Moolec Science Presents Third Quarter Fiscal Year 2024 Business Update

Rhea-AI Summary

Moolec Science (NASDAQ:MLEC) has released its business update for the third quarter of Fiscal Year 2024, ending March 31, 2024. Key highlights include the USDA-APHIS regulatory approval of their patented soybean product, Piggy Sooy™, and progress in the GLASO™ safflower platform. Financially, normalized revenues and other income increased by approximately $1.3 million year-over-year due to the consolidation of the soy-protein ingredient business. However, R&D, administrative, and other expenses rose to $2.3 million, a 68% year-over-year increase, largely due to non-cash items. Operational cash utilization for the quarter was around $2.6 million, with $1.4 million allocated to reducing accounts payable. CEO Gastón Paladini and CFO José López Lecube expressed optimism about the company's achievements and future prospects.

Positive

• USDA-APHIS regulatory approval received for Piggy Sooy™ soybean product.
• Progress in GLASO™ safflower platform, with two new US patents extending technology protection until 2041.
• Normalized revenues and other income increased by ~$1.3 million YoY.
• Successful consolidation of soy-protein ingredient business.
• Operational cash utilization includes an investment of $1.4 million to lower accounts payable, improving financial health.

Negative

• R&D, administrative, and other expenses increased by 68% YoY to $2.3 million.
• Operational cash utilization for the quarter was high at ~$2.6 million.

Tech Expert

Molecular Farming technology is an innovative method that uses plants to produce animal proteins. This breakthrough allows Moolec Science to address both sustainability and nutritional needs. The recent USDA-APHIS Regulatory Status Review approval for their Piggy Sooy™ product is a significant milestone. This approval indicates that the product has met all regulatory requirements for safety and efficacy, which is important for market entry and consumer trust. Additionally, the extended patent protection for chymosin production in safflower seeds until 2041 ensures Moolec's exclusive right to commercialize this technology, which fortifies their competitive edge. Investors should note that regulatory approvals and robust IP (Intellectual Property) protections are pivotal in the biotech sector, as they reduce market entry barriers and protect future revenue streams.

Financial Analyst

Moolec Science's financial update reveals a mixed bag. The $1.3M increase in normalized revenues year-over-year highlights growth, primarily driven by the consolidation of their soy-protein ingredient business. However, an increase in R&D, Admin and other expenses by 68% year-over-year, totaling $2.3M, raises concerns. These increased expenses are attributed mainly to non-cash items, which could include stock-based compensation or depreciation. It's important for investors to look at operational cash flows to assess the company's financial health. The $2.6M operational cash utilization this quarter, with $1.4M allocated to lower accounts payable, indicates active cash management, but it also reflects substantial cash burn. Long-term sustainability will depend on whether revenue growth can outpace expense growth. This financial update should be viewed cautiously, balancing the positive revenue trends with the higher operational costs.

Market Research Analyst

The food technology market is evolving rapidly, driven by innovations such as Moolec's Molecular Farming. The approval of their Piggy Sooy™ product and the progress of GLASO™ commercial production are noteworthy milestones. These advancements position Moolec well in a competitive landscape where sustainability and alternative proteins are gaining traction. The granted patents and regulatory approvals provide a strong market entry point and add value to the company's portfolio. However, competition from traditional and other alternative protein sources remains a challenge. Investors should monitor how Moolec navigates market adoption and consumer acceptance. The company's ability to scale production and maintain quality will be essential for capturing significant market share in the long term.

LUXEMBOURG / ACCESSWIRE / May 30, 2024 / Moolec Science SA (NASDAQ:MLEC) a science-based food ingredient company focused on producing animal proteins in plants through Molecular Farming technology, announced today its Business Update for the third quarter of Fiscal Year 2024 ended March 31, 2024.

Moolec Science Logo

The main highlights of Moolec's business update are as follows:

• Piggy Sooy™ Product | Soybean Platform: Moolec's patented soybean product received USDA-APHIS Regulatory Status Review approval in April 2024.
• Safflower Platform: GLASO™ planting campaign progressing as expected. Two US Patents granted for production of chymosin in safflower seeds (SPC2) extended exclusive technology protection until 2041.
• Financial highlight: Normalized revenues and other income (Ex-IAS 29) up ~$1.3M YoY given consolidation of soy-protein ingredient business. R&D, Admin and other expenses of $2.3M increased 68% YoY mainly due to non-cash items. Operational cash utilization this quarter of ~$2.6M includes ~$1.4M allocated to lower accounts payable.

"These past few months mark a significant milestone in Moolec's journey, showcasing our relentless pursuit to deliver results. Our progress on Piggy Sooy™ with the USDA-APHIS regulatory RSR approval, in addition to the starting of our GLASO™ commercial production streams are pivotal achievements that underscore our unwavering commitment to nutritional and sustainable solutions. I am thrilled to witness just the beginning of the fruits of our labor and am grateful for the continued and unwavering dedication of our team," expressed Gastón Paladini, Chief Executive Officer and Co-Founder of Moolec Science.

José López Lecube, Chief Financial Officer for the company, stated, "We are very pleased with our team's consistent milestones delivery as we are addressing meaningful market opportunities. We remain confident in our disciplined approach to spending while preserving an adequate cash position and balance sheet to fund the business. I want to extend my congratulations to our team for the exceptional USDA-APHIS regulatory RSR approval, a major achievement for our long-term business plan execution."

For a full version of Moolec's first quarter Fiscal Year 2024 Business Update, click here.

Management will host a Conference Call and question-and-answer session, which will be accompanied by a presentation available during the webinar. To access the call, please use the following information:

• Date: Thursday, May 30, 2024
• Time: 8:30 a.m. Eastern Time (U.S. and Canada)
• Link to join the webinar: https://icrinc.zoom.us/j/91289208286?pwd=Rm9SS0hlRzN6d01WdU1od3IrZTBxdz09
• One tap mobile: +13017158592,,91289208286#,,,,*888246# US
• Dial In: +1 301 715 8592 | Webinar ID: 912 8920 8286, Passcode: 888246
• International numbers available: https://icrinc.zoom.us/u/aid5QyFr4

Please connect 5 minutes prior to the start time to register and join.

A recording of the call and the pdf version of the presentation will be available after the conclusion of the live event via Moolec's Investor Relations website.

About Moolec Science SA

Moolec is a science-based ingredient company leader in the use of Molecular Farming technology for food and dietary supplementation markets. The Company's mission is to create unique food ingredients by engineering plants with animal protein genes. Its purpose is to redefine the way the world produces animal proteins, for good and for all. Moolec's technological approach aims to have the cost structure of plant-based solutions with the nutrition and functionality of animal-based ones. Moolec's technology has been under development for more than a decade and is known for pioneering the production of a bovine protein in a crop for the food industry. The Company's product portfolio and pipeline leverage the agronomic efficiency of broadly used target crops like soybean, pea, and safflower to produce oils and proteins. Moolec also has an industrial and commercial R&D capability to complement the company's Molecular Farming technology. Moolec secures a growing international patent portfolio (25+, both granted and pending) for its Molecular Farming technology. The Company is run by a diverse team of PhDs and Food Insiders, and operates in the United States, Europe, and South America. For more information, visit moolecscience.com and ir.moolecscience.com.

Forward-Looking Statements

This press release contains "forward-looking statements." Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements with respect to performance, prospects, revenues, and other aspects of the business of Moolec are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors, about which we cannot be certain. We cannot assure you that the forward-looking statements in this press release will prove accurate. These forward-looking statements are subject to a number of significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among others, changes in applicable laws or regulations, the possibility that Moolec may be adversely affected by economic, business and/or other competitive factors, costs related to the scaling up of Moolec's business and other risks and uncertainties, including those included under the header "Risk Factors" in the Moolec's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC"), as well as Moolec's other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of Moolec's assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, you should not put undue reliance on these statements.

Contact Information

Catalina Jones
Chief of Staff & Sustainability
comms@moolecscience.com

Investor Relations
ir@moolecscience.com

Related Files

Moolec Science Presents Third Quarter Fiscal Year 2024 Business Update - May 30, 2024

SOURCE: Moolec Science

View the original press release on newswire.com.

FAQ

What regulatory approval did Moolec Science's Piggy Sooy™ soybean product receive?

Piggy Sooy™ received USDA-APHIS Regulatory Status Review approval in April 2024.

What financial performance did Moolec Science report for Q3 Fiscal Year 2024?

Moolec Science reported a YoY increase in normalized revenues and other income of ~$1.3 million, but expenses rose by 68% to $2.3 million.

What progress has Moolec Science made with its GLASO™ safflower platform?

Moolec's GLASO™ safflower platform has progressed as expected, with two new US patents granted, extending technology protection until 2041.

How did Moolec Science utilize operational cash in Q3 Fiscal Year 2024?

Moolec Science's operational cash utilization was ~$2.6 million, including ~$1.4 million to lower accounts payable.

What are the business highlights for Moolec Science in Q3 Fiscal Year 2024?

Highlights include USDA-APHIS approval for Piggy Sooy™, progress in GLASO™ safflower platform, and a ~$1.3 million YoY increase in normalized revenues and other income.