Q4 2024 ExoZymes Inc Earnings Call
Operator: So now should we go live? Everything in this presentation, other than statements of historical fact, will be forward-looking statements.
We're proud to be go lives.
Everything in this presentation other than statements of historical facts will be forward looking stake.
Operator: Please read our SEC findings to better understand exercise as a business, our risk factors, and as an investment opportunity.
C suite, all at SEC filings to better understand exercise as a business our risk factors and Ehsan investment of genetics.
Yeah.
Lasse: And with that, welcome to our very first earnings call. I'm the VP of Communications.
And with that.
Welcome to our very first earnings call.
Okay.
Yes.
Lasse: I'm the one that's running PR and Investor Relations at ExoZymes. And I would like to thank you for being part of our call today.
Chris.
On the communications I'm, the one that's running that.
Speaker Change: Relationships at exciting.
Michael Helsen: And with that I would like to hand it over to our CEO Michael Helsen. Thank you Lasse and welcome everybody. We have an agenda in front of us here where we will be covering a number of topics. We have a lot to cover so let's just dive right into our vision. So, Our vision of the future basically builds on the fact that chemicals are the fundamental building blocks to our modern life. It means that they're the basic building blocks of medicine, of fuels, of plastic, of food, of colors, and everything we consider the good life in the modern consumer world.
And I would like to Q4.
Speaker Change: Bookings.
Speaker Change: Okay.
Speaker Change: And with that I would like to hand, it over to our scale.
Michael Helsby: Michael Helsby.
Michael Helsby: Thank you Leslie and welcome everybody.
Michael Helsby: We have an agenda.
Michael Helsby: <unk> here.
Michael Helsby: We will be covering.
Michael Helsby: Okay.
Michael Helsby: And number of trucks have lot to cover so, let's just dive right in to our vision.
Michael Helsby: So.
Michael Helsby: Our vision of the future.
Michael Helsby: Basically books on the fixed set chemicals.
Michael Helsby: Fundamental.
Michael Helsby: The building blocks to our modern life means the basic building block of medicine, a few loose plastic of food colors, and if we can be considered a good platform in the consumer.
Michael Helsen: Today there's only a couple of ways where humankind can get hold of these essential chemicals. We have developed a new and better way. That's it for a minute here, or we'll give it a second. It represents a huge business opportunity to get this right. But let me map that out for you. The first way humankind can get hold of chemicals is basically by the traditional cut-down-and-extract method. It leads to problems like depletion of the source. It's also often too slow, too costly, or too wasteful to do. The other way of doing chemicals today is petrochemicals.
Michael Helsby: Today, This will get club weight, what humankind can get hold of these essential kickoffs.
Michael Helsby: We have developed new and better way.
Michael Helsby: That said funding this year.
Michael Helsby: We'll give it a second.
Michael Helsby: It represents a huge.
Michael Helsby: Our biggest opportunity to get this right, but let me wrap that up for you.
Michael Helsby: The first play humanized controlled chemicals is basically <unk>.
Michael Helsby: Uh huh.
Michael Helsby: By the traditional cut down and extract method.
Michael Helsby: Got it.
Michael Helsby: It leads to problems like depletion of the the source. It's also often too slow too costly or two wasteful to do.
Michael Helsen: Basically, since the discovery of oil and the advancement of petrochemistry, the world has become addicted to using this petrochemistry to produce chemicals. For most of the products we use on a daily basis. Petrochemistry, though, has the problem of being toxic and environmentally damaging, and that means long-term it's unsustainable. So nature on the one side still has more diverse and advanced types of chemicals that it can produce. On the other side, petrochemicals, cheap, fast, very controllable.
Michael Helsby: The other way of doing.
Michael Helsby: Chemicals today's petrochemicals.
Michael Helsby: Basically since the discovery of oil and Thats <unk> spin off Petrochemistry the votes have become addicted to using this pitch chemistry to produce chemicals.
For most of the products, we use on a daily basis Petro.
Michael Helsby: Petrochemistry, though has the problem of being toxic and environmentally damaging and that means long term. It's unsustainable. So nature on the one side still has more diverse and an advanced types of chemicals that it can produce on the other side petrochemical cheap fast.
Michael Helsen: As a best-of-both-worlds solution, we at ExoZymes have developed a new and unique technology that we call ExoZymes, that allows us to basically replicate and optimize on nature's biological way of producing chemicals. Um It allows for a very nice opportunity to create a lot of value and that's for us and our shareholders.
Michael Helsby: Very controllable.
As a best of both World solution, we at exercise have developed a new and unique technology that we call extra simes.
Michael Helsby: That allows us to basically replicate and optimize on nature's biological way of producing chemicals.
Michael Helsby:
It allows for a very nice opportunity to create a lot of value and that's fasten. Our shareholders is connects to the next slide here.
Michael Helsen: Let's go next to the next slide here. So first of all let me explain what we mean with the word ExoZymes. So ExoZymes with the capital X and C is when we talk about it as our company name. You when we spell it ExoZymes no capital letters. It's the scientific concept. It's the technology that is used for this next generation of biomanufacturing. As we've developed it we get to name it. But let's dive into the details of it.
Michael Helsby: So first of all let me explain what we mean with the word exercise so exercise with the capital X and see is when we talk about our company name, you'll see that up in the.
Michael Helsby: The left hand corner with with rich when B when we split exercise no capital led US is to scientific concept, it's the technology.
Michael Helsby: That is used for this next generation bio manufacturing.
Michael Helsen: The next slide here. What are ExoZymes? Well Exo means outside and as enzymes normally lives inside of cells to produce chemicals for the cell. Then the in part is means inside off and Zymes basically means the chemical step reactions that they make to make chemicals. ExoZymes is therefore our way of saying cell-free, multi-step enzyme pathway chemical production. but simpler, just calling it ExoZymes. making ExoZymes possible because we master advanced enzyme optimization using AI and bioengineering and we basically we're able to fast forward the enzyme evolution that naturally happens in nature, but typically over thousands or millions of years, we can direct that evolution via the computational AI designs and our unique capability in producing a lot of enzyme and exozyme training.
Michael Helsby: As we've developed it we get to name it but let's dive into the details of it. The next slide here, what our exercise well extra means outside and S. In simes normally lift inside of cells to produce chemicals for the sale then the impact is means inside off and some space.
Michael Helsby: That means that the chemical step reactions that they make to our to make chemicals.
Michael Helsby: Extra scientists therefore, our way of saying sell free multi step in time pathway chemical production.
Michael Helsby: But simply just calling it exercise.
Michael Helsby: Making extra sams as possible because we master advanced in time optimization, using AI and by engineering and the.
Michael Helsby: We basically.
Michael Helsby: We are able to fast forward the enzyme evolution of nib.
Michael Helsby: Really happens in Nab in nature, typically or thousands or millions of years, we can direct debt evolution via the computational AI designs and our unique capability in producing a lot of enzyme and exercise training data. So how does these extra times work well.
Michael Helsen: So how does these ExoZymes work? Well, we take feedstock, for example sugar, as an input and then the first part of the ExoZymes, they basically break that sugar molecule down to the exact chemical building blocks that we need. Then the next ExoZymes in the pathway comes and puts them together exactly into the chemical that we want it to be. Due to our technical co-founders, Tyler and Paul and Jim, and our great team, we have been building on this for basically a decade, if you go all the way back to when it was an academic project.
Michael Helsby: Feedstock for example, sugar S as an input and.
Michael Helsby: And then the first part of the exercise so they basically break that sugar molecule down to the exact chemical building blocks that we need then the next.
Michael Helsby: Extra <unk> in the past, where it comes and puts them together exactly into the chemical that we wanted to be.
Paul: Due to our technical co founders, Thailand, Paul and Jim and our Great team, we have been building.
Paul: On this for basically a decade, if you go all the way back to when it was an academic.
Michael Helsen: With that expertise of InZyme and ExoZyme optimization, leveraging AI design algorithms, and that we can generate a lot of high quality InZyme data and specific trade secrets, we are able to do this that nobody else can. Our technology, just to kind of point out the advancements here, are built with inspiration from four recent Nobel Prizes in chemistry. So it's pretty advanced chemistry, biology and AI technologies that is merging into a perfect.
Paul: With that expertise of enzyme and extra time optimization liberate Qing AI design algorithms that we can generate a lot of high quality in some data and there are specific trade secrets be able to do this that nobody else can do.
Paul: And our technology, just to kind of point out their advancements here.
Paul: Built with inspiration from four recent global prices chemistry, So it's pretty advanced chemistry.
Michael Helsen: if we go to the next slide. Yes, thank you. The dream of synthetic biology is not much different than ours and billions of dollars have been invested into the traditional cell-based synth biomethods where you genetically optimize cells to make chemicals as a chemical factory. But it turns out that it often doesn't work at commercial scale. You can argue it's therefore not really real, at least from a business point of view. Those problems and why that doesn't work, I'll point that out a little bit later in the presentation. But we're basically pointing out that our method gets around all of those problems and is allowing us to deliver commercial value in an effective way, both from a production and cost perspective.
Paul: <unk> and in AI technologies that is merchant into a perfect mix here.
Paul: We go to the next slide.
Paul: Yes. Thank you.
Paul: Dream of synthetic biology is not much different than ours and billions of dollars have been invested into the traditional cell based <unk> genetically after myself from our chemicals as a chemical factory.
Paul: But it turns out that it often doesn't work at commercial scale, you can accurately fr really real.
Paul: From a business point of view.
Paul: Those problems of and why that doesn't work I'll point that out a little bit later in the presentation, but we basically pointing out that our method gets around all of those problems and.
Paul: Is allowing us to deliver commercial value in an effective way both from a production and cost perspective. This.
Michael Helsen: This is what makes it effective, scalable and profitable in the end.
Michael Helsen: Let's go to the next slide. So, we basically use highlights, lowlights, and headlights in our organization to communicate to each other how things are going. So, I'll give you an overview here. On the next slide here, there's basically a number of the really great things that happened for us looking back in 2024. Amongst other things, we became one of the leaders in combining AI design algorithms with InCyme data. Quite a big achievement. Obviously, we want to move fast on the advantages that AI brings to our specific business vertical of the world. Another thing I want to point out is like when we built a new company, it's never easy.
Paul: This is what makes it if it's if effective scalable and profitable Indians, let's.
Paul: Scott to the next slide.
Paul: So we basically use highlights lowlights and headlights, and our organization to communicate to each other how things are going so I'll give you an overview here.
Paul: On the next slide here.
Paul: <unk> basically.
Paul: A number of the really great things that happened for us looking back in 2024 a M.
Paul: Amongst other things we became one of the leaders in combining AI design algorithms with Ensign data quite a big achievement, obviously, we want to move fast on the advantages.
Paul: <unk> brings to our specific business.
Paul: The vertical of the world.
Michael Helsen: And to be completely frank, I remember and will never forget standing at our front door to the office looking at the wildfires coming closer and closer. That January morning, that was stressful. It was stressful for everybody on the team and definitely not a part of our plans. When that's set, it's It's a perfect pressure test of us as a team and that day and those days I went from being 100% sure that we are the right team to take on this bold undertaking to become 1000% sure that with this team we can do anything we set our hearts and minds to.
Speaker Change: Another thing I want to point out is like when we built a new company, it's never easy and.
Paul: To be completely Frank I, remember and we will never forget standing.
Paul: And our front door to the office looking at the wildfires common closer and closer that general <unk> morning.
Paul: That was a stressful threshold for everybody on the team and definitely not a part of our claims when they accept it.
Paul: It's a perfect pressure test of us as a team and that they in those days I went from being 100% sure that we have the right team to take onto Dysport undertaken to become a thousand push ensure that with this team. We can do anything we set our hearts and minds to eyesore hero level actions teamwork worthy of elite soldiers.
Michael Helsen: I saw hero level actions, teamwork worthy of elite soldiers just taking care of each other, making sure we had safety but also making sure that all our work was not just safe but also progressive despite we had to fight things like toxic air, toxic water, no power. There was a lot of things going on in those days and weeks but we kept the train on track and we managed to despite a little delay get back on track and it leaves me with a deep sense of being proud of our team.
Paul: Just taking care of each other making sure.
Paul: We had safety, but also making sure that all of our work was not just safe, but also progressing despite we had to fight things like.
Paul: Toxic air toxic water no power there was a lot of things going on and in those days and weeks, but we kept we kept the train on track and we are we manage to despite a little delay get back on track and it's at least room with a deep sense of.
Michael Helsen: Okay, let's go on to the next slide. When we report in our 10k, we look back on the year, and it's kind of old news that I joined as CEO in the past year, and that means I've already had a chance to meet many of you investors and shareholders through the IPO process and other events. But for some investors, this might be our first introduction, so allow me a really short introduction of myself. I have 20 years worth of experience and successes in taking leadership roles in early states and growth states, the startups, always focusing on the breakthrough sciences and technologies and turning it into business, specifically in this cross field of computational power in molecular biology.
Paul: Being proud of our team.
Paul: Okay, Let's go on to the next slide.
Paul: When we report in our 10-K.
Speaker Change: We look back on the year and it's kind of old news that I joined us as CEO.
Paul: Last year.
Paul: And that means I've already had a chance to meet many of you investors and shareholders through the IPO process and other events.
Paul: For some investors this might be our first introduction. So allow me a really short introduction of myself.
Paul: I have 20 years worth of experience and successes in there taking leadership roles in early states and cross states startups always focusing on.
Paul: The breakthrough science and technologies and turning it into business specifically in this cross field of computational power and molecular biology.
Michael Helsen: After my last exit in 2023, I was attracted to ExoZymes basically because it's a perfect fit with my passion of combining these new technologies with molecular biology and making new generations of products that can make a big impact. I strongly believe that ExoZymes is the next generation of biomanufacturing, and biomanufacturing is something that we really truly need to make sure that the future is going to stay bright. Okay, I therefore believe that this is a great business opportunity and look forward to make sure we live up to the full potential.
Paul: After my last exit in 2023 also attracted to extra simes basically because it's a perfect fit with my passion of combining these new technologies with molecular biology, and making new generations of products that can make a big impact.
I firmly believe that extra <unk> is.
Paul: The next generation of bio manufacturing and bio manufacturing something that we.
Paul: Really truly need to to make sure that the future's going to state bright.
Paul: Okay.
Paul: And therefore I believe that this is a great business opportunity and.
Michael Helsen: This next slide points out that we are doing things a little bit differently because we find it faster and better, especially better from a use of capital perspective. We are super focused on finding this fast forward opportunity in going from value inflation point to value inflection point. We've done it before and we have it systematically down. We do it via leadership principles, we do it via specific optimized organizational structures, and having a super super focus on not just doing science for the sake of science, but doing science and technology for the sake of building competitive advantages that has commercial impact opportunities.
Paul: Look forward to to make sure we live up to the full potential.
Paul: This next slide points out that we are doing things a little bit differently, because we find it faster and better, especially better from a use of capital perspective, we are super focused on finding this.
Paul: Fast forward opportunity going from value inflation point to value inflection point.
Paul: <unk> done it before and we have it systematically down.
Paul: We do it by a leadership principles, we do X by a specific optimized organizational structures and having a shoe called Super focus on not just doing science for the sake of science, but doing science and technology for the sake of building competitive advantages that has commercial impact opportunities. So we can get to market. So we can get to revenue.
Michael Helsen: So we can get to market, so we can get to revenue, so we can get to asset creation as fast as possible.
Michael Helsen: But I want to underline that it's very much about our team, it's about our world-class talent, and on that front I have some good news to share here in a moment, kind of giving it away in the text here. We are natively implementing AI machine learning as a part of our company because I've been lucky to have that as a part of all the companies since the first startup I was a part of back in Denmark where I'm born and raised. The first startup was a bioinformatics company literally writing algorithms on how DNA, RNA, and proteins behave, and we used machine learning already back then.
Paul: So we can get to asset creation as fast as possible.
Paul: But one of underlying that is very much about our team it's about our world class talent and on that front I have some good news to share here.
Paul: In a moment kind of giving it away in the text here.
Paul: We are.
Paul: Natively implementing AI machine learning as a part of our company.
Paul: Of course, I've been lucky to have.
Paul: Have that as a part of all the companies since the first start up our support of banking, Denmark, born and raised the first startup was our bioinformatics company literally writing algorithms on our DNA RNA and proteins behave and we use machine learning already back then.
Michael Helsen: Another thing that makes us stand out is that we are insisting on communicating and giving people access to ourselves in a manner of transparency and making sure that people understand what we are up to.
Paul: Another thing that makes us stand out is that we are insisting on <unk>.
Paul: Communicating and giving people access to our selves in a manner of their <unk>.
Michael Helsen: If we go to the next slide, there is here a number of videos that we have already recorded because I think the company came about to a lot of other topics. Follow us via basically our web page to have a notification system ping every time there's a new video, there's new news and also basically follow us on LinkedIn.
Paul: Transparency and making sure that people understand what we ought to.
Paul: If we go to the next slide this here a number of videos that we have already quoted.
Paul: Okay.
Paul: Thanks.
Paul: My co founder Russ.
Paul: That is the key.
Paul: It came about to a lot of other topics.
Paul: Follow us.
Michael Helsen: If we go to the next slide, we have changed language. I've already explained ExoZymes. from the perspective of what it is and why we didn't want to have the long, long, long definition. But it's actually a little bit more complex than that. I'll just spend a minute on it. When I started in the company and I started going out to different networks of mine and started talking about cell-free biomanufacturing, a lot of people were saying like, hold on, cell-free, I know cell-free because cell-free DNA that's used for cancer diagnostics, right? Or cell-free protein synthesis is used for antibody development.
Paul: Basically our webpage.
Paul: Sure.
Paul: Yes.
Paul: <unk> every time, they should with video this new news and.
Paul: Ultra basically floors on Linkedin.
Paul: If we go to the next slide.
Paul: Sure.
Paul: We have changed liquids I've already explained extra Sims.
Paul: From a predictor of what it is and why we didn't want to have the long long long duration protection, a little bit more complex than that I'll, just a minutes on it when I started in the company I started going out to different networks of mine and started talking about cell free bio manufacturing a lot of people were saying hold on cell free and ourselves.
Michael Helsen: And I was like, hold on, actually the word cell-free has been used for so many things that our little niche of cell-free biomanufacturing is kind of being confused off about because we as a company happen to use what is called cell-free protein synthesis as well as a tool. We really got not just the external world confused, but also ourselves sometimes. And we sat down and basically agreed on, we need to invent a new language, a new way of understanding what we're doing and communicating it. Hence exosymes and the need for this new language.
Paul: So free DNA, that's used for cancer diagnostics, right or Sophie Proteus syndrome is used for antibody development and outside cold on actually the what Saudi is being used for so many things that our little niche of cell free bio manufacturing.
Paul: Is kind of being conservative.
Paul: Because we as a company happened to use what is called cell free protein synthesis as well as a tool we really got not just the external world confused profile ourselves, sometimes and we sat down and basically agreed on renewed to invent a new language new way of understanding.
Michael Helsen: In April, there will be a lot of media attention on how we are offering up exosymes as a scientific concept for other people to use as well. This is not a word we want to sit on and trademark and keep to ourselves. But of course, we have taken and want to continue being the market leader of it. Hence why we have taken the name as well.
Paul: What we're doing and communicating it hence exercise and the need for this new language in April there will be a lot of media attention on how we are offering up extra <unk> S. A scientific concept for other people to use as well.
Paul: This is not a word we want to sit on and trademarked and keep to ourselves.
Michael Helsen: OK, so keep an eye out for us.
Michael Helsen: So what is the difference? SynBio, synthetic biology, shared the vision like ours, but making living cells the chemical factories turns out to be a really tall order. Cells don't wanna do something they don't benefit from. So if you go to the next slide, that's basically reason number one for why we have, we the world have a challenge with convincing cells by genetic re-engineering to be chemical factories. And if you put genetic code into a cell, basically forcing it to make chemicals for you, the cell will turn it off again because it doesn't want to. And if you then invest a lot of time in genetic engineering to make it not turn it off and not have all these safety mechanisms that is there to protect the cell, then you end up with a sick or maybe even a dying cell as the chemicals are often toxic.
Paul: But of course, we have to.
Paul: And want to continue being the market leader of it hence why we have taken the name as well.
Paul: So keep an eye out for us.
Paul: So what is the difference.
Paul: <unk>.
Paul: Shouldn't bio synthetic biology shirt division like ours, but.
Paul: We're making living cells, the chemical factories turns out to be a really tall order.
Paul: Don't want to do something they don't benefit from so if you go to the next slide decks basically reason number one.
Paul: For why we have.
Paul: We would have a challenge with convincing cells by genetic reengineering to be chemical factories.
Paul: If you put genetic code into a cell.
Paul: Basically, forcing it to make chemicals for U S. Solar will turn it off again, because it doesn't want to and if you didn't invest a lot of time in genetic engineering to make it not turn it off and not have all these safety mechanisms that is there to protect the so then you end up with a sick or maybe even a dying cells as the chemicals, how often tox.
Michael Helsen: So the chemicals you make the cell make is often toxic to the cell itself. And the cell, your chemical factory will therefore fight you as if it's life depends on it because it literally does. The third reason that we are listing here, and there's actually many, many more reasons, but let's just stop with three. If you finally get yourself to do what you want it to do from a chemical factory point of view, then you end up with this business problem that when you have your chemical inside of this cell slurry, the cell is doing a thousand million other things actually.
Paul: So the chemicals should make this whole make is often toxic to the cell itself.
Paul: <unk>.
Paul: So youll chemical factory will therefore.
Paul: <unk> S. If it's life depends on it because it literally das the third recent debt we're listing here and that's actually of many many more reasons, but let's just start with free.
If you finally get yourself to do what you wanted to do from a chemical factory point of view and you end up with this business problem that when you have your chemical inside of the cell slurry solar string of thousands millions of other things actually how do you get your compound how great your chemical compound out of that social.
Michael Helsen: How do you get your compound? How do you get your chemical compound out of that cell slurry? So the isolation costs often end up being higher than the value of the chemical itself. And no matter what you do, you don't have a business case.
Michael Helsen: Okay, so if we go to the next slide. We didn't want to be lumped in with cell-based soon bio for the same reason.
Paul: Fleury, so the isolation cost often ends up being higher than the value of the chemical itself and no matter. What you do you don't have a business case, okay. So if we go to the next slide.
Michael Helsen: Hence our new way of talking about cell-free exozymes and biomanufacturing and also why we Let's zoom in on our way of, yes, a very, very large, bold, long-term vision. But if we try to do everything, we get nothing done. And therefore, having a focus strategy for the next couple of years is very important to us. What market opportunities should we focus on? And that's basically where we came to the next conclusion. That is that it's going to be nutraceuticals that has the potential of being pharmaceuticals. And then some extraordinary business opportunities we'll talk about in a minute.
Paul: We didn't want to be lumped in with cell based shouldn't buyer for the same reason, hence our new way of talking about cell free extra science and bio manufacturing and ultra why we took the new name.
Next slide.
Paul: Let's assume in an hour.
Speaker Change: Wei of yes, a very very large bold long term vision, but if we tried to do everything we get nothing done and therefore, having a.
Speaker Change: Having a focused strategy for the next couple of years is very important to us what market opportunities should we focus on and that's basically where we came to the next.
Michael Helsen: But basically explaining nutraceuticals here. The reason why we picked those as a area of focus is that it's high value relative to volumes when we do nutraceuticals. They are therefore much faster for us to get commercially set up and brought to market and gain value from. There's another reason why nutraceuticals is a good fit. It's basically because what our platform is optimized to do fits really well with that already. And we get a lot of inspiration from natural products where something is working out in nature and we borrow those pathways and that genetic code to then optimize as a start.
Speaker Change: Conclusion that is that it's going to be nutraceuticals that has the potential of being pharmaceuticals, and then some extra ordinary business opportunities will talk about in a minute, but basically explaining nutraceuticals here. The reason why we picked those S. A area of focus is that it's high value relative.
Speaker Change: Two relatively low.
Speaker Change: [noise] volumes when we do our nutraceuticals. They are therefore, much faster for us to get commercially set up and brought to market and getting value from it is another reason why nutraceutical system, good fit and it's basically because what our platform is optimized to do fits.
Michael Helsen: The other opportunity with nutraceuticals, just a second here, let's go back, is that nutraceuticals is a very hot topic right now. The conversation about wanting to use natural products and nutraceuticals instead of petrochemical-based drugs is a very large conversation that is only accelerating right now. And to explain the second part, with a pharmaceutical potential basically means we get an extra shot on goal per project, because the nutraceutical business case in and of itself will carry the reason for why going into it. But with a number of these nutraceuticals, with a more pure version and derivatives of the natural product version, we can actually get ourselves into some really interesting drug candidate positions.
Speaker Change: Really well with that already and we get a lot of inspiration for metro products, where something is working out nature and we borrowed those pathways that genetic coach with an optimized as a starting point.
Speaker Change: The other opportunity with Nutraceuticals just a second here. Let's go back is that Nutraceuticals is a very hot topic right now the conversation about wanting to use natural products and nutraceuticals instead of petrochemical based trucks is a very last conversation that is only.
Speaker Change: Accelerating right now and to explain the second part the with a pharmaceutical potential basically means we get an extra shot on goal per project because the nutraceutical business case in and of itself will will carry the recent four why going into it but.
Speaker Change: With a number of these nutraceuticals with.
Michael Helsen: So there is both a base business case that is healthy, and then there is a very large business opportunity on the pharmaceutical side that has a longer time period and it takes a partnership often to get into, to go through the clinical trials.
Speaker Change: A more pure version and the <unk> of the natural.
Speaker Change: Product version, we can actually get ourselves into some really interesting.
Speaker Change: The drug candidate.
Speaker Change: Sure.
Speaker Change: Positions. So there is both a base business case that is healthy and then there's a very large business opportunity.
Michael Helsen: Okay next slide. The part of our focus that is called extraordinary business opportunities is of course because we as an innovative company that has something as unique as we do have to keep our ears open for if something really really good from an opportunistic point of view comes our way. We do focus but we are open-minded and we have had the luck that the DOE, the Department of Energy saw our technologies and realized that after having spent billions of dollars on sustainable aviation fuel programs that are cell-based but also learning the hard way that you make high energy density chemistry is often toxic to cells and therefore it won't work at scale.
Speaker Change: The pharmaceutical side that does has a long call.
Speaker Change: The time period and it takes.
Speaker Change: Partnership often to get into to go through the clinical trials and so forth okay.
Speaker Change: Next slide the part of our focus that is called.
Speaker Change: Extra ordinary business opportunities is of course, because we S. E innovative company that has something as unique as we do have to keep our ears open for if something really really good from an opportunistic point of view comes our way would be to.
Speaker Change: To focus, but we are open minded and we have had.
Speaker Change: The luck that the Doa the department of energy.
Speaker Change: So our technologies and realized that after having spent billions of dollars.
Michael Helsen: They came to us and was very intrigued about the the point of us being cell-free and working with enzymes heavily optimized to be able to do things a normal enzyme can't do aka the ExoZymes. We have therefore gotten some really nice grants where we get to keep basically all the ownership and all the business opportunity but they pay for it. That's an extraordinary business case that we are not going to let get away. NutraCycles with pharmaceuticals potential first and foremost we have the extraordinary business cases but we also have when time allows for it down the road in a number of years from now we will branch out into other industries because we get the core up and running first.
Speaker Change: On sustainable aviation fuel programs that our cell based but also learning the hard way that if you make.
Speaker Change: High energy density Kim.
Speaker Change: Chemistry is often toxic to cells and therefore, it won't work at scale. They came to US and was very intrigued about the point of us being cell free and working with them.
Speaker Change: In times heavily optimized to be able to do things phenomenon. Some can't do a key the exercise we have therefore gotten some really nice screens, where we get to keep.
Speaker Change: Basically all the ownership in all the business opportunity, but they pay for it that's an extraordinary business case that we're not gonna let get away.
Speaker Change: Okay.
Speaker Change: Nutraceuticals with pharmaceuticals potential first and foremost we have takes for ordinary business cases, but we also have when time allows for it down the road in a number of years from now we will branch out into other industries, because we get the core up and running first.
Operator: If we go to the next slide it's time for us to talk a little bit about financial...
Tufulat: Good afternoon, everyone. Our financial results for the year 2024 are detailed in the press release that was issued. I'll take a moment to review the results. As of the end of 2024, our cash and cash equivalents stood at $9.72 million, providing us with sufficient liquidity to support ongoing operations and key initiatives into 2026. Our total operating expenses for the year were $5.9 million. This represents an increase of $4.1 million compared to the full year 2023. The increase in 2024 was primarily driven by R&D investments.
Speaker Change: If we go to the next slide it's time for us to talk a little bit about financials.
Speaker Change: Good afternoon, everyone.
Our financial results for the year of 2020 for details of the press release that was issued I'll take a moment to review the results.
Speaker Change: As of the end of 'twenty 'twenty, four our cash and cash equivalents stood at 972 million, providing us with sufficient liquidity to support ongoing operations and key initiatives into 2026 or.
Tufulat: personal expansion, both in the leadership and the R&D team, and infrastructure development. The net loss for the year was $5.9 million. As a pre-revenue company, our primary focus still remains on prudent financial management, ensuring capital is efficiently allocated, while making targeted investments to drive long-term growth.
Speaker Change: Our total operating expenses from here or $5 9 million.
Speaker Change: Represents an increase of $4 1 million compared to a photo of a country great.
Speaker Change: The increase in 2024 was primarily driven by R&D investments.
Speaker Change: Final expansion, both on the leadership and the R&D team and infrastructure development.
Tufulat: That concludes my presentation of the financial results.
Speaker Change: The net loss for the year was $5 9 million.
Michael Helsen: And with that, I will pass the call back. Thank you very much, Tufulat. And take a note, let's maybe put the financial slide on again, take a note on that, of course, all our SEC filings can be found on our webpage. So go in under the investor section and under filings and you will be able to pull all of those detailed numbers and insights.
Speaker Change: As a pre revenue company, our primary focus though remains on prudent financial management, ensuring capitals efficiently allocated while making targeted investments to drive off of growth.
Speaker Change: That concludes my presentation of our financial results.
Speaker Change: With that I'll pass the call back.
Speaker Change: Thank you very much to flat and take a note less than maybe we put the financial slide on again taken note on that of course all of our SEC filings can be found on our webpage should go in under the investors section and on the filings and you will be able to.
Michael Helsen: Okay, next slide.
Michael Helsen: What's ahead? So, we, the company, we are at our core, a platform of platforms company. And to understand what that means, it's basically that we have a fundamental technology and science breakthrough that is so fundamental that it can be used for everything. But if we try to focus on everything, we get nothing done. And we are therefore very aware of that we have to have extra focus and extra. to get to market, because otherwise we can drown in the opportunity. What we fundamentally make are competitive advantages. That is this famous story about bringing a gun to a knife fight to specific markets and specific applications.
Speaker Change: All of those.
Speaker Change: Details are known person insights.
Speaker Change: Okay next slide what's the hit.
Speaker Change: So.
Speaker Change: We the company, we are and our call a platform of platforms company and to understand what that means it's basically that we have a fundamentally technology and science breakthrough that is so fundamental that it can be used for everything but if we try to focus on everything we could nothing done and we are there.
Speaker Change: I'm very aware of that we have to have extra focus and extra speeds.
Speaker Change: To get to market.
Speaker Change: Because otherwise we can you can drown into opportunity.
Michael Helsen: We can do that for a number of different markets, but as we are now getting to the commercialization phase of building our company, we need to pick what chemicals, aka what products, that goes first. And as we have a limited bandwidth still here the first couple of years, we need to be smart about what we pick.
Speaker Change: What we fundamentally makes our competitive.
Speaker Change: Competitive advantages that is this famous story about bringing a gun to a knife fight to specific markets and specific applications.
Speaker Change: Can do that for a number of different markets, but as we are now getting to the commercialization phase of building our company, we need to pick what chemicals AK what products that goes first and as we have a limited bandwidth still here. The first couple of years we.
Michael Helsen: So we have had to make some choices. We have basically been growing our sales pipeline with a lot of people interested in potentially partnering with us and building these ExoZyme biosolutions. And we continue this important work and ripening up these conversations and sales cycles. The leading partnership cases, they're making progress on a monthly and quarterly basis, but the reality is that we have to accept that we move much, much faster than our large potential partner companies. And that sales and decision-making processes takes both months and years in some of the big companies.
Speaker Change: We need to be smart about what we pick so we have had to make some choices and we go to the next slide.
Speaker Change: We have basically been.
Speaker Change: Growing our sales pipeline with a lot of people interested in potentially partnering with us in building. These exercise bio solutions and we continue this important work and and ripening up these conversations and sales.
Speaker Change: Cycles.
Speaker Change: The leap the leading partnership cases, they're making progress on a monthly and quarterly basis, but the reality is that we have to accept that we move much much faster and our lots.
Michael Helsen: And as we have already identified great new chemical business opportunities that are ready to go, and frankly, some of them are too good to share at this initial point, it's time for us to take some decisions.
Speaker Change: Potential partner companies.
Speaker Change: And that sales and Denise decision, making processes takes post month in years in some of the big companies and as we have already identified great new chemical business opportunities.
Michael Helsen: If we go to the next slide, we are talking about the business model specifically applied here. The first couple of years is going to be spin-outs and joint ventures. We are an asset-light business model that has been basically established to optimize our platform and the assets we can make with it and do that over and over again by sharing the already paid for IP and R&D that have led us to this position. That allows us to have some really healthy return on the invested capital because we're not trying to many times a very, very large amount but a much smaller amount than most other young companies.
Speaker Change: That are ready to go and frankly some of them are attribute to share. It at this initial point or.
Speaker Change: It's time for us to take some decisions as we go to the next slide.
Speaker Change: We are talking about the business model, specifically applied here the first couple of years.
Speaker Change: There is gonna be Spinouts and joint ventures.
Speaker Change: We are an asset light business model.
Speaker Change: That had been basically established to optimize our platform.
Speaker Change: And the assets, we can make with it and do that one Oh Viking.
Speaker Change: By sharing their already paid for IP and R&D.
Speaker Change: That has led us to this position.
Michael Helsen: The way we will build the initial value is via these spin-ups and joint ventures. It's basically because they can be self-financed because the business case are going to be so clear, otherwise we won't enter into it, that it enables basically these market vertical applications where we bring the technology and the competitive advantage in the market vertical for the company either to be built or together with a joint venture partner co-built in a way where it doesn't bring a lot of financial burden onto us because they are self-financiable.
Speaker Change: That allows us to have some really healthy return on invested capital because.
Speaker Change: Because we are not trying to too many times stop at a very very large month, but a much smaller amount than than most other companies.
Speaker Change: The way we will built the initial value is via spin ups and in joint ventures, it's basically because they can be self financed because the business cases are going to be so clear otherwise we wont enter into it.
Speaker Change: It enables basically are these.
Speaker Change: The market vertical applications, where we bring.
Speaker Change: We bring the technology and the competitive advantage in their market vertical.
Michael Helsen: In the second quarter that we have just started a day ago, we are going to launch our first spin-out. That's very exciting but for fairness reasons and because everybody needs to have fair access to that information, we will have a whole basically investor call and presentation about that specific natural product nutraceutical market and business opportunity. It is a market we are very excited about. Other players have sunk the three-digit million dollars into that market to build bio solutions for it and we already have something that can compete against those bio solutions with our way of doing it and at the same time this nutraceutical that we are we are looking at has a very very potent pharmaceutical drug opportunity that can be pursued as well for a disease that has no treatment today and has a lot of patients waiting for a solution for treatment.
Speaker Change: The company either to be built or together with a joint venture partner cobalt.
Speaker Change: In a way where it doesn't bring a lot of financial burden onto us.
Speaker Change: Because there are so financial.
Speaker Change: In the second quarter that we have just started a day ago, we are going to launch our first spin out so that's very exciting.
Speaker Change: But for fitness reasons, and because everybody needs to have access to that information, we will have a hole.
Speaker Change: Basically.
Speaker Change: Investor call and presentation about that specific natural product nutraceutical market and business opportunity.
Speaker Change: It is a market we are very excited about or other players have shrunk.
Speaker Change: The three digit millions of dollars into to that market to build shouldn't bio solutions Floyd and we already have something that can compete.
Speaker Change: Sure.
Speaker Change: Against those bio solutions with our way of doing it and at.
Speaker Change: At the same time.
Speaker Change: This nutraceutical debt at <unk>.
Speaker Change: We are looking at who has a very very potent.
Speaker Change: <unk>.
Speaker Change: Truck opportunity.
Speaker Change: That can be pursued.
Michael Helsen: We will be presenting this in Q2, where we'll give you a full overview of the business case and why we picked it as our first commercial go-to-market business.
Speaker Change: Well.
Speaker Change: For a disease that has no treatment today and.
Speaker Change: Yes.
Speaker Change: A lot of patients waiting for for a <unk> solution for treatment, we will be presenting this in Q2, but we will give you a full overview of the business case and why we picked it as our first commercial.
Michael Helsen: Later this year we are also aiming at launching a joint venture. That is another business case with a big potential but we'll wait with that and even putting more data behind that until we have done the first business launch. But again make sure to sign up for our news notifications on our webpage so you always can stay up to date and of course these significant things we will be announcing via the ACC as well.
Speaker Change: Go to market business case.
Speaker Change: Later this year, we are also aiming at launching a joint venture.
Speaker Change: That is not a business case with a big potential, but we'll wait for that and even.
Speaker Change: Putting more data behind it until we have done the first.
Speaker Change: Business launch.
Speaker Change: But again make sure to sign up for news.
Michael Helsen: Okay next slide.
Speaker Change: Use notifications on our webpage. So you always can stay up to date and of course, the significant things we will be we will be announcing by at the Asa.
Michael Helsen: So, this is the best news of the day, of the week, of the month. Yesterday, Damien and I, on behalf of our company, signed an agreement that makes Damien our new Chief Commercial Officer. So when we are about to build all of these new businesses and we are going into the negotiation phase with a number of our potential partners, it is important to have world-class talent join us that has experience doing exactly these kind of biomanufacturing projects and can basically help us become successful.
Speaker Change: You see as well.
Speaker Change: Next slide.
Speaker Change: So this is the best news of the day of the week of the month, yes.
Speaker Change: Yesterday.
Speaker Change: Damian.
Speaker Change: And I on behalf of our company signed an agreement that makes Damian our new Chief commercial officer. So when we are about to built all of these new businesses and we are going into the negotiation phase with a number of our potential partners. It is important to have.
Damien: Here's a little message from Damien that has been with us for a consultant for a while now. So he'll be hitting the ground running. He's actually already at the office pulling forward while I'm sitting here at home presenting to you guys.
World Class talent join us that has experience doing exactly these kind of bio manufacturing projects and can basically help us become successful.
Speaker Change: It's a little message from Damian that.
Damien: Let's play the video from Damien. G'day. What a fun way to turn up. Chief Commercial Officer at ExoZymes, a company that I've been looking at for a little while. Really impressing the socks off me as a company and a place that's moving so quickly with new discoveries, new developments.
Speaker Change: Been with us for a consultant for a while now so you're hitting the.
Speaker Change: The ground running.
Speaker Change: Hey, it's actually already at the office.
Speaker Change: Pulling forward, while I'm sitting here at home presenting to you guys.
Speaker Change: Let's play the video from Damian.
Speaker Change: What a fun way to turn up Chief commercial officer at X designs.
Damien: I have been wayfinding green chemistry for the last 25 years and during that time I've had the privilege to commercialize several biotechnologies for personal care, for plastics, textiles, fragrances, performance fuels and fine chemicals. And along the journey, I've been constantly inspired by our ability to use the tools of biology to make stuff. However, I have to acknowledge the challenges of doing so economically. I think if we're honest about our industry, we would say the scorecard has been one of lots of learning and lots of progress, but limited commercial success at industrial scale.
Speaker Change: Company that I've been looking at for a little while really impressing the socks off me as a company and a place that's moving so quickly with new discoveries and new development.
Speaker Change: I think why finding green chemistry for the last 25 years and during that time I've had the privilege to commercialize several biotechnologies for personal care for plastics, textiles, fragrances performance fuels and fine chemicals.
Speaker Change: Along the journey I've been constantly inspired by our ability to use tools of biology to make stock. However.
Speaker Change: However, I have to acknowledge the challenges of doing so economically.
Damien: I see ExoZymes as the logical successor to SynBio, and I base that reflecting back on the journey I know I've been involved in. At the beginning of my career, we started looking at using fermentation microbial pathways to make naturally occurring molecules at industrial scale, believing the world would embrace them and find new applications for them. That adoption rate for the new materials, the new drop-ins, was very, very slow. We then found ways of unlocking pathways inside these microbes to make the exact same case. drop-ins but the development journeys and the scale-up journeys of those were expensive and challenging.
Speaker Change: Think if we're honest about our industry, who say the scorecard has been one of lots of learning and lots of progress, but limited commercial success at industrial scale.
Speaker Change: I see <unk> as the logical successor to standby and I base that reflecting back on the journey I know I've been involved in the beginning of my career, we started looking at using.
Speaker Change: Using fermentation microbial pathways to make naturally occurring molecules at industrial scale, believing the world would embrace them and find new applications for that adoption rate of the new materials and you drop ins was very very slight.
Damien: Then along came a bunch of DNA tools trying to accelerate the speed and pace of innovation and whilst it might have brought down the cost of reagents it didn't really change the pace of innovation. It didn't improve the targets we're able to go after and did little to change the process economics which are necessary for performance at the end of the day. When we marched a lot of our technologies to scale one of the things we felt hampered by was the large scale of investment necessary to build globally relevant capital projects. With ExoZymes it isn't just about driving the pace of R&D experimentation, it isn't just about improving the quality of the enzymes that you can select and develop, it's also about operating free of the constraints of the microbe.
Speaker Change: We then found ways of unlocking pathways inside these microbes Tonight, the exact same chemicals drop ins, but the development journeys in the Skylab Chinese that those were expensive and challenging and a longtime a bunch of DNA towards trying to accelerate the speed and pace of innovation I'm also might've brought down the cost of reagent. It didn't really change the pace of <unk>.
Speaker Change: It didn't improve the targets, we're able to go after and did little to change the process economics, which are necessary for performance at the end of the day when we March a lot of our technologies to scale one of the things. We felt hampered by was the large scale of investment necessary to build globally relevant capital projects with X designs. It isn't.
Damien: Being able to operate at really high concentrations, being able to build smaller plants that are still commercially and globally relevant. That bringing down of the CapEx profile brings down your project investment risk, it brings in investors that were previously shied away from these first-of-a-kind projects. The more projects we deploy at commercial scale because this risk is lower, the more successes we'll see, the more payback we'll see, the more growth in the industry we'll see and that's what we want.
Speaker Change: Just about driving the pace of R&D experimentation. It isn't just about improving the quality of the enzymes that you can select and develop its also that operating free of the constraints of the microbes and able to operate at really high concentrations being able to build smaller plants that are still commercially and globally relevant that bringing down at the cap.
Speaker Change: X profile brings down your project investment risk it bring.
Speaker Change: Brings and investors that were previously shied away from these first of a client projects the more projects we deploy it.
Damien: Impact comes from commercial deployment. This company, in its world of AI-driven learning, has been able to move very, very quickly through the development of pathways, the development of tools. I think that sets themselves up to be a strong partner for companies who are looking at products that perhaps haven't been served well. And as I think about the evolution of this SynBio space over the 25 years I know I've been kicking around, is this really feels like an exciting new chapter for us to be moving forward. It's an exciting group, but it's an important mission, right?
Speaker Change: Commercial scale because this risk is lower the more successes will say the more payback will say the more growth in the industry are all safe and that's what we want impact comes from commercial deployment.
Speaker Change: This company and its wild of AI driven learning.
Speaker Change: Has been able to move very very quickly through the development pathway is the development of tools I think that sets themselves up to be a strong partner with companies who are looking at products, perhaps haven't been served well as I think about the evolution of this and bio space over the 25 years I know I have been kicking around is this.
Damien: Continuing this journey towards making sustainable products reliably that don't overtax the environment behind us, that delivers consumers with things that can excite them and really important, it can actually deliver back to our shareholders a return on investment. That is.
Speaker Change: It feels like an exciting new chapter processing moving into is an exciting group, but it's an important mission continuing this journey towards making sustainable products reliably that darn overtax the environment behind US then delivers consumers with things that can excite them and really important that can actually deliver back to our shareholders.
Michael Helsen: super exciting for us to have a capacity like Damien join our team. Despite Damien also pointing out that SunBio have had a hard time, I want to point out that Damien have actually belonged to the teams that have had the relative success and the few success stories in SunBio. So having Damien join us and helping us to commercialize multiple projects and negotiate even more partnerships is exciting to a degree.
Speaker Change: Our return on investment.
Speaker Change: Okay.
Speaker Change: That is true.
Speaker Change: Exciting for us to have a capacity like Damien joined our team.
Speaker Change: Despite.
Speaker Change: Damien also pointing out that shouldn't bio have had a hard time I want to point out that they may have actually belong to.
Speaker Change: Two.
Speaker Change: Two the team the teams that have had.
Speaker Change: It's a relative success and the few success stories in some bio so having damian join us.
Michael Helsen: I could talk about it for the next hour. I will spare you for that and just show you the results over the coming quarters. I know from Lessef, because he's chatting me right now, that we are getting some questions.
Speaker Change: And helping us to commercialize multiple projects and negotiate even more partnerships.
Michael Helsen: I just want to end up on truly believe that the future is bright. If and when we capture just 10% of the potential of what we are holding here, then it will be an amazing business and we will be making a lot of positive impact on the world and on the bank account of you, our investors. So with that, I want to thank you for your time and let you know that I fully believe. and trust in our vision that the future will be bright. We are going to fight for it and we're going to deliver on it.
Speaker Change: Exciting to a degree I could talk about it for the next hour I will spare you for that and just show you the results over the coming quarters.
Speaker Change: I know from lessors, because he is telling me right now that we are getting some questions just wanted to end up.
Speaker Change: On debt, we truly believe that the future is bright.
Speaker Change: If and when we capture just 10% of the potential of what we are holding here then it will be an amazing business and we will be making a lot of positive impact on the world.
Speaker Change: On the banking account for you our investors so with that I want to thank you for your time and let you know that.
Lasse: Lasse, will you read out loud some of the questions we are getting in here? Yes and thank you for posting some questions. I can see there were some early ones that's been answered throughout the presentation and there's also some very very good questions that I wish we could answer but...
Speaker Change: I fully believe.
Speaker Change: And trust in our vision that the future will be bright we're going to fight for it and we're going to do live on it.
Speaker Change: Less if you will.
Speaker Change: Read out loud so most of the questions we're getting in here.
Speaker Change: And thank you for posting some questions. So I can see there was some.
Lasse: They will primarily come with this opportunity that Michael talked about when we'll have another call. designated to talk about our future spin-offs.
Speaker Change: Early one sets in.
Speaker Change: Throughout the presentation and also some very very good questions that I wish we could answer.
Michael Helsen: Yes, so Michael let's go with, I've selected a few here, so I'll ask the first one here. What keeps you up at night? What are the biggest risks that you see on the path to success? What keeps me up at night? I did just read all the risk assessment factors that we reported in the 10k. That's definitely something that can keep me up at night. But that is also the really, really wide everything under the sun that can go wrong.
Speaker Change: But.
Speaker Change: They will primarily come with this opportunity that Michael talked about when we will have another call.
Speaker Change: Designated to talk about our future spinoff.
Speaker Change: The spin off.
Michael Helsby: Yes, so Michael let's let's go.
Speaker Change: Coal with a selected a few here so I'll ask the first one here what keeps you up at night what are the biggest risks that you see on the path to success.
Michael Helsby: Okay.
Michael Helsby: What keeps me up at night I did I did just read all the risk assessment or affect us that we reported in the 10-K, that's definitely something that can keep me up at night, but that is also the really really wide everything under the sun that can go wrong.
Michael Helsen: What keeps me, if I were to kind of pick from a operational and practical point of view, what keeps me up at night is making sure that we find this right balance between this humongous potential and staying focused on hitting the next value inflection point, the next value inflection point, so that we can keep growing the value, the assets and the value creation of the company. Because that is obviously how companies like ours go from being not revenue creating to getting to a point where we are revenue creating. And that journey in between, we're worthy of investment.
Michael Helsby: What keeps me.
Michael Helsby: I were to kind of pick from a more operational and practical point of view what keeps me up at night.
Michael Helsby: Making sure that we find this right balance between this.
Michael Helsby: Humongous potential and staying focused on hitting the next value inflection point. The next value inflection point, so that we can keep growing the value of the assets.
Michael Helsby:
Michael Helsby: Value creation of the company because that is obviously how companies like ours.
Michael Helsby: Go from being.
Operator: Thank you.
Operator: and let's go on to the next one.
Michael Helsby: Not revenue, creating to getting to a point, where we are revenue, creating and that journey in between.
Michael Helsen: This is a fun one. So everyone is claiming that they're using AI these days. How can you prove that you're actually doing it? I think that there's a little bit of a hyperbole asked in here, if we're just saying it to say it, or if it's actually real. That's fair.
Michael Helsby: Sure.
Michael Helsby: We are worthy of investments.
Michael Helsby: Thank you.
Michael Helsby: Let's go onto the next one.
Michael Helsby: This is a.
Michael Helsby: This is a follow on so everyone has claimed that using AI. These days, how can you true that youre actually doing it.
Michael Helsen: I have been kidding around with that you can go to Starbucks and get AI in your coffee nowadays because there's no limitations on what people will be claiming using AI for. We first of all have, by myself, a lot of strategic and business understanding of what you can use machine learning and pattern recognition via algorithms for, and that was why I insisted on introducing it as one of the things that our team got challenged to achieve. One of the bottlenecks in using AI to optimize on InZymes specifically is that there's limited training data available publicly.
Michael Helsby: I think that this there's a little bit of a hyper bowl.
Michael Helsby: And here, we're just saying it.
Michael Helsby: So say it's always there.
Michael Helsby: Actual risks.
Michael Helsby: That's fair.
Michael Helsby: I have been getting around with that you can go to Starbucks and get AI coffee nowadays because there's no limitations on what what people will be claiming using AI for.
Michael Helsby: We first of all half who's.
Michael Helsby: Who's buying myself, a lot of strategic and business understanding of what you can use machine learning and pattern recognition by algorithms for and that was why I insisted on introducing it us as one of the things that our team got challenged two two to achieve one of the bottlenecks.
Michael Helsen: So what do you train on? So it was actually a two-punch answer that our team came back with and said, well, in that case, we need to generate much more training data. for our AI algorithms to be effective on answering us what genetic changes could make a better enzyme and have that circular training loop. that is known, for example, from self-priming cars. It's not just when you drive perfectly that you're training an algorithm. It's actually also when you do something you're not supposed to do that you train with the negative feedback signal of, not that you need to crash your car for your car to learn something, but all of the corrections are actually training equally much.
Michael Helsby: In using AI to optimize on in.
Michael Helsby: <unk> specifically is that there is limited training data available publicly so what do you train on so it was actually a two punch.
Michael Helsby: Answer that our team came back with and said well in that case, we would need to generate much more training data.
Michael Helsby: For our AI algorithms to be effected by answering or what.
Michael Helsby: Genetic changes could make it better.
Michael Helsby: <unk> and have that Shukla training group.
Michael Helsby: That is known for example from from self priming cost. It's not just when you drive perfectly that your training and algorithms <unk> also when you do something you are not supposed to do that you trained with the negative feedback signal of what they do need to Crestwood coffer for your car to loan or something but all of the.
Michael Helsen: So we sat down and built a data generation platform that was not just seeing what is pushing the enzyme evolution forward, but also what did we think would push it forward, but didn't do it, and then training from that.
Michael Helsby: <unk> IC training equally much so we sat down and built a data generation platform that was not just seeing what is <unk>.
Michael Helsen: So to answer the question specifically, if you really want to stress test us, then come visit our lab. There's enough secret sauce in what we do that people can come and see what it is that is going on. And then of course, just measure us on the fast, fast progress we're doing in enzyme and exozyme evolutionary development that typically would cost you millions of dollars and takes months and years to do, but we're doing it much, much faster and much, much cheaper. So that's going to be my answer for today.
Michael Helsby: Pushing the enzyme evolution forward, but also what did we think would push it forward, but didn't do it and then training from that so to answer the question specifically, if you really want to stress test us they come visit our lab, there's enough secret sauce in what we do that people can come and see.
Michael Helsby: What it is that is going on and then of course.
Michele: Just just Michele on the fast fast progress, we're doing in ensign and extra time evolutionary development.
Michael Helsen: We can maybe go into a session of AI optimization. I mean it's a topic that's frequently asked when we are presenting and all of this so I think it's very good to double click on this here so thank you.
Michele: Typically we would cost you billions of dollars it takes months and years to do what we're doing it.
Michele: Much much faster and much much cheaper so that's going to be my answers today.
Michele: Can maybe go into a session of AI optimization of.
Michele: In functionality.
Michele: It's about <unk>.
Michele: Also.
Michele: Yeah.
Operator: and this attendee says I'm trying to understand the model here so what does a commercial deal look like from a structure and a royalty perspective that's very good question Yeah, and that leads back to, as we talked about in our IPO and other places, that with time we see the business model expand from spin-outs and joint ventures over to the more pure play licensing deals, where partners can come and basically pay for the development of a biosolution for their specific chemical, for their specific market use, and it makes this conversation a little bit complex.
Michele: I mean, it's a topic that is frequently asked when we offer something and all of us. So I think it's very good to double click on this year. So thank you.
Michele: Go onto the next question here.
And this.
Speaker Change: Attendees as I'm trying to understand the model here. So what does a commercial deal look like from a structure and a royalty perspective.
Michele: Very good question.
Michele: And that leads back to us as we talked about in our IPO and other places that with time, we see the business model expand from from Spinouts and joint ventures over to the more pure play licensing deals where partners can come and basically pay for the development.
Michael Helsen: So I'll keep it overall now and then we will give more guidance on it, frankly, when we have more data to support how we're doing it. But when it's a subsidiary, fully owned, aka spin-out, then it's kind of easy. Like the model is we own it all, the problems, but also the upsides are owned by us. And we will only do that as long as we can see our way to a value inflection point and an exit where we can basically generate value that can be lifted back up to us, either via the ownership or via basically the exit opportunity.
Michele: <unk> of a bio solutions for their specific chemical for that specific market juice and.
Michele: It makes this conversation a little bit complex. So I'll keep it over all now and then we will give more guidance on it frankly, when we have more data to support how we're doing it.
Michele: And it's a subsidiary fully owned.
Michele: Spin out then it's kind of easy the model as we own it all the problems, but also the upsides are owned by US and we will only do that as long as we can see our way to a value inflection points and an exit.
Michael Helsen: So that's one model for the spin-outs. The spin-outs in a number of cases will have people coming and investing into the spin-out to finance that.
Michele: Where we can we can basically generate value that can be lifted backup to us either by an ownership or.
Michele: Bye.
Michael Helsen: Then there are the joint ventures that is a little bit more of an in-between the two of spin-outs and licensing full-out and not having any ownership specifically. A joint venture is depending on the market and the joint venture partner, often a partner that has a unique market access point or market insight or something to bring to the table where what we are bringing is the technical solution and the competitive advantage from the technical side, but they are bringing often the market side and together we can basically perform better than if we did it alone. And then over in the licensing deals, it depends on our negotiation strength in the moment, but we have already now in these test cases, not test cases, real cases, just the first cases where we have had conversations, it's very clear that what is worthwhile for us to even engage in right now is the ones where we bring a lot of competitive advantage and that translates into a healthy licensing and royalty stream and it is depending on what it's going to cost to build a payment upfront to cover that cost and maybe even an upfront payment to secure the exclusivity.
Michele: Basically that takes it opportunity.
Michele: So that's one model fault for the spinoffs.
Michele: The spin outs in a number of cases, we'll have people coming and investing into the spinout to finance that.
Michele: And then the other joint ventures that is a little bit more of an in between the two.
Michele: Spinouts.
Sure.
Michele: Licensing full out and not having any ownership specifically.
Michele: A joint venture is deep.
Michele: Depending on the market and the joint venture partner, often a partner that has a unique market access point of market insight or something to bring to the table, where what we're bringing is the technical solution and that competitive advantage from the technical side, but they are bringing the.
Often the market site and and together, we can basically prove form better than if we did it alone.
Michele: And then over on the licensing deals it depends on our negotiation strengths in the moment, but we have already now in these tests.
Michele: Cases, so some test cases, new cases, just the first cases that where we have had conversations it's very clear that what is worthwhile for us to even engaged in right. Now is the one where we bring a lot of competitive advantage and that translates into a.
Michele: Healthy licensing.
Michael Helsen: So it's a long-winded way of saying it really depends on a lot of things.
Michele: And royalty Scream and it is depending on what it's going to cost to goods.
Michael Helsen: We will have more guidance on this when we go further down, but we want to have a before we start giving examples.
Michele: A payment upfront to cover that cost and maybe even a upfront payment to secure the exclusivity. So that's a long winded way of saying it really depends on a lot of things we will have more guidance on this when we go further down but wanted to ask a couple of these things under our belt.
Operator: Thank you.
Operator: Move on to the next one.
Operator: Do you expect a need to raise additional capital in the future? And if yes, when? Yeah, that's that's a little bit of a harder question. We will be coming out after we have launched Spinnout, depending on the number of things there that might impact our liquidity. But yes, on a bigger perspective, we will be raising more capital at a point in the future. I'm not putting a date on that right now, but we are at the same time, I can say we are having a lot of interest from different funds and other everything from individuals and other types of investors that are coming that is interested in buying a part of our company by doing an investment that is larger than what they can pick up in the open market.
Michele: Before we start giving examples.
Michele: Okay.
Michele: Move on to the next one.
Michele: Do you expect.
Michele: Our need to raise additional capital in the future.
Michele: Yes, well.
Michele: Yes, that's a little bit of a harder question, we will be.
Michele: Okay. Thanks.
Michele: Okay.
Michele: Okay.
Michele: After we have launched.
Michele: Our spinoff.
Michele: Depending on a number of things there that might impact our liquidity.
Michele: On a pickup per se will be racing.
Michele: Capital at a point in the future.
Michele: Putting a date on that right now, but we are at the same time and saved us.
Michele: Having a lot of interest from different funds and other.
Michael Helsen: And that is the kind of people that would be relevant if we do a pipe or a public offering or a similar thing down the road.
Michele: Everything from individuals and all those types of investors that are coming that is interested in buying.
Michele: A part of our company by doing an instrument that is larger than what they can pick up in the open market.
Michael Helsen: We will, of course, when we do fundraising needs and timing and so on, we will again be sharing that information broadly and to everybody at the same time.
Michele: And.
Michele: That is.
Operator: Thank you.
Michele: It's the kind of people that that would be relevant.
Operator: Okay I think this is going to be the closing question and I know that there are quite a few questions here so I guess we're probably answering 20 percent so I'm sorry if you think that your question was important and we did not answer that but I think we're sort of we're almost at time here so we'll take the last question and then we'll wrap it up.
Michele: A pipe or a public offering.
Michele: Similar thing done the erosion.
We'll of course when we.
Speaker Change: Just one.
Speaker Change: Fundraising needs and timing and so on we will again be sharing that information.
Speaker Change: 40 and to everybody at the same time.
Speaker Change: Thank you.
Speaker Change: Okay. I think this is going to be the closing question.
Speaker Change: And I know there are quite a few questions here. So I guess, we're probably answering 20%.
Michael Helsen: So are there any key opinion leaders in the industry who now understand your process and platform and are promoting you or you could say maybe starting to adopt our terminology and all of this? Yes. said with a smile, we actually are talking with a key opinion leader in a specific space about doing a joint venture.
Speaker Change: So I'm sorry.
Speaker Change: If you think that your question was important.
Speaker Change: So that.
Speaker Change: But I think we're sort of.
Speaker Change: We're almost at time here. So we'll take the last question and then we'll wrap it up so are there any key opinion leaders in the industry, who know understand your process and platform and.
Speaker Change: Promoting you.
Michael Helsen: And that is a good example of someone that have sat down, understood our technology, and had that aha moment, like, God, if you can do this, then you can do that again, and again, and again, again, in this nutraceutical with a pharmaceutical potential space. And it happens to be one of the world's leading key opinion leaders in that specific space. I won't mention names right now.
Speaker Change: You could say maybe is starting to adopt.
Speaker Change: Our terminology and all of this.
Speaker Change: Yes.
Speaker Change: Or sit with a smile.
Speaker Change: We actually are talking with a key opinion leader in a specific space about doing a joint venture and <unk>.
Michael Helsen: And so because that that's actually the second case the joint venture I was talking about. we'll have much more about that but a little later.
Speaker Change: That is a good example of someone that have sat down understood our technology and had that Ah ha moment like art. If you can do. This then you can do that again and again and again and again in this nutraceutical with a pharmaceutical potential space and it happens to be one of the world's leading key opinion leaders in that specific space I won't mention.
Michael Helsen: Yes and to your point very early in this presentation today there will be coming up news here in April about the scientific projects scientific definitions of exoscience anomalous and that will certainly also carry some oomph to it once we get there without disclosing any details. Yeah, that's true.
Speaker Change: Names right now and so because that's actually the second case the joint venture was talking about.
Speaker Change: We will have much more about that but a little later, yes.
Speaker Change: And to your point very early in this presentation today, there will be coming up moves here in April.
Michael Helsen: Like look at the people that are co-publishing together with us and are going to be in the media. Those are definitely key opinion leaders as well.
Speaker Change: About the scientific projects.
Speaker Change: Scientific.
Definitions of exercise on all of this and that will certainly also carry some <unk> to it once we get there without disclosing any details.
Operator: I think that's a wrap. I don't want to keep people here too long. Thank you so much for your time.
Speaker Change: Yes.
Lasse: We will be back again on a quarterly basis if there's something we can do better because this is our first time and we are doing it slightly different than other companies because we have our own style, we have our own communication methodology, but it does not mean we are not open to feedback and ways we can improve. Exactly. Thank you, Michael, and thank you to everyone who participated.
Speaker Change: That's true like look look at look at the people that are.
Speaker Change: Co publishing together with us and are going to be in the media that Sir those are definitely key opinion leaders as well.
Speaker Change: I think that's the right I don't want to keep people here too long.
Speaker Change: So much for your time.
Speaker Change: We will.
Speaker Change: If you back again on a quarterly basis. If there is something we can do better because this is our first time and we are doing it.
Lasse: I think that this sums it up for us today. And if you haven't signed up already, please do so. And everybody who's attending here, you'll be getting a link to the video. And if you're looking for a transcript of the call, that's also going to be available in around 24 hours. So with that, thank you, and have a great day. Thank you.
Speaker Change: Slightly different than other companies because we have our own style, we have our own communication methodology, but it does not mean, we are not open to feedback and waste we can improve exactly. Thank you Michael and thank you to everyone who participated.
Speaker Change: I think that the.
Speaker Change: Some set up for us today, and if you haven't signed up already please do so and everybody who's attending here, you'll be getting a link to the video and if youre looking for a transcript of the call. That's also going to be available in over 24 hours. So so with that thank you and have a great day.
Speaker Change: Got it.
Speaker Change: Thank you.