Q3 2026 Burcon NutraScience Corp Earnings Call

February 11, 2026

Speaker #1: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Burcon NutraScience Corporation fiscal 2026 third quarter conference call. Joining us today are Kip Underwood, Burcon's chief executive officer, and Alex Varti, the company's interim chief financial officer.

Speaker #1: After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star 1, then the following on your telephone keypad.

Speaker #1: Should you need assistance during the presentation, you may signal an operator by pressing star 0, then before we conclude today's call, I'll provide the company's safe harbor statement with important cautions regarding the forward-looking statements made during this call.

Speaker #1: Now, I would like to turn the call over to CEO of Burcon, Mr. Kip Underwood. Sir, please go ahead.

Speaker #2: John. afternoon, and good evening. We are all on the call, Thanks, and thank you for your time today and your investment in Burcon. At the conclusion of our presentation, we really important takeaways.

Speaker #2: The first is we are targeting an exciting growing market. The second is customer responses, either with their time in projects or in their purchase decision in buying our products, validate both our strategy and the performance of our products.

Speaker #2: And lastly, and the most importantly, we're on plan. Today, we will walk through what we had performance within our calendar 2025 guidance, and we will certainly affirm our calendar 2026 guidance of double-digit

Speaker #1: and cash Revenue flow positive by the end of calendar 2026 . Our standard safe statement harbor . Our safe harbor statement . To walk through this discussion today , I want to go through the highlights of our fiscal .

Speaker #1: Q3 we'll touch on our technology platform . We'll talk about the exciting market we're targeting and just a mentioned on sales . growth Our sales , our current raise , which we expect to close here in a matter of a few weeks .

Speaker #1: Why we believe Wbir.com is what investment profitability plenty of closing . time for remarks and operational the Q3 highlights sales with not just growth , it's growth , it's the sales underlying multiple customers across multiple products , across multiple food types .

Speaker #1: So diversity of growth is all fully aligned with our strategy . We launched scale optimized multiple products with our partner and our manufacturing facility .

Speaker #1: And really, through our customer project fund, we talk a lot when customer projects take, come to 9 to 18 months to fruition.

Speaker #1: From a contract to converting business . are always building So we future . Those projects we developed today . And you can see over 200 customer projects .

Speaker #1: Projects we build today to drive sales tomorrow . With that , I'll turn it over to Alex , our CFO for financial Alex , take highlights .

Speaker #1: it away .

Speaker #2: Thank you . Kip . Starting off , had a strong quarter generating $740,000 of revenue in Q3 , which represents a doubling of the revenues generated Q2 at the end of calendar 2025 .

Speaker #2: We generated revenues of $1.4 million, which revenue means our guidance. Pausing on that for a moment, I want to underscore the progress made through calendar 2025.

Speaker #2: We started that calendar year without a production facility , and we're ending the calendar year meeting our revenue target . And with a 100% quarter over quarter growth rate in revenues , looking forward , we further expect substantial revenue growth through calendar 2026 .

Speaker #2: We have a robust customer and order book for sales that support that growth. As we focus our efforts and our resources on production and on sales, we've also reduced our other spending.

Speaker #2: So in respect of research and development , we see a 44% year over year decrease of Q3 spend . And in general and administrative expenses , we see a 22% reduction .

Speaker #2: When you compare it to fiscal Q3 in the prior year . Lastly , we've announced the offering of our convertible notes of up to $6.9 million , is supported by with which significant participation from insiders and owners of our manufacturing partner .

Speaker #2: On December 31st , we closed the first tranche of this offering , raising proceeds of $1.25 million , and we expect the final track to close in the last week of January .

Speaker #2: Following the special shareholder meeting to be held on February 20th , 2026 , we'll speak a bit more about this offering in detail later on .

Speaker #2: I'll turn it back to Kip now to talk to our technology platform.

Speaker #1: Thanks , Alex . Technology platforms . The Foundation for success . And this is really the foundation for our growth in our future and what our technology platform fundamentally does is delivers security .

Speaker #1: The highest purity we see in the marketplace today . For plant proteins . And that leads to performance means we . Performance food work with companies to deliver better tasting products to consumers .

Speaker #1: The ones that eventually you and I eventually restore the restaurant . That technology platforms apply to multiple products . You see here . Before , we have talked about .

Speaker #1: So we have 17 from sunflower , protein from the sun . Our protein father , our fiber , protein and purity are canola protein .

Speaker #1: These are all highly differentiated based upon that purity . look at And when you things like Fiber Pro and into saltines , protein , you're looking into really near the world type products .

Speaker #1: Even more exciting, we don't talk about it very much now. There is an R&D pipeline behind these of future innovations to come that will drive growth in the future.

Speaker #1: And lastly , it's important to note this technology is fully protected by an intellectual property mode to ensure we can drive growth protected growth not just today , but into tomorrow .

Speaker #1: I made outset , At the an exciting market . In short , protein is hot . If you've watched television commercials or you've been in a grocery have store , you seen a substantial change or improvement or more products with protein positioning .

Speaker #1: And that's really driven fundamentally by health benefits . The benefits of a higher protein diet from a strength , from a from health , a everyday life perspective .

Speaker #1: And then that growth accelerated by those consumers who are on GLP-1 weight loss medication. Those consumers need more protein across less calories, and food companies are reacting to that.

Speaker #1: That end consumer need , where food companies are reacting , is a bullseye for our technology platform . Our differentiation , our differentiation is spot on .

Speaker #1: you're trying What to do those in relevant highly helping them new consumers needs . As evidence of that our customers volume their , we see positive .

Speaker #1: So quarter on quarter growth , as you can see , over 200 active customer projects . And I think it's important to see these are these have great diversity .

Speaker #1: a lot of these So projects and our current sales are with more entrepreneurial cutting edge brands . Those brands that are on the edge of the trend , their their value could be better aligned with ours .

Speaker #1: They move quickly , they make decisions quickly , faster think for us , very aligned . There are also some customers and brands in there that everybody in the phone here would probably recognize .

Speaker #1: types of Beyond customers , its types of foods . So think about ratings powder that somebody makes at home . Think about a ready to beverage a little drink beverage that's a protein positioning , maybe bars .

Speaker #1: They may 10 or 15g per serving . All are customers areas where of those protein differentiation is . And then lastly , in plant based foods , where companies are trying to make plant based foods just better to attract more consumers .

Speaker #1: Our technology is pretty helpful; it helps them deliver against the taste. So, certainly strong sales growth with our robust sales funnel. More to come.

Speaker #1: And we look forward to talking more about customers in the future . Alex , the current fund raise we have going on , we expect to close this right after our shareholder meeting on February 20th and beyond .

Speaker #1: The details , what we get asked a lot is why . And it's at its core , this is to accelerate growth . We see today .

Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Burcon NutraScience Corporation Fiscal 2026 Third Quarter Conference Call. Joining us today are Kip Underwood, Burcon's Chief Executive Officer, and Alex Varty, the company's Interim Chief Financial Officer. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press *1, then the following on your telephone keypad. Should you need assistance during the presentation, you may signal an operator by pressing *0. Then, before we conclude today's call, I provide the company's safe harbor statement with important cautions regarding the forward-looking statements made during this call. Now, I would like to turn the call over to CEO of Burcon, Mr. Kip Underwood. Sir, please go ahead.

Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Burcon NutraScience Corporation Fiscal 2026 Third Quarter Conference Call. Joining us today are Kip Underwood, Burcon's Chief Executive Officer, and Alex Varty, the company's Interim Chief Financial Officer. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star one then the following on your telephone keypad. Should you need assistance during the presentation, you may signal an operator by pressing star zero. Then, before we conclude today's call, I provide the company's safe harbor statement with important cautions regarding the forward-looking statements made during this call. Now, I would like to turn the call over to CEO of Burcon, Mr. Kip Underwood. Sir, please go ahead.

Speaker #1: We see it occurring customers we have the today remind sales in this industry . Once you receive a sale , it's pretty much always a recurring So as sale .

Speaker #1: A food company makes the product month to month. They come back and buy from us month on month. So we see recurring sales growth.

Speaker #1: We are robust in our sales flow. We see that processing is hot in the market, and with our board, we need to accelerate investment to get ahead of the sales growth.

Speaker #1: And that is what this race is all about . So how do we build operating days sooner ? How do we expand capacity sooner ?

Speaker #1: How do we build to ensure as we close this projects and that growth comes , that we are there and ready to meet ?

Kip Underwood: Thanks, John. Good morning, good afternoon, and good evening to all on the call, and thank you for your time today and your investment in Burcon. At the conclusion of our presentation, we hope you walk away with three really important takeaways. The first is we are targeting an exciting, growing market. The second is customer responses, either with their time in projects or in their purchase decision in buying our products, validate both our strategy and the performance of our products. And lastly, maybe most importantly, we're on plan. Today, we will walk through that we had performance within our calendar 2025 guidance, and we will certainly affirm our calendar 26 guidance of double-digit revenue and cash flow positive by the end of calendar 2026. Our standard safe harbor statement. To walk through this discussion today, obviously we'll go through the highlights of our fiscal Q3.

Speaker #1: If not exceed , those customers expectations ? As I mentioned market , exciting platform Foundation highly pet delivering a differentiated offering to that market .

Speaker #1: We're seeing we have customers right now . We're seeing that growth with recurring sales , and we put that together . And we believe I believe is a is opportunity .

Speaker #1: We're substantially de-risk from where we were nine months ago . Alex went through the progression over the last year . We can see the tremendous opportunity in front of us .

Speaker #1: And I think we're also building a track record . It's important to us that we say what we do and we do what we say , so we laid out our guidance for calendar 25 , the first time we've done that , we're right in the middle of range , and we are affirming our guidance for 2026 of double digit revenue and cash flow positive by the end of 2026 .

Speaker #1: Certainly, exciting times are on the horizon for us, and I hope those who are invested in us come along with us for this ride.

Speaker #1: Guidance for, mentioned on our calendar, 26. The two headlines here are revenue and double cash flow positive. And fundamentally, what drives?

Kip Underwood: We'll touch on our technology platform. We'll talk about the exciting market we are targeting I just mentioned. Little update on sales, our sales growth, our current raise, which we expect to close here in a matter of a few weeks, why we believe Burcon is really a tremendous investment opportunity, and look for what is our path to profitability. At the end, we will have plenty of time for questions and closing remarks. For our fiscal Q3, the operational highlights. With sales growth, it's not just sales growth. It's the underlying multiple customers across multiple products, across multiple food types. So diversity of growth that is all fully aligned with our strategy. We've launched, scaled, optimized multiple products with our partner at our manufacturing facility.

Kip Underwood: We'll touch on our technology platform. We'll talk about the exciting market we are targeting I just mentioned. Little update on sales, our sales growth, our current raise, which we expect to close here in a matter of a few weeks, why we believe Burcon is really a tremendous investment opportunity, and look for what is our path to profitability. At the end, we will have plenty of time for questions and closing remarks. For our fiscal Q3, the operational highlights. With sales growth, it's not just sales growth. It's the underlying multiple customers across multiple products, across multiple food types. Diversity of growth that is all fully aligned with our strategy. We've launched, scaled, optimized multiple products with our partner at our manufacturing facility.

Speaker #1: very that We are focused on the basics of production , , the market's there . The demand is there and wants to deliver .

Speaker #1: As close more customer projects . These recurring sales , they build on each other . We're targeting these types of customers . Very highly differentiated , allows us to continue to drive good margins , always working on capacity and always working on efficiency .

Speaker #1: Both to control costs but more importantly , to move faster , to stay ahead of the growth curve . And with that , John , I will turn it over back to you for any questions from our audience .

Speaker #3: Thank you , ladies and gentlemen , question and begin the will now answer session . Should you have a question , please press star followed by the number one on your touchtone phone .

Speaker #3: We'll hear a prompt that your hand has been raised. Should you wish to polling decline from the process, please press star followed by the number two.

Kip Underwood: Really, through our customer project funnel, we talk a lot when customer projects take 9 to 18 months to come fruition, from a contact to converting to business. We are always building for the future. Those projects we develop today, as you can see, over 200 customer projects, those projects we build today truly drive sales tomorrow. With that, I'll turn over to Alex, our CFO, for the financial highlights. Alex, take it away.

Speaker #3: If you're using a speakerphone, please lift the handset before pressing any keys. The first question comes from the line of Dave Storms from Stonegate.

Speaker #3: Your line is now open .

Speaker #4: Good evening . Thank you for taking my questions . Hi . I wanted to start with the efficiency comment that you made towards the end of your prepared remarks .

Speaker #4: Is there There . any way you can tell us about maybe the J curve that you're seeing as it relates to , sales start up , costs associated with bringing on new customers , and maybe if there's any shallowing of that J curve , as you continue to learn .

Alex Varty: Thank you, Kip. Starting off, Burcon had a strong quarter, generating CAD 740,000 of revenue in Q3, which represents a doubling of the revenues generated in Q2. At the end of calendar 2025, we generated cumulative revenues of CAD 1.4 million, which meets our revenue guidance. Pausing on that for a moment, I want to underscore the progress made through calendar 2025. We started that calendar year without a production facility, and we're ending the calendar year meeting our revenue target and with a 100% quarter-over-quarter growth rate in revenues. Looking forward, we further expect substantial revenue growth through calendar 2026, and we have a robust customer order book for sales that support that growth. As we focus our efforts and our resources on production and on sales, we've also reduced our other spending.

Speaker #1: Well , I think what we're at a point in growth , what I can say is , you know , our fundamental costs don't as we grow forward .

Speaker #1: we that much So , we have we have the staff on site to , to the drive and run facility . We have the infrastructure to go run the business .

Speaker #1: So , you growth that happens between now and the end of the year really comes with increasing variable costs . But really , really very little increase in cost associated .

Speaker #1: So when we drive efficiency , that's a lot of that piece . And then the just the operational side , we've learned a where lot , which is better , you know , operating by our by shift by day by week .

Speaker #4: That's great . I appreciate it . I did also want to then turn to some of the puts and takes on your stated pledge revenue growth in the year .

Alex Varty: In respect of research and development, we see a 44% year-over-year decrease of Q3 spend, and in general, in administrative expenses, we see a 22% reduction when you compare it to fiscal Q3 in the prior year. Lastly, we've announced the offering of our convertible note of up to CAD 6.9 million, which is supported with significant participation from insiders and owners of our manufacturing partner. On 31 December, we closed the first tranche of this offering, raising proceeds of CAD 1.25 million, and we expect the final tranche to close in the last week of February, following the special shareholder meeting to be held on 20 February 2026. We'll speak a bit more about this offering in detail later on. I'll turn it back to Kip now to talk to our technology platform.

Speaker #4: Maybe just if you could help us understand a little more about how much of that might come from expansion new know , acquiring customers , customers within and then maybe just any visibility , you know , is that a six month visibility you have ?

Speaker #4: Is that a three year visibility ? Anything there would be very helpful .

Speaker #1: Sure . So thinking about the first we would our so customer our sales funnel is of a size and scope that that fully discounted for probably drives the growth .

Speaker #1: So that's the that's the first piece . The second piece from a growth perspective . 6,570% of that growth , those customers have already bought at least something from recurring perspective .

Speaker #1: And the balance is late stage , late stage customer work . I would say that when we say late stage , we've been working with customers for 9 or 12 months right now .

Speaker #1: We have very good line of sight of what their plans are . Therefore , a good line of sight . If they're not buying right now , when the when they will start .

Kip Underwood: Thanks, Alex. Our technology platform is the foundation for our success, and this is really the foundation for our growth and our future. What our technology platform fundamentally does is delivers purity, the highest purity we see in the marketplace today for plant proteins. That purity leads to performance. Performance means we work with food companies to deliver better-tasting products to consumers, the ones that you and I eventually all buy at the grocery store or the restaurant. That technology platforms apply to multiple products. You see here the four we have talked about. So we have Solatein from sunflower, protein from the sun, Peazazz, our pea protein, FavaPro, our fava protein, and Puratein, our canola protein. These are all highly differentiated based upon that purity.

Kip Underwood: Thanks, Alex. Our technology platform is the foundation for our success, and this is really the foundation for our growth and our future. What our technology platform fundamentally does is delivers purity, the highest purity we see in the marketplace today for plant proteins. That purity leads to performance. Performance means we work with food companies to deliver better-tasting products to consumers, the ones that you and I eventually all buy at the grocery store or the restaurant. That technology platforms apply to multiple products. You see here the four we have talked about. We have Solatein from sunflower, protein from the sun, Peazazz, our pea protein, FavaPro, our fava protein, and Puratein, our canola protein. These are all highly differentiated based upon that purity.

Speaker #1: And then I would say , and they build right . So again , these are recurring sales . So if you take a run rate for any quarter think about that's the baseline going into the next quarter .

Speaker #1: And then from there and then the last thing you mentioned , growth , the customers we are working with are all targeting and launching new products in this growing market that I talked about .

Speaker #1: So we would also anticipate that most of them will then have success and capture that growth . So as they grow , obviously we grow as well .

Speaker #4: Understood . Helpful . And just so I'm clear on that , when you mentioned customers targeting and launching new products , how much or is there any interplay of , you know , across your entire portfolio , or do you tend to see customers picking to one form of protein ?

Kip Underwood: And when you look at things like FavaPro and into Solatein or sunflower protein, you're looking at the really new-to-the-world type products. What's even more exciting, we don't talk about it very much now, is there is an R&D pipeline behind these of future innovations to come that will drive growth into the future. And lastly, it's important to note this technology is fully protected by an intellectual property moat to ensure we can drive growth, protect the growth not just today but into tomorrow. At the outset, I mentioned we are targeting an exciting market. In short, protein is hot. If you've watched television commercials or you've been in a grocery store, you have seen a substantial change or improvement or more products with protein positioning.

Kip Underwood: When you look at things like FavaPro and into Solatein or sunflower protein, you're looking at the really new-to-the-world type products. What's even more exciting, we don't talk about it very much now, is there is an R&D pipeline behind these of future innovations to come that will drive growth into the future. Lastly, it's important to note this technology is fully protected by an intellectual property moat to ensure we can drive growth, protect the growth not just today but into tomorrow. At the outset, I mentioned we are targeting an exciting market. In short, protein is hot. If you've watched television commercials or you've been in a grocery store, you have seen a substantial change or improvement or more products with protein positioning.

Speaker #4: That question makes sense .

Speaker #1: Actually , I think what we see , which is great for us , I think traditionally it has been one form of protein .

Speaker #1: What we're seeing in the marketplace right now is blended protein , because each protein from each plant has a little different bit strengths .

Speaker #1: Oftentimes when you add a protein to a protein to a , let's say fiber , protein , you know , one plus one plus one to be five , their strengths actually really are synergistic together .

Speaker #1: And we're seeing food advantage of that, which is also good for us because we are one of the few companies out there that have truly a technology platform that can be applied, and is applied, to multiple products.

Speaker #1: So we can kind of a one stop shop if you want to do a blend of protein is great . We can cover that .

Speaker #4: It's understood that I really appreciate that one . One more . If I could would just love to on touch any thoughts around financing needs in the balance sheet .

Kip Underwood: That's truly driven fundamentally by health benefits, the benefits of a higher protein diet from a strength, from a health, and from an everyday life perspective. Then that growth's accelerated by those consumers who are on GLP-1 weight loss medication. Those consumers need more protein across less calories, and food companies are reacting to that end-consumer need. Where food companies are reacting is a bull's-eye for our technology platform, our differentiation. Our differentiation is spot-on with what food companies are trying to do, and it's highly relevant in helping them meet those new consumers' needs. As evidence of that, we see our customers voting with their pocketbook. So significant quarter-over-quarter growth, as you can see, over 200 active customer projects. I think it's really important to see these have great diversity. So a lot of these projects and our current sales are with more entrepreneurial, cutting-edge brands.

Kip Underwood: That's truly driven fundamentally by health benefits, the benefits of a higher protein diet from a strength, from a health, and from an everyday life perspective. Then that growth's accelerated by those consumers who are on GLP-1 weight loss medication. Those consumers need more protein across less calories, and food companies are reacting to that end-consumer need. Where food companies are reacting is a bull's-eye for our technology platform, our differentiation. Our differentiation is spot-on with what food companies are trying to do, and it's highly relevant in helping them meet those new consumers' needs. As evidence of that, we see our customers voting with their pocketbook. Significant quarter-over-quarter growth, as you can see, over 200 active customer projects. I think it's really important to see these have great diversity. A lot of these projects and our current sales are with more entrepreneurial, cutting-edge brands.

Speaker #4: I know you have that upside private placement coming down the pipe . There was release about , you know , extending your warrants , just maybe any further comments about your comfortable with your balance sheet .

Speaker #4: And if you think there's enough there to continue to growth , you'll need to hit the market .

Speaker #1: the

Speaker #1: close the close . Once you race here in a few weeks , we'll have the balance sheet to accelerate growth so we don't have anything planned on the horizon at all .

Speaker #1: We will always , at the same time , always look for like if there's a way to grow faster , to do something fundamentally different , then we'll evaluate that .

Speaker #1: But with the current plan, we're in good shape.

Speaker #4: Thank you for taking my questions and good luck in the next quarter .

Speaker #1: Appreciate it .

Speaker #3: As a reminder , if you have any questions , please press star one . There are no further questions at this time . On the phone lines .

Speaker #3: now turn the I will call over to Paul Lam , director , Investor Relations and Communications for our webcast . Questions . Please continue .

Kip Underwood: Those brands that are on the edge of the trend, their values are typically better aligned with ours. They move quickly, and they make decisions quickly, think faster, cash for us, very aligned. There are also some customers and brands in there that everybody on the phone here would probably recognize. Beyond the types of customers, it's types of foods. So think about a ready-to-mix powder that somebody makes at home. Think about a ready-to-drink beverage, a liquid beverage that has a protein positioning, maybe 10 or 15 grams per serving. Think about nutrition bars. All of those are areas where we're working with customers where our protein differentiation is relevant. And then lastly, in plant-based foods, where companies are trying to make plant-based foods just better to attract more consumers, our technology, our purity, helps them deliver against the taste expectation of new consumers.

Kip Underwood: Those brands that are on the edge of the trend, their values are typically better aligned with ours. They move quickly, and they make decisions quickly, think faster, cash for us, very aligned. There are also some customers and brands in there that everybody on the phone here would probably recognize. Beyond the types of customers, it's types of foods. Think about a ready-to-mix powder that somebody makes at home. Think about a ready-to-drink beverage, a liquid beverage that has a protein positioning, maybe 10 or 15 grams per serving. Think about nutrition bars. All of those are areas where we're working with customers where our protein differentiation is relevant. Then lastly, in plant-based foods, where companies are trying to make plant-based foods just better to attract more consumers, our technology, our purity, helps them deliver against the taste expectation of new consumers.

Speaker #5: Thanks , John . We have a few . today webcast questions from the This one comes from Bruce Lazenby , private investor . In terms of revenue .

Speaker #5: What is the maximum the existing facility could deliver, assuming a 24/7 shift and realistic improvements in processes and equipment?

Speaker #1: Bruce Thanks , . What we can say is that the facility , as it sits , especially with the last ten months of experience , it has a size and is open revenue to do a few things .

Speaker #1: One delivers us well in profitability and well to a very good market space , to a size and scope that is relevant not just to the customers .

Speaker #1: Those entrepreneurial , more cutting edge brands , but also highly relevant to the scale of , a major food company that that all of us might know , a top of mind .

Speaker #1: So we can certainly fully us well get into into well profitability and beyond the guidance of double digit revenue in 2026 .

Kip Underwood: So certainly, strong sales growth with our robust sales funnel, more to come, and we look forward to talking more about customers into the future. Alex mentioned the current fundraise we have going on. We expect to close this right after our shareholder meeting on 20 February. And beyond the details, what we get asked a lot is why. And at its core, this is to accelerate growth. We see the customers we have today. We see the recurring sales today. To remind everybody, sales in this industry, once you achieve a sale, it's pretty much always a recurring sale. So as a food company makes the product month on month, they come back and buy ingredients from us month on month. So we see the recurring sales growth. We look at our robust sales funnel.

Kip Underwood: Certainly, strong sales growth with our robust sales funnel, more to come, and we look forward to talking more about customers into the future. Alex mentioned the current fundraise we have going on. We expect to close this right after our shareholder meeting on 20 February. Beyond the details, what we get asked a lot is why. And at its core, this is to accelerate growth. We see the customers we have today. We see the recurring sales today. To remind everybody, sales in this industry, once you achieve a sale, it's pretty much always a recurring sale. As a food company makes the product month on month, they come back and buy ingredients from us month on month. We see the recurring sales growth. We look at our robust sales funnel.

Speaker #5: Thank you. That answer actually leads us into the next question, which will come from David Kitchens, private investor. What is the targeted time for corporate profitability?

Speaker #5: And I know we touched on that before, but do you have any further insight into that?

Speaker #1: Yeah , I think it's good to read our guide for the calendar . 26 is double digit revenue and cash positive . And , you know , fundamentally we have we have the capacity and the people on site with the manufacturing partner to do that .

Speaker #1: We have the combination of the order book and our sales funnel to drive the demand side. So really, to get to profitability, cash flow positive in '26, what we basically do is execute our plan.

Kip Underwood: We see that protein is hot in the market, and with our boards, we need to accelerate investment to get ahead of the sales growth. That is what this raise is all about. So how do we build operating days sooner? How do we expand capacity sooner? How do we build to ensure, as we close these customer projects and that growth comes, that we are there and ready to meet, if not exceed, those customers' expectations? As I mentioned, exciting market, pea protein foundational, delivering a highly differentiated offering to that market. We're seeing we have customers right now. We're seeing that growth with recurring sales. And we put that together, and we believe, I believe, that Burcon is an exciting investment opportunity. We're substantially de-risked from where we were nine months ago. Alex went through the progression over the last year.

Speaker #1: And that's what we intend to .

Speaker #5: Okay . Thank you . Next question comes from a private investor . Congratulations on the sales momentum . Can you give us more color on the product mix of your current sales ?

Speaker #5: Are you selling more pea protein, protein, or other protein? And do you expect this mix to change going forward?

Speaker #1: Thank you for the question . So at the current time , some more protein . This this was our ongoing strategy . Keep protein as the largest current market .

Speaker #1: As we move forward over time . Think you're to year three . We believe we will see more of a more growth from of a our sunflower protein new .

Speaker #1: The world how to differentiate . Very exciting and more growth in our father . Protein also a more differentiated more new to the world technology .

Speaker #1: So we start with putting current largest market . That's our strategy to begin with . Quick to sales . And then as we forward into year two , see we'll year three , a larger for presence sunflower protein and protein from the sun .

Kip Underwood: We can see the tremendous opportunity in front of us. I think we're also hopefully building a track record. It's important to us that we say what we do, and we do what we say. We laid out our guidance for calendar 2025. The first time we've done that. We're right in the middle of the range, and we are certainly affirming our guidance for 2026 of double-digit revenue and cash flow positive by the end of calendar 2026. Certainly believe exciting times are on the horizon for us and hope those who aren't invested in this come along with us for this ride. I mentioned our guidance for calendar 2026. The two headlines here are double-digit revenue and cash flow positive, and fundamentally, what drives that? We are very focused on the basics of production and sales. The market is there.

Speaker #1: It's fantastic. And our Father, our Father protein.

Speaker #5: Okay , thanks . Next question comes from Harry Hammond Congrats on . Hi . the quarter . As shareholder , my concern is the share price , volume is extremely low and the stock price has stalled without major partnership announcements , the stock price is not expected to be close to historic highs .

Speaker #5: What are you planning to do ? Do you think ? And this is part of his question as well too . Do you think with $30 million in revenue , we could get close enough to historic highs ?

Speaker #1: Harry , thanks for the So question . what we believe and what we're being told is , you know , in the market today and as a food technology company that what we really have to is deliver do results .

Speaker #1: the market So so if the market rewards less on hope and more on results . So we're very focused on the commercialization of technology , the proven technology really turning that into production .

Kip Underwood: The demand is there, and it's on us to deliver. As we close more customer projects, these are recurring sales. They build on each other. We're targeting these types of customers where we're highly differentiated. [This] allows us to continue to drive good margins, always working on capacity and always working on efficiency, both to control costs but more importantly, to move faster to stay ahead of the growth curve. With that, John, I will turn it over back to you for any questions from our audience.

Speaker #1: And sales . And we believe we as continue to say we do do what we say , hit our numbers , drive revenue growth , drive to profitability , that the market over time will take But notice .

Speaker #1: they said also we're always looking at how do we do better , a better job of getting the word out to ensure that capital markets , the investment community is aware of us and and , you know , believes what we're capable of and hopefully making the investment decision to join us .

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you're using a speakerphone, please lift the handset before pressing any keys. Your first question comes from the line of Dave Storms from Stonegate. Your line is now open.

Speaker #5: Okay . Thank God this might be the last question from from the webcast . Is it reasonable to expect revenue to continue growing quarter on over from here quarter out ?

Speaker #5: And if yes , we'll both be primarily attributed to protein sales versus contract manufacturing revenue ?

Speaker #1: Yes , it's reasonable . We have to drive quarter on quarter growth in sales , and we would expect the vast , vast , vast majority of that to be growth of our own products .

Dave Storms: Good evening, and thank you for taking my questions. Hi. I wanted to start with the efficiency comment that you made towards the end of your prepared remarks there. Is there any more you could tell us about maybe the J curve that you're seeing as it relates to sales and startup costs associated with bringing on new customers, and maybe if there's any shallowing of that J curve as you continue to learn?

Speaker #1: So again , we have we have existing recurring sales , existing customers . Sales . We expect to grow . And have a robust sales funnel of , you know , all customers evaluating our products , our technology .

Speaker #1: And we that to expect drive 95 , if not here on 100% of the growth from out . Okay .

Speaker #5: Thank you. And that's all for questions from the webcast, John. Passing it back over to you.

Kip Underwood: Well, I think we're at a point in growth where I can say is our fundamental costs don't change all that much as we grow from here forward. So we have the staff on site to drive and run the facility. We have the infrastructure to go run the business. So the growth that happens between now and the end of the year really comes with obviously increasing variable costs, but really very little increase in other costs associated. So when we drive efficiencies, that's a lot of that piece. And then just the operational side, we're nine months in. We've learned a lot. We're just better at operating by hour, by shift, by day, by week.

Kip Underwood: Well, I think we're at a point in growth where I can say is our fundamental costs don't change all that much as we grow from here forward. So we have the staff on site to drive and run the facility. We have the infrastructure to go run the business. The growth that happens between now and the end of the year really comes with obviously increasing variable costs, but really very little increase in other costs associated. When we drive efficiencies, that's a lot of that piece. Then just the operational side, we're nine months in. We've learned a lot. We're just better at operating by hour, by shift, by day, by week.

Speaker #3: Thank you everyone . That's all the time we have for questions today . At this time . This concludes our question I would and answer over to session .

Speaker #3: Mr. Underwood . For any closing remarks . ahead .

Speaker #1: John Thanks , . And first and foremost , thank you to our shareholders for your continued , your continued support and investment in our the confidence you place in us is not lost on us , and we take that responsibility very seriously , especially thanks to our teams .

Speaker #1: The teams on the they're ground , working their tail off , they're dedicated , committed to delivering the results that we've all committed to .

Speaker #1: We put the support from our shareholders together with the work, effort, and commitment from our team, and we believe we are well on our way to becoming a profitable foodtech company.

Dave Storms: That's great, Colin. I appreciate it. I did also want to then turn to maybe some of the puts and takes on your stated plans for double-digit revenue growth in the year. Maybe just if you could help us understand a little more about how much of that might come from expansion within customers, acquiring new customers, and then maybe just any visibility. Is that a six-month visibility you have? Is that a three-year visibility? Anything there would be very helpful.

Dave Storms: That's great, Kip. I appreciate it. I did also want to then turn to maybe some of the puts and takes on your stated plans for double-digit revenue growth in the year. Maybe just if you could help us understand a little more about how much of that might come from expansion within customers, acquiring new customers, and then maybe just any visibility. Is that a six-month visibility you have? Is that a three-year visibility? Anything there would be very helpful.

Speaker #1: And I think everybody again , for coming along that journey with us . Thank you . John .

Speaker #3: Before we conclude today's call , I would like moment to take a to read the company's Safe harbor statement . This call contains looking forward statements or the meaning of forward looking within the information US private securities Litigation Reform Act of 1995 and applicable Canadian securities legislation .

Speaker #3: Working statements or forward looking information involve risks , uncertainties and other factors that could cause actual results , performances , prospects and opportunities to differ from materially those expressed or implied by such forward looking statements .

Kip Underwood: Sure. So thinking about the so first, our sales funnel is of a size and scope that fully discounted for a product success easily drives the growth. So that's the first piece. The second piece, from a growth perspective, 65% to 70% of that growth, those customers have already bought at least something from a recurring perspective. And then the balance is late-stage customer work. Again, I would always say they don't when we say late-stage; we've been working with these customers for nine or 12 months right now. So we have very good line of sight of what their plans are. Therefore, we have good line of sight of they're not buying right now when they will start. And then I would say and they build, right? So again, these are recurring sales.

Kip Underwood: Sure. So thinking about the so first, our sales funnel is of a size and scope that fully discounted for a product success easily drives the growth. That's the first piece. The second piece, from a growth perspective, 65%-70% of that growth, those customers have already bought at least something from a recurring perspective. Then the balance is late-stage customer work. Again, I would always say they don't when we say late-stage; we've been working with these customers for nine or 12 months right now. We have very good line of sight of what their plans are. Therefore, we have good line of sight of they're not buying right now when they will start. Then I would say and they build, again, these are recurring sales.

Speaker #3: Forward looking statements or forward looking information can be identified by words such as anticipate , intend , plan , goal , project , estimate , expect , believe , future , likely , can , may , should , could , will , potentially and similar references to future periods .

Speaker #3: All statements other than statements of historical fact included during the call are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and results and future events could differ materially from those anticipated in such statements or information.

Kip Underwood: So if you take a run rate for any quarter, think about that, that's the baseline going into the next quarter, and then it goes from there. And then the last thing, you mentioned growth. The customers we are working with are all targeting and launching new products in this growing market that I talked about. So we would also anticipate that most of them will then have success and capture that growth. So as they grow, obviously, we grow as well.

Kip Underwood: So if you take a run rate for any quarter, think about that, that's the baseline going into the next quarter, and then it goes from there. Then the last thing, you mentioned growth. The customers we are working with are all targeting and launching new products in this growing market that I talked about. We would also anticipate that most of them will then have success and capture that growth. As they grow, obviously, we grow as well.

Speaker #3: Important factors that could cause actual results to differ materially from plans and expectations include the actual results of business negotiations , marketing activities , adverse general economic market , business conditions , regulatory changes and other risk and factors .

Speaker #3: Detailed herein and from time to time in the filings made by Bergen with the securities regulators and stock exchanges , including a section entitled Risk Factors in Bergen .

Speaker #3: S annual Information Form filed with the Canadian Securities Administrators on w-w-w dot com . Forward looking statements or information only speaks of the date which was made , and , except as may be required by applicable securities laws .

Dave Storms: Understood. That's incredibly helpful. Just so I'm clear on that, when you mentioned customers targeting and launching new products, how much or is there any interplay across your entire portfolio? Do you tend to see customers sticking to one form of protein, if that question makes sense?

Speaker #3: Bergen disclaims any intent or obligation to update any forward looking statement , whether as a result of new information , future events or otherwise .

Kip Underwood: Actually, I think what we see, which is great for us, I think traditionally, it has been one form of protein. What we're seeing in the marketplace right now is blends of proteins because each protein from each plant has a little bit different strengths. And oftentimes, when you add a pea protein to a canola protein to a, let's say, a fiber protein, 1 + 1 + 1 could be 5. Their strengths actually really are synergistic together. And we're seeing food companies take advantage of that, which is also good for us because we are one of the few companies out there that have truly a technology platform that can be applied and is applied to multiple products. So we can become kind of a one-stop shop. You want to do a blended protein? It's great. We can cover that.

Kip Underwood: Actually, I think what we see, which is great for us, I think traditionally, it has been one form of protein. What we're seeing in the marketplace right now is blends of proteins because each protein from each plant has a little bit different strengths. And oftentimes, when you add a pea protein to a canola protein to a, let's say, a fiber protein, 1 + 1 + 1 could be five. Their strengths actually really are synergistic together. And we're seeing food companies take advantage of that, which is also good for us because we are one of the few companies out there that have truly a technology platform that can be applied and is applied to multiple products. So we can become kind of a one-stop shop. You want to do a blended protein? It's great. We can cover that.

Speaker #3: Although Bergen believes assumptions that the forward inherent in looking statements are reasonable , forward looking statements are not guarantees of future accordingly , statements .

Speaker #3: not performance and rely on investors should Finally , I would remind this call everyone that like to recorded and the webcast will be available for replay on the company's starting website later this evening .

Dave Storms: Understood. I really appreciate that. One more, if I could, would just love to touch on any thoughts around financing needs in the balance sheet. I know you have that upsized private placement coming down the pipe. There was the release about extending your warrants. Just maybe any further comments about your comfortability with your balance sheet and if you think there's an up there to continue the growth or if you'll need to hit the markets again.

Kip Underwood: Yeah. We believe once we close the raise here in a few weeks, that we'll have the balance sheet to accelerate growth. So we don't have anything planned on the horizon at all. We will always, at the same time, always look for if there's a way to grow faster, to do something fundamentally different, then we'll evaluate that. But on the current plan, we're in good shape, Dave.

Dave Storms: Understood. Thank you for taking my questions, and good luck in the next quarter.

Kip Underwood: Thanks, Dave. Appreciate it.

Operator: As a reminder, if you have any questions, please press star one. There are no further questions at this time. On the phone lines, I will now turn the call over to Paul Lam, Director of Investor Relations and Communications, for our webcast questions. Please continue.

Paul Lam: Thanks, John. We have a few questions from the webcast today. This one coming from Bruce Leavenby, private investor. In terms of revenue, what is the maximum the existing facility could deliver, assuming 24/7 shifts and realistic improvements in processes and equipment?

Kip Underwood: Hey, thanks, Bruce. What we can say is that the facility, as it sits, and especially with the last 10 months of experience, has the size, the scope, and the revenue to do a few things. One, delivers us well into profitability and well into a very good margin space. Two, a size and scope that is relevant not just to the customers we're targeting today, those entrepreneurial, more cutting-edge brands, but also highly relevant to a scale of a major food company that all of us might know top of mind. So what we can say certainly fully gets us well into profitability and well beyond the guidance of double-digit revenue in 2026.

Kip Underwood: Hey, thanks, Bruce. What we can say is that the facility, as it sits, and especially with the last 10 months of experience, has the size, the scope, and the revenue to do a few things. One, delivers us well into profitability and well into a very good margin space. Two, a size and scope that is relevant not just to the customers we're targeting today, those entrepreneurial, more cutting-edge brands, but also highly relevant to a scale of a major food company that all of us might know top of mind. What we can say certainly fully gets us well into profitability and well beyond the guidance of double-digit revenue in 2026.

Paul Lam: Thank you, Kip. That answer actually leads us into the next question, which comes from David Gaitchen, private investor. What is the targeted time for corporate profitability? And I know we touched on that before, but do you have any further insight into that?

Kip Underwood: Yeah. I think it's good to read. So our guidance for calendar 2026 is double-digit revenue and cash flow positive. And fundamentally, we have certainly the capacity and the people on site with our manufacturing partner to do that. We have the combination of the order book and our sales funnel to drive the demand side. So really, to get to profitability, cash flow positive in calendar 2026, what we basically do is execute our plan, and that's what we intend to do.

Kip Underwood: Yeah. I think it's good to read. So our guidance for calendar 2026 is double-digit revenue and cash flow positive. Fundamentally, we have certainly the capacity and the people on site with our manufacturing partner to do that. We have the combination of the order book and our sales funnel to drive the demand side. Really, to get to profitability, cash flow positive in calendar 2026, what we basically do is execute our plan, and that's what we intend to do.

Paul Lam: Okay. Thank you, Kip. Next question comes from a private investor. Congratulations on the sales momentum. Can you give us more color on the product mix of your current sales? Are you selling more pea protein, canola protein, or fiber protein? And do you expect this mix to change going forward?

Kip Underwood: Thank you for the question. So at the current time, we sell more pea protein. This was certainly our ongoing strategy. Pea protein is the largest current market. As we move forward over time, let's think year 2, year 3, we believe we will see more of a growth from our sunflower protein, new to the world, highly differentiated, very exciting, and more growth in our fiber protein, also more differentiated, more new to the world technology. So we start with pea protein, current largest market. That was our strategy to begin with, quicker to sales. And then as we move forward into year 2, year 3, we'll see a larger presence for sunflower protein. It's protein from the sun. It's fantastic. And our fiber protein.

Kip Underwood: Thank you for the question. At the current time, we sell more pea protein. This was certainly our ongoing strategy. Pea protein is the largest current market. As we move forward over time, let's think year 2, year 3, we believe we will see more of a growth from our sunflower protein, new to the world, highly differentiated, very exciting, and more growth in our fiber protein, also more differentiated, more new to the world technology. We start with pea protein, current largest market. That was our strategy to begin with, quicker to sales. Then as we move forward into year 2, year 3, we'll see a larger presence for sunflower protein. It's protein from the sun. It's fantastic. Our fiber protein.

Paul Lam: Okay. Thanks for that, Kip. Next question comes from Harry Hamaz. Hi. Congrats on the successful quarter. As a shareholder, my concern is the share price. Volume is extremely low, and the stock price has stalled. Without major partnership announcements, the stock price is not expected to be close to historic highs. What are you planning to do? Do you think, and this is part of his question as well too, do you think with CAD 30 million in revenue, we could get close enough to historic highs?

Kip Underwood: Harry, thanks for the question. So what we believe and what we're being told is, in the market today and even as a food technology company, that what we really have to do is deliver results, right? So the market rewards less on hope and more on results. So we're very focused on the commercialization of technology, the proven technology, and really turning that into production and sales. And we believe, as we continue to say what we do, do what we say, hit our numbers, drive revenue growth, drive to profitability, that the market over time will take notice. That being said, we're also always looking at how do we do a better job of getting the word out to ensure that the capital markets and investment community is aware of us and believes what we're capable of and hopefully makes an investment decision to join us.

Kip Underwood: Harry, thanks for the question. What we believe and what we're being told is, in the market today and even as a food technology company, that what we really have to do is deliver results, the market rewards less on hope and more on results. So we're very focused on the commercialization of technology, the proven technology, and really turning that into production and sales. We believe, as we continue to say what we do, do what we say, hit our numbers, drive revenue growth, drive to profitability, that the market over time will take notice. That being said, we're also always looking at how do we do a better job of getting the word out to ensure that the capital markets and investment community is aware of us and believes what we're capable of and hopefully makes an investment decision to join us.

Paul Lam: Okay. Thank you, Kip. I think this might be the last question from the webcast. Is it reasonable to expect revenue to continue growing quarter-over-quarter from here on out? And if yes, will the growth be primarily attributed to protein sales versus contract manufacturing revenue?

Paul Lam: Okay. Thank you, Kip. I think this might be the last question from the webcast. Is it reasonable to expect revenue to continue growing quarter-over-quarter from here on out? If yes, will the growth be primarily attributed to protein sales versus contract manufacturing revenue?

Kip Underwood: Yes, it is reasonable. We have to drive quarter-on-quarter growth in sales. And we would expect the vast, vast, vast majority of that to be growth of our own products. So again, we have existing recurring sales, existing customers through sales we expect to grow. And we have a robust sales funnel of all customers evaluating our products, our technology. And we expect that to drive 95%, if not 100%, of the growth from here on out.

Kip Underwood: Yes, it is reasonable. We have to drive quarter-on-quarter growth in sales. We would expect the vast, vast, vast majority of that to be growth of our own products. So again, we have existing recurring sales, existing customers through sales we expect to grow. We have a robust sales funnel of all customers evaluating our products, our technology. We expect that to drive 95%, if not 100%, of the growth from here on out.

Paul Lam: Okay. Thank you, Kip. And that's all for questions from the webcast. John, passing it back over to you.

Paul Lam: Okay. Thank you, Kip. That's all for questions from the webcast. John, passing it back over to you.

Operator: Thank you, everyone. That's all the time we have for questions today. At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Underwood for any closing remarks. Please go ahead.

Kip Underwood: Thanks, John. And first and foremost, thank you to our shareholders for your continued support and investment in Burcon. The confidence you place in us is not lost on us, and we take that responsibility very seriously. A special thanks to our teams, the teams on the ground. They're working their tail off. They're dedicated. They're committed to delivering the results that we've all committed to. We put the support from our shareholders together with the work effort and commitment from our team. And we believe we are well on our way to becoming a profitable food tech company. And I thank everybody again for coming along that journey with us. Back to you, John.

Kip Underwood: Thanks, John. First and foremost, thank you to our shareholders for your continued support and investment in Burcon. The confidence you place in us is not lost on us, and we take that responsibility very seriously. A special thanks to our teams, the teams on the ground. They're working their tail off. They're dedicated. They're committed to delivering the results that we've all committed to. We put the support from our shareholders together with the work effort and commitment from our team. We believe we are well on our way to becoming a profitable food tech company. I thank everybody again for coming along that journey with us. Back to you, John.

Operator: Before we conclude today's call, I would like to take a moment to read the company's Safe Harbor Statement. This call contains forward-looking statements or forward-looking information within the meaning of the US Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements or forward-looking information involve risks, uncertainties, and other factors that could cause actual results, performances, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements or forward-looking information can be identified by words such as anticipate, intend, plan, goal, project, estimate, expect, believe, future, likely, can, may, should, could, will, potentially, and similar references to future periods. All statements other than statements of historical fact included during the call are forward-looking statements.

Operator: There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements or information. Important factors that could cause actual results to differ materially from Burcon's plans and expectations include the actual results of business negotiations, marketing activities, adverse general economic, market, and business conditions, regulatory changes, and other risk and factors detailed herein and from time to time in the filings made by Burcon with the securities regulators and stock exchanges, including in the section entitled Risk Factors in Burcon's annual information form filed with the Canadian securities administrators on www.sedar.com. Any forward-looking statement or information only speaks as of the date which it was made, and except as may be required by applicable securities laws.

Operator: Burcon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. Although Burcon believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and accordingly, investors should not rely on such statements. Finally, I would like to remind everyone that this call is being recorded, and the webcast will be available for replay on the company's website starting later this evening. Thank you, ladies and gentlemen, for joining us today for our presentation. You may now disconnect.

Q3 2026 Burcon NutraScience Corp Earnings Call

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