Everyone, welcome to the MustGrow Biologics 2025 earnings call with CEO Corey Giasson. The financial statements and management discussion and analysis are available on SEDAR+. Today is Thursday, April the 30th. After management's remarks, we will open the call for questions. Participants may submit questions in the question- and- answer window. Please note that today's remarks may contain forward-looking statements. These statements involve known and unknown risks and uncertainties. Please refer to MustGrow's filings on SEDAR+ for more information. Corey, please begin your presentation. Great. Thank you, Martin, and good afternoon, everyone, and welcome to MustGrow's Q4 2025 earnings call. Before I begin, I'd like to draw your attention to our disclaimer. It's your typical forward-looking statement disclaimer. Forward-looking statements are gonna be made in this presentation and at the Q&A session at the end. Some of these statements may or may not come to fruition. This disclaimer can be read in detail on our website at mustgrow.ca. The 2025 sales results, again, they did not meet our performance expectations in terms of sales, fell well short of what we were expecting. 2025 sales, which included Nexus, was CAD 8.3 million. If we take a look at the gross profit exclusive of the impairment loss, you're looking at about CAD 1.5 million and a margin of around 18%, again, exclusive of the impairment loss with the shutting down of NexusBioAg effective April 15th, 2026. This resulted in a net loss of CAD 7.3 million. It wasn't a great year obviously for MustGrow, but on a positive side, TerraSante sales again were significant compared to what we did in 2024. 2025, there was about CAD 600,000 of sales, which was up about 377% from the previous year. Gross profit was about CAD 116,000 and a margin of almost 20%. Commenting on 2025 results, NexusBioAg, which we purchased at the beginning of the year, did not meet performance expectations in the sales that we expected it to generate. Given the fact that it was burning cash, we decided to shut it down effective April 15th of 2026. We're now in the process of divesting of the assets, which include inventory and equipment, and we're focusing in on TerraSante, which seen significant growth. In 2025, the purchase orders were up almost 600% year-on-year, and the majority of these are from repeat customers. The product continues to work. In 2025, as we've mentioned in the past, we've ran out of inventory. We estimate that we left about CAD 1 million of potential sales unfulfilled, you know, that wasn't a problem, but also a good problem because the demand has been increasing. The other thing with TerraSante is it was a lower margin than we were expecting given the tariff situation. Also, we were producing with batch production. With our contract manufacturers now moving to continuous production, we expect these margins to increase. In addition, the tariffs have decreased since what we've seen in 2025. For 2026 going forward, our focus is driving TerraSante sales in the U.S. and potentially other markets, other states such as Georgia, which we've just added, and potentially other countries. You know, there's an opportunity here for us to take TerraSante and expand it beyond the United States. Our focus is on building up inventories and really starting to market this product not only through MustGrow but through our retail customers who are seeing very positive results of the product working. Production has been ramping up and margins again should be much improved, given the, you know, continuous production that our manufacturers are currently doing and the lower tariff regime that we're in here this year versus what we witnessed last year. The pipeline for MustGrow, again, TerraSante in the U.S., that's the key driver here right now. We started off in 2024 and early part of 2025 trialing this product, and then we started to see an uptick in the demand where we could not produce enough or have enough product in the market on time to meet that increased demand. You know, we're gonna continue to push this product into the market and continue to market our product so that we can really start driving sales. TerraSante now we're also looking at the rest of the world, countries such as Australia, such as the Netherlands. We're testing product in these countries here right now, and, with positive results from these trials, there's an opportunity potentially for us to get fast track registration so that we can start selling this product, TerraSante, into these countries, sooner rather than later. You know, what you're gonna see is very similar sales ramp-up to what we're seeing in the U.S. Farmers are not gonna put this on all their land, right away. It's gonna take, you know, three to five years really to start seeing growth in these sales. We think there's a huge opportunity for TerraSante in certain countries around the world, a need for this product for one, a fit with the crop, the crops that are growing in these countries, and the fact that it can be fast track, registrations could happen. On the biocontrol side, TerraMG, we continue to wait for our biopesticide registrations here in Canada and the U.S. Not much has changed here. We continue to wait for that, and same with Bayer. The work that they're doing, they're doing excellent work for us. We've indicated before that we're expecting them to receive our first milestone payment this year. We're hopeful that that will be coming in in the very near future. Our main focus now is really driving TerraSante in the U.S. and potentially in other countries around the world and really driving the sales of this product that's working tremendously. In terms of our capital structure, it continues to remain tight. You know, 63 million shares outstanding, about 77 million shares fully diluted. You know, we were fortunate enough to do a capital raise at the beginning of January. Much needed working capital for TerraSante, the production of TerraSante. You know, some shareholders might see that as dilutive. I don't see that as dilutive. I think that's required capital so that we continue to push our product into the market, you know, and build up inventories and production. You know, what would be dilutive is that if we have to go and build a CAD 20 million or CAD 30 million plant, and I don't see us having to do that given the, the partnerships that we have in Asia with contract manufacturers. You know, it is critical for us to really start driving revenues and pushing ourselves towards that positive cash flows, which hopefully will happen in the next few years. With that, Martin, I'd like to open it up to question and answers. Thank you, Corey. A two-part question here. Why did you buy NexusBioAg in the first place, and why did you close NexusBioAg? Yeah. We purchased NexusBioAg at the beginning of 2024. The whole investment thesis around acquiring NexusBioAg was you've got an existing sales team, an existing product line with historic sales. It was, we felt a very accretive investment for us. You know, it slid in nicely for what we were doing. It allowed MustGrow to access the third party, biologicals and regenerative agriculture products without having to go and acquire those products or the technologies, so that we could, you know, potentially, receive, you know, the margins on the sales of those products. It also allowed us an opportunity to go and sell TerraMG once it becomes registered here in Canada, to be able to sell that through existing sales and distribution team w hereby we would be keeping the sales and, or, sorry, the distribution margin on the sales of those products. Sales from NexusBioAg, again, did not meet performance expectations. We were expecting a lot higher sales. We were expecting the sales division to be self-sufficient and be cash flow break even at the very least. Given that we were burning cash on the sales division, you know, and the fact that we're a small company with limited capital resources, we were forced to shut NexusBioAg down. I will say, you know, it's an excellent team, an excellent product line. There was headwinds that we were facing in the second half of the year. You know, farmers' margins were being squeezed. There was a 100% tariff on Canadian canola. Farmers were not able to move canola, the number one cash crop here in Western Canada. What we were witnessing is a lot of the inputs, a lot of the products that we were moving into the market, again, they were not moving. It hurt the division and, you know, we had to make an investment decision. In addition, we see TerraSante. That ramp up started in the second half of the year. It wasn't at the beginning of 2024. You know, that ramp up, we really wanna commit our resources and our focus in, on TerraSante and really start pushing that into the market here now. Corey, you mentioned 2024 a few times. Did you mean 2025? Oh, sorry. Yes. I meant 2025. Yes. What do you expect TerraSante margins to be in 2026? I expect them to be a lot stronger than what we've seen here in 2025. Again, we were facing tariffs for product going into the U.S. and in addition, you know, we were producing through batch production from our contract manufacturers. They've started to increase their production sizes and move towards continuous production which should help improve our margins. Again, the tariff regime going at for products, biofertility products going into the U.S. is a lot lower than what we were facing in 2025. What production and sales growth are you planning or expecting for TerraSante in the U.S. in 2026? I'm expecting a significant growth. I mean, we had great growth in 2025. You know, 370%. We left some sales on the table because we weren't able to produce on time. I'm expecting that growth to be even stronger here in 2025. Or sorry, 2026. It's all about execution. It's all about production for us, making sure we can produce product on time, making sure that we can ship internationally and get product into the market in a timely manner. How is your supply chain coming along? Can you indicate the level of inventory you expect to acquire this year? Are you able to purchase additional supply if demand is higher than expected? How long is the inventory lead time? Yeah, the inventory lead time is, you know, between three and six months. I mean, our suppliers, and I've given them a forecast, you know, going three years out. Our suppliers, they need to come up with feedstock and make sure they have the feedstock in place to be able to meet our inventory requirements. It would take about a month for them to produce product, and then another month or two of shipping to get product into the market. I can't give any indication of inventories or, you know, the amount of volume that we're looking at this year, but it's a magnitude greater than what we did in 2025. You know, we're also assessing to see if there's other places that we can start producing product just because, you know, if the Netherlands comes on or if we're seeing an increase in demand, we wanna make sure that we can be able to service those markets as well. Will there be any additional write-downs of NexusBioAg assets in Q1 and beyond? No, not to, not to my knowledge. You know, we're currently working on selling the inventories and the equipment. In fact, there could be a gain on some of those given the impairment that was that we recognized at the end of 2025. Given the challenging state it is for farmers in both Canada and the U.S., the benefits for TerraSante, are farmers not just seeing yield improvement, but also savings from avoiding other biocontrol or fertilizer inputs? Yeah. Well, I think the main thing is what they're seeing is yield improvements. We've mentioned in the past, you know, potatoes in the Pacific Northwest, you know, a 2 ton increase in yield, better quality potatoes, less culls. We're seeing the same thing in California, say, on strawberries. TerraSante has got an excellent return on investment for a farmer in terms of yields. The other thing that we're seeing and it's being reported to us is that, you know, farmers are starting to see an improvement in their land, the soil microbiome, which we've mentioned in the past. You know, it's not just an investment on this crop, but it's a good investment for future crops as you continue to build up your soil. Global fertilizer prices are skyrocketing and food inflation is rising. Does this help TerraSante? Yeah. Well, in terms of fertilizers, I mean, in California, for instance, a lot of the crops that we go in don't use a lot of fertilizers. It's not a, it's not a, I guess, a good comparison. You know, with, you know, food inflation happening, it means farmers need to grow more crops. You know, with farmers' margins being squeezed because of higher fertilizer, they need to find other ways to maximize their Return on Investment. You know, and the one way to do that is increase your yields. What we're seeing with TerraSante is an increasing yield. I mean, that's the main factor at the end of the day, is, you know, by putting TerraSante down, is a farmer going to increase their yields? That's what they see. What are your plans to manage any anticipated increase in demand and the resulting need to finance an increase in inventory? Yeah. Well, first of all, an increase in demand, we're seeing that right now. You know, that means that we gotta produce more. That's a good problem to have. We were fortunate enough to do that CAD 2 million raise at the beginning of the year. Much, much needed working capital for our company to be able to produce more TerraSante. If that demand continues to grow, you know, we do have a CIBC credit line. You know, we're also assessing opportunities to potentially raise some more capital, if required, you know, for, you know, for increasing TerraSante production and really starting to meet that increase in demand. You've addressed this a bit already, but the next question is, will you need to raise more money? Yeah. I mean, we're assessing the need for that, and the potential opportunity to do that. Again, we don't need to raise significant money here to go and build a plant. You know, CAD 20 million, CAD 30 million to build a brand new plant, as I mentioned in the presentation. Capital raise to go and build up inventories, even more inventories to meet increasing demand to me would be a good use of proceeds. You know, that's something that we're assessing. Do you have a forecast as to when you will be cash flow breakeven? Yeah. I mean, I'm hoping for 2027. I mean, the way I see demand growing, if we're able to produce and meet this expected demand, 2027 will be should be potentially cash flow breakeven for MustGrow. Are there regions or crops that are showing the greatest interest in TerraSante? Yeah. I mean, to me, the greatest interest right now is California strawberries. Is that the yield, that the biggest value provides the, for the strawberry growers? Is that from increased yield, as well as potentially increased quality of the berries themselves? Yeah. It is on increased yield. Again, a farmer's not gonna put it down if it's gonna cost him money and he's not gonna get a return. In terms of quality, I'm not really sure on that. I know we've seen that in potatoes, but I can't answer that question on quality for strawberries. Can you provide an update on the work with Bayer and TerraMG? Is the project moving forward as expected? Have any unforeseen issues arisen? Yeah. I mean, Bayer's been a great partner for us. The project continues to move forward as expected. You know, TerraMG is effective. It continues to work. I think Bayer's excited about that. You know, there's always unforeseen circumstances or issues. You know, we have, you know, this past year we've seen some plugging in the field on some drip lines. We're working our way through that and we have worked our way through that with Bayer. You know, being a natural biological product, it's not a small molecule synthetic chemical. You are gonna see issues in the field. We just have to work our way through that. We have. How is TerraMG proceeding with PMRA in Canada? Again, it's slow. We've submitted our dossier, and we're waiting for feedback from them. You know, we're, you know, I wish I could give a better update for PMRA in Canada or the EPA but again, it is slow dealing with, you know, these government bureaucracies. Hopefully things speed up, our focus is on TerraSante actually and driving these sales into the U.S. market and then potentially outside of the U.S. With recent approval in Georgia for TerraSante, are there any other states you are applying for registration? Yes, there is. Yes. Following the NexusBioAg BioAg experience and subsequent exit, how has this informed your refined go-forward strategy, particularly focusing on higher margin proprietary technologies versus distribution-led models? Yeah, I mean, you know, we took a chance on NexusBioAg at the beginning of 2025. You know, if TerraSante, you know, what we've seen in the middle of 2025 or even where we're at here right now, if TerraSante would've been, you know, six months to a year earlier and seeing that sales ramp up, we most likely would've not never done NexusBioAg. You know, our focus is on these higher margin products, our proprietary products. What we're seeing with demand, I mean, we need to commit our resources to really, you know, producing and meeting that increase in demand. Looking ahead 12 - 24 months, what are the key strategic priorities and value inflection points that you believe will most clearly demonstrate the company's transition to a commercially driven growth phase? Yeah. Well, again, it's TerraSante. I mean, we had great growth in 2025 for sales of TerraSante. I wanna see that even higher this coming year in terms of the, you know, the percent growth year on year. I think it's more than doable within the United States. Let's start adding on other countries and start, you know, doing the same process that we did in the United States and start growing in some of these other countries as well. I think the opportunity to sell significant amount of product, you know, is gonna happen in 2026 and 2027. You know, and then, and then, you know, hopefully while we're sitting and waiting for the registrations for the biocontrol, they start coming in, and then we can start selling those products. You know, Bayer in Europe, Middle East, Africa, that's gonna take a little longer for registrations but, you know, hopefully we start collecting on the first milestone payment this year and you know, with potential milestone, more milestone payments to come. Given the unique and beneficial qualities of TerraSante, is it worth applying to the relevant U.S. authorities for a tariff exemption? Yeah. If that is possible, I think that's something that we should look at. That's new to me, so that's something I will look at. You mentioned about a CAD 1 million loss or missed opportunity with TerraSante when you were not able to meet demand. Why did this CAD 1 million not come in in the fourth quarter? With the demand, if we take a look at the California market, you're looking at spring plantings and fall plantings. We were able to meet the demand at the time for spring plantings of 2025, we started to see more purchase orders coming in. We weren't able to fill all of those purchase orders for the second half of the year. It takes some time to produce product, to have product into the market, and we weren't able to get it the product into the market on time. That's why you didn't see the fourth quarter sales results. Although sales results in the fourth quarter, I think they were about CAD 260,000 about, you know, 40%- 45%, increase versus the rest of the year. Is Sumitomo involved in any way? The question, the person asking the question says, "I read that Sumitomo may be selling in Japan or other territories. Yeah. No, they're not involved with us at all. What insight can you provide on the lawsuit? Yeah, given the fact that this is in litigation here right now, I'm not able to make any comments on the lawsuit. Did you receive the expected milestone payment from Bayer in 2025? If not, what was missed to meet those milestones? Yeah. No, we didn't receive that milestone from Bayer in 2025. We're still waiting to receive that milestone payment. Yeah, and when we do receive it, obviously we will be making that announcement to the market. Do you know how many farms are currently using TerraSante? I don't know that, no. Do you know how many acres or area is under coverage by it, or can you estimate that? Yeah. Well, in 2024 there was about 150 acres. In 2025 it was approximately 1,000 acres. All right. The reason why I don't know about the farms, I mean, you know, we're dealing, in California we're selling to retailers who sell to the farmers. All right. Can you make any comments on the banana Fusarium wilt TR4 situation and how that is evolving? Yeah. No update on that. You know, it's not something that we've been focused on. Our partner Bayer has a first right refusal for bananas and TR4. I don't believe there's been any work that they've been doing. Again, they're focusing in on getting their registration in Europe, Middle East, or Africa. You know, we just haven't had the time or resources to go and focus really in on doing more work on TR4 and bananas. You know, the opportunity in front of us really is, you know, strawberries in California or potatoes in Washington State, and making sure that we have enough product to meet the demand. That concludes all the questions from the audience. Any final comments before we end the presentation? No. No final comments. Just thanks everyone for joining, and look forward to doing this again for the Q1 2026 earnings call. Thank you very much, everyone. This concludes the webinar presentation. Thank you.