Good day and welcome to the BioHarvest Sciences Virtual Investor Webinar. Today's webinar is being recorded. Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and industry prospects, are forward-looking and may be subject to a number of risks and uncertainties that could cause the actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of associated risks, and we would also refer you to the company's website for more supporting industry information. At this time, I'd like to turn the webinar over to Ilan Sobel, CEO of BioHarvest Sciences. Sir, please go ahead. Thank you, operator, and good afternoon to everybody on today's webinar. It's really very encouraging and inspiring to see so many people tuning in for the webinar this afternoon, specifically after the exciting news that we released to the market earlier today. Today, we're going to be really focusing to talk about specifically the new capability that we're building, leveraging the power of Botanical Synthesis Technology, as well as providing an update on two of our major big bets for the balance of the year. Before I start the presentation, I always like to get everybody anchored on the North Star of the company. Obviously, the North Star is super important because it guides the DNA, the value system, and what we get up every single morning to be able to focus on and execute to deliver value for our shareholder partners. Our North Star for BioHarvest is all about discovering, developing, manufacturing, and importantly, democratizing life-changing compounds from plants that will change the world of health and wellness for hundreds of millions of people, whilst preserving the planet for generations to come. Leveraging the power of Botanical Synthesis Technology, we are delivering on this North Star through leveraging our technology across two major business units. Firstly, our direct-to-consumer health and wellness business unit, which for us really has been a major proof of concept, market validation of the power of our technology, allowing us to manufacture at significant scale, an important cash generator, and a business unit that, since we launched in the U.S. in May 2021, has generated north of $60 million of revenue of our VINIA dietary supplements, a business that ensured that we delivered last quarter $8.5 million of revenue and a 60% gross profit margin for the business. Importantly as well, we have our CDMO services business unit that we already have three significant contracts that we continue to make important progress on. Importantly, we have within our pipeline, as I speak to you, some really significant catalysts that we're looking to pull through the pipeline, and we believe we'll see at least one, maybe two catalysts delivered for the business in the CDMO before the end of the year. Let's now focus on today's agenda. The first area we're going to talk about is the new major capability that we talked about in the release earlier today. I'm going to help unpack this for everybody so they can really understand the science and the magnitude of the technology breakthrough that we've been able to drive and what this means ultimately from a future revenue perspective. I will be providing you with an update on the two very important big bets that are so critical for us as we look at the downhill of the business, getting to that fourth quarter focus of being able to get the company to an adjusted EBITDA profitability. That's all about the launch of our blood flow hydration proposition and the Health Pros Affiliate system launch, opening up a new channel for the business. Let's start first to talk about today's capability announcement regarding exosomes. I think we'll start basically from the beginning and dimensionalize what exactly are plant exosomes. Ladies and gentlemen, I'll try and not make this a science or biology lesson. I'm going to try and really help dimensionalize the breakthrough here. The fact that our systems are able now to produce plant exosomes, and these are nanosized extracellular vesicles that are naturally secreted by the plant cells in our bioreactors, and they play a crucial role in intercellular communication between the plant cells. You can imagine the plant cells are growing in the bioreactors, and I'm going to show you a nice visual a little bit later for those of you that are on the webinar. Basically, the exosomes are the critical extracellular vesicles that allow the plant cells to communicate to each other. They are derived from, obviously, the plant cells themselves and are rich in phytochemicals like polyphenols, flavonoids, terpenoids, peptides, and alkaloids. What's important to understand when you look at the significance of these plant exosomes is that they are able to penetrate and deliver molecular information also to our human cells in our body, in our skin, very effectively with improved solubility and bioavailability characteristics, which is so, so important given the unique nanosized particles. They are also extremely stable. They have a rich, you'll see, lipid membrane that protects them from external agents, and therefore they're able to always have almost a protective shield around the bioactive compounds inside. As it relates to what does it mean for our overall human body and health and wellness, these highly bioactive compounds inside the exosomes offer critical antioxidant, anti-inflammatory, anti-aging, and antimicrobial properties, which can be leveraged for pharmaceutical-grade delivery systems, nutraceuticals, and importantly, breakthrough cosmetic formulations. It's important to understand that our unique systems, our unique factories, our bioreactors have significant advantages in the production of these plant exosomes versus exosomes that may be produced inside the plants. Exosomes produced inside the plants are very limited. They have very low yield, they're not scalable and not consistent, and they're obviously season dependent. We bring it into our world of our technology, and we're leveraging the power of cultured cells. As a result of our ability to control our environment, we are able to have controlled and consistent production of these unique nanocellular plant exosomes and are able to do this in a way which is much more scalable and economically viable. When you look at our bioreactors, and I'll just share with those of you, this is a representation of our bioreactors. We keep a lot of this critical IP very close to ourselves. This, please note, is a representation. When you look at our bioreactors, you'll understand that we have spent hours and hours designing our bioreactors to do more than grow plant cells. We're able to create the ideal environment for high-yield growth of high-value plant exosomes. By driving the combination of optimized growth media with light permeable bioreactors, each of our BioHarvest factories or our BioHarvest bioreactors is able to naturally drive the cells to release exosomes that are enriched with these important metabolites. This critical combination is able to deliver superior yields, superior cargo quality, if you want to call it, really setting our technology, Botanical Synthesis Technology, apart from conventional plant or animal-derived systems and ultimately resulting in scalable, cost-efficient, and defensible advantage that opens a very powerful potential new revenue stream for our CDMO customers in cosmetic health and pharma, and also for us to leverage as part of our innovation pipeline in our direct-to-consumer business. We're going to zoom in a little bit into our bioreactors, and here we're seeing the plant cells. Our plant cells produce the plasmid resveratrol magnified at 100 together with quercetin, catechin, anthocyanins, and tannins. We talked about the communication network, the intercellular communication network between the plant cells being those critical exosomes. You can see the small exosomes, and we're trying to illustrate this in this picture, and this probably does the job for you. You can see those exosomes, and what you see here is a magnified representation of our exosomes. We have done the analysis, and it's amazing to see that we have a unique molecule called viniferin inside our exosomes, which we do not have inside the actual plant cell, which is ultimately driven by the plasmid resveratrol together with the catechin, quercetin, anthocyanins, and tannins. Communicating cell to cell via exosomes is this amazing viniferin that we now have been able to develop inside the factories. Inside each factory, 1,200 L bioreactor, we have our cells communicating with each other through these plant exosomes containing viniferin. Viniferin is a natural compound. It's a dimer of resveratrol, so it's actually a double resveratrol compound that bonds together. Now, what's important here, ladies and gentlemen, is the exosome size is very unique. It's 120 nm, which allows for optimal activity and absorption into the body and specifically the skin. This is why plant exosomes today are one of the hottest subjects amongst cosmetic companies, global cosmetic companies, as consumers demand more natural, high-efficacy solutions as it relates to topical solutions. These exosomes, the size of our exosomes, if you look clearly at them, they're very, very homogenous, which is very unique compared to the plant itself in nature, where the exosomes have little or no consistency. Today, I'm really proud to say that to our knowledge, there's no scalable source today of viniferin exosomes. There are viniferin that comes from the plants, but not this unique nanometer homogenous exosomes, which have this optimal activity and absorption. The potential of these benefits really lies in antioxidant, anti-inflammatory, even cardiovascular health, and obviously skin health, focusing on UV benefits, skin elasticity. We've even seen some evidence in the area of cognitive support. Ultimately, this allows us to deliver, whether it's within our portfolio as we look at opportunities to disrupt the $14 billion cosmetics industry in the U.S., leveraging the power of our own brands, whether it's an opportunity for B2B to major global companies, or importantly, as we look at this technology today, we see the opportunities within the CDMO. Now, let's double-click on this as well. If you look today at a company that we very much respect, this is Caudalie. It's a French company, global player, $400 million- $500 million in annual revenue. One of the key lines that drives their revenue is a line which they call Vinopure, which is their viniferin molecule. This viniferin comes from literally the stem of the grapevine. Importantly, how is it differentiated? It's differentiated given the unique particle size that we have and the improved activity of this particle size, specifically in the cosmetic world. I just shared this with you so you understand the magnitude and the opportunity that we have as it relates to how plant exosomes are being used across industry, which we're now able to capitalize on over the course of the next 18 - 24 months as we continue to scale our manufacturing and capacity to be able to really adequately address this opportunity. From a CDMO perspective, it's super exciting. Zaki and his team have done an amazing job really building a highly premium pipeline. What this does for us now, if you're a CDMO customer, as we look at opportunities and as it relates to the development, as we go from plant to final compounds, we can now do this not just with plant cells, but with our customer partners in the CDMO. They will also be able to, in many cases, deliver unique exosomes simultaneously. From a customer perspective, the value proposition is unique because as we look at our stage one to stage three process in our system, they're able to walk away from that with obviously unique secondary metabolites, unique molecules in the plant cell, and then ultimately also a unique or similar, depending on the nature of the plant, primary or secondary metabolite inside the actual exosome produced by the plant cells as part of their cellular communication to each other. I hope I've, in the last 15 minutes, adequately articulated the significance of this breakthrough of each of our many factories that today are producing hundreds of kilos of plant cells, each factory in an 18 - 21 day cycle. Sitting inside the 1,000+ L of media, we've been able to get those cells to produce those exosomes, those plant exosomes, which have significant value as it relates to the different use cases that I've articulated that we're very, very much looking forward to being able to capture as part of our additional value streams and revenue streams we bring for the company. Great. I'm now going to move to the second key area I want to talk to you about today, which is updating on our big bets related to our disruption of the hydration category, or importantly, what is a multi-billion dollar electrolyte beverage category. This is all anchored in our strategy that we've spoken about many times in the last 12, 18 months around our VINIA inside strategy, which is all anchored in superior science, superior taste, and superior efficacy, ultimately backing everything with our clinical trial regimen. We've been very successful so far in the coffee space. We've driven more than $3 million of revenue in coffee. We have the most premium coffee today on sale in K-cup compatible in the marketplace. We sell a lot of coffee every single day because consumers are looking for better-for-you health and wellness in all these critical delivery systems like coffee and like our tea, which is gaining also significant momentum in the market. I now want to talk about the next disruption, which is anchored in our delivery of superior hydration in an $18 billion market. It's important to understand the U.S. electrolyte drinks market. It's a monster of a market. $18 billion this year. It has a five-year CAGR, and literally 30% of this market is in powder, and the majority of that is in sticks. Literally, we're accessing with our channels, with our packaging, more than $6 billion of opportunity. When you look at the consumer, because we're a consumer-driven organization, ultimately, hydration is top of mind for all consumers as they think about their broader wellness priorities. Consumers understand they need to hydrate throughout the day, not just during exercise. 64% of global consumers in a recent survey recognize the significance of hydration for overall health. 87% of American consumers agree that getting enough hydration in the day, especially in the morning, sets the tone for the day. You start to see today so many people carrying around portable water bottles wherever they go. 46%, and literally one in four of those people are adding flavors and electrolytes. It's a monster market for us to access with the right disruptive proposition. Our breakthrough positioning, when you start to understand the market, and I'll just break this out for all of you, you have the market leader is Liquid I.V. It's a $1 billion business owned by Unilever, roughly 45 calories per stick. 68% of its contents is sugar. On the other hand, you have a new entrant that entered during COVID called LMNT, much higher sodium levels, so 80% salt, 1,000 mg, generating roughly, approximately based on our estimates, about $50 million per year. There's a significant opportunity for us to disrupt this market with a better blood flow, better hydration proposition, well-balanced taste, naturally sourced electrolytes, blood flow driven by our unique plasmid resveratrol and polyphenol matrix, and importantly, third-party certified and verified as it relates to specifically for athletes, as it relates to making sure that we pass all anti-doping laws because this is a critical market for us. Our breakthrough positioning is really coming into the category and saying, listen, it's not about flavor, it's not about price, it's not about electrolyte levels, it's not about how many electrolytes you have. My electrolytes are bigger than your electrolytes. It's really about developing the next generation electrolyte drink that goes beyond general water and electrolyte fluid intake. It's about hydration that's powered by our circulation, powered by our blood flow. At the end of the day, in order to have high-quality hydration, you've got to make sure that the fluids and the electrolytes are moving throughout all the body's tissues, cells, and organs. To do that, you need to have high-performing blood flow across our body's operating system. It's not about what goes in your body. It's making sure with VINIA blood flow hydration solution, we focus on where it goes by improving blood flow. Ultimately, better blood flow delivers the required oxygen, fluids, and electrolytes, and nutrients for organs, muscles, tissues, and cells right where hydration matters most. Importantly, we're leveraging the power of our clinically studied VINIA formulation in order to make sure that we're increasing arterial dilation. We're improving blood flow as a result of the increase in nitric oxide, which ultimately is helping to drive that improved delivery of fluid and nutrients to all the body tissue and cells. We've been very, very purposeful in everything we've done as it relates to this launch. Many of you understand that I worked in my previous life for 18 years for the Coca-Cola Company. One of the businesses I ran in the U.S. was the Powerade business. Powerade is the number two player in this marketplace. I have a high level of familiarity. This is very, very personal for me to make sure that this really is a launch that counts for the company in a major way. We've literally spent more than 1,000 hours developing great tasting formulas with really leveraging the power of probably one of the best, if not the best, product developers that I've worked with in my career, Louis Heinsz, who works for a company called Bev nology. He was previously the head of R&D for Coke in Europe, Middle East, and Far East Asia. Louis has partnered with us with developing this amazing formula, fantastic natural flavors. All of our electrolytes are sourced from nature. We use premium sodium from Irish sea salt, potassium from coconut water, and magnesium from the ocean bed. It's marine magnesium. I talked to you before about Informed Sports Certified, making sure we can provide the product to U.S. military, NBA, NCAA, MLS, and any other professional sporting body. Ultimately, we are able to deliver, because of this unique combination of our VINIA matrix plus an excellent matrix of naturally sourced electrolytes, we're delivering every single day as people continue to consume this regularly. The increased benefits of dilation of arteries for more blood flow, improved electrolytes transportation to muscles, organs, and cells, the outcome being improved physical energy and mental alertness, regulating body temperature under heat and stress, and promoting cellular toxin removal. I'm now going to show you very quickly what is really close to that 95% there, our final packaging graphics. You'll understand the detail and the focus that our own design team, ladies and gentlemen, this is all done internally by our own capabilities, amazing work by John, Yael, Yves, and the team really pulling together and Claire, some amazing work to deliver what we think is a real breakthrough graphics. This is our mixed berry. You can see clearly blood flow hydration. You've got all the communication on the specific electrolytes, the benefits, and you can see it's sensory. It's breakthrough. It's different to the category. This is fruit punch. This is orange. This is lemon lime. This is watermelon, my favorite. This is lemonade. I've got to tell you, the taste testing we've done, some of the analysts out there have tasted the product. Consumers, the product tastes amazing. We have done a fantastic job as it relates to the sweetness system, having a sweetness system where there's no aftertaste and delivering on 25 calories. Here are the sachets all lined up together. We also will be having a variety pack. This is the back of the pack where we tell our story. It's super exciting. Importantly, strategically, our blood flow hydration proposition addresses the needs of all of our priority consumer segments, starting with the super active professional athletes all the way through to those youngsters that have crazy jobs, working crazy hours, families. They're looking for that nitric oxide performance that VINIA delivers on and the endorsement and verification of Informed Sports. The super seekers that I belong to at the tender age of 51, we're looking for basically clinical proof around validation of the power of the product all the way through to appreciating that food is wellness. This is really the critical underpinning driver of the power of this formulation. Our super seniors, which are really important consumers, ultimately are looking for those blood flow benefits, and they need to be hydrated all through the day, just given the stage of their lives. They're looking for value. We're going to be delivering value with our pricing strategy, blood flow benefits, and the hydration benefits together. Lastly, as we look at this specific opportunity, you're going to start to see us breaking out a little bit as it relates to our channel strategy. We will continue with our primarily focusing on vinia.com, having Amazon as part of our business. It's a must-have, as we all know. You're going to start to see the Health Pros play a critical role as we build up 300, then to 500, then to 1,000 Health Pros. As we build up our team of highly skilled Health Pros, the hydration is going to play a critical role. Importantly, some of our Health Pros are going to be able to give us access. We already have started to sign partnership deals with what I call points of sweat. These are gyms. These are specific sporting associations where you have points of sweat. We have to be. We're starting to kind of move further into the retail world strategically at points of sweat as we look to scale this and make sure that our blood flow hydration proposition is there where the consumer needs us most. I'm now going to just spend quickly a few minutes just talking about a quick update on our Health Pros Affiliate system. I know there's a lot of Health Pros there listening, and it's exciting to see you join our team as we really look to scale the power of our VINIA portfolio as it relates to how do you VINIA. You can VINIA with capsules, coffee, tea, chews, and then coming soon, the hydration. By the way, the hydration launch timing, we're looking to get this into the market by November 15. A lot of work between now and then, but November 15 and making this a major part of our Black Friday program. Let's talk now about Health Pros. Ladies and gentlemen, we are building a movement, a movement of Health Pro affiliates that are going to bring the power of our technology and initially VINIA to literally hundreds of thousands, millions of consumers, specifically now with the power of the portfolio that we have and all of the benefits that are accrued to this portfolio. As we speak right now, we are recruiting our Health Pro affiliates. We're talking about doctors, nutritionists, physios, chiropractors, coaches, trainers, people that understand the basics from a physiological and scientific perspective, that can understand our science anchoring of our company and how we really move from science to consumer as we bring these powerful plant-driven compounds to consumers to improve their health and wellness. Literally an hour ago, I just got off a call with a major gym chain that's coming on board as part of our Health Pro Affiliate system. This is all really being pulled together by a critical partner of ours called Mark Macdonald. Mark Macdonald, he's a global expert in nutrition and fitness. He is a New York Times bestselling author, a wonderful leader, and has built literally a significant network of Health Pro partners, literally 60 countries, six continents leading the health movements. Mark is now partnering with us to bring the strength of his ecosystem into the BioHarvest franchise. We are working with our Health Pros now. Either they're coming on board as affiliates. In some cases, we will be bringing in strategic wholesale. We are working with them to train them. We are helping them understand all the elements of our business, understanding the whole VINIA blood flow movement of change. Anybody can go into our website. You can click at the bottom on VINIA Story. There is an amazing 10-minute video that we are using to help educate our Health Pros on understanding BioHarvest and this movement of change we are driving in the world and the power of VINIA to really help them understand the science, understand the company so they can convey this to their ecosystems. Each of these people have significant social media ecosystems of hundreds of thousands of engaged followers on Instagram, Facebook followers, YouTube followers that they are now going to be talking about VINIA with and coming on board and really being a highly technical, variable sales force that we can drive to extend VINIA into unique channels. Super, super exciting. The momentum is building. Between now and literally the next four weeks, we plan to bring on board 300 of these Health Pros who ultimately have a significant opportunity to earn a really good percentage of revenue that they have full transparency and visibility from because we have built the whole back end, which really becomes a significant source of competitive advantage, barriers. We spent the last four months building the whole end-to-end back end. We are able to really bring these people, train them up, and really allow them to unleash the potential of their significant engaged followers. Super exciting. We are starting to see the momentum build and looking forward to seeing the real outcomes of this specifically as we move into the fourth quarter. I hope that this has been a valuable half an hour that I have spent helping you understand new capabilities. It is a major new capability that we have built in our bioreactors, in our individual bioreactor factories, and also helps you understand the momentum and the detail that sits behind two of our three major big bets to really take the demand curve to the next level as we really focus on delivering the business on that targeted adjusted EBITDA profitability in the fourth quarter. I'm now going to stop, and I'm going to hand back over to the operator. We're going to open it up for Q&A. Thank you, everybody, for your attention. Thank you, sir. We'll now begin the question and answer session for telephone participants. If you have a question, please press the star followed by the one on your touchtone phones. If you would like to withdraw your questions, please press star followed by the two. Again, that is the star followed by the one if you have a question. If you are using speaker equipment, you will need to lift a handset before making your selection. I will now pause to assemble the question queue. Our first question today comes from Nick Sherwood from Maxim Group. Please go ahead with your question. Thank you for taking my questions. Can you kind of talk about with your current production technology, how quickly it can be maybe retrofitted for this exosome production? Is it going to require large new installations that would be in the new facility, or can the present technology be easily adapted to exosome production? Thank you. Thank you, Nick. I just wanted to say that we're also joined today by Zaki Rakib, our Chairman and the President of the CDMO, as part of the Q&A session. Zaki, you may want to take Nick's question first. Sure. Thanks, Ilan. I'd love to address this question. The exosomes are produced in the bioreactors themselves. In fact, as we speak, they are being produced while we're producing VINIA. We're not extracting them out of the liquid media. To answer your question, there will be additional equipment, but not really anything that doesn't exist today off the shelf that would be added into the factory floor or adjacent to the factory floor to extract the exosomes out of the medium. You can imagine a large bioreactor with a lot of liquid that would, once we harvest the cells, that liquid will go into a downstream process through which we'll be able to extract those exosomes. It is really not anything that would be considered unusual, complicated, or any of that. It's more of a straightforward type of a technology. Indeed, it's planned to be part of the factory that we started building as we speak. Our next question comes from Hunter Diamond from Diamond Equity. Please go ahead with your question. Hi, everyone. Very thorough call. My question relates to just what you see as the low-hanging fruit for exosomes. You went over very high level, a lot of great details. What size of companies? Obviously, cosmetics, you mentioned. Where do you see the near-term easy, low-hanging fruits? What do you see as the KPIs investors should be monitoring, like unit economics or elements of those? There are. You want to? You want me to take that? Go ahead, Ilan. Oh, OK. Thank you. We're not in the same room, so we can't look at each other. I'll take the first go at it. Thank you, Hunter. Firstly, as we sit with viniferin, and viniferin obviously being the exosome being produced by our VINIA red-grape cells, this gives us a significant opportunity to build out our innovation pipeline. We've talked in the past about our pipeline and disrupting the cosmetic industry. With VINIA at a plant cell level, we know that the plasmid resveratrol already today has significant benefits systemically and topically, and ultimately provides us significant product innovation. You then layer on the possibility of what it can do now that we have been able to get the bioreactors to produce the exosomes. The exosome is a totally separate phytonutrient, polyphenol. With the unique efficacy of exosomes, it allows significant premiumization for us as we look at that innovation and gives us significant new, call it swim lanes, to take our product innovation from an SKU management. As you know, in the direct-to-consumer world, when you look at cosmetics solutions, you're dealing with an 80% - 90% gross profit margin. It really is significant. I'm going to ask Zaki to, as heading up the CDMO, to talk about what that means from a CDMO perspective. Over to you, Zaki. Thank you, Ilan. Hunter, it means a lot. We have been tasked by several global cosmetic companies to look into exosomes. In fact, that question initiated several months ago. That was the reason why it started, actually, that research and the work that we've done on our bioreactors. When you look at the impact, many CDMO potential customers, not only for cosmetics, by the way, for pharma, there are applications for plant-based exosomes in other areas because of the size of this, call it this tiny biological courier, those tiny envelopes that carry cargo. That is very appealing to multiple industries. That actually has been very well received in the private discussions we've had so far with potential CDMO customers, not only limited to, as I said, the cosmetics industry. One other comment to be made is that we have tested not only on VINIA that we have been able to produce indeed exosomes into the media itself, but also on other products. This is not just a one-trick pony and one lucky case where we were able to produce viniferin inside the exosomes that are being secreted into the media. We have the same thing that is happening for olives, and we expect it to be the case for almost any new cell that we would be producing for our CDMO customers. This is an appealing proposition for the benefits, the extra benefits that any CDMO customer, and it sets us apart, you know, and improves the value proposition. Once again, I'm emphasizing this is not just limited to cosmetic application. The tiny size of those couriers really can deliver important cargo to human cells. It's not just the penetrability topically, but also systemically, it brings a lot of value. Yeah, I would just add to that, Hunter. You know, you'll see today that plant exosomes are being used largely, as Zaki said, in the cosmetics world. You are starting to see potential targeted opportunities in the drug world. What you haven't seen yet is in the nutraceutical world. Part of that is driven by the fact that there's no company out there that's able to produce these exosomes at scale with economic viability. We believe that in the future, this is an important opportunity for us to be accessing and something that we will be looking at very, very focused on from our strategic innovation roadmap perspective. Our systems and our technology, Botanical Synthesis Technology, as we've expressed, has the ability to produce those exosomes at scale with consistency, with economic viability, and allowing us to bring premium, highly efficacious supplements to the marketplace. I think that's something where we can really drive a significant disruption in the more traditional supplement nutraceutical business, whether that's for ourselves or on the CDMO side with many of the consumer goods companies that are coming out of the pharma companies, the spin-offs from the pharma companies. This also presents a significant opportunity for them, not just to develop new life-changing compounds from plants at a cellular level, but also now at an exosome level, or the combination of the two together, which really also will be very, very compelling from a consumer perspective. No, it makes perfect sense. I mean, it's definitely a very exciting development. Thank you for taking my questions. Our next question comes from Matt Hewitt from Craig- Hallum Capital Group. Please go ahead with your question. Good afternoon. Thanks for taking the question and congratulations on this new capability from your platform. Maybe first up, I think in the press release you noted 18 - 24 months you'd be in a position to help your cosmetic partners. Is it safe to assume that you could potentially sign a contract well before that, and you would be working with them during that 18 - 24 months? Should we expect that it would take 18 - 24 months before you're in a position to even sign that first contract? While you're going down the cosmetic path, could you also be in tandem working down the pharmaceutical path? As you look out over the next 18 - 24 months, you could actually have two, three, four partnerships signed up. Correct. You're right, Matt. The 18 - 24 months is really a commercialization execution factor. The opportunity, as Zaki expressed earlier, and I'm sure he'll talk more about it in a second, is really an opportunity now to be able to sign those deals, given the additional attractiveness of our technology as it relates to the value proposition that our CDMO brings to these customers that are in our pipeline. Over to you, Zaki. Thanks, Ilan. To answer your question, we're not limited. We could have a contract signed that has exosomes included as part of the development as early as next quarter. Now that we have the assurance that we've made the test, now that we know that we can produce exosomes at scale, we can advertise it. We can have those discussions with the various parties. We know for sure that not only on the cosmetic side, but there will be other potential customers for the CDMO. From an execution, like Ilan said, and in particular for viniferin, we as BioHarvest can have a product to the market that contains those exosomes in that time frame. As you know, our CDMO has a development phase followed by the manufacturing phase. By the time, let's say, if we start having a contract on development of a new compound that includes also exosomes, then we are within this two-year time frame before we start manufacturing, but really not limited to sign development contracts ASAP. We'll actually be starting that campaign of advertising to potential customers what the exosomes' capabilities may be. Just one quick comment and a little technical. We're looking at a vehicle that is about 100 - 1,000 x smaller than the cells themselves. The beauty here is that because of the size, not only of the ability to penetrate, but they are able to contain other elements. It's kind of the double dipping in many ways because plants, the beauty of them, contain a composition of multiple components. The beauty of plants compared to a single, let's say, synthesized chemically where you're looking at a single component. Now you can take advantage of multiple components. The case with the red grapes is a great example because you don't have viniferin in significant quantities in the cells in VINIA itself, but now you get them into the exosomes. The same thing is going to happen with multiple products. We offer now a much wider opportunity for the customers, the CDMO customers, to extract more benefits out of the plant that they have chosen to develop for whatever application that is. That really opens up a lot of opportunities. Once again, I would say it sets us apart. I can't think of any factory today that is able to do at scale with the consistency. Remember the same advantages we brought to the world using our Botanical Synthesis with the cells. We're bringing in the exosomes. Exosomes, same problem. You want them to be homogeneous. You want them to be the same size. You want to be able to produce them consistently. You want to have their purity. Everything that every advantage we brought to the world using our cellular technology, our Botanical Synthesis, is now being also conveyed and transferred to the exosome world. There is no factory today on the scale we talk about for plant-based exosomes. It doesn't exist. We are pioneering this. For me, I'm looking at it both from a scientific achievement, but also from a practical way of monetizing this achievement in the CDMO world. I am unequivocally very excited about this milestone. It brings a lot of pride to me and to the team that has been involved in optimizing the bioreactor design to secrete those exosomes. This is not by luck. This is not something that, oh, you know, I was lucky. I'm getting something. I'm getting a bonus. There's some gravy here. No. This is a direct result of the way our bioreactors are designed, the way we maintain the particular conditions that are optimized for this type of release of those nanoparticles. It is a significant milestone for the product division as well because it opens up a differentiated, a highly differentiated opportunity in cosmetics, particularly with the combination of VINIA. Think about a cream that can contain VINIA and exosomes that contain viniferin. It's a very powerful and highly differentiated product. Again, it opens up a lot of opportunities in the CDMO. That's super helpful. I guess maybe an extension of that, you spoke to it a little bit, but do you anticipate or have you already submitted applications for patents that would protect you and create a moat around your ability to scale up production of these exosomes? Thank you. The answer is yes. Those are provisional. The answer is there's more that can be done that we haven't disclosed. Of course, if you disclose something, you have to have the submission before. This is a public disclosure. For anything we said today, we have covered ourselves from a provisional application standpoint. There are more than what we've said today that we have to file for additional provisional patent applications so that we're well covered from an IP. Since you've touched that subject, we are a biotech entity, and we are also measured by the amount of IP and know-how. In this mix of IP and know-how, we are doing quite well, keeping some know-how that is not disclosed through even a patent, but also getting the appropriate protection from and being covered well by our patent, both the ones that have been already approved and several provisional that are related to this, may I say, invention. The big news is at scale, we didn't invent exosomes, right? We invented a way to produce consistently, reliably, economically plant-based exosomes. That's at scale. This is big news not just to BioHarvest or for BioHarvest. It's big news for the health and wellness industry, and it's big news for the cosmetics industry. That's great. Thank you very much. Our next question comes from Susan Anderson from Canaccord Genuity. Please go ahead with your question. Hi, good afternoon. Alec Legg on for Susan. Really exciting news on the exosome progress. I guess on the commercialization process of that, there's already a couple of beauty brands, including the example you gave, Caudalie, using exosomes within their products. How would the commercialization process look like for BioHarvest to, I guess, win new business? Would you potentially look to be the ingredient provider for Caudalie or other companies like Skinfix that already use it and swap it out? Or are you more so looking for new business opportunities for other beauty brands that might be looking to add exosomes into their portfolio? Yeah. I'll take it, Alec. Thank you for joining as well. Look, it's really, as I like to call it, three swim lanes. The one swim lane, and selfishly, we have a very, very powerful direct-to-consumer business. I salivated at the 90% gross profit margins that are there from a direct-to-consumer business in the cosmetic space. Ultimately, just given the power of the VINIA matrix coming in and bringing in viniferin, whether it's as a supplement or whether it's part of our cosmetic pipeline that we're building, this is something that obviously we have to give very, very significant consideration to. This is swim lane number one. Swim lane number two, ultimately, if there are companies out there, and as they understand the value proposition that we deliver, we would obviously be open-minded to look at the B2B opportunities and weigh that up, whether, in the case of the viniferin, it's something that we want to drive ourselves as part of our pipeline or whether it's something given the scale, potential scale of the opportunity. Importantly, in the case of viniferin, I just want to make sure that when you look at the viniferin that Caudalie uses, it's viniferin from the stem. OK? It's a very. It's not from exosomes. It's not viniferin. Caudalie does not sell viniferin in the form of exosomes. They don't. Obviously, there's a unique competitive advantage, as Zaki very, very clearly articulated, given the particle size, given its efficacy, bioavailability, that ultimately has a very strong value proposition out there in the marketplace. We would look, it could be one or the other. It could be both. The third swim lane, which is what Zaki articulated, is the opportunity that it gives us now to really be able to provide a very unique value proposition to not just cosmetic players in the CDMO, but also you're getting category fusion. There's so much fusion from supplements and cosmetics. Now specifically, as we also look at the opportunities in the pharma side, that given the opportunity for us now in those little bioreactors, in those little factories, large bioreactors, but little factories, that we're able to produce simultaneously the unique secondary metabolites or primary metabolites in a plant cell and in the unique carrier, [calder] carrier being the exosome, this gives us significant, I believe, compelling proposition to the industry as it relates to acquiring CDMO customer partners and given the strength of the value proposition we bring to the table. That's really helpful. Thank you. Our final question today comes from Robert LeBoyer from NOBLE Capital Markets. Please go ahead with your question. Thank you for taking the question. In the opening remarks, you mentioned the pipeline and briefly touched on drugs. I was wondering if there were any human therapeutic applications that you're working on or that you see potential for. Zaki, you wanted a question related to? No, I mean, is the question related to the exosomes or the CDMO? Oh, on the CDMO. Yes, actually, one of the applications, one of the early contracts is a pharmaceutical product that has been approved by the FDA. We're basically providing a different way of manufacturing it. That is indeed, that actually is the particular project that we've announced recently that we've moved from stage one to stage two, where we go from building the cell bank in solid media. Now we're into the liquid phase, and we've done that successfully. That was announced. In the pipeline, there are more than one opportunity that one would be considering in the pharmaceutical space, indeed. We are working on finalizing potentially those contracts with those particular companies. As soon as we sign, we announce. In many cases, we're limited with the announcements because those pharma companies or other biotech entities are very careful as they don't want to disrupt their existing supply chain, which is in some case, we are the replacement of this supply chain. Great. Thank you very much. At this time, this concludes our question and answer session and today's virtual webinar. Thank you for your participation. You may now disconnect your lines. Thank you, operator. I just want to close by thanking everybody for attending today's session. I hope it's been very informative for all of you in really understanding the power of Botanical Synthesis Technology platform, the breadth of capabilities that the company has built, which ultimately we believe will generate significant revenue for the business and profitability as we develop life-changing compounds on plants at the cellular level as well as the exosome level. As we've described in our big bets, the demonstration of the disruptive innovation we're bringing to multi-billion dollar categories, leveraging also the very strong commercial machine that we built as our right to market, now being amplified by our Health Pros Affiliate system. We have an exciting few months ahead of us as we head to that target of adjusted EBITDA profitability in the fourth quarter. Look forward to more deep conversations like this as you all take time to understand the company, our values, and our capabilities. Thank you, everybody. Have a great day. With that, we'll conclude today's conference call. We do thank you for joining. You may now disconnect your line.