BioHarvest Sciences (BHST) Status Update summary

Strategic technology and business update

• Achieved large-scale, scalable production of plant-based exosomes using proprietary bioreactor technology, enabling consistent, high-yield, and economically viable output for cosmetics, nutraceuticals, and pharmaceuticals.

• Exosomes are nanosized, stable, enriched with viniferin and other bioactive compounds, offering superior bioavailability, efficacy, and absorption compared to traditional sources.

• The technology provides a cost-efficient, defensible advantage and positions exosomes as a safer, non-animal-derived alternative with growing global demand.

• Patent protection strategies are in place, with provisional applications filed to secure intellectual property around scalable exosome production.

• The company is targeting commercialization in cosmetics and pharma within 18-24 months, including a differentiated skincare application, with potential for earlier contract signings and multi-industry applications.

Commercialization and market opportunities

• Direct-to-consumer health and wellness business has generated over $60 million in revenue since 2021, with strong gross margins and ongoing product innovation.

• The new exosome capability enables premiumization and new product lines in cosmetics, supplements, and pharmaceuticals, with high-margin opportunities.

• CDMO business unit is progressing with multiple contracts and expects to deliver at least one or two significant catalysts before year-end.

• The company is positioned to disrupt the $18 billion U.S. electrolyte beverage market with a blood flow hydration product leveraging VINIA’s clinically studied benefits.

• Health Pros Affiliate system is being scaled to drive product adoption, targeting 300+ affiliates in the near term and leveraging their social media reach.

Operational and financial outlook

• Production technology for exosomes can be integrated into existing facilities with minimal additional equipment, supporting rapid scalability.

• The company aims for adjusted EBITDA profitability in Q4, supported by new product launches and expanded distribution channels.

• Strategic partnerships are being formed with gyms and sporting associations to enhance market penetration for hydration products.

• Ongoing pharmaceutical CDMO projects include manufacturing FDA-approved products using proprietary methods, with more pharma contracts in the pipeline.

• The company maintains a strong focus on IP and know-how as key competitive advantages in biotech and health industries.