements totaled two years of independent validation trial conducted by both companies.
Under this agreement value.
With that we received an initial payment of approximately $5 million in two installments. The first payment of $2 $5 million was already received in September 2023, and the second payments is expected in the first quarter of 'twenty 'twenty four.
Let me bio will also be eligible for additional future milestone payments and royalties from Cortez said these future products.
This collaboration with what did that not one of them and strengthen <unk> financial position, but also significantly and hence its overall perception in the us.
Upmarket.
Furthermore, the revenue generated from these collaborations mitigate the need for external financing.
Further solidifying the value of the financial stability and ability to continue.
Advancing its cutting edge unveil logical product.
Last week.
Everybody knows that.
Progress in it.
Fungicides, Brooklyn with loves reached one.
Designed to combat downy mildew and late blight disease.
These trials conducted in 2020 suite across Europe, and the United States has yielded impressive results.
Sure.
Next year last week to one will be tested in fleetwide by several multinational companies.
For some of which it will be the second year of validation.
Oh My God.
Which develop microbiome based therapeutics for human has is the second subsidiary using Edward Jones Microbubbles.
Engine to discover and optimizing my folks that we put.
Adventure.
It's worth noting that in addition to epogen as a majority holder.
I only can have another major shareholder.
Hi, good coffee felt one of the largest venture capital groups focusing on Heska located in China.
But let me kind of the leading product candidates.
P M C 128 for the treatment of cancer patients.
No one phase one clinical trial.
The trial conducted in Israel, and the ramp on Heska Congress.
Aim to evaluate BMC 128 safety and Tolerability of long studied Bristol Myers Squibb.
Oh people immunotherapy.
I'm, sorry, patient wheezing and C N Z melanoma or RPC.
You know who's, but you're only going to open a second site in Israel. It is a.
Pedro cancer center to allow the recruitment of additional patients.
So the clinical trial.
The trial is planned to include 10 to 12 patients currently seven have enrolled.
The company and are now focused on preparing all of the required materials for print I M. D meeting for BMC 128.
It's a union Collyn G program.
Expected to take place in the first quarter of 'twenty 'twenty four.
I would like to continue with the two subsidiaries using generates or AI to accelerate and directed towards the development of Stella and Corona.
Because they have a focus on developing an integrated solution to enable large scale commercial cultivation of castor beans through unique elite seed varieties.
Cause they want him to address the global demand for stable customer or supply mainly for the biodiesel industry.
The past year was pivotal for cathedral.
Our vision of becoming a significant player in the buyers gives an industry four <unk>.
Just as we see the order from a world, leading energy and gas company.
Total being $11 million for customer population in Africa to support the growing demand for biodiesel.
In the last quarter, because they were successfully delivered its first shipment of high yield high oil cut so season from Brazil, and Zambia and African region.
It's approximately 0.9 median bother because they weren't planning to supply the rest of the order season at the beginning of 'twenty 'twenty four.
And there isn't months Castilla has made substantial steps in expanding its overseas the season production capabilities.
Subsequent to October.
Based on the.
Observation of this move.
Company management learned this is complexity is high and require additional resources.
Extensive physical attendance of the service professionals.
Overseas production sites.
Cause temporary discordancy investing efforts in expanding.
Additionally, peak production subsequent glass doors to manage a week.
These efforts aim to ensure a long term reliable and sustainable cease production infrastructure that will allow the supply of high quality capital C or existing border by the second quarter of 'twenty 'twenty four and provide.
<unk> and caliber platform for future growth.
Moving on to colonial which focuses on developing best in class medical cannabis products.
They're nice main targets for the near term are to grow cannot themselves can use them.
Benefiting from unique.
Unique strain while significantly reducing expenses.
That's the right go to market strategy includes outright.
But the commercial growth of the economic stream toward the final product.
Cushing to select sub contractor with the right skills and expertise.
The genetic value of economic strain, making the premium market criteria.
And during the last quarter, we engage with the new Israeli cultivate tool evergreen to grow canonical variety and prudently for elite twins or grow in evergreen greenhouse site.
In parallel the company continue evaluating and negotiating with various.
Doctors overseas foreign cultivation in indoor growth facilities, the Israeli medical cannabis market is characterized by carefirst spectrum of product.
School locally and from abroad.
Capturing the patients attention is challenging lethal.
Thing two price dropping even for premium products.
To address this challenge economic he's focusing marketing efforts on the frequent launching of new products.
He'd batches.
During the third quarter <unk> launched two new product Tango and too soon and this week in addition product outside that moves along.
Lastly, I would like to review our subsidiary <unk>, which utilizes epogen campus AI engine to accelerate indirect its further development.
Excellent aim to discover next generation innovative crop protection product.
Living herbicides insecticides and fungicides.
And commercializing them through collaboration with World, leading soccer match.
Major chemical companies such as it is the buyer for Teva and Syngenta.
And today, the crop protection industry steel they look to smaller active companies like X lens to discover new targets proteins and small molecules that can hit the target protein.
Surfing is the active ingredient in a conventional crop protection products.
Atlanta is the company address this need.
Explore.
Partnership with major industry players.
As I stated in the previous call.
The growing interest in Atlanta, the product pipeline, especially in our lead target protein a P. T H, one and the small molecules that binds to this protein that's the candidates for novel herbicide with the broadest weed control spectrum.
We believe that this interest can lead to a collaboration agreement between <unk> and a leading industry player.
As describe all the subsidiaries are advancing their fitness targets.
Shareholders ever done these are very proud of this progress.
Bear in mind that the subsidiaries of success is testimony to the power and value of equal Justice AI engine to accelerate and direct life science based product development.
Looking forward.
When evaluating the needs of our wholly owned subsidiaries and the commercial potential of each.
We intend to invest more airports and the resources in Cassandra since we see significant potential in the biodiesel market, which cuts the all you can support.
Why did we do using our weighted basket economics due to the challenging market condition of the medical cannabis sector.
With this I pass the call to your own Eldad Epogen CFO to review our financial report for the first quarter on your own.
Thank you Ofer.
September 32023.
Jim had consolidated cash cash equivalents and short term bank deposits of approximately $57 $2 million.
But oh, Macau accounted for $14 $6 million of the thumb.
His body, all $7 1 million bought it.
Epogen together was there a canonical atlanta's possess an aggregate of $15 $5 million in cash.
The injection of funds from the last round of investment in July strengthens evidence financial position and provides us with the resources needed to execute our future plans effectively.
As already stated the $15 $5 million reflected in the cash balance of epogen together with customer economic in Atlanta.
Do not include any amount using the purchase orders received by costs. There are in the last few months, which were partially supply during the first quarter of 2023.
And that's a $7 $1 million reflected in the cash balance of luxury bio does not include the two and a half million dollars.
Represents the second half of the upfront payment from the licensing agreement with Teva that is expected to be received at the beginning of 2024.
During the third quarter, the consolidated cash cash usage was approximately $4 $8 million or approximately $3 $2 million.
Leading luxury bio, which provided net cash of $1 $1 million.
Due to two and a half million dollars upfront payment from the licensing agreement with Teva.
Oh, Macau and $1 $2 million of advanced payments, because there was some constructive for customers.
<unk>.
I will now review the P&L main items.
Revenues for the third quarter of 2023, approximately $3 $8 million compared to approximately half a million dollars in the same period the previous year.
The revenue increase was primarily due to revenues recognized by love He probably will cause a licensing agreement with Teva and.
And due to revenues recognized like a stair up for the supply of capital during the third quarter of 2023.
R&D expenses for the first quarter of 'twenty to 'twenty, three which are reported net of non refundable Grant you see.
Were approximately $5 $1 million and remained stable as compared to approximately $5 million in the same period in the previous year.
Sales and marketing expenses were approximately $850000 for the third quarter of 2023 and slightly decreased as compared to approximately $895000 in the same period period of the previous year.
The main contributors to this expense decrease was a reduction in personnel expenses Afghan Army.
General and administrative expenses were approximately one and a half million dollars in the first quarter of 2023 and remained stable compared to approximately $1 $6 million in the same period in the previous year.
Operating loss for the third quarter of 2023 was approximately $4 $2 million compared to an operating loss of approximately $7 $1 million in the same period in the previous year.
The decrease in operating loss was mainly due to the increased revenues as mentioned above.
Financing income net for the first quarter of 2023 was approximately $320000 compared to financing expenses net of approximately $61000 in the same period in the previous year.
This difference was mainly due to increase in interest income.
The third quarter of 2023 as compared to the same period in the previous year.
Net loss for the third quarter of 2023 was approximately $3 $9 million compared to a net loss of approximately $7 $2 million in the same period the previous year.
The decrease in the net loss.
Mainly due to the increased revenues recognized in the third quarter of 2023.
What's that offer 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.
Also in the Q&A part by Windows today, a hour on N C. All of course, Dara I mean, no I'm CEO of Levi Bio <unk> C O M B omnicom and near our valve C. P. L. A at Virgin and C. L. O of ice class. If you have a question. Please press star one if you wish.
To cancel your request. Please press star two if you are.
We're using speaker equipment kind of lift the handset before pressing the numbers.
Your questions will be pulled in the order. They are a seat please standby while we poll for questions.
The first question is from Ryanair of Lake Street Capital. Please go ahead.
Hey, guys. Thanks for taking my question first one for me so for the initial 11 million dollar cast their order you obviously had initial shipments here in Q3, but.
But the rest expected in Q4 and she wanted next year is this the type of seasonality that you would expect from future cap their orders going forward.
Can you repeat.
The last the.
A couple of questions.
Yeah. Just wondering if this is the kind of seasonality that you would expect going forward.
So.
Uh huh.
A question and maybe I can add a little bit more.
But based on our discussion with our existing partner.
They are expecting to see growth in the mean in the future.
For additional island.
So grain to feed this there are trashing factory.
They are planning to increase and expand the biodiesel production. So assuming this plan will take place. So I believe that we should expect to see increasing demand to eh.
That's our season.
As I stare right is the developing and providing to the market I would recommend people who are listening to this call.
Maybe you need to look for a nice article that was published about the NII.
And as an example for a company in the field of <unk>.
Energy based on name on veggie crop on dairy and future plan.
Which I think this is an.
An example is dwarfed everything how the market's going to look in the future.
And to get to the public information that was.
The published by Eni and this is just one example to what might happen.
And we'd be more than happy to big box from these trends and to be fair.
Breath in the future.
Got it and then can you just talk about the level of capacity that you're in energy partner has to take more volume of cash received from you guys.
We can't disclose much about our partners' capacity, but.
I think that the.
There is still a room.
We tend to lag.
Grow and increase the our revenue.
Before we switch to the and limitation of what they have now please remember that our there is then.
They can always decided to build in more.
Factory desk, and Oh gosh.
Or is it grain to oil.
We use value them.
Great. That's it for me thanks for taking my questions.
The next question is from Brian Wright of Roth Capital. Please go ahead.
Thanks, Good morning.
Got it.
I guess.
You made a comment about.
Yeah.
Part of the purchase order.
For the first quarter and then I just wanted to.
Should we think about let's not hold onto something there that go.
Go into the fourth quarter, just given kind of your.
Some of which is of course.
<unk> talked about.
In Africa.
And with additional partners.
So.
Not to this next year.
<unk> correctly, what you said about that.
I believe that your question was referring to timing.
And when we can supply the purchase order that we receive so AR and what we believe is that we would be today, we'd be able to deliver.
George if not all of the it's fair to say the good news the speed that was ordered.
So the purchase order that we all do receive a feeling the first powerful eh 'twenty 'twenty for a while.
The majority of beauty T B, a day or a day.
In the first or or immediately after the end of the first quarter. So.
And this is mainly due.
Due to the climate change and irrigation system that we need to put in place.
There is no question, who can deliver the quantities now more a timing issue and as I mentioned in my <unk> and Magna and beach is that we are investing a lot of effort. These days.
In our strengths our infrastructure with respect to production.
And more and more than one location is more than one country men in order to be able to not just deliver grain in the Rockies in the quantity needed but also.
At time as planned.
So I'm sure.
You should also remember that the Vista and game.
Illusion.
Cosco and Peter.
The crop is going through is really something that took place only in the last nine months and it's really something very.
It's really at the beginning and then there was some draw downs.
We are I'm, so excited to see how we are addressing all of this and it challenges.
We expanded the.
Number of employee what broke up there Oh and we are recruiting also people are in.
And then the fact that location, where we grow the feed to two escorts the activity over there and you know on a daily basis.
But we're still in the process of building all of this data and infrastructure and I think that's putting format at the second half of 'twenty 'twenty four we will start to see the impact of all of these things a N a and in the way that we are expecting.
Okay.
It sounds like based on what I, just sort of not just want to make sure I'm interpreting this correctly. It looked like just just general weather conditions like cyclical issues.
Lots of rain probably.
With a major issue and that's you know that's just part of the business.
It's not a fair interpretation of what we're emphasizing.
Yeah, Yeah, again, I don't think that the.
It's not that we will deliver the question is really more timing and solving problems such as climate climate issue that you cannot control and et cetera.
I think that the.
We are now.
As you know when we know what we need to do and and our subcontractors are.
And they are getting better and understanding what they need to do.
So.
It's really I think almost every business in the first year or two you always struggled with.
With the and scale up in the production and we are exactly going through this process, but I'm I'm I'm I'm quite confident that we will be able to deliver the quantities that we promised and so I understand your question.
Great great. Thank you.
Right.
So all of them.
I understand that goes on between us.
Good in the quarter and I think some of that has to do with sort of course of our.
Can you talk about what you're bearish, but it still looks pretty burden in the quarter.
Am I reading too much into it.
Your your probably your pester up margin is probably yes.
No.
Even worse.
Everything that's happening.
It's probably a pretty good gross margin for cats for the quarter as well.
Hum.
I can't disclose.
The gross margin.
Our business.
We prefer to give you some information internally, but.
I think that the.
If you if you review the margin of error.
Other companies in the field.
He says it's been tested so usually the margin a quickie high but it makes sense because don't forget this time that you need to invest.
In order to.
Develop this season.
And for this.
This company the R&D cost are quite heavy the good news from the concept from me.
Coursera is that we reached this variety that we are offering them alcohol where partners reinvesting in English.
Have you seen in the last 10 years, and we're investing around them I think $20 million through the years. So now we are starting to see the benefit from this investment and this is also wound care you know okay. What's up ahead.
And any other company that does that then will be to this field.
So the margin in the Philippines are pretty high because they supposed to cover the expense and the risk that companies are putting in the development of the elite variety exactly like ever Jim did like I did in the past.
10 years.
Great. Thank you so much.
The next question is from Ben Hayner of Alliance Global Partners. Please go ahead.
Hey, gentlemen, thanks for taking the question first.
First off for me just on the AG quite US Army every th one target Hum.
How quickly do you anticipate a collaboration slash partnership could materialize there.
What are you doing or what can you presently due to kind of advanced development also.
That was the target.
And what would you like to take this question of you prefer a me too to address it.
If you want you can go ahead.
So I will try to address it and making you know if you want you can add.
Uh huh.
Hum.
I think the thing you know usually.
Working with Big Corporation.
Why is it before you.
And engage in agreement.
They include the validation period.
No negotiation time, but I think that's usually when a company.
Excuse.
If possible and to emphasize that there was an interest in it.
And one of the program at least the way that's evident walking so which means that we have some.
Our confidence that we are not far away from the point, where we might announce such a collaboration.
So again, you never know if it will happen.
Why do you mean, you know this has been the nature of the business, but we feel it's why we'd be comfortable and willing to stay in that day.
There is some progress.
You're just saying it really didn't get used and such.
Jim.
That's excellent.
Amazing example, too yeah.
Epogen.
And then the second.
<unk> company.
Can the battle and offer to our partners.
Atlanta, using and <unk>.
Tampa Bay, I think engine and the progress we say engine made in the last year.
Remarkable and we announced about a target select door, we announced about some other app that we developed and I think that is what is it attracts the attention of our potential partners.
The results that you can see on what we achieve until now but also get pick targets from our ability to improve the efficacy and usability of success by using the the second engine of Epogen, So what I would like to see what I hope to see you.
If you took quite a restaurant that's accidents, we'd be engaged is not.
Maybe not upfront payments, but also ongoing collaboration.
And we are in D. C et cetera. So are there is there.
There is a high expectation from what the academic experience.
It's still in early stage, yes, we still need to demonstrate a more and more of the power of our technology, but the company is definitely in the right direction.
These targets.
He likes or something.
No I think you've covered the parts I agree I think that's a 12 to 18 months was very pivotal for excellence and I think we have a lot of confidence in the platform and what we're doing in the water.
Things that we will see this more participating.
What would be helpful.
Okay. That's very helpful. Thank you for that and then you kind of a.
Segway into my next question, what's the advance hopefully you've made in and jump out.
He has a particular target.
Target select or it sounds like.
Oh, that's attracted interests but.
Can you share any more.
You know potential positive developments that have come with it.
New applications or new functionality like target select rather that have occurred here recently.
Okay.
So I think I think target selector, particularly attracts a lot of attention I think this is a truly addresses unmet need within that space.
The way, we operate and I think that's that's why is it.
<unk> period, that's been very.
Khusro floor for like fragrances, not only developing these tools, but having a proper validation protocols.
And we see where they've got to address the need to see how we've gotten to date.
As we progress, we see more and more interest in better validation and confirming that the tools are good.
And that work as we expect.
And therefore, that's why our confidence is very high in the platform itself.
What the future holds as well.
Okay.
What is the kind of holds up quite well.
Lastly for me I Love the crustacean gene editing.
Uh huh.
Collaboration that you announced.
Does that have the potential to lead to.
Another subsidiary and then is that is there.
Part of what you alluded to on your last call.
Regarding some of the lost food tech oriented things.
She had going on.
Just a little bit more like Kristy substation G noted it would be helpful.
So first yes, I remember that in previous call I was talking about potentially the biggest deal in Virginia.
Oh, there you are.
But honestly I didn't I didn't.
I didn't vote.
I didn't think about ethical suggesting that project when I was talking about it there were some other activity that hopefully will materialize into agreement.
We will share it with our investors and hopefully maybe in the next quarter or so but.
So there is more.
And under the Hood and then what we disclose.
And in this call.
Paul with respect to assist them as process. This is ed.
I don't see it developing into a new entity. You know you can never know how big it could be but I guess at this point of time, we don't see it actually slowed this quarter question, we are covering 100% from our costs.
Oh, we are and and and.
We think even a little bit.
Revenue from this activity I think this is a.
Parts from Ampligen and capabilities in the field of gene editing.
And in the past we were leading the biggest consulting team in Israel in the field of Eh and gene editing.
And I think that's evident has some unique capabilities in this field that we can use our or to help other companies going through different trade in different organism, but at least for now we don't see that evolving to a separate entity.
Okay.
Well thanks for taking my question gentlemen, that's all I have.
Thank you.
Okay.
If there are any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we call for more questions.
This concludes the question and answer session before I ask Mr. Ofer hobbies 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 18883 to six.
90, 310 in Israel. Please call not 039 to 55901 internationally. Please call 970 239 to 55901.
Mr. <unk> would you like to make a concluding statement.
Thank you all for joining the call today, we look forward to updating you with our progress in our next call. Thank you once again.
Thank you. This concludes Apple Jacks third quarter 2023 results conference call. Thank you for your participation you May go ahead and disconnect.
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Okay.
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Okay.
Yes.
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