The following is a summary of the Burcon NutraScience Corporation (BRCNF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Burcon NutraScience reported a net loss of $2 million for Q3 2024, a notable decrease compared to the $16.3 million loss in the same quarter last year.
Gross R&D expenditures decreased from $1.2 million in the third quarter of the previous year to $1 million in the current quarter due to patent portfolio optimization and lower stock-based compensation.
As of December 31, 2023, the company had cash resources of $675,000 compared to $1.5 million at the end of March 2023.
Despite financial constraints, the company has accessed the second $5 million tranche of an existing $10 million loan and is anticipating another $7 million from Protein Industries Canada, extending their cash runway till 2025.
Business Progress:
Burcon accomplished three key milestones in fiscal Q3 2024: a significant production agreement, successful validation of the hemp protein process, and customer interest validation in their hempseed, pea, and canola offerings.
The company remains committed to its 'Burcon 2.0' strategic plan: to identify additional sources of revenue, get closer to customers, and exert more influence over the manufacture of their products.
Commercial production for hemp protein is set to begin in Q4 2024, generating revenue within the year.
The company plans to launch additional proteins later this year, including sunflower and pea proteins, through partnered manufacturing, indicating accelerated business growth and diversification.
Current cash resources are expected to fund operations until April 2024, with the potential to extend until January 2025 or further depending on additional funding and revenue generation from alternative sources like hemp protein sales, pilot plant processing, government funding, and scale-up validation services.
More details: BURCON NUTRASCIENCE CORP IR
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