Good morning, and welcome to the S&W Seed Company third quarter fiscal year 2023 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead. All right. Thank you for joining us today to discuss S&W Seed Company's third quarter fiscal year 2023 financial results for the quarter ended March 31, 2023. With us on the call representing the company today are Mark Wong, President and Chief Executive Officer, Betsy Horton, Chief Financial Officer, and Vanessa Baughman, the company's Interim Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question-and-answer session. Before we begin with prepared remarks, please note that statements made by the management team of S&W Seed Company during the course of this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act 1933 as amended, and Section 21E of the Securities Exchange Act 1934 as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies and are generally preceded by words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually, or projected. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors and other risks identified in the company's 10-K for the fiscal year ended June 30, 2022, and other filings subsequently made by the company with the Securities and Exchange Commission. In addition, to supplement S&W's financial results reported in accordance with U.S. generally accepted accounting principles or GAAP, S&W will be discussing adjusted operating expenses and adjusted EBITDA on this call. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measure and are not prepared under any comprehensive set of accounting rules or principles. A description of adjusted operating expenses and adjusted EBITDA and reconciliations of historical adjusted operating expense and adjusted EBITDA to net loss are included at the end of S&W's earnings release issued earlier today, which we have been posted on the investor relations page of S&W's website. An audio recording and webcast replay for today's conference call will also be available online and on the company's investor relations page. With that said, let me turn the call over to Mark Wong, Chief Executive Officer for S&W Seed Company. Mark? Thank you, Robert. Good morning to all of you. At a high level, we continue to execute against our goals of operational improvements across our organization and execute against key centers of value we have identified during the past year, including our proprietary Double Team trait solution in sorghum, the exciting announcement of our partnership agreement with Shell, which we signed in February for the purpose of developing novel plant genetics and supply chain in biofuels, green diesel, and jet fuel production, and our international alfalfa and forage operations, which we'll all have likely seen in the press release which we issued this morning, looking to unlock unrecognized value and maximize shareholder value. I will hit on each of these in more detail. Operationally, we continue to see a significant increase in our gross margins as they improved to 25.1% during the third quarter compared to 11.7% in the year-ago quarter, an improvement of 1,340 basis points. Year-to-date, gross margins are 23.2% compared to 14.6%. This gross margin improvement has led to a $4.2 million year-to-date improvement in our gross profits. This improvement is being driven in part by growth in our higher margin Double Team Sorghum Solution, but also strategic actions we are now taking to better control our costs and hold the line on pricing for our forage products, particularly in MENA. I will come back to this last point in a moment as it pertains to our guidance. We also continue to meet our goals of realigning the cost structure of the organization with a year-to-date reduction of $3.7 million in adjusted OpEx. Expectation that we will hit our annual goal of $5 million in annual operating expense reduction. Betsy will run through the full details in a moment in her section. We have also significantly improved our balance sheet through this Shell transaction with the infusion of cash, relief of debt, and the equity interest in the go-forward partnership, VBO. All told, our shareholders' equity increased by $33.7 million or $0.79 per share compared to the most recent quarter. Please remember that with this partnership, S&W received $7 million in upfront dollars and is scheduled to receive another $6 million in cash at the end of one year. We also had the remaining portion of our mortgage on the Nampa facility paid off totaling $7 million. Altogether, a $20 million payment. Remember, Shell is also contributing an additional $25 million to the operations of the partnership. We do not expect any incremental cash contributions from S&W to be required in the near future. We also finalized the partnership with Trigall Genetics to develop and market high-performing wheat varieties for the Australian market. Leveraging our existing commercial and breeding footprint with Florimond Desprez wheat germplasm base and Bioceres Crop Solutions' HB4 gene for drought tolerance. S&W received a $2 million upfront payment as part of this transaction, with another $1 million due at the end of the one-year anniversary of closing. These transactions, which infuse cash into the business, coupled with the operational progress being made, were huge factors in extending our U.S. credit facility as well, with the agreement now going out to August 31, 2024. As you likely saw, MSP, our largest shareholder, continues to show their support for S&W by extending the maturity and, excuse me, increasing the face value of their standby letter of credit to back our CIBC facility. We greatly appreciate the commitment from MSP and CIBC as we continue to execute our initiatives to drive value in S&W. Certainly, we feel that a ton of progress has been made in proprietary products and in adding liquidity to S&W. However, this is agriculture, and there is always challenges, most of which are largely outside of our control. Internationally, export sales have been negatively impacted by the recent war in Sudan. We certainly have orders for the Sudan, set for shipment in Q4 that we need to rework for, new markets need to be found. In Saudi Arabia, unregistered, lower priced and lower quality European produced seed is currently being dumped into the country, which has created a short-term imbalance in supply and demand. Despite this, our sales team believes inventory levels will normalize following the quick flushing out of the seed and are making strategic decisions not to discount our high-value seed to compete with this low-quality product. As a result of the Sudan geopolitical conflict, this short-term Saudi impact, we now believe that there will be about a $10 million reduction in alfalfa orders that will move from first half... that will move to the first half of fiscal year 2024. As I mentioned last quarter, due to the wet La Niña spring in Australia, our overall flooding in eastern Australia, sales within Australia have been slow and most of our completed sales have been in relatively lower value products. With little incentives to replant farms with higher value pasture blends, farmers chose quickly growing forage cereal-based options instead. The positive side of this is that it has allowed us to clear out the entire carryover forage cereal stocks we had in inventory. Other good news is that La Niña has been declared finished by the Bureau of Meteorology. A return to a normal dry weather pattern is expected to return, which is conducive to replanting farms on a regular basis. Unfortunately, due to the wet weather conditions, we are expecting an impact to our revenue of approximately $5 million in our domestic Australian operations in fiscal 2023 from our original expectations. In the U.S., we are being impacted by drought conditions and cold temperatures, which are slowing plantings in the Western corn belt in the United States. Many of you likely saw the devastating dust storms in places like Illinois, caused by dried out soil following wet well below normal precipitation. As a result of these delayed plantings, we will see some movement, excuse me, of our fiscal 2023 sales into next year. These delayed plantings, coupled with genetic or generally weak domestic dormant alfalfa market, is impacting us as well. Combined, we could see an impact of up to $8 million in the U.S. Given all the positive momentum we had achieved in the first half of the year, it is certainly frustrating to have these largely geopolitical and weather-related issues impacting us so severely during the important spring planting season. This is certainly not isolated to S&W. We believe less than 10% of the intended corn acres for this year have been planted in the key markets of Nebraska, Kansas and Colorado. Fertilizer companies are also seeing some of the same impacts on their sales. Transitioning to Double Team, one of our key centers of value. Demand for Double Team continues to be strong with tremendous farmer feedback. Double Team revenues during the third quarter was $3.8 million. The largest grain sorghum state in the U.S., Kansas, is anticipated to end the fiscal year at 3x of Double Team sales as compared to the previous fiscal year. Importantly, we are maintaining conventional sales of grain sorghum in Kansas at the same time, meaning all market share gain in Kansas is the result of Double Team traits without cannibonelization. We currently have 6 private label companies accounting for 1/3 of total Double Team sales, including one of the largest ag retails, Nutrien, under their Dyna-Gro brand. We are also successfully piloting Double Team forage sorghum this spring with key influencers, universities and third parties in advance of a full launch plan in year 2024. A lot of positive developments on Double Team. As you may know, we have three primary varieties of Double Team that we sell for different regions in the U.S.. Each variety of hybrid is designed for a different geographic region, and we already talked about some of the weather-related delays to planting. At the moment, we are basically sold out of one of these three primary hybrids. We will have to see how this plays itself out with our remaining inventory, but the coming weeks could be tight. Even if we don't get it shipped this year, the germination remains strong and we should be able to use the excess inventory to sell next year. Clearly, this is one of the challenges with having our fiscal year and smack dab in the middle of the busiest selling season with shipments oftentimes moving one week on either side of June 30th. Betsy will bridge our original expectations to what we now see with 50 days remaining the fiscal year. Despite the delayed shipments to Saudi and Sudan, due to the tremendous operational progress we have made in every aspects of our business, we are seeing less impact in our expected adjusted EBITDA guidance for this year. This is a strong testament to the work everyone has put to drive efficiencies across the organization and put in place the processes and procedures that allow us to make better decisions, especially on pricing and overall production costs. We feel we are much better positioned going forward with expectations for a positive operational trends to continue as we look forward to a strong year in fiscal 2024. Let me just make a couple comments on the progress we've made with VBO on this call. First, those that may have missed it, let me quickly summarize the opportunity. S&W has contributed our expertise in seed genetics, technology, production and processing to VBO, including our seed processing and research facilities in Nampa, Idaho. S&W has also contributed our camelina germplasm and key personnel in management, research, and production have also agreed to move from S&W to VBO. Camelina is regarded as a scalable and commercially viable oilseed crop with the potential to be a sustainable feedstock source for the energy transition to greener transportation fuels. Camelina also is recognized as a low greenhouse gas cover crop around the world. Biofuels such as these made from camelina oil are expected to be an effective way to help decarbonize customers in hard-to-abate sectors where energy density is, in fuels is key, including the aviation, marine, and heavy-duty road equipment sectors. While we are still not ready to provide specific long-term guidance, what I can share is that VBO was originally targeted to plant 5,000 acres in the first year, and we have already surpassed this goal with 7,000 acres currently in the ground. Great progress has been made on that front, and we remind everybody that this partnership works with an offtake agreement, meaning that Shell buys all of the grain that VBO produces. It is potentially a much simpler and lower-risk business model than our traditional seed business. We expect less volatility and more consistent growth than we've historically seen in our seed revenue. As we have talked about over the past year or so, we are all about creating centers of value. This agreement now creates a potential for high-value opportunities for S&W. As part of our review of our business last May, we are looking to maximize value for shareholders through our business units, whether it be in the U.S., international, camelina or stevia. Australia is a large and important agricultural market and plays an integral role in the global food supply chain. It has a vibrant public and private equity agricultural investment community, as well as several mid-sized agricultural companies. Having been approached by various parties in the past, we believe it is now prudent for us to begin a formal operational review to evaluate potential strategic opportunities. As part of the process, we have identified a number of potential strategic opportunities that we are continuing to evaluate that may include a merger, a reverse merger, other business combinations, licensing or other strategic transactions such as an IPO or Australian public listing at the right time. Obviously, there can be no assurances that the operational review will result in any strategic alternatives or any assurance as to outcome or timing. We expect to complete the process in the second half of the calendar year and do not intend to disclose developments related to the process unless and until we execute a definitive agreement or our board otherwise determines that future disclosures, disclosure is appropriate or required. Before I turn it over to Betsy to walk through the financials, as I am sure all of you know, Betsy will be transitioning from her CFO role to that of a member of the S&W Board of Directors. Betsy has done an incredible job leading the financial team at S&W and has provided valuable guidance and insight to the entire organization since she has joined. I am extremely excited that we will not be saying goodbye to Betsy and will continue to be able to lean on her counsel going forward. Equally exciting is that we have brought on Vanessa Baughman to take over as Interim Chief Financial Officer. Vanessa is a highly accomplished agricultural CFO with experience at two of the largest seed companies in the world, Monsanto and AgReliant Genetics. I have asked Vanessa to join us on the call and introduce herself. Vanessa? Thank you, Mark, and hello to everyone on the call today. As Mark mentioned, my background is in agriculture, most recently serving as CFO of AgReliant Genetics, the largest North American company focused solely on seed. Before that, I held numerous finance roles supporting various business segments at Monsanto Company. I share Mark's enthusiasm for the future of S&W and the progress that is being made. I'm keenly aware of the nuances of running an agricultural seed company and the need to focus on long-term value creation. I've spent the past few weeks side by side with Betsy and the finance team, both in the U.S. and Australia, having hit the ground running. I look forward to more proactively speaking with all of you in the future. Mark, let me turn it back over to you. Thank you, Vanessa. The financial operations of S&W are certainly in great hands. With all that, being said, Betsy, can you please run through the numbers, and then I will come back with some closing remarks. Betsy, please. Thanks, Mark. Good morning to everyone on the call today. Let me also first add how appreciative I am of the nominating and governance committee's recommendation to have me join the board of S&W. As Mark has discussed, we've made tremendous progress over the past year, and I look forward to working with the team to build upon the momentum into the future. Okay, let's start on the revenue line. Revenue was $17.7 million for the quarter, a decrease of 23.8% compared to $23.2 million in the prior year's third quarter. The $5.5 million decrease in revenue was primarily due to a $3.9 million decrease in product revenue from alfalfa sales to MENA and the U.S., as well as European, Asian, and South African regions. A $2 million decrease in pastures and forage sales in Australia, a $1.1 million de. rease in traditional sorghum sales to the U.S.. T his was offset by a million and a half increase in Double Team Sorghum sales in the U.S. Mark discussed the various items already, but to reiterate, the decreases almost all pertain to weather or geopolitical events, whether it be the heavy rains in Australia, the drought in the U.S., or the unrest in Sudan. Due to these items, we believe it is prudent to revise our revenue expectations for the year. We currently expect revenue to be in the range of $65 million-$75 million for fiscal 2023, with about $10 million shifting from Q4 into the first half of the next fiscal year due to the items discussed in Sudan and in Saudi Arabia as we hold pricing. Let me first bridge the change in our guidance, starting with our U.S. sorghum operations. Our original expectations for fiscal 2023 were revenue of $22 million-$25 million. Our revised guidance for U.S. sorghum is $17 million-$21 million, with approximately $8 million-$10 million coming from Double Team. As Mark mentioned, we are completely sold out of one of the three Double Team varieties, expect the other varieties to potentially be impacted by the delayed planting taking place in Kansas, Nebraska, and Colorado. We are committed to maintaining our price and margin on this premium product, so where we are choosing lower revenue versus resorting to deep discounts to drive sales for fiscal year 2023. For our international forage and alfalfa operations, our original expectations were for revenue of $47 million-$56 million. Due to the rains in Australia, the unrest in Sudan, and the dumping of unregistered and lower priced seed in Saudi Arabia, we are now expecting revenue of $40 million-$45 million. We anticipate the seed to Saudi Arabia to ship instead in fiscal 2024, when we also expect to sell the seed originally planned for Sudan. Combined, this amounts to about $10 million shifting to the first half of next fiscal year. Finally, in our U.S. forage and alfalfa operations, we originally expected revenue of $11 million. We are now expecting revenue of $8 million-$9 million as the dormant alfalfa market continues to be soft. Turning to margins, GAAP gross margins were 25.1% in the third quarter of fiscal 2023, compared to 11.7% in the prior year's third quarter. This significant improvement was primarily driven by the increased sales of the company's higher-margin Double Team sorghum solution in North America, reduced sales of lower-margin dormant alfalfa sales in the U.S., and lower inventory write-downs in fiscal 2023. Inventory write-downs during the three months ended March 31st decreased to $0.4 million from $1.1 million in the previous year quarter when we first established our inventory reserve policy. As Mark mentioned, we have made tremendous progress controlling our costs and putting in place processes and procedures to more accurately align our production costs with sales pricing. That strategic decision in Saudi Arabia to not compete on price, while it may have short-term impact, is definitely expected to benefit us in the long run. Now we'll transition to operating expenses. Our GAAP operating expenses for Q3 2023 were $8.3 million, compared to the $8.9 million in the prior year's third quarter, a decrease of $0.6 million. The decrease in OpEx is entirely due to decreased R&D as we focus on aligning our cost structure to support our key centers of value. Importantly, we remain on track to hit our $5 million stated goal in reducing our annual adjusted operating expenses. Last quarter, I mentioned that with the creation of Trigall and VBO partnerships, we would be playing an administrative role for both new ventures, handling things such as finance and accounting, HR, and IT under service level agreement. We expected we would have expenses that we would incur within our operating expense line, but then be reimbursed by the partnership's other income line. After consultation with our auditors, it was determined that these items would be service revenue and an offsetting cost of goods sold, which makes the visibility into our operating expense reduction initiatives more easily visible. During the third quarter, we had approximately $130,000 of service revenue pertaining to our partnerships. We are introducing the concept of adjusted operating expenses to allow us to effectively compare on a year-over-year basis by removing the one-time expenses related to our two partnership transactions. As noted in the earnings release, we define adjusted operating expenses as GAAP operating expenses adjusted to exclude depreciation and a mortization, disposal of property, plant, and equipment loss or gain, and one-time expenses related to our 2 partnership transactions. With the clarification for the year, we are maintaining our guidance that adjusted operating expenses, including stock-based comp of about $2 million, will be maintained at our previous guidance of $27 million. This is a $5 million reduction from fiscal 2022 and a key step to right sizing our spend on our journey toward profitability. To EBITDA. At the adjusted EBITDA line, we had a negative adjusted EBITDA of $0.4 million for the third quarter compared to negative adjusted EBITDA of $4.5 million in the prior year's third quarter, an improvement of $4.1 million. This improvement layers on to the $4.4 million improvement to the adjusted EBITDA that we saw in the first half of the fiscal year for a cumulative year-to-date improvement of $8.4 million. Given the change in our revenue guidance, we do expect adjusted EBITDA to be below guidance, but a smaller impact than you see with revenues due to our effective strategies on both pricing and costs. Our original expectations for adjusted EBITDA was a negative $2 million to a negative $7 million for fiscal 2023. Our revised guidance is negative $8 million to negative $12 million. This all compares to a negative adjusted EBITDA of $24 million for fiscal 2022. All in all, we still believe we are on track to have a tremendous year of progress. Let's walk through the various buckets we had for improvements. Originally, we expected a $4 million-$5 million improvement to our lower of cost or market, or LCM, charges. We now expect a $3 million-$4 million improvement. We continue to monitor our potential carryover of inventory through the fiscal year-end, when we will make the appropriate adjustments to LCM at that time. Next, we believed we would see a $5 million improvement from our cuts to annual operating expenses. We remain on track to achieve this goal. Next, we believe that we would see a $6 million-$7 million improvement in incremental gross profit due to our U.S. sorghum operations. We now believe we'll see an improvement of $4 million-$7 million. Finally, we estimated we would see $2 million-$5 million in incremental gross profit from our international forage operations. Due to the combined impact from Australia, Sudan, and Saudi Arabia, our forecast shows we will be flat to up $1 million in this area. While not what we originally expected, we still see gross margin improvement in each of the key areas of focus. If we ship the $10 million shift in the first half of that fiscal year 2024 as we plan, we would be well on our way to achieving our goals. A couple of other quick items before I turn it back to Mark. As Mark mentioned, we've made tremendous progress improving our balance sheet and expanding our banking relationships. The execution of our agreement with Shell, coupled with the support from our lead shareholder, MFP, and our banking partners in the U.S., CIBC, and in Australia with NAB, puts S&W in a much stronger position today than we were a year ago. I am proud of the progress that's been made, and while various factors that are largely outside of our control are having some impact, I feel that factors that we have within our control were successfully executed on this year to date, including our expense reduction plans, inventory management initiatives, gross margin expansion, execution of the two partnerships, new bank facilities, and the launch of Double Team. On a personal note, I have thoroughly enjoyed my interactions with those of you on this call, and I look forward to continuing to support S&W as a member of the board. With that, I will turn the call back over to Mark. Thank you, Betsy. As you just mentioned, great progress has been made with the outlook remains positive. On a whole, I want investors to understand that we are keenly focused on creating value for shareholders through our key centers of value. The execution of our Double Team launch and creation of our partnership with Shell for camelina are two significant developments this year. Our announcement this morning surrounding our international forage highlights our commitment to reviewing all potential value-enhancing opportunities. As always, we thank you for your continued support of S&W and look forward to taking your questions. Operator? We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble the roster. Our first question will come from Ben Klieve of Lake Street. Please go ahead. All right. Thanks for taking my questions. plenty to discuss here. I'd like to focus first on the kind of strategic announcement around your international operations. A couple of questions, but first I want to ask a clarifying question. When you discuss this operation, is this entirely represented by, Betsy, the business that you described as international forage that is, you know, $40 million-$45 million this fiscal year, or does that include business elsewhere? Yeah. Ben- Betsy, I think- Hi. Yeah. I can take this. Yep. Yes, it is completely international forage. That includes our business in Australia as well as all of our international forage to the Middle East and other areas across the globe. Okay. Very helpful. Thank you. A couple of questions on kind of this strategy. You know, in assessing the potential value here to, you know, another party, can you help us understand as a standalone entity, any kind of profitability metrics around this business? Betsy, you want me to take that or you? If you want. Otherwise, I can chime in. Yeah, go ahead. Okay. For that that business, I would say that that is a, if you remember our centers of value presentation that we, that we gave last year at this time, it's the one that is, you know, less volatile, more, slower growing, but, you know, moving toward profitability we very, you know, quickly. It has a lower margin business, but less volatility in the ups and downs. That's where we, you know, have all of our shipments to the Middle East for alfalfa and the Australia domestic, pasture businesses is within that. Got it. Thank you. Then, one last question on this initiative. You know, Mark, you talked about the kind of level of inbound that you've had on this, you know, on this business for some time and, you know, how kind of robust the potential pipeline is. Can you dig into that a little bit more? I mean, what gives you confidence that the Australian market, either from, you know, M&A or the public market, would be willing to give you guys a more fair value for this business than you're seeing today? Is there any kind of metrics you can provide or any kind of benchmarks that can really point to the magnitude of the value potential from this business in the Australian market? Yeah. I mean, we don't have a final number target in mind. We're just going through a process to ask the market to tell us what the value is. You know, we think, as Betsy said, that it's a business that is going to be profitable here next year, and especially with the $10 million in sales that would normally have been in this year except for the war in Sudan and these problems in Saudi. You know, we just want to see what the value looks like, right? I mean, we have a problem. You know, we've made huge progress on lots of fronts in our forage margins, in our international business. Again, Betsy has given detail on Australia and how the weather patterns there, basically precluded the farmers from planting our high-value forage mixes, and instead, they planted cheaper materials, basically because, you know, it rained, and they didn't need to replant. The pastures grew back without new reseeding. So, you know, this general theme of sort of, the market's undervaluation of our assets, including, you know, our fast-growing, high-margin, trait business in sorghum. We have two traits there. We're going to be stacking them and also selling them singly in grain sorghum and forage sorghums. Then our, you know, obviously our deal with Shell, where we're pointing out that, you know, we're moving towards millions of acres of camelina. You know, we just feel like the market doesn't really want to look at our individual pieces of our business that we're building and gives us, you know, really a very, very low value for those. I mean, $54 million market cap, I believe is low. We're going through the process just to see if we can unlock things that maybe we've missed that the market would value in each of our three businesses. First, we're gonna look at Australia and sort of see what the opportunities are there. Got it. Last question, I'll go back in the line, kind of builds off of what you're talking about here on the, from a valuation perspective. I appreciated the VBO side that you pointed out the potential range between $7 million and $12 million for your follow-on, you know, 6% stake. Can you talk about the conditions within those ranges that would determine, you know, payment of $7 million versus $12 million? I mean, how, you know, what needs to happen to hit one side of that range versus the other? Yeah. You know, the original deal that Shell and we negotiated had us eventually, if our targets for performance were achieved, you know, being 50-50% partners. Our 50% is the current, you know, 34% that we own currently, plus two additional pieces. One is the right just to buy at a predetermined price, about 6% or 7% back. That relates to the mortgage that was paid by Shell, paid off by Shell on our plant that we contributed to the JV. The other is just performance metrics. We don't have to buy back the equity. We are granted the equity based on performance, and that performance is directly related to the number of acres that we put in the market. We're doing very well, as I said, in our first year with acres significantly above our target. We would expect that over the next 3 or 4 years where those incentives are available to us, that we would increase our ownership back up sort of to the low 40s, mid-40s percentage-wise, and that the JV would be very successful in terms of planting acres. This very simple process where all of those acres, all of the grain that comes off those acres, because the diesel and jet fuel markets are so big, you know, Shell will purchase that. You know, it's a much simpler business model than our seed businesses, where we have to have branding, have field demonstrations for farmers, show the performance of our traits and our hybrids in terms of yield per acre and the herbicide resistance. All of those steps are simplified in that Shell is our customer, and Shell buys the grain at a predetermined price based on the soybean futures price. You know, it's a very simple model for us and for Shell, and it gets Shell a source of vegetable oils that then they convert to green diesel and jet fuel. Very good. All right. Well. Yeah. Yeah, that was very helpful. Thank you, Mark. Appreciate you guys taking my questions. I'll get back in line. Thanks, Ben. Once again, if you would like to ask a question, please press star, then one. Our next question will come from Gerry Sweeney of Roth Capital. Please go ahead. Good morning, Mark and Betsy. Thanks for taking my call. Morning. I apologize. I was jumping on and off. If any of this was already asked or mentioned, I apologize. Just want to talk a little bit about the DT sorghum on a couple different fronts. Sounds like plantings are going slow in certain regions, so as you said, one of the varieties is sold out. The other two looks like it could be a little bit tight. Just want to get some clarity. This could be pushed into 2024 or meaning, or will they actually get pushed to next season if that seed does not get planted? I think there's a couple questions embedded there, Gerry. You know, most of the seed is gonna be sold in this year. Okay. You know, the season might have some rollover into July, but, you know, the majority of our seed sales for DT that we currently are projecting and are coming out of inventory that we're holding, those will be in this fiscal year. The problem is in the big states for us, which are Kansas is the biggest grain sorghum state actually in the U.S. Some people think it's Texas, but I think Kansas is a little bit bigger. Texas is also a big state. Texas is pretty far in its planting of sorghum and corn. Kansas is not, Colorado is not, and Nebraska is not. That's really two reasons. Farmers haven't seen a lot of moisture in the Western Corn Belt states that I just mentioned. Most of that moisture, if people are following, has fallen in the Sierras. you know, those huge rains and floods in Florida, excuse me, in California, are the rain that the Western Corn Belt would have in a more normal weather pattern gotten. It's been very cold. I don't think people realize how cold it's been. Soil temperatures are very cold. You can't really plant sorghum yet because it won't germinate, and you're afraid if you leave it in the ground too long, you know, it will be attacked by diseases and insects and things in the ground. you know, so farmers just aren't willing to plant yet. you know, that's coming. you know, there's 10 weeks left in the year or something like that. You know, we're optimistic that sales are starting to build again. You know, we're just pushing as hard as we can, trying to make every bag of sales because we want farmers to get the benefit of having this herbicide resistance, and especially sorghum that's non-irrigated. We're pushing hard and, you know, we're optimistic that the DT number will still be a strong number this year, even though it's been a bit slower season than we expected. Got it. you know, Have you communicated your projections for next year? you know, that all taken into what you just said, taken into consideration. Yeah. I mean, we haven't. If you have extra capacity, it's been an issue, right? Does this carry over and, you know, next year could just be a stronger year? Yeah. We haven't yet. I mean, there are... We believe that there will be continued strong growth, right? Right now you have DT in grain sorghum. That's about six-seven million acres in the U.S. grain sorghum is. You will be introducing DT in forage sorghum. That's another six-eight million potential market acres. We have DF, which is our dhurrin-free second trait that we licensed from Purdue on a worldwide basis. We have exclusive worldwide license, and that will be going into grain sorghum and forage sorghum in the next couple of years. That product is going to be important in Australia because it is a forage market, so we're working hard to get the gene into Australia, true up our hybrids there so that we can begin sales. You know, worldwide, we're now starting our licensing effort now that people have seen how the product performs. We're talking to seed companies in Australia, in Asia and in South America about being licensees of the trade package that we're, we'll be offering. You know, the sorghum business is only at the beginning of its growth We just are in the process of looking at five-year projections for the growth and we see a big growth pattern in the next five years for those two traits in both grain sorghum and forage sorghum. Got it. Switching gears. This is. Oh, yeah, sorry. Go ahead. This year and next year will be another strong year for DT, and then we'll start to see some DT in forage sorghums. Strong year for DT in grain sorghums, and we'll start to see our first sales in forage sorghum. You know, we're only at the beginning of a big market push and, you know, the trait's still performing really well. There are some technical issues with how you put a trait in a hybrid that I won't get into that, you know, all seed companies have gone through. Monsanto went through it when I was on their board in the 2000-ish sort of years when Roundup Ready was first being put into corn. You know, the farmers in distribution understand these issues because they've seen them before in other crops. You know, it's not a straight line in agriculture, but our trade is definitely building strongly, you know, and yeah, we're gonna have significant sales of DT, like I say, in both grain and forage sorghum and then DF in both grain and forage sorghum also. Got it. I have a couple more, but I'll follow up offline. I appreciate it. Thank you. Yeah, sure. Yep, our pleasure. This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Thank you everyone for being on the call today, and thank you for our employees for the great progress this year. We continue to build our main three centers of value as we have discussed our forage business in Australia and internationally, our traded sorghum business in the U.S. right now, but spreading to Australia and South America, and of course our big opportunity deal with Shell. We just think that growing camelina as a second crop, harvesting those oils, and then having Shell convert them to green diesel and jet fuel is going to be a marvelous market for us, we're very, very excited about that. Thanks everyone for the call today. Bye-bye now. The conference has now concluded. Thank you for attending today's presentation. 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