Q1 2027 Burcon NutraScience Corp Earnings Call

August 12, 2026

Speaker #1: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Burcon's NutraScience Corporation fiscal 2027 first quarter conference call. Joining us today are Kip Underwood, Burcon's Chief Executive Officer and Alex Varti, the company's interim Chief Financial Officer.

Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Burcon NutraScience Corporation Fiscal 2027 Q1 conference call. Joining us today are Kip Underwood, Burcon's Chief Executive Officer, and Alex Varty, the company's Interim Chief Financial Officer. Following their presentation, we will open up the call for questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. Before we conclude today's conference call, I will provide you with the company's Safe Harbor statement with important cautions regarding the forward-looking statements made during this call. Now, I would like to turn the call over to the CEO of Burcon, Mr. Kip Underwood. Sir, please go ahead.

Speaker #1: Following their presentation, we will open up the call for questions. To join the question queue, you may press star, then 1 on your telephone keypad.

Speaker #1: Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. Then, before we conclude today's conference call, I'll provide you with the company's safe harbor statement with important cautions regarding the forward-looking statements made during this call.

Speaker #1: Now, I would like to turn the call over to the CEO of Burcon, Mr. Kip Underwood. Sir, please go ahead.

Speaker #2: Thank you, Natasha. And good morning, good afternoon, and good evening. Thank you to everyone who has joined the call today. For today's call, we would like everyone to walk away with three takeaways.

Kip Underwood: Thank you, Natasha. Good morning, good afternoon, good evening, and thank you to all of those who have joined the call today. For today's call, we would like everyone to walk away with three takeaways. The first is there is a convergence of things right now that present tremendous opportunity for Burcon. Consumers are seeking more protein. Food companies need innovation to deliver against that consumer need, and Burcon's proven technology enables food companies to deliver against that need. We solve food companies' problem. Second, simply put, we are executing our plan. We are producing and selling day by day, week by week against our expectations. Third, we are investing in our future. We see demand, customer demand coming down the pike, and we are going to invest to be ready to meet those future customers' expectations. Our safe harbor statement. I mentioned the market, the protein market specifically.

Speaker #2: The first is there's a convergence of things right now that mean present tremendous opportunity for Burcon. Consumers are seeking more protein. Food companies need innovation.

Speaker #2: To deliver against that consumer need, and Burcon's proven technology enables food companies to deliver against that need. We solve food companies' problem. Second, simply put, we are executing our plan.

Speaker #2: We are producing and selling day by day, week by week, against our expectations. And third, we are investing in our future. We see demand.

Speaker #2: Customer demand coming down the pike, and we are going to invest to be ready to meet those future customers' expectations. Our safe harbor statement.

Speaker #2: I mentioned the market—the protein market, specifically. You cannot watch a television streaming show or walk through a grocery store right now and not see that protein is everywhere.

Kip Underwood: You cannot watch television, stream a show, walk through a grocery store right now and not see that protein is everywhere. Not too long ago, protein was niche. Now it is a mainstream consumer sought-after benefit. 30 years ago, people who sought after protein were motivated. They were athletes. They were willing to make trade-offs. Today's consumers will not make that trade-off. They want higher protein, lower calories with no compromise on the eating experience. They want their protein to be food that they enjoy. That is all further accelerated by not just health reasons, by consumers on GLP-1 weight management medication. They specifically need higher protein and lower calories, and they need to be able to incorporate those foods in their everyday life. It is a great time for a company that delivers protein to food companies as well. We can quantify this growth.

Speaker #2: Not too long ago, protein was niche. Now, it is a mainstream, consumer-sought-after benefit. Thirty years ago, people who sought after protein were motivated.

Speaker #2: They were athletes. They were willing to make trade-offs. Today's consumers will not make that trade-off. They want higher protein, lower calories, with no compromise on the eating experience.

Speaker #2: They want their protein to be food that they enjoy. That is all further accelerated not just by health reasons, but by consumers on GLP-1 weight management medication.

Speaker #2: They specifically need higher protein and lower calories, and they need to incorporate those foods into their everyday life. It is a great time for a company that delivers protein to food companies as well.

Speaker #2: And we can quantify this growth. Tremendous demand, 17 to 20 million dollars in incremental protein growth. There are supply constraints out there as demand has increased, supply constraints has gone has surfaced against our potential competition.

Kip Underwood: Tremendous demand, CAD 17 to CAD 20 million in incremental protein growth. There are supply constraints out there. As demand has increased, supply constraints has gone as service against our potential competition. Tremendous growth, particularly GLP-1. We are only at the beginning of the growth runway, long-term growth runway for consumers seeking protein and then companies that provide that protein to food companies. Why does this matter for Burcon NutraScience? I mentioned the convergence. We have consumers seeking protein. We have food companies who are trying to figure out how they meet that unmet need without taste trade-off. The way companies meet those consumer needs is they need purity. They need purity to put protein in a food product and still deliver the taste expectations everybody wants. They want them to buy that food product once, twice, three, four, five times.

Speaker #2: Tremendous growth, particularly with GLP-1. We are only at the beginning of the growth runway. Long-term growth runway for consumers seeking protein and then companies that provide that protein to food companies.

Speaker #2: Why does this matter for Burcon? I mentioned the convergence. We have consumers seeking protein. We have food companies who are trying to figure out how they meet that unmet need without taste, trade-off.

Speaker #2: The way companies meet those consumer needs is they need purity. They need purity to put protein in a food product and still deliver the taste expectations everybody wants.

Speaker #2: They want them to buy that food product once, twice, three, four, five times. Burcon's unmatched purity, delivered by our technology platform, enables food companies to solve that problem and meet those consumer unmet needs.

Kip Underwood: Burcon NutraScience's unmatched purity that is delivered by our technology platform enables food companies to solve that problem to meet those consumer unmet needs. Specifically, it's not in the platform. It's not across one product, it's across multiple products. We have launched our Solatein sunflower protein, our Peazazz protein, our FavaPro protein, and our Puratein canola protein. All of these are delivered by our technology platform, and their core feature, their core benefit, is unmatched purity, again, which enables food companies to deliver against those consumers' unmet needs. Details of our presentation today. We've talked about the market, what a great opportunity is. We've talked about why our technology is so relevant in today's market. We need to get to some of the details. We'll talk about the highlights from our fiscal 2027. We have a sales update, production update. We'll talk about the financing that we released today.

Speaker #2: Specifically, it's not in the platform. It's not across one product. It's across multiple products. We have launched our sunflower protein, our PZSP protein, our fiber pro protein, and our puritine canola protein.

Speaker #2: All of these are delivered by our technology platform, and their core feature, their core benefit, is unmatched purity. Again, which enables food companies to deliver against those consumers' unmet needs.

Speaker #2: Details on our presentation today. We've talked about the market with a great opportunity. We've talked about why our technology is so relevant in today's market.

Speaker #2: We need to get to some of the details, right? We'll talk about the highlights from our fiscal '27. We have a sales update and a production update.

Speaker #2: We'll talk about the financing that we released today. Why are we doing it? What does it mean? Summary, and then obviously we will have time for closing remarks and Q&A.

Kip Underwood: Why are we doing it? What does it mean? Summary, and then obviously we will have time for closing remarks and Q&A. First quarter highlights. I mentioned one of the takeaways was execute the plan. This slide is we have executed the plan. The first piece is customers. We've surpassed over customers purchasing our ingredients. This is the ultimate validation that we can in fact deliver against our promise. We can deliver that unmatched purity that then enables food companies to deliver to their consumers. Every day, every week, we consistently produce more protein, produce more products by shift, by day, by week basis. You've heard me say before, we cannot sell it until we can produce it, and we are producing more every day.

Speaker #2: First quarter highlights. I mentioned one of the takeaways was execute the plan. This slide is we have executed the plan. So the first piece is customers.

Speaker #2: We've surpassed over [number] customers purchasing our ingredients. This is the ultimate validation that we can, in fact, deliver against our promise. We can deliver that unmatched purity that then enables food companies to deliver to their consumers.

Speaker #2: Every day, every week, we consistently produce more protein, produce more products, on a by shift, by day, by week basis. You've heard me say before, we cannot sell it until we can produce it.

Speaker #2: And we are producing more every day. We are investing today, right here, right now, to increase our capacity to meet the customer demand we see coming down the pike from our sales funnel.

Kip Underwood: We are investing today, right here, right now, to increase our capacity to meet the customer demand we see coming down the pipe from our sales funnel. Again, I've mentioned several times today, simply put, we're executing our plan. With that, I will turn it over to Alex Varty for our financial highlights. Alex, please take it away.

Speaker #2: And again, I've mentioned several times today, simply put, we're executing our plan. With that, I'll turn it over to Alex Bardy for our financial highlights.

Speaker #2: Alex, please take it away.

Speaker #3: Thank you, Kip. Burcon's Q1 financial results demonstrate the progress we continue to make on our strategic plan. In the current quarter, we earned revenues of $1.3 million, representing a 54% growth rate quarter over quarter.

Alex Varty: Thank you, Kip. Burcon's Q1 financial results demonstrate the progress we continue to make on our strategic plan. In the current quarter, we earned revenues of CAD 1.3 million, representing a 54% growth rate quarter-over-quarter and an over threefold increase over the prior year-ago quarter. More notably, Burcon has posted sequential quarter revenue growth every single period since we launched operations at the Galesburg facility. Further, as we have scaled production and revenue at the Galesburg facility, we have done so while maintaining a focus of our resources and our financial spend on production. This quarter, we generated a 7% decrease in the operating loss quarter-over-quarter, driven by that revenue growth and supported by our relentless focus of our resources on revenue generation and on production. Today we announced an offering of convertible debentures raising gross proceeds of up to CAD 8.1 million.

Speaker #3: And in over a threefold increase over the prior year-ago quarter. More notably, Burcon has posted sequential quarter revenue growth from operations at the Galesburg facility. Further, as we've scaled production and revenue at the Galesburg facility, we have done so while maintaining a focus of our resources and our financial spend on production.

Speaker #3: This quarter, we generated a 7% decrease in the operating loss quarter over quarter, driven by that revenue growth and supported by our relentless focus of our resources on revenue generation and on production.

Speaker #3: And today, we announced an offering of convertible deventures raising gross proceeds of up to $8.1 million. In this transaction, we expect significant insider participation underscoring the belief that insiders have in our forward-looking vision and in our ability to execute on our strategic plan.

Alex Varty: In this transaction, we expect significant insider participation, underscoring the belief that insiders have in our forward-looking vision and in our ability to execute on our strategic plan. The convertible debenture financing is expected to allow for investments in growth, through direct investments in labor, in inventory and production capability, in planning future capacity expansions, and increasing efficiency of production. We also intend to use a portion of the proceeds to retire certain debt obligations and for working capital, thereby shoring up our balance sheet and our capital structure. It remains an exciting time for Burcon. Kip does an incredible job of explaining how our operational progress and on the market opportunity, as well as how we can and how we are positioned to capitalize on that opportunity. But there is incredible power in seeing the translation of those operating achievements into the financial results.

Speaker #3: The convertible deventure financing is expected to allow for investments in growth. inventory, and production capability, in planning future capacity expansions, and increasing efficiency of production.

Speaker #3: We also intend to use a portion of the proceeds to retire certain debt obligations and for working capital, thereby shoring up our balance sheet and our capital structure.

Speaker #3: It remains an exciting time for Burcon. Kip does an incredible job of explaining our operational progress and the market opportunity, as well as how we can—and how we are—positioned to capitalize on that opportunity.

Speaker #3: But there's incredible power in seeing the translation of those operating achievements into the financial results. In particular, how we continue to scale the production volume and the revenues every single quarter, with there still being significant growth available for us.

Alex Varty: In particular, how we continue to scale the production volume and the revenues every single quarter, with there still being significant growth available for us. I will turn it back to Kip to provide more color on the sales and on production.

Speaker #3: I'll turn it back to Kip to provide more color on the sales and production.

Speaker #2: Thank you, Alex. So I mentioned 40 active buying customers, and we do have tremendous growth quarter-on-quarter and year-on-year. What I'd like us to focus more on is: what's the direction of the travel?

Kip Underwood: Thank you, Alex. I mentioned 40 active buying customers. We do have tremendous growth quarter-on-quarter, on year-on-year. What I would like us to focus more on is what is the direction of the travel? Are we seeing sequential growth? Are we broadening our customer base? The answer to that question is an emphatic yes. Across our 40 active buyers and our more than two active products, we have great diversity across the type of customer. Some large, some more entrepreneurial, more cutting edge. Across types of food products. It ranges from beverages to powder mixes at home to plant-based foods. So great diversity across different food types. Lastly, great diversity across our products. We have sales of our entire portfolio into all these products and all these types of customers.

Speaker #2: Are we seeing sequential growth? Are we broadening our customer base? And the answer to that question is an emphatic yes. So across our 40 active buyers and our more than 200 active products, we have great diversity.

Speaker #2: Across the type of customer, some large, some more entrepreneurial, more cutting edge. Across types of food products, it ranges from beverages to powdered mixes at home to plant-based foods.

Speaker #2: So, great diversity across different food types. And lastly, great diversity across our products. We have sales of our entire range to all these types of customers.

Speaker #2: So really, it's about the trajectory of the sales and the growth quarter over quarter, and then eventually year on year. We cannot sell it until we can make it.

Kip Underwood: Really it is about the trajectory of the sales and the growth quarter-over-quarter, and then eventually year-on-year. We cannot sell it until we can make it. Day by day, week by week, we are driving production excellence. We have mentioned in the past, we have achieved several record production levels. That could be on a day or by a week. This matters fundamentally because we are clearly demonstrating that our technology platform scales across multiple products in a day in, day out production environment. Not just internally by our information, by the customers I just mentioned. The best validation in the world of are we delivering day in, day out consistently, is customers going from the evaluation process to the purchase process to repeat buy. That is the best validation that our technology is delivering and our production facility is delivering that technology in a consistent basis.

Speaker #2: Day by day, week by week, we are driving production excellence. We've mentioned in the past, we've achieved several record production levels that could be on a day or by a week.

Speaker #2: And this is managed fundamentally because we are clearly demonstrating that our technology platform scales across multiple products in a day-in, day-out production environment.

Speaker #2: Not just internally by our information, but by the customers I just mentioned—the best validation in the world is: are we delivering, day in and day out, consistently?

Speaker #2: Is customers going from the evaluation process to the purchase process to repeat buy? That's the best validation that we are that our technology is delivering and our production facility is delivering that technology in a consistent basis.

Speaker #2: Because of all of those things, we see tremendous demand coming down the pike at us. The market opportunity, the differentiation in our technology provides and our sales funnel.

Kip Underwood: Because of all of those things, we see tremendous demand coming down the pipe as the market opportunity, the differentiation our technology provides, and our sales funnel. We have announced a fundraise. Fundamentally, that raise is to expand production. It is to invest in people, efficiency, and equipment. It is to support the expansion of our portfolio. Fundamentally, as that demand comes at us, are we ready to fulfill that demand? I also want to just take a moment and go back to our strategy. We started off our strategy, it was relatively simple. We would put our technology in the Galesburg facility, prove that technology, prove commercial relevance, prove margins, prove price points, and put Burcon NutraScience on a strong financial footing. Then we would scale through licensing after that point. What we have discovered is we have an incredible capital-efficient way to expand capacity here at the site.

Speaker #2: We've announced a fundraise. Fundamentally, that raise is to expand production—it's to invest in people, efficiency, and equipment to support the expansion of our portfolio. And fundamentally, as that demand comes at us, are we ready to fulfill that demand?

Speaker #2: I also want to just take a moment and go back to our strategy. We started off our strategy, it was relatively simple. We were going to—we would put our technology in the Galesburg facility, prove that technology, prove commercial relevance, prove margins, prove price points, and put Burcon on a strong financial footing.

Speaker #2: And then we would scale through licensing after that point. What we have discovered is we have an incredible capital efficient way to expand capacity here at the site.

Speaker #2: So we have a capital efficient way to expand capacity. We have obviously the tremendous demand coming from the consumers that we've talked about. And this really says it's not a change in the strategy.

Kip Underwood: We have a capital-efficient way to expand capacity. We have, obviously, the tremendous demand coming from the consumers that we have talked about. This really says it is not a change in the strategy. We would obviously be foolish not to take advantage of this growth opportunity, put Burcon NutraScience on a stronger footing, further prove out the value of our technology, and then in the future after that, the licensing opportunity still exists. To speak to the financing a bit, again, we expect significant insider participation. We are currently working through a bridge loan to get us to the financing completion. That is, again, all about leaning in and investing for growth. Expanding in people capability, production capability, and finally the ability to meet and exceed our customers' expectations. The filings will be a convertible debenture, 48 month in length.

Speaker #2: It's we would almost be foolish not to take advantage of this growth opportunity. But Burcon on a stronger footing further prove out the value of our technology and then in the future after that, the licensing opportunity still exists.

Speaker #2: So to speak to the financing a bit, again, we expect significant insider participation. We currently working through a bridge loan to get us to the financing to the financing completion.

Speaker #2: That is, again, all about leaning in and investing for growth: expanding in people capability, production capability, and funding the ability to meet—if not exceed—our customers' expectations.

Speaker #2: The financing will be a convertible debenture, 48 months in length. And we still do have access to $3 million, which remains undrawn on tranche two.

Kip Underwood: We still do have access to a CAD 3 million remains undrawn on tranche two from our senior secured loan. This entire package allows us to continue to accelerate growth investments today, right now today, tomorrow, and the day after, while we finish the future fundraise. This is also on a parallel path. We are working with our manufacturing partner, RE ProMan, for them to also make subsequent investments that allow us to increase the overall capacity and capability of the facility here in Galesburg, Illinois. When I look at Burcon NutraScience today versus a year ago, we have come a long way. The technology is commercially proven. Customers are validating our products. The most important way is that it is repeat purchase. They are coming back and buying our product again and again to deliver that product to consumers.

Speaker #2: From our senior secured loan. This entire package allows us to continue to accelerate growth investments today, right now, today, tomorrow, and the day after while we finish the future fundraise.

Speaker #2: This is also on a parallel path. We are working with our manufacturing partner Proman. For them to also make subsequent investments that allow us to increase the overall capacity and capability.

Speaker #2: Of the facility here in Galesburg, Illinois. When I look at Burcon today versus a year ago, we've come a long way. The technology is commercially proven.

Speaker #2: Customers are validating our products. They're buying—the most important way is that it's repeat purchase. They're coming back and buying our product again and again to deliver that product to consumers.

Speaker #2: And the only way they're doing that is if consumers are buying that product again and again. That is the ultimate validation that our technology delivers against the expectations.

Kip Underwood: The only way they are doing that is if consumers are buying that product again and again. That is the ultimate validation that our technology delivers against the expectations. As we continue this progression, revenue growth will follow. Our job is to execute day by day, week by week, month by month. As we convert more of our pipeline into customer adoption, we grow recurring revenue and build out the facility here into an engine of strong growth and financial performance for Burcon today. What I want everyone to walk away with, really, I want to repeat this is, the opportunity is there. It is huge. We have a technology platform that delivers unmatched purity, which enables food companies to meet consumer unmet needs. We are executing in a manner that we will capitalize upon that opportunity. We will continue to post percentage growth quarter on quarter, year on year.

Speaker #2: As we continue this progression, revenue growth will follow. Our job is to execute—day by day, week by week, month by month. As we convert more of our pipeline into customer adoption, we grow recurring revenue.

Speaker #2: And build out the facility here into an engine of strong growth and financial performance for Burcon today. What I want everyone to walk away with—really, I want to repeat this—is the opportunity is there.

Speaker #2: It's huge. The we have a technology platform that delivers unmatched purity. Which enables food companies to meet consumer unmet needs and we are executing in a manner that we will capitalize upon that opportunity.

Speaker #2: So we'll continue to post percentage growth quarter on quarter or year on year. But I want people to pay attention to the trajectory. Day by day, week by week, we continue to grow our production capability, our sales capability, and we will keep doing that.

Kip Underwood: I want people to pay attention to the trajectory. Day by day, week by week, we continue to grow our production capability, our sales capability, and we will keep doing that. We will eventually deliver strong financial results. With that, I will leave it to Natasha, to the operator for any questions. Thank you.

Speaker #2: We'll eventually deliver strong financial results. With that, I will leave it to Natasha to the operator for any questions. Thank you.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch tone phone.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the 1 on your touch tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Your first question comes from Dave Storm with Stonegate. Please go ahead.

Speaker #1: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the two.

Speaker #1: If you're using the speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Dave Storms with Stone Gates.

Speaker #1: Please go ahead.

Speaker #3: Hi, everyone. Evening. Thank you for taking my questions. I maybe wanted to start with the 40 active buying customers. Could you help us get a sense of who's still testing products, who's moved on to repeat orders, maybe not who but as a percentage, who's testing, who's moved on to repeat orders, and maybe how that compares to the top of the sales funnel that hasn't converted yet?

Dave Storms: Hey, everyone. Evening. Thank you for taking my questions. Kip, I maybe wanted to start with the 40 active buying customers. Could you help us get a sense of who is still testing products, who has moved on to repeat orders? Maybe not who, but as a percentage, who is testing, who has moved on to repeat orders, and maybe how that compares to the top of the sales funnel that has not converted yet?

Speaker #2: Sure. Thanks, Dave. I appreciate the question. Let me provide a little texture there. First, what we look for in our sales funnel and in our actual sales is diversity.

Kip Underwood: Sure. Thanks, Dave. I appreciate the question. So provide a little texture there. First, what we look for in our sales funnel and in our actual sales is diversity again. So we have active sales across multiple food types. First is, think about any food product you see that says 10 or 15 or 20 grams per serving on the front of the package, that's a bullseye for our technology. That happens in beverages, it happens in powder beverage you mix at home, it happens in nutrition bars, and then it happens in a variety of plant-based foods. So those are all food types we both have customer projects in and active sales in. Second thing is the type of customer. We were very clear with everybody. We want to work with smaller, more midsize entrepreneurial brands. They move fast. They're on the cutting edge.

Speaker #2: Again, so we have active sales across multiple food types. So first is, think about any food product you see that says 10, 15, or 20 grams per serving on the front of the package.

Speaker #2: That's a bull's eye for our technology. And that happens in beverages. It happens home. It happens in nutrition bars. And then it happens in a variety of plant-based foods.

Speaker #2: So, those are all food types we both have customer projects in and active sales in. Second thing is the type of customer. We were very clear with everybody.

Speaker #2: We want to work with smaller more entrepreneur or midsize entrepreneurial brands. They move fast. They're on the cutting edge. We're aligned on values. They're more profitable and they grow faster.

Kip Underwood: We're aligned on values. They're more profitable, and they grow faster. The majority of our funnel is, in fact, those types of customers. We also have a couple of what I call anchor customers. These are brands that most people would know and recognize, and they provide kind of the foundation volume load for the facility. Then the last is, again, those two first categories, type of food product, type of customer. We have sales of all of our products across those. So great diversity in terms of food type or application, type of customer, and across our entire portfolio, which really gives us a strong foundation for growth into the future.

Speaker #2: The majority of our funnel is, in fact, those types of customers. We also have a couple of what I call anchor customers. These are brands that most people would know and recognize.

Speaker #2: And they provide kind of the foundation volume load for the facility. And then the last is again, those two first categories, type of food product, type of customer.

Speaker #2: We have sales of all of our products across those. So, great diversity in terms of food type or application, type of customer, and across our entire portfolio, which really gives us a strong foundation for growth in the future.

Speaker #3: That's great color. I appreciate that. And in your response there, you mentioned diversity again. I know you've kind of touched on that a lot during this call.

Dave Storms: That's great color. I appreciate that. In the response there, you mentioned diversity again. I know you've kind of touched on that a lot this call. Even with the diversity, though, are there any product lines or food types that are maybe leading the charge, that you see having an outsized growth or maybe that you get most excited about?

Speaker #3: Even with the diversity, though, are there any product lines or food types that are maybe leading the charge, that you see having outsized growth, or maybe that you get most excited about?

Kip Underwood: I think first, a lot of protein in this area is really sold in, think powdered beverages for general health and wellness that you mix at home. That's where most protein companies start. So that's where a lot of our business is. Where I'm most excited about moving forward is there are a whole host of foods that did not have protein traditionally. Think snacks. Think more snacks or beverages that don't traditionally have protein, but now people need those to have protein in them. That's a really difficult thing to do. It's very difficult to put protein into a snack at a level that's meaningful, and then also that snack still tastes great, so it tastes like a snack.

Speaker #2: I think first, as a lot of protein in this area is really sold in, I think, powdered beverages for general health and wellness that you mix at home.

Speaker #2: That's where most protein companies start. So that's where a lot of our business is. We're most excited about moving forward is there are a whole host of foods that did not have protein traditionally.

Speaker #2: I think snacks. I think more snacks or beverages that don't traditionally have protein, but now people need those to have protein in them. And that's a really difficult thing to do.

Speaker #2: It's very difficult to put protein into a snack at a level that's meaningful, and then also have that snack still taste great. It still tastes like a snack.

Speaker #2: We have lots of projects in that area and plant-based foods where without our technology, without our unmatched purity, maybe food companies couldn't deliver to those end consumers both the protein level and the taste experience those consumers want.

Kip Underwood: We have lots of projects in that area in plant-based foods, where without our technology, without our unmatched purity, maybe food companies couldn't deliver to those end consumers both the protein level and the taste experience those consumers want. So those are the areas where we get most excited to maximize the value of our technology, enabling food companies to do things they could not do before.

Speaker #2: So those are the areas where we get most excited, the maximize of our technology, enable when food companies to do things they could not do before.

Speaker #3: Understood. Appreciate that. Maybe pivoting over to the financing. Just is there anything more you could tell us about that, maybe in terms of how much is your marked for growth spending, the anticipated deployment of that capital, how long the schedule, anything like that?

Dave Storms: Understood. Appreciate that. Maybe pivoting over to the financing. Is there anything more you could tell us about that, maybe in terms of how much is earmarked for growth spending? The anticipated deployment of that capital.

Dave Storms: How long the schedule, anything like that?

Speaker #2: Well, a couple of thoughts. So, first of all, we anticipate the close to be very quickly after our annual shareholder meeting on September 16.

Kip Underwood: Well, a couple thoughts. First of all, we anticipate the close to be very quickly after our annual shareholder meeting on 16 September. So from a close perspective, I think late September, early October. From a usage standpoint, this is entirely about growth, Dave. This is about investments that drive production efficiency, investments in people that drive better customer response or better customer outreach and/or drive production scale. So 100% of these proceeds really are about us getting ahead and driving growth and being prepared for not just the demand we hope for, the demand we can see in our sales funnel coming at us in the near future.

Speaker #2: So, from a close perspective, I think late September, early October. From a usage standpoint, this is entirely about growth, Dave. This is about investments that drive production efficiency.

Speaker #2: Investments in people that drive better customer response or better customer outreach, and/or drive production scale. So 100% of these proceeds really are about us getting ahead and driving growth, and being prepared for not just the demand to be hoped for, but the demand we can see in our sales funnel coming at us in the near future.

Dave Storms: That's great to hear. I appreciate that. Maybe one last one, just a macro question. You mentioned GLP-1 usage at the top here.

Speaker #3: That's great to hear. I appreciate that. Maybe one last one, just a macro question. And you mentioned GLP-1 usage at the top here. Just any further thoughts around maybe what inning we're in?

Dave Storms: Just any further thoughts around maybe what inning we're in. Are you still seeing a lot of experimentation, maybe a lot to be captured if you're a first mover? I know I'm throwing a lot at you here, but also, are you seeing any differences between the US domestic market versus international markets with GLP-1 uptake and maybe the downstream impacts of that?

Speaker #3: Are you still seeing a lot of experimentation? Maybe a lot to be captured if you're a first mover? And I know I'm throwing a lot at you here, but also, are you seeing any differences between the U.S. domestic market versus international markets with GLP-1 uptake and maybe the downstream impacts of that?

Speaker #2: Well, I guess first, I would say we're in the first inning of a very long baseball game, to continue the analogy. We're just getting started.

Kip Underwood: Well, I guess first I would say we're in the first inning of a very long baseball game, to continue the analogy. We're just getting started. I think it's good to remember that protein, in general, was already being sought after by more and more consumers. You're really stacking the GLP-1 usage on top of growth trend that already existed. The last GLP-1 consumer penetration numbers I saw for the US were high single digit. So there's certainly tremendous, much higher consumer adoption expected for GLP-1 usage. As that continues to occur, then people's diet needs will change, which is great for us. Relative to global, I believe there's a good opportunity in Europe, but Dave, I'm not really qualified for that. We're very focused on North America right now.

Speaker #2: And I think it's good to remember that protein in general was already being sought after by more and more consumers. You're really stacking the GLP-1 usage on top of growth trend that already existed.

Speaker #2: The last GLP-1 consumer penetration numbers I saw for the US were in the high single digits. So there's certainly much higher consumer adoption than expected for GLP-1 usage.

Speaker #2: And then as that continues to occur, people's diet needs will change, which is great for us. Relative to global, I believe there's a good opportunity in Europe, but Dave, I'm not really qualified for that.

Speaker #2: We're very focused on North America right now. There's plenty of opportunity here in North America. It's for us to meet, if not far exceed our financial expectations.

Kip Underwood: There's plenty of opportunity here in North America for us to meet, if not far exceed, our financial expectations.

Speaker #3: Yeah, completely understand. Looking forward to the 2027 and thanks for taking my questions.

Dave Storms: Yeah, completely understand. Looking forward to 2027 and thanks for taking my questions.

Speaker #2: Thanks, Dave.

Kip Underwood: Thanks, Dave.

Speaker #1: As a reminder, if you wish to ask a question, please press star one. We have a question from Spencer Porpey with New Finance. Please go ahead.

Operator: As a reminder, if you wish to ask a question, please press star one. We have a question from Spencer Porpi with New Finance. Please go ahead.

Speaker #3: Yeah, thanks for letting me. Just a quick question here. With quarter one revenue reaching 1.3 million, and repeat orders beginning to build, can you give us some indication of what revenue run rate you believe is achievable over the next two or three quarters?

Spencer Porpi: Yeah, thanks for letting me. Just a quick question here. With Q1 revenue reaching CAD 1.3 million and repeat orders beginning to build, can you give us some indication what revenue run rate you believe is achievable over the next two or three quarters? And what specifically needs to happen for Burcon to reach cash flow breakeven?

[Analyst] (New Finance): Yeah, thanks for letting me. Just a quick question here. With Q1 revenue reaching CAD 1.3 million and repeat orders beginning to build, can you give us some indication what revenue run rate you believe is achievable over the next two or three quarters? And what specifically needs to happen for Burcon to reach cash flow breakeven?

Speaker #3: And what specifically needs to happen for Burcon to reach cash flow break-even?

Speaker #2: So Spencer, thank you for the question. We've communicated is we expect double digit revenue by the end of the calendar year. And right into the calendar year, we expect to cross over to be cash flow positive.

Kip Underwood: Spencer, thank you for the question. What we have communicated is we expect double-digit revenue by the end of the calendar year, and right into the calendar year, we expect to cross over to be cash flow positive. The drivers for that really are, we execute the plan. We continue. We have our customer funnel, so we know who the customers are. We continue to work with them as they launch new products or change prices in the marketplace. That is the opportunity side. Then to meet that opportunity, we need to continue to execute on the production side. That is shift by shift, day by day, week by week.

Speaker #2: The drivers for that really are, we execute the plan. So we continue we have our customer funnel, so we know who the customers are.

Speaker #2: We continue to work with them as they launch new products or change products in the marketplace. That's the opportunity side. And then to meet that opportunity, we need to continue to execute on production side.

Speaker #2: That's shift by shift, day by day, week by week. And then towards the back half of the quarter, we're going to need to have some of the capacity expansion pieces we're speaking to in place to ensure we can continue to meet the growing customers in the calendar Q4 and calendar Q1 of '27.

Kip Underwood: Then towards the back half of the quarter, we are going to need to have some of the capacity expansion pieces we are speaking to in place to ensure we can continue to meet the growing customers in the calendar Q4 and calendar Q1 of 2027.

Speaker #3: Okay. Thank you very much. It's pretty well answered my question.

Spencer Porpi: Okay. Thank you very much. That pretty well answers my question.

[Analyst] (New Finance): Okay. Thank you very much. That pretty well answers my question.

Speaker #2: Thank you.

Kip Underwood: Thank you.

Speaker #1: As there are no further questions, I will now hand the call over to Alex Bartey. Please go ahead.

Operator: As there are no further questions, I will now hand the call over to Alex Varty. Please go ahead.

Alex Varty: Hi, I am just going to read the questions out from the webcast here. We have 1 minute.

Speaker #4: Hi, I'm just going to read the questions out from the webcast here. We have one minute. Hi, Kim, congrats on another growth quarter. It's great to see the company has recurring sales.

Kip Underwood: Okay.

Alex Varty: Hi, Kip. Congrats on another growth quarter. It is great to see the company has recurring sales. Is the company still on pace for CAD 10 million per calendar 2026? That would make for a significant H2 to this year. Do you have any idea what revenues might look like after the infrastructure investments?

Speaker #4: Is the company still on pace for $10 million per calendar 2026? That would make for a significant second half to this year. Do you have any idea what revenues might look like after the infrastructure investments?

Speaker #2: Thanks, Jason. So we always knew that our revenue growth would be somewhat back and loaded. And first is we had to be ready for production side to deliver.

Kip Underwood: Thanks, Jason. We always knew that our revenue growth would be somewhat back-end loaded. First, we have to be ready for the production side to deliver. Second, as we get another customer across the finish line to adoption and purchasing. Each new customer is growth, but then as you get a new customer, the first thing they do is they will buy once a month. Then the next month they buy twice a month. Then the next month they buy a larger quantity, but twice a month. Then eventually they buy a larger volume month on month on month. Your growth really stacks two ways. It stacks both as we bring in new customers. Remember, our customers are attacking this growing protein market.

Speaker #2: And second is, as we get another customer across the finish line to adoption and purchasing—the first thing is each new customer is growth, but then, as you get a new customer, the first thing that they do is they'll buy once a month.

Speaker #2: And then the next month, they buy twice a month. And then the next month, they buy a larger quantity, but still twice a month. And then, eventually, they buy a larger volume month-on-month-on-month.

Speaker #2: So your growth really stacks two ways. It stacks both as we bring in new customers and then remember, our customers are attacking this growing protein market.

Speaker #2: So then you stack their growth on top of our growth. And that's how you get to both a back and loaded if you think about the calendar year, back and loaded growth.

Kip Underwood: You stack their growth on top of our growth, and that's how you get to both a back-end loaded, if you think about the calendar year, back-end loaded growth, and then that's how you see really exciting run rate going into calendar 2027.

Speaker #2: And then that's how you see really exciting run rate going into calendar '27.

Speaker #4: There's no more questions from the webcast.

Alex Varty: There's no more questions from the webcast.

Speaker #1: Thank you. Everyone, that is all the questions we have for today. At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Underwood for closing remarks.

Operator: Thank you. Everyone, that is all the questions we have for today. At this time, this concludes our question and answer session. I would now like to turn the call back over to Mr. Underwood for closing remarks. Sir, please go ahead.

Speaker #1: Sir, please go ahead.

Speaker #2: Thank you, Natasha. And thank you, everybody, for taking the time today. I would like to finish where we started, the three takeaways. There's a convergence of things going on in the marketplace today that present tremendous opportunity for Burcon.

Kip Underwood: Thank you, Natasha, and thank you everybody for taking the time today. I would like to finish where we started, the three takeaways. There's a convergence of the things going on in the marketplace today that present tremendous opportunity for Burcon NutraScience. Consumers seeking more protein, food companies needing innovation to meet that consumer need, and Burcon NutraScience's delivery of a proven technology platform at commercial scale, at-the-ready, to solve those problems. Second, sometimes boring, we're executing the plan. To hit our financial expectations, what we have to do by day, by week, by month, is produce and sell. We are executing that plan, and we will continue to do so.

Speaker #2: Consumers seeking more protein, food companies needing innovation to meet that consumer need, and Burcon's delivery of a proven technology platform at commercial scale at the ready to solve those problems.

Speaker #2: Second, sometimes boring, we're executing the plan. To hit our finance expectations, we have to do by day by week by month is produce and sell.

Speaker #2: We are executing that plan, and we will continue to do so. Third is with that tremendous opportunity in front of us, we need and must invest for the growth that we know is coming down the pike and we know we will be ready and can be ready for that in the future to drive further growth for Burcon into '27 and beyond.

Kip Underwood: Third is, with that tremendous opportunity in front of us, we need and must invest for the growth that we know is coming down the pike, and we know we will be ready and can be ready for that in the future to drive further growth for Burcon into 2027 and beyond. Again, thank you all for your time. I appreciate it.

Kip Underwood: Third is, with that tremendous opportunity infront of us, we need and must invest for the growth that we know is coming down the pike, and we know we will be ready and can be ready for that in the future to drive further growth for Burcon into 2027 and beyond. Again, thank you all for your time. I appreciate it.

Speaker #2: Again, thank you all for your time. I appreciate it.

Speaker #1: Before we conclude today's call, I would like to take a moment to read the company's safe harbor statement. This call contains forward-looking statements or forward-looking information within the meaning of the US private securities litigation reform act of 1995 and applicable Canadian securities legislation.

Operator: Before we conclude today's call, I would like to take a moment to read the company's safe harbor statement. This call contains forward-looking statements or forward-looking information within the meaning of the US Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements or forward-looking information involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements or forward-looking information can be identified as words such as "anticipate," "intend," "plan," "goal," "project," "estimate," "expect," "believe," "future," "likely," "can," "may," "should," "could," "will," "potentially," and similar references of future periods. All statements other than statements of historical fact included during this call are forward-looking statements.

Speaker #1: Forward-looking statements or forward-looking information involve risks, uncertainties, and other factors that could cause actual results performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements.

Speaker #1: Forward-looking statements or forward-looking information can be identified as words such as anticipate, intend, plan, goal, project, estimate, expect, believe, future, likely, can, may, should, could, will, potentially, and similar references of future periods.

Speaker #1: All statements other than statements of historical fact included during this call are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially.

Operator: There can be no assurance that such statements will provide to be accurate and actual results and future events could differ materially from those anticipated in such statements of information. Important factors that could cause actual results to differ materially from Burcon's plans and expectations include the actual results of business negotiations, marketing activities, adverse general economic market or business conditions, regulatory changes, and other risks and factors detailed herein and from time to time in the filings made by Burcon with security regulations and stock exchanges, including in the section entitled Risk Factors in Burcon's annual information form filed with the Canadian Securities Administrators on www.sedarplus.ca.

Speaker #1: ...from those anticipated in such statements of information. Important factors that could cause actual results to differ materially from Burcon’s plans and expectations include the actual results of business negotiations, marketing activities, adverse general economic, market, or business conditions, regulatory changes, and other risks and factors detailed herein and from time to time in the filings made by Burcon with securities regulators and stock exchanges.

Speaker #1: Including in the section entitled Risk Factors. In Burcon's annual information form filed with the Canadian Securities Administrators on www.cedarplus.ca. Any forward-looking statements or information only speaks as of the date on which it was made, and except as may be required by applicable securities laws.

Operator: Any forward-looking statements or information only speaks as of the date on which it was made, and except as may be required by applicable securities laws, Burcon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. Although Burcon believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and accordingly, investors should not rely on such statements. Finally, I would like to remind everyone that this call is being recorded, and the webcast will be available for replay on the company's website starting later this evening. Thank you, ladies and gentlemen, for joining us today for our presentation. You may now disconnect.

Speaker #1: Burcon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. Although Burcon believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, investors should not rely on such statements.

Speaker #1: Finally, I would like to remind everyone that this call is being recorded, and the webcast will be available for replay on the company's website.