BioHarvest Sciences Inc. (CNVCF) Q2 Shareholder Presentation Call Transcript

BioHarvest Sciences Inc. (OTCQB:CNVCF) Q2 Shareholder Presentation Call September 6, 2023 2:30 PM ET

Company Participants

Justin Meiklem - Investor Relations

Ilan Sobel - Chief Executive Officer

Conference Call Participants

Operator

You have joined the meeting as an attendee and will be muted throughout the meeting.

Ilan Sobel

Okay. Justin, we're ready to open live.

Justin Meiklem

Excellent. Good evening. How are you?

Ilan Sobel

I'm doing great. Thank you very much. I’m actually -- I am a little bit fired been a long day, 30 and I’m going to put my third and fourth vineyards of the day.

Justin Meiklem

Possible. Let's make this the highlight of your day. We have several hundred people online. So it's fantastic and welcome, everybody. This is our performance and marketing update for BioHarvest. This is our primary shareholder webinar of Q3. And today, Johan is going to go into some detail on the recently released Q2 financials. He's also going to talk about some major marketing initiatives. So I'm going to be helping -- my name is Justin Mika. Of course, today's event is hosted by CEO of Antabel [ph]. We will have a Q&A session at the end. So if you're seeing you writing things down. I'm just summarizing questions. You can ask anonymous questions, absolutely. We'll do our best to get through everyone today. If we don't get to your specific question, you can either follow up with justin@BioHarvest.com, or I'll be reaching out within the next couple of days if we don't get here some of the question. If you have to log off, I will be circulating the recording later this evening as Susan renters. So out of the elites first million in the U.S. NVIDIA, I love to introduce the CEO, Ilan Sobel.

Ilan Sobel

Thank you, Justin, and good afternoon, everybody. Let me just make sure my camera position is okay. otherwise Justin gets any with me or in the test to go to YouTube I've actually been very excited for this core. There's a lot of great things happening in the company that I'm looking forward to sharing with you. So I'm going to now just share my screen, so we can start rocking and rolling. Okay. And I'm going to try -- Justin, let's try to see if we can get this to -- I've got to go to help me here, Justin.

Justin Meiklem

Go to slide -- review.

Ilan Sobel

Yes, lots, I'm going to go play from the stock.

Justin Meiklem

Yes.

Ilan Sobel

That’s…

Justin Meiklem

But then for view, just go to...

Ilan Sobel

Hit your view, there?

Justin Meiklem

Yes. view on the top. -- the top then go to view, and I think that's where you go just a presentation.

Ilan Sobel

We'll try your way. As [indiscernible]. Okay. How does that work, Justin?

Justin Meiklem

Not due -- not good.

Ilan Sobel

It’s okay on us…

Justin Meiklem

No, it's not. That's where you're small. Go to view and the full -- they should say full screen presentation. But...

Ilan Sobel

I'm just going to do the normal -- the way I know we do many good things to talk about. Just give me a sense. Okay. Second, I'm going to try and make this as big as possible for you, Justin...

Justin Meiklem

Okay. And I'll do...

Ilan Sobel

Well, that's to fix it in post-production. Okay, everybody. Welcome to the Q2 update. I think everybody knows the usual story, just forward-looking statements. Everybody can just please have a quick read of this. Okay, great. So with that agenda, we're going to go through a Q2 performance update. And again, we're going to be looking at the major actions that we are taking to move the company to scale and profitability because that's really the maniacal focus of what my leadership team is focused on as we look to really start building significant shareholder value along with the human utility value that we're driving every single day.

And I think, Justin, this time, I know I said all the time, but I think this time, I'm going to land on about half an hour. And I think we can have a longer Q&A because I know that's what people are always asking for the Q&A to go longer Okay. Well, I'm sure, ladies and gentlemen, you saw the major milestone in the month of August, a $1 million -- in North America, of which literally 97%, 98% of that is the USM A, and we're talking about 1 SKU. Yes, 1 SKU, $1 million, and that really is an amazing major milestone for us to achieve. And when you think about it in the context of doing this all with one SKU, it really, for me, it just demonstrates, frankly, the magnitude of the opportunity that we, all of us, the team here, our shareholder partners that we all have as we take this amazing botanical synthesis biotech platform technology, and we bring it to market using Vinea as our lead driver across multiple different categories in the future and then moving this forward with other products that we have in our pipeline.

And really, what I'm saying here is that we haven't even dipped our toes in the ocean, right? Well, I'd say we're just tipping up tip toe in the ocean based on the opportunity that we have. And I just want to remind people, just the U.S. This is roughly a $50 billion $55 billion market for Nutraceuticals, okay? We try in 3 core areas: heart health, memory health because we increase alertness, improve alertness as a result of blood flow as a result of dilation of arteries and then obviously, physical energy, which is a major outcome of the increased dilation of arteries and blood flow. This is roughly 17% of those revenue pools, which gets you to, let's call it, $9 billion. So the size of the prize in the U.S. over is significant where we try to really -- we plan to win. And with one SKU, we delivered $1 million, and I want to remind everybody in the next -- really the next 6 months, we will go from 1 SKU to 10 SKUs. And we're going to go from 1 category to 5 categories.

So it helps you dimensionalize if we're doing $1 million from 1 SKU, what is the size of the prize as we start to take the business to 10 use just utilizing our vine red gray powder and going into categories, which we've talked about, superior energy alertness using coffee as a key delivery mechanism, superior recovery using our protein bars as a delivery mechanism and then superior hydration using a powder beverage format as the major delivery mechanism or in themselves massive billion-dollar markets. And then just to understand that it doesn't just stop there, -- we've got Curt coming with a green fee that we're looking to launch post coffee. We'll launch a literally a regular black tea as well. And basically, the innovation pipeline will continue to roll.

And then, you layer that on top of that with our other products, our all of sale products, executing the same playbook. I hope you share the excitement that I have of the magnitude of revenue and ultimately, with scale, profitability that we can drive within the nutraceutical business unit of our company. Super, super exciting. And so for me, the $1 million was just literally a mini milestone for me and for the team. We're obviously focused now on some of the other more major milestones as part of the growth trajectory as we continue to innovate and disrupt.

And let me say that just our capsule business in itself, when we're looking at $1 million in the month of August, we need to understand that we still are not timing on the tap and the demand to that we have is much greater. And we believe that, that $1 million, and you'll see that as we look at the walk forward into Q3 and into Q4 is going to build significantly. Okay. How are we doing so far Justin?

Justin Meiklem

Are you clear? All right. Good.

Ilan Sobel

All right. Now I want to just spend a little bit of time dissecting the quality of the second quarter performance. The results in itself from an overall revenue perspective, literally a 3x in revenue from $838,000 to $2.75 million is obviously a significant achievement. U.S., with actually 6 assets from $370,000 to just under $2.3 million. And even when we look at our Israeli business, we increased it -- when you look at it in shekels, we increased the business 10%. And really, we're now -- I think we're now in our pretty much our 12th or 13th quarter of consecutive high single-digit or double-digit growth, which just, again, demonstrates the opportunity that we have with Vinea. Again, gross profit margin is a major, major focus of the entire organization.

We increased gross profit significantly as we start to bring more scale into the business. And this is a super focused point of the business comparing versus last year moved from 12% to 40%. And then if you look at it quarter-on-quarter, we increased it by 10%, moving our GP to 40%. And the objective, ladies and gentlemen, is to get the GP next major milestone, we want to move the GP to 60% and then moving that beyond. And I'm going to share with you some examples of how we're looking at every single step in the value chain end-to-end, turning every single strop to be able to bring more GP into the business in order to drive that profitability and cash flow positive position as soon as possible. Now when you do it the critical aspects of growth, there's one factor which is super important that I want everybody to understand, which really demonstrates the power of our technology, our platform technology as well as really the efficacy of our current euro product being our red grade cell powder from Vinea.

And I want you to reflect on this number, and I want you to challenge all of you to find me another business out there that has a subscription base as a percentage of the business as large as what we have. Currently, we have grown our business so that we have 93% of our users are subscription. 93% of orders that are going out today are subscription orders. As that means recurring revenue, that means I wake up every single morning and you see a recharge of hundreds of subscriptions, recurring subscriptions. That means for you, as you go to sleep every night, you can know that the company as you've invested in has a significant subscription base that is very, very loyal to our technology and obviously, the products.

Now I want to show you this chart, which is very interesting as well, we're going back in history. And you went to look at for 93% of our orders or subscription orders, okay? They sell 7%, they prefer to purchase one time, and they're all purchasing 3 months for $139. So they pay a premium, you don't want to be on subscription or problems, but you pay a premium. But when we started in this business, and let's go back to Q3 '21. actually 44% of our business was 1 month subscription. And literally, only 48% of the business was 3 months. And we made a conscious decision and a commercial leadership team to basically say this is not healthy enough. This is not good enough. We want to move the business as fast as possible to 3 months and more subscription packages. So we crafted the right commercial strategy, pricing strategy.

And also importantly, the biggest driver is all our clinical trials are based on 3 months. And therefore, we know that it's like a normal distribution curve for some people, Vineyard can work for them in a week or 2 weeks. -- in some people, based on the generics, it can take 4 to 6 weeks. And there are some people that I can take 8 to 10 weeks for veneer to work for them to feel the impact of the increased physical energy and metal alertness and the other benefits that are derived from video. So we've worked like crazy. And you can see today, we sit with 95% of those 93% subscribers of 3 months or more and nearly 25% are 6 months or more. This describes the health of a subscription base of a consumer base. And this is why we have a business where our churn rate continues to decrease. -- which ultimately drives a much longer lifetime value, which ultimately improves the bottom line of the business. So I think it's important.

I wanted to spend some time helping you understand that $1 million is important, but it's the quality, it's the quality of the $1 million, right? Because ultimately, it's all about repeating and growing that recurring revenue. And in this business, recurring revenue is key. So this gets me very excited. It also should get all of you, our shareholder partners very excited. I know when I'm talking to bankers out there, and I'm talking to other major if it's VCs or family offices, showing them these 2 charts, 93% stock-based and then I saw them the quality of the subscription base -- it's like, wow, how did you do that? Well, we did this primarily because we have an amazing performing product. We have a product that ultimately now of the 2,728 reviews, I think it's up to about 275 on how, 4.8 out of 5 verified rating because we have a product that delivers that has a strong price value proposition, and you'll see.

We're definitely not a cheap product relative to the market. We're a premium product, what we deliver and is that delivery of critical functional benefits, it's the human utility value that we're driving every single day now for tens of thousands of consumers in the U.S. and in Israel, that's allowing us to build a very, very, very healthy subscription base that we're growing rapidly for the capital arm. So as we walk forward, we now, just given the nature of the business is moving so fast and there's so many things going on. We're now trying to give quarterly guidance. We're shifting it to quarterly guidance. We've given quarterly guidance of $3 billion to $3.5 billion. So again, consecutively increasing those numbers every single quarter. And then basically, in early Q4, we will give guidance for the full year. We have a lot going on between now and Q4 as it relates to expanding our infrastructure as it relates to also a major new product launch that we're trying to bring into the market as soon as possible.

And so really, the ride home to the end of the year is going to be very, very exciting. Okay. Just taking a drink of water. So that kind of summarizes the Q2 performance update. Justin, are you seeing a lot of questions?

Justin Meiklem

Yes, absolutely.

Ilan Sobel

Anything you want me to hit now? Or should I keep on going?

Justin Meiklem

No, I think you’re going to cover most of the through. Okay?

Ilan Sobel

Good. All right. So again, we're very, very focused leadership team. So you're going to see me utilizing this model all the time because I live and breathe based on this model on how to basically grow a business to scale and drive profitability. You have 2 sides, demand management, supply performance, okay? And the demand management, it's all about revenue management, how we optimize our marketing, how we scale channels and how we scale products. supply performance, it's all about cost management, driving manufacturing scaling, other cost of group management and obviously people management, operating expenses management to get to the breakeven profitability. So it's important to say that on the demand side, we have amazing demand momentum across our business. And I think the best way to illustrate it is that, honestly, we've just started to gently turn the demand tap-on.

We are -- I would say, holding back demand right now. I can actually go a lot more on the accelerator because ultimately, we have to balance the demand and the supply equation, specifically in a subscription business because we have to make sure we're delivering those subscription repeat orders on time, inflow all the time. Otherwise, we're going to have it to satisfied customers. But we're carefully controlling that. And shortly, we'll be able to loosen the screws on the tack. But the important thing is we can feel the demand -- we could feel the demand -- we understand the demand case for this amazing product. And we understand clearly how to manage and control that pulse. So let's first talk about what are we doing on the marketing side to make sure that for every customer we're getting, we're reducing what we call our cost of acquisition.

In the business, there are 2 critical elements. There's your cost of acquisition and as your long-term basically value, lifetime value of the customer. And we have an amazing lifetime value that we're building, and we're reducing our cost of acquisition every single quarter. It's a major focus of Jared and the team. So you can see Q2 of this year versus last year, we reduced our cost of acquisition by 62%. And this is just about being smarter on how we go to market with the different marketing strategies. And when you look at this, our strategy as a result of all the work and the route to market via TBM is really delivering for the business. We have today significant TV commercials across this network. And what's kicked in now, you will see on the network at multiple different times during the week, we actually are running 15-minute programs, which explain the power of our platform technology and the power of Vinea. This is a very unique way to fill the top of the funnel, and we're seeing really fantastic conversion rates, which is very, very exciting.

We have more activity coming up. I'm heading to the U.S. the week after next for our interview with Ericataxis [ph]. We have another interview in October, middle of October, planned with Mike Hukaby [ph], which is also super exciting. Mikata [ph] a big supporter of Vinea. And we have a number of other big hits interviews plan as we go into November and December. So a very aggressive ride-home to the end of the year. In addition, we continue to leverage the power of our influencers major players that are actually posting on behalf of their experience with the Vinea brand, Deepon. He's basically super hot now as a result of his right to fame, really, really connecting with the brand and connecting with their audiences as we look to really make the brand younger.

And important influencers out there in the marketplace, Cariri [ph], is probably I would say, the leading biohacker out there, fantastic human being helping people really with their longevity. You could see, for example, the support that we're getting from critical influences like Gary on Estoram [ph], and the tick-tock account, you can see he's recommending Vinea. This is part of his suite to recommend in order for people to improve their blood flow as a result of, obviously, our ability to increase dilation of arteries. And we have a podcast series with Gary that we shot a few months ago that we're looking at landing he has a massive Spotify audience, and we're looking at landing this again in the fourth quarter of this year. Importantly, as well, we have a new campaign rolling out.

The marketing team really are getting much more sensitized to the consumer and understanding what drives the consumer. The look and feel is very premium and very edgy and helps us take the brand younger, which is important. So again, the demand side of the business, the message you should get here is that we have a demand side of the business that's working. We have a cost of acquisition that is leading in the industry. We have our hands on that tape. And as we continue to increase our supply, we will continue to basically open up the tap. But the good thing is that what we would call the pest up demand creation, it is there, and that's super refining. And what we see, and again, I encourage all of you go and read the reviews. I -- as CEO, I read every single review that the company, whether it's Amazon or whether it's through our website, everything basically comes past my e-mail. And what I love seeing now, and I'm seeing it more and more is basically people commenting, “Wow! Vinea just had such an amazing impact on my overall health and wellness. It did this and this and this to me. And now I've got my partner or my wife, all my house birds [ph], or I've told all my friends and everybody in my cloud is on Vinea”.

So we’re seeing that. We’re seeing the power of basically the good old word of mouth. And that’s when you know you have a powerful brand, built of powerful technology, which is anchored in a best-in-class leading botanical synthesis technology platform.

Okay. Now let me talk about what we're doing with channel scaling, and I want to go in more detail into Amazon because Amazon is becoming more and more important to our lives. Just really capping on Amazon, we have the 30s. We've now added subscribers save in early May. And then we moved into basically a 60 in June. And also now, there's also a feature on Amazon where you can buy 30 and 60 to give you 90 about $129. So it's actually a strong value proposition. Wow, Amazon price is just cranking year-to-date, 8,205 orders, 35% repeat purchase and growing rapidly. -- every dollar we spend, we get back $4.5 at least. That's amazing. Year-to-date spend on Amazon has been less than $50,000. So I haven't even opened our wallet on Amazon, right?

We've been very, very smart, very, very surgical. We have an amazing team with Ronata partner with us in really getting things right on Amazon and building it in a sustainable way. And we have a 9.7% conversion rate in the last 30 days. That means that Vitus under 10 -- 1 out of 10 people that came to the website, they bought it to our page, they bought, which is amazing. And I think it's important to understand that on Amazon, you want to say we haven't dipped our toes into the ocean. In the other son, I haven't even like open my eyes because we spend less than 50,000 year-to-date, okay? We're now in the books in advertising on. And with that, we are consistently in the top 15 with Verita products on Ames. And if you look at our pricing, we're the high pricing absolute in most cases and definitely on a preserving [ph] basis. Now we're not happy with that. But when you think about it, we've delivered that we're spending less than 50,000 year-to-date August.

Again, it demonstrates the power of the proposition, the technology and the fact that we have now a focused path to being number 1, okay? Now you can look at number one, it's very, very cheap, $24 to 60 capsules. -- okay? It's basically it's 25% of our pricing when we look at it. But we have a path to get there, and we will do this the right way with building the right sustainable steps to get there efficiently. But definitely, it's our expiration to quickly break the top 10. It's a metric we look at all the time and then to bring the top 5. And ultimately, we want to be number 1 because we're pretty competitive people here at [indiscernible]. Right, Justin?

Justin Meiklem

Yes. You just answered Ted’s question perfectly, too, so I can cross one off. Okay. All right. Good.

Ilan Sobel

So again, the demand side of the business is working very, very well. And now I want to talk about product guiding. And I would tell you, like the last 3 months, we've just been doing so much work here on the product scaling side and I would just tell you that the strategy of superior since secretase and superior efficacy, right, is a strategy that we really believe is going to allow us to disrupt and win in all these different categories. We talked about coffee, and let's call it other hot beverages. We've talked about protein bars, we talked about basically powder, naturalized beverages. And trust me, there's more to come that we're working on. We just haven't released this publicly. I will start to talk more about it over the next few months. But I just -- I don't want to share too much right now, just given that we are very, very focused on getting these 3 categories out coffee by December, the protein bars and the electrolyzed beverages in the end of first quarter, but there's more coming in second quarter and third quarter and literally disrupting the other categories, okay?

So let's spend a little bit of time. I want to share with you the amazing work and the progress that we've been doing with our partners, Joe's Garage out of Seattle. And also, I want to give Curator Marketing Director based in Florida, and I hope she's listening and if not just and make sure that you find a way to get it to watch this. But she's just done an amazing, amazing job with like breakthrough packaging that you're going to see a -- will make the best in the category literally start to watch what Bar Harbor is doing in the space. So just to remind everybody, we're leveraging the power of Vinit coffee, which is really a cultural delivery system for Americans, literally 41% of USA homes have a single-serve brewer. 38 million machines, well, crazy when you think about it. The size of the price, just to give you some perspective, okay, $62 billion is U.S. and Europe. I believe the U.S. is at least, let's say, 50% of it. Take it at 30 billion parts, okay? It's massive this is regular coffee pot.

In Amazon, if you go to the top grocery selling items, 7 out of 15 are coffee pot. -- copy part brands, including Amazon private label, McDonald's in Keurig, Amazon and cure, et cetera, et cetera, 7 out of 50. That tells you something. It tells you that this is a massive cultural delivery system for Americans, and we have to make sure that our product is there and it's the best delivery mechanism to bring the disruption of Vineato [ph], the marketplace. And then you take DCAP, where I think we're massively disruptive, you have at least 10% of that ZAR 30 billion, at least are being conservative because 10% of Americans drink Deca exclusively and another 10% in cap and regular. They'll have regular in the morning, they switch to decap. But let's say it's a $3 billion mark [ph], okay? 3 billion parts, let's say, again, roughly $1 a part, it's a $2 billion market, right? You get a lot of dollars, 1% share is a lot of dollars.

So we're not aiming for 1% share. We're opening for more, but I just want you to understand the magnitude of the markets that we're going into. So a lot of work we've been doing on formulation and on packaging development. I'm going to share with you now the packaging work, which really I think is -- I'm really excited about. First, I'm going to share with you the front panel. So this is the front panel. I'm going to focus on the decap because we're still doing more work on the regular. But there's a couple of things I want to draw your attention to here, okay? Firstly, I hope you all feel that this is very premium, very disruptive and brings the power of basically nutraceutical biotech and the culture of coffee together. What you will see is very clear branding Vinea superfood coffee. You see very clear hierarchy of benefits, Deca [ph]; so you're saying to the consumer, I'm bringing your energy through blood flow, even though it's a cap.

There's no gets, there's not a crash, and we ultimately we improve physical energy and metal ocean is powered by Vinea and is powered by a 12-hour sustainable release red grade party reversal. Now importantly, we've made a very, very, I would say, important decision that to not compromise on anything based on the value of our brand and the values of our company. as sale go down this pot, there is a huge difference in price between CCAP that comes from basically coffee beans where they use chemical solvents to extract the coffee. 90 right now, if you look at Amazon, I believe the last time I checked, there were 3 out of like 120 brands that use the Swiss Water PCAP chemical-free process. This Swiss Water DCAP chemical 3 process users basically water to be literally plain water, regular water to actually extract the caffeine. So there are no chemicals, no solvents utilized, and that's what BioHarvest has to use. So we can see we're dramatizing and playing it up to the consumer, the importance of using a chemical-free DKA process.

If you look at the top 10 brands in the market, they’re all utilizing, let’s call it, the chemically driven extraction process. So we’re coming here with massive disruption related to giving energy without the jitters without the crash, all through blood flow and making sure that we’re utilizing the best, the best coffee. And I took a decision to purchase premium coffee at a premium price because of this process, but it was a decision that was the right decision and a decision that we have to make based on the value of the brand and the company. So this is in the front of the bat. Justin, do you like it?

Justin Meiklem

I think Corus as I talked for the first time just before this meeting, I love it.

Ilan Sobel

It's tough, okay. This is the back of the pack, and this is a hero image. I love this image, right? We've been working on this for Asia. Again, one single cup, one big impact, we just described the process, what's in fired. And this hero image of the red great, the parked coming from the red grade plus the coffee beans being infused together into the K-Cup and into your coffee is going to be a hero image and we're busy now working with our partners on actually animating this and really, we're going to be building premium marketing assets for our premium brand to disruptive category. And again, we talk about the Swiss Water process here and communicate the importance of this process.

Justin Meiklem

Yes. We can cover some coffee questions right here. as just for you to clarify, compare pod to how much mine is at a console.

Ilan Sobel

Great question. So Basically, we've done a ton of work, and that work requires basically if I understand when you put enough basically the Keurig let's call it, the extraction system, coffee structure systems. You have to understand how much recovery of the park was variable specifically you're getting. And so we've done a lot of work in that area. We understand exactly what the recovery is. And basically, we are -- we have to add more winning into the capsule in order to make sure that we're delivering all the time, the 6 milligrams of party with Veritas. So that's basically going in the actual part. If you have to open up a part and try and take the Vinea, put it to one side of the competitor line, you'll see there's more than 400 milligrams of Vinea, right, based on the virtual recovery. We have very good reserve trial recovery, very good party recovery.

But again, just in full transparency, it’s not 100%. So we top it up. We increased it to make sure we have at least the 400 milligrams of Vinea that we have in a cancel, at least. And again, that’s part of our basically commitment to the consumer to make sure we get the them product has the efficacy. And we’ve done, yes, that’s been a lot of work that we had to do. We had to test it across different services, different curing models to make sure that we understood what the harmonized recovery rate was.

Justin Meiklem

Can you comment on your expectations for profit margins on Coffee & Tea?

Ilan Sobel

So I'll articulate it like this. We're going to be selling the retail price point will be about $1.75 per part, okay? And actually, if you think about it, you're getting -- and it's really a premium, this is signature premium cost that we're talking about, plus you've got at least the equivalent of what you have in [indiscernible], right? So $1.75, I think, is very, very reasonable based on the value we bring in to the consumer. Now when you think about it, right, the consumer is paying a dollar right now roughly for Avina capsule, so it's an extra 75. And let's just say, without getting into the unit economics since I can't share. I would say to you that we've been very purposeful and surgical that all the innovation we're bringing is what I call premiumizing the business. So you're increasing your absolute gross profit margin that you're banking because you don't bank percentages, you back dollars. So per unit, we will make significantly more on a Vinea coffee part versus what I made today on a capture even after the cost of the coffee and all the other aspects. So it is what we call premiumization and it's driving basic an improvement in overall margins of it.

Justin Meiklem

And to be clear, the target is that people will be able to order coffee, let's say, by the Christmas season?

Ilan Sobel

We are doing whatever it takes to get it out before Christmas. I want people to be able to give to their live line their families a 3 pack or a subscription. And by the way, we're going to sell this on subscription as well. We're going to sell the exact same way 1 month, 3 months, 6 months, 12 months and well once we get people into 1 month, we're going to move them quickly to 3 months and beyond. Any more questions before I keep on time, Justin?

Justin Meiklem

No, that's perfect.

Ilan Sobel

Okay. So this is the size, so you have a gain front. -- back, Slide 15, suite our story about resveratrol and the power of our resveratrol. I love the slot flow energy, TCAP coffee powered by red break sales now -- that’s cool. That's a little bit of personality or the purpose. I'm enjoying that, okay? -- better blood flow, better life, better Deca. We've got some great, great marketing stuff that we're going to be coming out within this area. This is, again, some of the other plans on the sign nutrition fact busy working through growing in high altitude, the origin, the tasting notes, the fact that it's recyclable and then all the other key elements and it will be -- well. And then this is just going to show you like what the part is going to look like, all right?

So again, premium, we're going to do it first cure because 85% of the market is cured. We've already done all the work to do this in a Nespresso like pot, which is the other 15% of the market. It is growing, by the way. We are -- I believe we are the only, if not one of the only, but if anybody is seeing any functional product in a Nespresso like part, please let me know because I don't believe that any other company has been able to put functional ingredients inside and Nespresso part, and we've been able to do it with Mini. We have actually worked on this for a long period of time, and we nailed it, we cracked it. We cut the holy grail, and we base the decision because we have to prioritize the focus for incur because it's 80%, 85% of the market, but we will move this to a -- I think, a politically correct word to say because it's no longer under patent is they are the fit and express on the shop, okay.

And now we’re doing work -- actually, I’ve got to do this in the next 2 days, with Yael has done a great job just on how we differentiate the DCAP versus regular blood by energy coffee. And really what we’re going to focus here is the 12-hour sustained release. So you get your kick out of Cafe, but the vineyard comes in to give you our 12-hour sustained release energy, okay? So this is important. So you don’t have to take 5 cups of coffee to give you the kick all the time to take one cup of coffee in the morning and get your kick and then you get your wine giving you the 12-hour sustained release, okay.

Justin, any other questions?

Justin Meiklem

Some really good questions. I'll stay there for the Q&A.

Ilan Sobel

All right. Your core, you're running the show. I'm just the CEO. Okay. Now let's look at cost management. All right. Firstly, ladies and gentlemen, these pictures were taken to now 10, 13 years real time, these pictures were taken. I think it will take like 745 orals in the factory, Gary's the team from our partners pushdown. This is the microwave drying machine has landed. It's in Israel. It's being installed. We have 2 more machines that we have to install, which are coming in, in the next 4 to 6 weeks. They will do -- help us with the drying of the cells and then we freeze the cells and then we microwave dry them and we're basically able to then move products to market from this. So a lot of progress here. There's a lot of hard work that we're doing. We're doing a lot of construction work and a lot of basically reconfiguration whilst at the same time, trying to scale up the number of variances. It's complex.

And Lane [ph], our COO; and Sahi, our Head of Manufacturing, are doing an amazing job managing that balance to try and feel the momentum of the business whilst actually installing a whole new downstream process into our facility. So Justin, I'll stop now because I'm sure there's queso questions here. Do you want to ask me here or I can keep on going.

Justin Meiklem

Just there are questions about the status of the drying when you expect it to be fully operational.

Ilan Sobel

So the good news is -- a couple of things. Firstly, we have right now 2 other very good drying partners that we've been working with for the last, I would say, 18 to 24 months, we expect a third drying partner to come on stream in the next 4 to 6 weeks, which will give us a lot of oxygen to help turn on that demand then, okay? In addition, we have our own equipment and our own machine, which gives us maximum flexibility for -- for a good chunk of our total drying requirements. So basically, we will manage this. We've got -- we've basically got to make sure that we don't in any way disrupt the growing of the cells. All right? So that's number one priority. We've got to keep people growing more sales. I do have outside capacity to drive the sales that we need to drive. But my expectation is basically end of Q4, early Q1, we will have the system up and running. But because we've got extra capacity outside, right, it helps alleviate some of the stress, which is good.

Yes, so that basically is where we stand right now. It’s a fine ballast and the preservation of the bioactions and making sure that we’re able to scale the Vicas number 1 priority right now because I’ve got that extra drying capacity. And then just doing what we need to do, Justin, as you know, we speak about it a lot in our leadership meetings, we’ve got not just one piece of equipment, there’s 3 pieces of equipment that have to come in and some changes in our floor plan to get this all completed. But the intention is to get out of the blocks in 2024, pushing as much as possible to our own drive.

Justin Meiklem

You put in context how much of an improvement that would be for you as far as the reducing bottlenecks -- production borate?

Ilan Sobel

I would say to you that the improvement is kind of -- there’s 2 kind of factors that drive the improvement. One is with our equipment coming on stream, just improves it by about, I would say, 50%, at least Okay. And then with a new partner coming on stream shortly as well, it allows us all the capacity we need to deliver the numbers we need to deliver in 2024, which you’re not going to get from me to mine, but it’s a lot of time.

Justin Meiklem

We've got some machine that's in the crowd that I like to look at the equipment.

Ilan Sobel

They like the look -- anybody when you come to Israel, you're welcome, as I've said before, everybody is very welcome to come and do a planter. In fact, I had an investor last week to do a plan fill with me. So you get a personal to any of you come to Israel or any of shareholder box. You know that, all right.

Justin, can I keep on going?

Justin Meiklem

I got 10 more. Yes, please?

Ilan Sobel

Okay. So I talked to you about turning every group. So we’re turning every single screw. And you’re going to see some, I think, important strategic changes that we’re making in the Downstream as it relates to our packaging, which is going to save the company a lot of money and improve margins, I would say, significantly. Firstly, today, many of you know when we deliver you your 3 months or you get 6 months or 12 months, you’re always gaining basically 90 days at a time. We ship you a bottle of 30, and we ship your bottle of 60. By the way, it’s the same bottle, so many people call us in and they go, oh, I’ve got 2 bolts of bid and then we have to not your capital at the bottom you got 130 and 160. So it’s a little bit confusing. But ultimately, I’m not being sufficient from a conversion and environmental perspective, which is important to us -- and just generally, the cost of packaging is much greater than do 2 levels of conversion.

So we are going to be moving a transition in the next 6 weeks. Everything is going to go to 90 capsules, okay? Except if you’re on a 1-month subscription, for those 5% of our customers that are on a 1-month subscription, you’ll still get it in the 30. Okay. We'll keep sets and 60s for Amazon, and then 90 will be specifically with transition to 90, which is literally 95% of our business going through our own website. This improves margin. Remember, we talked about margins at 40%, right, 30s, 40. We’ve got to move that up. This is worth 2 to 3 margin points at least, okay? And it makes sense. And then when you do this, right? This now you get it today. And now with the 9, we’re going to Fox, which is more environmentally friendly and also basically the box will be able to fit either a 90 or 30. And also, we do away with all of our secondary boxes like some people, for example, if they’re on subscription, they do get the bottle in a winebox, -- we’re going to be doing away with that. There’ll just be one box.

Again, it takes a lot of cost and helps from an environmental perspective, that’s another margin point. Then just this year is a map of our business to heat map, where it’s really rare is where you have the most number of orders, okay? So you can see it’s very red in the state of California, state of Texas, Florida and then you have other key pockets that are not as hot, but are hot, as you see basically on the Northeast and then coming into basket Midwest and then obviously up here in the Northwest. So basically, right now, today, we have a 3PL logistics partner in Indiana, everything shipped out of Indiana, but we’ve done a lot of work on optimizing supply chain, and we’re going to be bringing on board with the same partner working with their L.A. warehouse because roughly, if you take L.A. and the surrounding -- sorry, California and the surrounding states, it’s about 20% of the business, and I can save another margin point in transportation costs.

Talking about transportation costs. We’ve done a pitch, given the size of our business, working with our partner, Shiproom we are an amazing partner. Looking at the cost of USPS and DHL has come in with a much more aggressive pricing in the market, which again saves us another $1 to $2 per shipment, and that adds like another margin point. So you can see just and we’re like turning the screws on everything possible to creep up that margin point. Obviously, what’s going to be most critical, everything helps, wing counts [ph] and everything is super important. But the biggest factor is the scale as we move basically to producing, let's call it first milestone being able to produce north of 1 to a month and then moving to 1.5 tonne a month because my fixed cost pretty much are the same. So you get amazing fixed cost recovery. And then the other factors are as we put more and more it’s very important for our shareholder partners. As we push more and more of our drying into freeze drying or we call microwave drones, we get much better yields on ourselves. So therefore, from [indiscernible], we get much more key logs out of each bioreactor, which again reduces our manufacturing costs.

So these factors, plus the combination of scale, any yields and other just responsible business management are going to get us over time. It’s not going to happen tomorrow, but over time, to getting north of 60% margin, then north of 65% margin, which is where you have really a winning business, specifically with our cost of acquisition being industry-leading. So with that, hopefully, you’ve got a good sense of confidence on what we’re doing to grow the revenue of the business and building the capabilities to really step change our revenue. What we’re doing is to get the business to breakeven. Our focus is really cash flow positive. Looking at December as the month to get gas cash flow positive. Specifically, if we can move coffee out, we will have a much better chance of getting there and then getting to that breakeven position in ‘20 -- in basically the first quarter.

And then ultimately, as we really started to bring scale, massive scale, one SKU -- you’ve seen the impact. What are we getting? When we get the 10 SKUs, disrupting massive, massive, massive categories. They’re adding on all the cells, and I’m sure you’re going to have some questions on the cells, which I’ll talk about. They’re adding pomegranate, the same table, a nutraceutical company with at least let’s say 60 SKUs plus a few categories that I will be talking about in the future that are being busy worked on right now. Literally, this is a multi-hundred million dollar revenue business with an amazing EBITDA, an amazing, amazing EBITDA in the future. That is the aspiration, and I believe we’re on the track to get there. And in addition to that, we have all the exciting work we’re doing in our pharmaceutical business unit as well as we always have a number of other areas that we’re working on that will start to have dialogue with our shareholder partners on in the near future. So I’m going to stop now. And move to Q&A and stop sharing and take a breath.

Justin Meiklem

Not for long because I've got a lot of questions for him. Please keep them coming. I'm trying to summarize, there's a lot of questions about marketing strategy. So I will ask some of those. But you just mentioned all Steve's asking if coffee might be December. You said proline in Q1 potentially. When do you see the delivery date or the market entry for the product?

Ilan Sobel

We're working hard to get it into the market basically early part of the second half, so early Q3, and it's just about priorities, right? I -- we've got it like -- it's a fluid business that we're in, okay? And I think we've always had a tremendous amount of transparency with our shareholder partners because you are all helping us build this business together in just beer excited. If we hit the jackpot on coffee or hit the jackpot on protein buyers, right? -- literally, I've got to work on Plan B on capacity because you hit the jackpot in coffee, right? It's literally -- our plans can produce, let's call it, up to, say, $65 million of revenue, okay, in our current facility right now, okay? So that's why we're now working on Plan B and on Plan C. In fact, I was in a meeting this afternoon with some partners that are helping us on that process. But we need to be ready for it, right?

If it happens, and we go out of the park. We've got a few chances. We're going to disrupt coffee, we're going to disrupt protein box. We're going to disrupt our friends at liquid IV. By the way, 64% of liquid IV is sugar, okay? We're going to disrupt them, but Venia [ph], without organic electrolyzers, micronized magnesium, right, and a great tasting product. consumers vote, they worked with basically their wallets, they vote with their preferences. And in that kind of situation, again, just being very transparent, others will have to get shifted because we got to make a choice, right? So full demand of video or it's all of it, right? So we have to be nimble. That's my point. We have to be nimble, but we're working to get all those ready by early third quarter, and we have an amazing all of products. I can't -- we haven't gone out publicly yet with what we have inside the orders, but we really believe that we have another winning proposition that will be an amazing brother or sister to our red grade sales from Vinea. So super excited.

Justin Meiklem

And so sequentially on the Pro line, there are questions about how much the hydration powder fit in with the protein bar -- are they going to be staged?

Ilan Sobel

From a timing perspective?

Justin Meiklem

Yes.

Ilan Sobel

Look, I -- if we have the capacity, I want to launch them all together, like on is bringing them all to the market. under the marketing and having a halo effect, much more efficient, right? That's ideally if we have the capacity. We don't have the capacity. We're going to have to make choices. That's what I'm just saying very transparently to -- we talk about it in our leaders meeting we have to be nimble. We're building world-class products at the someone got a pop. Some may not pop as much, right? But you got to do a on the pop. And when they pop in the USA, as we've seen with Vinea, boy does a POC, especially when you go through these delivery systems like cost, like I said, 7 out of the 15 top grocery items in Amazon of coffee brands.

Justin Meiklem

Excellent. So a few marketing and go-to-market questions there. The people are asking coffee is going to be available on vno.com cost [ph]. Okay. Will the allo [ph] products have its own full on vertical website, will it be separate?

Ilan Sobel

Wow! That’s a good question. And whoever is asking that question, they should -- we should bring them on as a consultant to help us think this through. So you can tell me now, you can tell me as to who asked that question.

Justin Meiklem

That would be will be Chris.

Ilan Sobel

There are some other really good ones. I've got a dose now. Good question, Chris. So the way we're thinking about it is that there's a couple of ways you can do it. And we haven't yet landed, but I'll kind of help you understand the 2 different models. One model basically is you build a version of Vinea.com for Otis, right? And they basically live apart from -- another way of doing it, if you think about it, like you start to bring the other company into it, like the bar harbor sciences, we talk about our technology and what we do almost like a house of ascites and you go into this room and it's the red bay cell room. And you're going to this room or on this floor, it's the red grade cell floor and you have basically the coffee room, the tearoom, the protein baron, the hydration room, the x room, the wire room, that I don't want to talk about right now. And then you have another floor, which is another floor with all the rooms and another 4 with Palmer. So there's 2 different approaches.

And basically now, the marketing team are busy now coming back to me with the recommendation of what does each approach look like? And then what are the pros and the kinds of each approach? And that’s like a very -- there’s a lot of branding and strategy work that we need to do because it has important mother brand implications and as other product brand implementation that has financial implications based on efficiency, but I’m sure we’ll land in the right place. But that work is being pulled through.

Justin Meiklem

Good questions. When you're looking at these different products, do they go through the same regulatory processes as like, let's say, people are asking about will be easier to order coffee into Canada for all.

Ilan Sobel

Wow! That is a really good question.

Justin Meiklem

We can show it.

Ilan Sobel

No, no, no, no, I don’t like showing questions. I don’t think we’ve showed any questions before. I would say to you that I actually see -- well, let me first say coffee and just based on how the FDA thinks about coffee, you’ll never see a copy of the dietetics always as a prudent. And as you know, Vinea can play as a food and it can also play as a die-out from a regulatory perspective. So it’s very versatile. As it relates to Canada, I believe it’s a food -- as a food, the Canadian walls today as a dietary supplement, you can only ship 90 nicely supplement 90 capsules at any time into Canada. And as many of you of our Canadian shareholder partners know it’s a pain in the but because customers basically pick a number between 1 and 50 and how much do they want to charge you on custom study, as you know as well, Justin. I believe as a food, it’s not -- there’s no duty on it, which will make life easier for us, okay? So that’s an actually interesting question, and we should please follow up with that, Justin with Misal, our VP of Regulatory path because what that could mean is it could mean that a much bigger push into Canada in the context of being a flu.

Justin Meiklem

Yes, absolutely. I'll ask on broader regulations in different markets. Some questions about cannabis, your comments on how closely you're monitoring discussions about Germany approaching legalization last week at HHS wrote a letter to the DEA. Just comment on how closely the executive team is monitoring that.

Ilan Sobel

So obviously, we’re closely monitoring everything that’s going on from a regulatory perspective. It was somewhat surprising and health and human services have gone that far, but it’s encouraging for the industry. And you’ve seen some positive responses in finally for the industry, some positive responses coming out of that as a result of the health and human services method to the DEA. We’re closely monitoring everything. We are a nimble company. We have a part, basically, what we’re building right now, as we’ve shared with you, which is superfine, super profitable without cannabis. But at the same time, we’re a nimble company, and we’re watching regulations. We’re watching what it means also from a financial perspective and staying nimble. So that’s how we operate.

Justin Meiklem

Two, marketing strategy questions. One, I love your line from Matt. I was asking about whether you've got an advertising strategy that will deliver the knockout blow to differentiate what you showed us as being number 15 on Amazon, how many of those 1 through 14 are botanic synthesis and how many are just ground-up junk. But he's asking whether we're thinking about the knockout blow to compare Videaand the process to the competition.

Ilan Sobel

Great question. Look, as everybody knows, we're the only company in the world that's able to produce 50 with veratrole from the red grade at an industrial commercial scale, and that's because of our platform technology and the fact that we increased the level of at least 100 versus what sounded in the rare and as our shareholder, shareholder owners understand that basically parked resveratrol is really the Rolls Royce. -- of the reversal well because resveratrol is not created unlike man, is virtual is not created equal. And with our pipes Veritor, it has significant more solubility in bioavailable. So we have -- how we've got to where we've got to right now is really driven by -- if you go into our Amazon fines, we clearly communicate everything. We have our videos. It's very, very clear on delivering those knockout punches on wiener, okay?

And I think what's happening over time as we creep up the rankings or get closer to 1. We started 75. We've got very fit to 25. Now we are oscillating between 10 and 14. It really comes down to our bars and spend levels. right? Now you're going to have also some consumers that ultimately, price is king, right? It doesn't matter. Just not going to -- they're price-sensitive and our product is just out of their range. And that we're not going to convert everybody. But what we found is that in the last 6 weeks, we've started to surgically target other resveratrol brands. And when we target those reversal brands, Amazon allows you to do it very, very effectively to have a platform to do it. You're targeting that with your point of difference. So we're clearly screening our point of difference around partiertrol [ph] and our benefits versus transfers Vertal. So it's a process. But the key thing is I can get there. And again, we've been there. We were at number 3 of the hockey. We're number 3 of the hockey beaten screen shots, okay? It was really related to able right, and spend levels in this case, more eyeballs, right?

So I guess I want to be -- with Amazon and the way the Amazon algorithms work, you have to be very patient and you have to be very firm about precision and learning and understanding what works and understanding what doesn't work, and then you slowly build your investment levels and then basically, as you do that, you see improved performance. But what we're finding now is that we -- and people for I was crazy when we decided and we spoke about 2 years ago, and we said we're going to lead and the rate them in the marketplace that educates consumers between the good, the bad and the and the nutraceutical market, and we're going to lead in the rates, which helps people understand that there's 3 questions you have to ask. Here's your supplement soluble, i.e., does it get solubilized in your intestinal track? Or are you the product out of your whatever, right? Is it get anything out of your body in other ways. And 95% or supplement by just not reaching the right places.

The first thing is solubility. Then if it's soluble, how bioavailable is it, therefore, how long does it take to go through the membrane into your blood plasma? And how does it interact with the cells in your bonds. Viniar takes 20 minutes. And we have 12-hour sustained release with a peak after 1 hour, pekoe5hours that's all being clinically validated. So you should be asking your company, and I say this to all our shareholder partners if you're taking other supplements, make sure you call our customer service. excuse me, can you tell me -- can you provide me detail about the solubility and by availability of this product that I'll take, right? And I guarantee you, you'll never get to respond is 99% of the cases. And then ultimately, you've got to ask yourself where the efficacy, where are the clinical trials, right? Show me the clinical trials to support what you're saying, show me the reviews and then read the reviews, right? Because you can read reviews, you know whether somebody is gone, and they've kind of done funny stuff with reviews versus having verified a view process.

So we follow the model, Justin. The model is working, and it’s not just about marketing price lines. It’s about clearly stating the facts and communicating the point of difference by being patient knowing that you have to educate consumers. And the best investment that we ever made was working with David who’s the number 1 medical animator in the world that made the 3 videos for us, the science of Veniamin work for your body, the buyer the solubility advantage of the biovanillin, we know we’ve seen hundreds of thousands of views on those videos, and we’re educating consumers, and that’s great. That’s our role. That’s a leadership role that we’re taking. And that’s why we have 93% subscription base. That’s why we have 95% of our subscribers or 3 months or more. That’s why we have a tap that we know we can turn on, we can do more and more. And that’s why I believe we have one of the lowest churn rates in the industry.

Justin Meiklem

I'll ask -- sorry, I'm just go. I've got very one question. I've got you for another 15 minutes.

Ilan Sobel

You got me for as long as you need me. I’ve got a plane to catch to South Africa in 7 hours, and I just got to -- I don’t need to see if I just impact my suitcase and getting the call with my wife and freaking -- do you have any set…

Justin Meiklem

Yes, I want to thank everybody. We will get -- we will respond to every question. There are some really technical ones about dosage, polyphenolic content, coffee, et cetera. was one of those directly. Some questions, so a really good comment from some of the anonymous who says that in their mind, it looks like explosive growth is going to be tied to the production skin. And just asking because there's other questions about how about India, how about China? What levers -- can you comment on what levers you can pull on the production scaling, specifically?

Ilan Sobel

Yes. Look, I spend a ton of my time dealing with exactly that question and work in coal, our Chief Operations Officer. We're doing investing we can now to maximize the current facility. We're also understanding that we have to be nimble and flexible to be able to look to turn on a new facility very, very quickly. And we're looking at those options. And we started now to look for a second facility for the company. Basically, initially here in Israel. And I think long term, we will need to build a massive facility outside of Israel to address the scaling of the business. And that's really been worked on now because that's more of the kind of medium-term plan. The near-term planning is really around -- and I guess I'll give you -- the way I'm kind of thinking about this -- and it goes back to probably a good analogy is what happened to Tesla and Evonik.

And basically, there was a time as Tesla was basically bringing that product to market, where they had way the number of orders versus the cars that they could basically deliver to the market, it was a huge gap. And they knew that if they didn't deliver that those people are put down deposits, and there's much kind of different process in the car industry, but it was going to be a massive failure point for the company. And basically admasand the management team were very, very nimble and he pulled them together and Iasisaid, we're not going to leave this room until we figure out the plan. And the story or is that basically just and what they realized is that they didn't have enough space in their factory. They couldn't increase the output of cars based on just the shares made from the factory. So they decided literally to get a huge bubble and to build a factory outside of their factory, so there was an open pizza land as we basically replicate everything, but they didn't build bricks-and-mortar, -- they've built a bubble, right?

And they were able to significantly increase production. That’s nimble thing. We have to be nimble, right? If we -- I’m saying this because some, I want to be humble. I have a lot of confidence in coffee. I have a lot of confidence in all our products, right? But you don’t want to be overconfident. You have to be humble or we say cocumble confidence, right? But we need to -- we’re kind of working up now that, okay, we have targets for next year. But if the demand is so much higher, we have to be nimble enough and have a plan B to be able to basically execute a plan like Elon must do. Now I’m not saying we’re going to build a bubble out of our current facility, but there are always that we can accelerate the capacity that we have in our factory that we want to accelerate. And there are ways that we can do it with actually right down, if you look at the environment, there are unfortunately a lot of companies that have infrastructure that can be very valuable to us that allow us to move quickly and increase capacity very, very quickly, utilizing existing infrastructure versus building a plant from scratch.

Justin Meiklem

As one question, whether or not Manis higher has made a difference on the operational side yet.

Ilan Sobel

Elana, she is an amazing, amazing partner and value add of the business like everybody in our leadership team, including Justin, is significant. She is -- I like to call her like Margaret Tapti. She's the iron lady. I push like crazy. I'm very tough. I prefer. She's car. She knows what she's doing. She's a very precision focused. She's a great planner, and we have definitely the right person. I have the right manufacturing partner who happens to be a PhD biologist as well as an expert in manufacturing to navigate the challenges of scaling a biological plan. People -- I think it's very important. I'm going to take this opportunity, Justin, you and I talk about it some time. People think they'd like to just press a button in the sales growth. Shareholder partners, we have a biological plan. It's a biological plan. We're doing biology on a massive scale, right? It's not literally putting a pressing a button and seeing the Coca-Cola run through the Coke line and off you go and you blink and it comes out. It's a biological plan. You have to control everything perfectly. This is not easy, right?

That's why we're so good at it. And that's why you have other tissue culture companies out there that can't get out of the petrodish. That's why we're manufacturing a massive industrial scale bioactives and we're going to make those bioactions even bigger. So we can become even more efficient, and we can have more outputs, but it's a biological plan. We have to understand. This is not simple. There's a huge amount of nohuge amount of know-how, and that's why you'd be vested in this company because ultimately, it will pop. People will realize that botanical synthesis is the only leeway to address many, many challenges facing the world. And I'll just -- maybe it's a good way to kind of start wrapping up. You look at the world today, this is what keeps me going like keeps me going and driving me, one of the factors. We're living a massive crisis, all of us. You have today in the U.S. post cover prices, amount that people suffering for post cogint. You have mental health costs, the amount of drugs that people are taking for mental health, it's not delivering the outcomes. You have a pay management process, take opioids, okay?

You have today the CDC in April revised down the life expectancy for an American male and female revised down never before. Can you believe in this age of signs, they're revising down the average life expectancy. During a little Fi-care system versus a health care system, and that's a massive opportunity for all of us and an opportunity that mechanical synthesis can play a critical role. And today, even pharma companies are realizing that they have to go back to the plant to deal with all these unresolved challenges that exist these little crosses that exist. And at the same time, this summer, we all-event worked enough to the climate crisis. They work up to the climate process, right, with record heat, fires, pollution, toxins, you name it. And it's our mechanical synthesis technology that has is the bridge between the plant and the next generation of therapeutic solutions from pharmaceuticals, to cosmeceuticals to nutraceuticals to nutrition, aware the company that's leading this charge in the tail sites that's leading the movement of change and you all are our partners in driving this movement of change in the world needs.

And that's why Justin, what we're doing now to scale this business, everything that we're doing every day, we're breaking our tea and learning and conquering it's just building capabilities for what we need in the future and ultimately, what the world is going to need because the world is going to have to start to understand very quickly the power of the technical synthesis and then synthesis is the way forward in so many different areas. So we'll start to talk more about this -- we'll start to talk -- we just lost -- just don't know what happened. We'll start to talk more about this and in the next few months. But I'm looking forward to having those discussions.

Just a very, very invigorating when you see the technology that we have and the ability for this technology really to pave the way for the future in so many different areas. So I’ve lost Justin. I’m just going to look at some of the questions and see if there’s any other questions that are around. I think most of those -- there's a question here, which talks about, I think, Alan, nice to hear from you. Thank you for watching. He's just talking about diversifying our focus and not just being on Fox, not just being on TVN. So I want to just let you all know that TVN is a very, very important part of our strategy. We are also basically covered on other channels. And we're obviously doing this to optimize our efficiency levels.

We'll come back, Justin, and we're actually about to start in the next few weeks, a great marketing radio partnership, which you're going to start to hear we have great work that we're doing with the key part and Radio. I'll talk more about it on the next update. So complementing what we're doing on the TV side, we're also going to go with basically a radio strategy to complement that with a key partner, which we're looking forward to driving that extra unleashed an extra demand on the demand on. I was just covering some of the questions because you decided to take a toilet break [ph].

Justin Meiklem

No, that was the Internet on question about other marketing opportunities because I was going to ask you to finish up. So we have some comments where people want to hear more about different cell banks. Vinea obviously drives 100% of the revenue right now. Perhaps you can just comment on -- like people are commenting on -- you mentioned based programming. How about our athlete, sponsored athletes and athletes spokespeople and the Olympics. How about other markets, all about even media that targets different than FOX.

Ilan Sobel

I covered this question from Alan. I talked about the radio program. It’s going to go across all networks. I talked also about us being quite surgical in our approach of going across basically other networks, which are attracting people that we see as being our consumers that are not necessarily faith-based. As it relates to Vinea Pro, we are seeding our products now with multiple athletes. We have, again, more than 200 athletes in the NFL that are utilizing Vinea right now. VideaProis going to be a major push where it’s a big play for us as we look to basically bring the brand to a much younger demographic. So ultimately, as it relates to consumer life cycle, we’re doing all the right things. As it relates also to geographies I will share with everybody that we’re making great progress in Canada. And we’ve had a process of interacting with Health Canada through our legal partners in the last few weeks, which has been very positive as it relates to basically them understanding our science and what we can -- what we are allowed to communicate to consumers. And we’ve had some very, very positive outcomes. So I’m very happy with that process and looking forward to having Vinea in Canada for our Canadian consumers to be able to buy it online without any issues early in the first quarter.

Justin Meiklem

Yes. And I think the question I asked is equal -- what is your -- if you're looking for in a year from now? There are all of these initiatives that we're actually doing -- and then there is the entire universe of the opportunity, the ideas, what's in a holding pattern and even more with the -- like the platform itself. Maybe just give a sense of -- just so people understand that the company is -- it's not just Vinea, -- it's looking at the other opportunities, the other options in the future. I be careful with the forward-looking statements.

Ilan Sobel

Yes. I know your soft for sure on any forward-looking statements. I know it you'll put your body on the line. I understand that. Look, I talked before about the power of the tenant -- we are leading a movement of change in the work. We are seeing in the industry as being the leaders as having the greatest ability to unlock the secrets of cellular plant biology, like no other companies. As it relates to the work that we do in tissue culture, when we started the plant, all the way through to producing a massive industrial scale biases. The world is going in this direction. And what our shareholder partners are seeing, all I will say, Justin, and if I cross the line move me back over the line, what I would say is our shareholder partners are seeing a literally a microcosm of the opportunity of this company because all we're doing is Viniais we're validating the power of our technology. okay. And you need to understand that look at what we collectively because all of you are partners in this business.

Look what we've done in a short period of time when you look at the scaling of the business, the metrics that the business has, as I took you through earlier, the metric, not just around the revenue numbers, but around the quality of the growth. It's very, very important, the quality of the gut. And if you think about it, if I have the capabilities to do this on one, let's call it, 1 plant. And I also have the capabilities to be much more efficient in how I move plans through my system. Imagine what we can build this company emandine how big we can onbuild tis coming. We imagine the magnitude of change we can have on millions, tens of millions of people with our technology. right? Companies like Tesla were here 12 years ago. Look at where they are now, look what they've done for the industry, right? Imagine what we can do. We have something, a technology and ability to literally go from plants to products in a way which doesn't just mirror all the part of medicinal compounds in the plant, but it also increases the clinical firmed compound consumer body needs, and we know how to bring it to consumers.

We know how to manufacture it. We know how to bring it to consumers. And we're getting smarter and smarter every single day in the manufacturing who biological manufacturing. -- its data, its experience, its technology, right? And this is what Ilana is driving the agenda that she is driving this meeting to be the best in class, not to specific R&D but taking class manufacturing organization. So we can lead the world in this area and bring the world with us. So that's really -- for me, it's a massive responsibility with what we have in our hand, massive responsibility, shame on us if we don't maximize this responsibility to help change the lives of millions of people and generations to come because -- the like nutrition, if you look today at a lot of bread and the nutrition in a local breadth today versus 20 years ago has drastically different. The nutritional world has been turned upside down. Chemical synthesis has only can only go so far. -- amazing, amazing developments in the last 20 years, 3 years, but chemical synthesis have hit the war in a number of different areas. And that's why mechanical synthesis go back to the plant.

You need to go back to the past to go back to the future in a way that's really what gets us excited. And we'll just keep on doing what we're doing on our current pathway with our regrades sales, but there is a lot more coming from this company as we get smarter and smarter and better and better than what we're doing. So a lot to look forward to. It's not easy. It's a grind. Anything is a grind. -- literally every -- I always say I thank you everybody in my team, I'll say it to my kids, I'll say to my wife when she wants to listen to me. I said, "No, no, nothing is easy. But like you look at people that are of companies that have changed the world never need, right? So we're just lucky that we have this amazing technology that just makes a massive difference to people's lives. And that gives you the strength to keep on doing what you're doing. Justin?

Justin Meiklem

Yes. Thank you for such a detailed answer. We still have 34 questions. I think people are joining -- so just in at BioHarvest.com, we won't respond to every question. If I will have this recording rendered hopefully by this evening, and it will be shared. But by all means, please reach out to us because Elon is very absolutely 100% approach for any question. Thank you so much for everybody who stay with us. That's our full 9 minutes. Thank you...

Ilan Sobel

Thanks, Justin. I've really enjoyed tonic I'm just -- I'm not blown away by the quality of questions that we get. And the questions also keep us on our toes. Often, they explore some blind spots. We can't be everywhere. I just want to encourage all our shareholder partners, Dr. Jones, all of you, you're sending me the team from Germany, claims, you guys are always looking for basically out there for us looking for opportunities, being provocative, -- we join us, we embrace it. like I always say, we're building this company together. You are our shareholder partners who were on this amazing journey to build a movement of change being the spetanical synthesis movement that we're building, and we tint do it alone, and it's amazing to see the support that we have from our shareholder partners. And I really thank you deeply. And also, thank you for your patience. And I'll say this very transparently, where we are as a company from a capability perspective and an opportunity perspective, near term is not reflected in the value of the bank. I just not listing. -- right? And it pisses me off to some extent, but another extent, right?

I just keep our head down because I know at some stage, it’s got to pop. It’s got to pop because it has to. And we really appreciate the patience and the partnership from many of you, many of us really shareholder partners that are obviously been with us for a long time and you know all of you know who you are. Many of them have good personal relationships as well as all our partners in Europe and the U.S. and Canada, thank you for your partnership. It’s going to be another good quarter that we have to have in Q3, and we’re continuing to build the capability and to build the bridge to the drink and the dream is reachable. Now build a great company, a great company that’s going to change the world. Thanks, Justin.

Justin Meiklem

I have a great job tribes [ph], safe trouble. Thank you, everyone.

Ilan Sobel

Thank you. Bye-bye...

Justin Meiklem

Goodbye.

Question-and-Answer Session

End of Q&A