Burcon NutraScience Corporation (BRCNF) Earnings Call Transcript & Summary

Hello, and welcome to the Annual General and Special Meeting of Shareholders of Burcon NutraScience Corporation. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer and use of same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and the corporation that you first obtain all required consents from the disclosure, recording, transfer and use of such personal information from all appropriate persons before your disclosure. During the meeting, we will have a question and answer session. [Operator Instructions] It is now my pleasure to turn today's meeting over to Mr. Peter Kappel, Chairman of the Board of Directors of the corporation. The floor is yours.

Thank you. Good morning, and welcome to the Annual General and Special Meeting of the Shareholders of Burcon NutraScience Corporation. My name is Peter Kappel, and I am the Chairman of the Board of the Directors of the corporation. The Board has authorized me to lead the meeting of shareholders today. Today's meeting will be split into 2 parts. Firstly, the formal business of the AGM. and thereafter, Kip Underwood, our CEO, will make a presentation and entertain questions from attendees. As this meeting is being held virtually via live webcast, we think it is necessary to set out a few rules for the orderly conduct of the meeting. One, questions in respect of a motion can be submitted by any registered shareholder, duly appointed proxy holder or guests using the Q&A icon on the virtual interface. Two, questions will only be addressed during the question period at the end of the meeting, provided that questions regarding procedural matters or directly related to the motions before the meeting may be addressed during the meeting. Three, for the purposes of the meeting today, voting on all matters will be conducted by electronic ballot. Registered shareholders and duly appointed proxy holders will be asked to vote on each business item after the presentation of all business items. Four, when you are asked to vote, the polls will be open for you to register your votes. You will only have a certain amount of time to do so when the polls are open, approximately 2 minutes. We will now proceed with the formal portion of today's meeting. To expedite the formal part of the meeting, I will move and second all motions. I now ask that the Annual General and Special Meeting of the Shareholders of the corporation come to order. Dorothy Law, SVP, Legal and Corporate Secretary of the Corporation, will act as Secretary of the meeting. With your approval, I appoint Bernadette Villarica of Computershare Investor Services, Inc. to act as scrutineer for this meeting to compute the votes of any polls taken at this meeting and to report thereon to me. On behalf of the Board of Directors, I am pleased to welcome you to the Annual General Meeting of the corporation. I'm pleased to introduce your representatives on the Board of Directors who are present today: Jeanne McCaherty, James Pekar, John Vassallo, and myself, Peter Kappel. In addition, Mr. Philip Dowad and Mr. Richard Nazur, Jr., who are not current directors, but nominees for director are also present. Constitutional meeting. The purposes of today's meeting are set out in the management proxy circular of the corporation dated, August 1, 2025. The notice calling this meeting, the management proxy circular and the form of proxy were mailed to shareholders on or around August 12, 2025, along with the audited consolidated financial statements of the corporation for the fiscal period ended, March 31, 2025, and related MD&A to shareholders of the corporation in request to such statements and related MD&A. Unless there is any objection, I will dispense with the reading of the notice of meeting, copies of the management proxy circular and other meeting materials are available under the corporate profile on SEDAR+ website and on the corporation's website at www.burcon.ca. Our transfer agent, Computershare Investor Services, Inc. have attested to the proper mailing of notice calling the meeting. There has been filed with me proof of service of such mailing provided by the corporation's transfer agent. I direct that a copy of such proof of service be annexed to the minutes of the meeting as schedule. Quorum. I have been advised that voting shares representing more than 5% of all outstanding voting shares of the corporation present, and therefore, a quorum of the shareholders of the corporation is present, and the meeting is properly called and duly constituted for the transaction of business. I have received the scrutineer's report, and I direct that their formal report be annexed to the meeting -- minutes of this meeting as a schedule. The minutes of the last Annual General and Special Meeting held on September 18, 2024, were filed in the minute book and available for inspection. I will entertain a motion that the reading of the minutes of the last Annual General Meeting of the corporation be dispensed with and the minutes be taken as read, approved and adopted as tabled. Unless there are objections, I declare that the minutes be taken as read, approved and adopted as tabled. As the first item of business on the agenda of today's meeting, I now present to the meeting the audited consolidated financial statements of the corporation as at and for the fiscal period ended, March 31, 2025, together with the auditor's report to the shareholders thereon. Copies of the documents have been mailed to the shareholders who requested such statements, and it does not propose to read them to the meeting. Now I'm going to go for the resolutions for voting. As a reminder, we're going to vote on them all at the end. The next item of business is the election of directors. The corporation did not receive notice of any director nominations in connection with the meeting within the deadline imposed in accordance with the advanced notice provisions in its articles. Accordingly, the only persons eligible to be nominated for election to the Board of Directors are the management nominees. The 7 directors to be elected by the shareholders of the corporation shall hold office until the close of business of the first Annual Meeting of Shareholders of the corporation following election or until their successors are elected or appointed. Alan Chan, myself, Peter Kappel, Jeanne McCaherty, Mr. John Vassallo, James Pekar, Philip Dowad, and Richard Nazur, Jr. have been nominated as directors for the ensuing year or until their successors are elected or appointed. Each of the persons nominated has confirmed that he or she is prepared to serve as a director. Since there are no other nominations, I move and second a motion to elect the directors. Unless there are any questions, I will move on to the next item of business. The next item of business is the appointment of the corporation's auditors. The next item of business is the appointment of the auditors of the corporation for the ensuing year and to authorize the directors of the corporation to fix the remuneration for the auditors. The Audit Committee of the Board of Directors of the corporation has approved, subject to shareholder confirmation, the appointment of KPMG LLP as the auditors of the corporation. I move and second that KPMG LLP be appointed auditors of the corporation until the next Annual General Meeting of the Shareholders and that the Board of Directors be authorized to fix their remuneration. The next item of business is the approval of amendments to outstanding warrants. The background to the issuance of the warrants and their terms are included in the management proxy circular. The corporation is seeking to amend the current exercise price of the warrants to $3.50 per common share. Pursuant to the rules of the Toronto Stock Exchange, the amendment is subject to the approval of a simple majority of the shareholders of the corporation on a disinterested basis. Disinterested shareholder approval is being sought separately for each of the May 2023 warrants, March 2024 warrants and the advisory warrants in 3 separate ordinary resolutions, collectively the warrant amendment resolutions. Each warrant amendment resolution will require a positive approval of a simple majority greater than 50% of the votes cast with the votes attached to the common shares held by holders of May 2023 warrants, March 2024 warrants and the advisory warrants respectively, and the respective affiliates and association such in respect of the applicable resolution being excluded from the applicable vote. If disinterested shareholder approval for the amendment is not received for a particular tranche warrants, the terms of the tranche warrants will remain unamended and outstanding and exercisable until their current expiry date. I now move and second as an ordinary resolution of the shareholders of Burcon NutraScience Corporation's Act, Warrant Amendment Resolution #1 be resolved, the exercise price of the May 2023 warrants be amended and set at $3.50 per common share. Two, that any director or officer is authorized and directed on behalf of the corporation to perform such acts needs and things to execute under sale of the corporation if applicable, all such documents, instruments, certificates and other writings as may be necessary or desirable to give effect to this resolution. Three, not withstanding that this ordinary resolution has been duly passed by the shareholders of the common shares, the directors of the corporation may in their sole discretion revoke this ordinary resolution in whole or in part at any time prior to its being given effect without further notice to or approval of the holders of the common shares. Warrant Resolution #2 be resolved as an ordinary resolution that the exercise price of the March 2024 warrants be amended and set at $3.50 per common share. Two, any one director or officer is authorized and directed on behalf of the corporation to perform all such acts, use, and things and execute under seal of the corporation, if applicable, all such documents, instruments, certificates and other writings as may be necessary or desirable to give effect to this resolution. Three, notwithstanding that this ordinary resolution has been duly passed by the holders of common shares, the directors of the corporation may in their sole discretion revoke this ordinary resolution in whole or in part at any time prior to its being given effect without further notice to or approval of the holders of the common shares. Warrant Amendment Resolution #3 be resolved as an ordinary resolution that the exercise price of the advisory warrants be amended and set at $3.50 per common share. Two, any one director or officer is authorized and directed on behalf of the corporation to perform all such acts, use and things and execute under sale of the corporation applicable all such documents, instruments, certificates and underwriting as may be necessary or desirable to give effect to this resolution. Three, notwithstanding of this ordinary resolution has been duly passed with the holders of common shares, the directors of the corporation may in their sole discretion revoke this ordinary resolution in whole or in part at any time prior to be given effect without further notice to or approval of the holders of the common shares. As we mentioned, voting today will be conducted by electronic ballot. I will now take a moment to ask that the balloting be open to registered holders and appointed proxy holders. If you have already voted by proxy prior to the meeting, you do not need to vote again unless you wish to change your vote. The polls are now open. And at this point, all registered holders and proxy holders who have properly logged in with their control numbers or invite code and wish to vote will be able to see on the screen all motions being brought forth at this meeting. Now, I'll give you 2 minutes. Please register your votes by accessing the voting page and selecting the for or withhold buttons next to the name of each proposed director and next to the resolution with respect to the appointment of KPMG LLP of the corporation's auditors and with respect to the resolutions for the approval or amendments of outstanding warrants. Please register your votes by selecting the for or against buttons. We will provide registered shareholders and duly appointed proxy holders of proxy 1 more minute to complete the electronic ballots. [Voting]

All right. Thank you. The polls are now closed. I would ask the scrutineer to compile the report regarding the results of the voting of all business matters and the results will be published on SEDAR and by press release. I've been advised by the scrutineers that ballots and proxies deposited for the meeting have been voted in favor of the resolutions. One, each of the 7 nominees has been elected as director of the corporation to serve until the next Annual General Meeting of Shareholders or until their successors are elected or appointed. Two, the appointment of KPMG LLP as auditors of the corporation has been approved and the Board of Directors of the corporation has been authorized to fix their remuneration. Three, the warrant amendment resolution #1 was approved by a majority of the votes cast for the meeting. The votes attached to common shares held by the holders of May 2022 warrants and their affiliates and associates were excluded from the vote. Four, the warrant amendment resolution #2 was approved by a majority of votes cast for the meeting. votes attached to the common shares held by the holders of the March 2024 warrants and their affiliates and associates were excluded from the vote. Five, the warrant amendment resolution #3 was approved by a majority of the votes cast for the meeting. The votes attached to the common shares held by Mr. John Vassallo, the holder of the advisory warrants and his affiliates and associates were excluded from the vote. I direct that the results of the poll be included with the minutes of this meeting and the results of the voting will be announced in the press release in accordance with the policies of the TSX and filed on SEDAR. Okay. Thank you. The formal business as set out in the notice of the meeting have now been dealt with. I move and second that this meeting now terminate. As there is no long -- no further business to come to the meeting, I declare that the formal part of the meeting to be concluded. On behalf of the Board of Directors, I would like to take this opportunity to thank the departing directors, Debora Fang, Alfred Lau and Aaron Ratner for their service on the Board of Directors of Burcon. Your contributions to the corporation are greatly appreciated, and you will be missed going forward. I will now turn the floor over to Mr. Kip Underwood, Chief Executive Officer to report on the operations of the corporation for the year ended March 31, 2025, and its prospects for the current year. After that, we will open up the floor for a question-and-answer period. For those viewing the meeting online, you can expand the slide presentation to full screen by pressing the broadcast button near the top right corner of your computer screen. Kip, over to you.

Thank you, Peter. Good morning, good afternoon, good evening to those in attendance, and thank you for your time. We are excited to review our progress over the last year and even more so to discuss our future. I think all know we have to have our standard safe harbor statement. Today, we'll go through key achievements, our core values, which we have developed over the past year would guide our decision-making, our guidepost for how we act, how we do what we do, our technology platform, which is the foundation of why we were all here, market and sales update, production update, which I'm sure all will be interested to hear. We'll go through what we believe is an exciting investment opportunity for Burcon NutraScience. We look ahead, and as Peter mentioned, we will have a question and answer at the conclusion of the presentation. A year ago, we communicated to the markets that we had 3 strategic pillars. We needed to find additional revenue. We need to get closer to customers or end markets, and we needed more influence, if not control, over the manufacture of our products. I'm happy to report, as I hope most know, that we have checked all 3 boxes. We have initial sales of multiple products. We are currently engaged with over 150 independent food companies. And with our partner, ProMan, we have operational control of the manufacturing facility to ensure that our products are produced with exactly quality to meet our customers' expectations. Near-term achievements for us, we looked at March 10th as our day 1. That was just past our rights offering fundraise as well as our partner taking control of the manufacturing facility in Galesburg, Illinois. Since that date, the teams have been busy. Again, we completed the acquisition with our partner. We have first commercial production of our pea, fava and canola proteins. You've all heard me say before, after we produce, the key thing is we have to sell. We have initial sales of our pea, fava and canola proteins. We entered into a $6.8 million multiyear production agreement foundational to ensuring our future financial performance. And also, we cannot forget that we must protect our innovation investment. We continue to be very focused in intellectual property to ensure our technology is protected both today and in the future. On the financial side, we grew revenue 44% year-on-year while reducing cost. As you all know, we completed the rights off from fundraise $9.4 million and did work on our capital structure to rightsize and ensure we are focused on the future. I mentioned the asset our core values. As we evolve as a company, as we move forward to grow and be an innovation leader, we needed to do some work to align on how do we want to work? What type of people do we want as part of Burcon? How do we work together day in and day out? And these core values came out of that work. And they're also indicative of where we are as a company. First and foremost, accountability. We say what we do and we do what we say. We're going to make mistakes. When we miss, we own it, we learn from it and we move forward. We have to strive for continuous improvement. We have to raise the bar and improve every day, get better as individuals so that we can be better as teams. Our technology innovation is foundational to who we are. What precedes innovation is be curious, seek opportunity, ask why, ask why not, be open-minded, both in big ideas and smaller incremental ideas every day. And finally, we have to execute. We have a great opportunity in front of us. And if we execute day in, day out with focus and precision, we have no doubt that we will be successful. The foundation of Burcon is our technology platform. We've applied that technology to deliver best-in-class plant proteins. Fundamentally, what does our technology deliver? It delivers purity, usually 5-ish percent higher purity than anything else in the marketplace today. What that purity does is delivers a better product, better functionality, better taste, better color. It enables food companies to deliver better food products to us as all consumers. Foundation is a platform. We've applied that platform fundamentally by taking the byproduct of grain production, upcycling that again to a highly pure protein targeted at highly differentiated products for end consumer markets. And it's not just us that believe our technology delivers. We have affirmation from customers, but also from universities, University of Guelph. This is how you make a great plant-based cheese. Some have said plant-based cheese is the holy grail of application because we all know you want your cheese to melt and to stretch and to deliver that fantastic eating experience. And the data you have in front of us says, in this case, our Solatein or sunflower protein, we also have worked with [indiscernible] proteins that not just far, far surpass the performance of a category-leading existing consumer plant-based cheese, come awfully close to matching cheddar dairy cheese. Great example of the performance of our products and why we are helping companies do new things with proteins. We have fantastic high different technology. How do we unlock value? How do we capture value from that? Burcon in its history has created value with the innovation, where we are focused now is how do you capture that value. So this is core to our business model. This is our flywheel. So we innovate, we create a new offering, we refine that offering, we commercialize that offering, produce with our partner at Galesburg. We grow that offering to improve customer demand, unit economics, improve demand and then we have a choice. How do we scale that technology? Do we build? Do we partner, give license or do we sell? And that is an independent choice with each independent technology. And as one technology scales, we bring in another, and we run the flywheel again. Right now, as you all know, we have our Peazazz, pea protein, FavaPro, fava protein, our Puratein C, our canola protein, and we talked a lot about ones probably we're most excited about our new to the world sunflower protein in Solatein and Solatein concentrate. Critical piece is how do we capture value from innovation and that there is optionality once we prove in the marketplace unit economics, demand, then we have a choice on scale, produce, partner, license or sell technology. Let's move to today, and we start with the market. We have the advantage of where we're targeting a growing market. Protein is hot. Plant protein is even more so. Consumers are seeking protein for a variety of reasons for their own health, for the health of their planet. And the latest wave is those consumers on weight management or GLP-1 medication, they are seeking more protein dense foods and food companies are acting on that. And those foods are in the bull's eye for our technological application, our technology platform. We have a robust sales customer funnel that demonstrates the interest of companies in our products, multimillion dollar sales funnel, we have over 25 customers who order bags. As customers move through their decision-making process, they start with a 200-gram sample, and they ask for a few pounds. And they buy a few bags, then they buy a powder or 2, then after that is ongoing production, which means ongoing revenue for us. We have a portfolio of customers that are in the late stages of that process. And again, we have pallet orders sold for both pea and canola. And I always want to mention that we have our existing $6.8 million production agreement multiyear. Very excited about our sales funnel and go and believe that this will deliver future sales. One of the reasons we're excited about it is not just this sheer size and number of projects, it's the diversity of those projects, both in terms of type of customer and type of food application. Our early -- most of our early work will be done with entrepreneurs, cutting-edge brands, those ones that move quickly and they're on and meeting that most new consumers needs. Applications, those find themselves in a ready-mix powder, think about a general health and wellness powder or performance nutrition powder or in plant-based foods, proteins add extra to plant-based foods. How do we help companies make new plant-based foods or system ones better. As we move forward, we'll move into larger companies. Our initial entrepreneurs may grow into those larger companies or we may move into them on our own, and we'll move forward to more food applications and large organizations. So the key here is the diversity of those customer projects in terms of type of food application, type of food as well as type of customer. I often say the one thing you must do before you can sell a product to a customer is you have to be able to produce it with consistent quality and meet, if not exceed that customer's expectations. Again, since March 10th with our partner program, we have been busy. We've installed our proprietary process, commissioned all of that equipment. We validated our technology platform with the commercial scale production of pea, canola and fava protein. We have affirmation from certifying bodies. DRC, for example, a world-leading certification body focused on quality, food safety and regulatory compliance, posture, allergen-free, very critical for many of our target customers. And maybe the biggest quality validation we have is those customers who have moved through their decision-making process. They evaluated a pilot scale sample and they have evaluated a small sample from the production facility, and they evaluated a few pounds and they evaluated a few bags and now they're moving into buying pallets. What they are doing is through that process is, first of all, does our product perform as promised, did we deliver the differentiation? They're also equally important saying, can we deliver that in a consistent manner? Do each of those different samples perform the same on their batch, on their pallet in their commercial scale? And as we have customers move through that process validation that we are delivering against that expectation. Exciting market growing, robust sales funnel with production with the ability to deliver our innovation, our products to the marketplace with quality and consistency. We put that together, and we believe this is a fantastic investment opportunity. With the work we've done, we've mitigated many of the risk. We have a strong sales funnel. We have a route to market with premium commercial scale production, we have initial sales. Right now, we have to scale those. Right now, again, we're in the phase of moving through the capacity of our current facility. We are reaffirming our financial targets, $1 million to $3 million of revenue in 2025, $10-plus million in 2026, profitable in calendar '26. As we move forward past that, it even gets more exciting as we scale with Galesburg and then move beyond with scaling outside of our existing capacity through licensing, partnering or potentially the selling of technology, all to drive profit back to Burcon, which in the end drives return on investment for our shareholders. We've asked a lot, how do we know you're making progress? What should we look for? I think the first and foremost everybody to walk away with, is we are on track. We laid out a plan last November to -- with our partner who raise money and acquire a facility. We did that. March 10th was our day 1. We communicated to the markets our first priority is to prove -- is to install our equipment and improve commercial scale production capability. We have done that with canola, fava and pea protein. I go back to our core value, do what we say, say what we do. That is what we are about. So moving forward, what people should expect is that we are producing and selling, communicating around that, growing our top line to a point we become a profitable business. I thank you for your time and your attention during the presentation. We will now open the line up to questions.

Thank you, Kip. Now I ask that all attendees who would like to ask a question use the Q&A icon of the virtual interface to do so. We will answer as many questions as time permits. Please limit your questions to topics related to today's subject matter and keep your questions short and to the point. We will now give attendees a moment to type their questions. Mr. Paul Lam, Director of Investor Relations, will facilitate the question-and-answer period. For each question we answer, we will summarize the question and read out loud the name of the person who asked such question and if applicable, the entity such person represents. We would like to remind you that questions which are already answered or that are redundant or repetitive may not be published nor answered. Over to you, Paul.

Thanks, Peter. First question comes from Dave Storm from Stonegate Capital. Can you spend a little more time speaking to your current pipeline as it relates to the type of customer between fast movers and the larger companies?

Thanks, Dave. Absolutely. So I mentioned there's 3 pieces of our sales funnel. First is the size, multimillion, over 150 samples under evaluation. Second is diversity. We look at diversity in 2 ways. So first, the type of customer, right? And really, what we mean by that is, is it an entrepreneurial customer, new? Is it a midsized brand? Or is it a national brand that probably everybody on the phone would know. And third is the diversity of food application, right? So in food application gives you each food application, the time to develop that is different. You can develop and launch a ready-to-mix product, our customers can, faster than you can develop and launch a liquid beverage. That's just the nature of things. So diversity gives us both, time diversity as well as product diversity. And the exciting thing is we have all of those. So the smaller, more entrepreneurial customers move the fastest. They work closely with us. Those what we expect to be our initial sales. We are working with many major companies, food brands that everybody would know, their decision process is longer. Their due diligence is great. And so we do fully expect over time to have business with them, but those will be later on in our process. Early on is entrepreneurs, ready-to-mix powders, plant-based foods, really working with people who are on the cutting edge of food development, protein-enhanced food development, and they are looking to work with us, use our technology to deliver against both today's and tomorrow's consumer needs.

Thank you. Next question is from Dave as well. What more can you tell us about the early product types that the canola protein will be introduced into? And how is the uptake in product types expected to expand over the coming quarters?

So what I can say, I mentioned the application, the ready-to-mix powders will be first, maybe nutrition bar and plant-based foods. What I can say about canola and broader is as we move into launching and developing new foods with our partners. What we're seeing more and more of is each food type doesn't have just one protein. It is a blend of protein that helps the food company deliver against the consumers' needs. We are one of the very few people out there that not just have cutting-edge product, but have all of those proteins available, and we invest extensively in how do you best combine those. So it's not so much about Peazazz, pea protein, or Puratein, canola protein, visually, often it's how do they perform uniquely together, deliver taste, texture and nutrition that the end food company and then eventually the end consumer wants.

And then what would be the next priority following the canola protein commercial sales?

I think right now, there's -- we were very focused on pea protein, fava protein and canola protein. Fava is very interesting. Again, this is one that was a little lower on our priority list back in July. We had pilot scale samples out there and the market reaction from those samples caused us to pull it up on the priority list, lots of exciting development there. So we see fava is really, if you're watching the horse race it's coming around the back stretch and maybe gaining ground. The last thing we will see in near term is the first commercial production of our sunflower protein. Again, longer term, this is the one we are -- we're excited about all, most excited about sunflower protein. This is a new to the world product and casting technology. It is, in fact, protein from the sun. So if I think about focus, pea, fava, canola right now and sometime in the next few months, first scale -- first commercial scale production of our sunflower protein.

Our next question actually comes from several shareholders, including Dave Storms from Stonegate. So I will kind of group this question together. Basically, any further update to the capacity and utilization of the Galesburg facility?

So I can say about the facility. First, I spend a lot of time there. I'm there 2 or 3 weeks a month, great team on the ground. The facility has -- and we've proven this, we have the capability to produce our entire portfolio. We've demonstrated a throughput that will fully enable a cost and capacity of the design of the facility. So in essence, we have a facility that fully enables our business plan, both from a financial perspective and can fully meet our customers' expectations from performance and consistent quality.

Okay. Thank you, Kip. Next question comes from [indiscernible] can all anticipated demand be served from the U.S. location? Or do you foresee a need for Canadian production or an suppose another location, yes?

Certainly, we believe there's tremendous demand for our technology. And we believe that overall demand is greater than the existing facility will be able to supply. That is why I go back to our fava business model is we launched the products, we establish demand, we improved unit economics. Burcon becomes financially strong in its own right. Then we decide how do we scale that technology beyond that. That could be we build, it could be a partner, it could be licensed, or could be we sell technology. Any of those are open and they're open individually to each individual protein.

Thanks, Kip. Next question comes from a private investor. Of the 25 customers in their late-stage evaluation, how many could we expect to convert into buying customers?

There's 2 elements to that. There is -- if they decide to buy Burcon's product, there's also an element of when do they decide. So in the near term, I think we'll have a decent percentage of those move forward. Over time, I would think we'll have most of them move forward with Burcon product over time. Now that may be some of those will be, maybe this fall or next winter. Some others may like the technology, but it may fit with the launch a year from now. So I think near term, a decent percentage, long term, midterm, most.

Next question comes from a private investor again. What will be the first consumer products we can expect to see on store shelves.

Again, I think that is most likely a ready-to-mix powder, followed very closely by some movement into plant-based foods. Very well could be -- again, I mentioned our performance in plant-based cheese. It is truly breakthrough for the industry. And again, not my words, other words have said a plant-based cheese that is equal to dairy has kind of been the holy grail of food application development and work with several partners, we have the technology that unlocks that capability.

Okay. Thanks, Kip. Right now, I don't have any further questions. If anyone wants to ask any follow-up questions, please do and I can address them. Okay. I think we're good.

Okay. Thank you, Kip. Thank you, Paul. Ladies and gentlemen, the time has come to close the meeting. I'd like to thank you very much for joining us today. Meeting closed.

This concludes the meeting. You may now disconnect.