NASDAQ:CLGN CollPlant Biotechnologies Q4 2024 Earnings Report $2.24 +0.03 (+1.13%) Closing price 03:25 PM EasternExtended Trading$2.24 +0.01 (+0.45%) As of 04:05 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast CollPlant Biotechnologies EPS ResultsActual EPS-$0.34Consensus EPS -$0.42Beat/MissBeat by +$0.08One Year Ago EPSN/ACollPlant Biotechnologies Revenue ResultsActual Revenue$0.17 millionExpected Revenue$0.36 millionBeat/MissMissed by -$193.00 thousandYoY Revenue GrowthN/ACollPlant Biotechnologies Announcement DetailsQuarterQ4 2024Date3/26/2025TimeBefore Market OpensConference Call DateWednesday, March 26, 2025Conference Call Time10:00AM ETUpcoming EarningsCollPlant Biotechnologies' Q1 2025 earnings is scheduled for Tuesday, May 27, 2025, with a conference call scheduled on Friday, May 23, 2025 at 12:30 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (6-K)Annual Report (20-F)Earnings HistoryCompany ProfilePowered by CollPlant Biotechnologies Q4 2024 Earnings Call TranscriptProvided by QuartrMarch 26, 2025 ShareLink copied to clipboard.There are 7 speakers on the call. Operator00:00:00Welcome to the Coal Plant Biotechnology's Investor Conference Call to discuss results for the Full Year and Fourth Quarter of twenty twenty four and corporate updates. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Dori Koralski of LifeSci Advisors. Operator00:00:29Thank you. Please go ahead. Speaker 100:00:31I would like to welcome everyone to Cold Plant Biotechnology's financial results conference call to discuss the results for the full year and fourth quarter ended 12/31/2024, where management will also provide a corporate business update. With us on the call today from CoPlant are Yajil Tal, Chief Executive Officer, who will provide a brief overview of the company's programs and associated updates and Eran Rotem, Deputy CEO and Chief Financial Officer, who will provide a summary of Colclan's financial results for the full year and fourth quarter ended 12/31/2024. Both will be available to answer questions on today's call. Before we get started, I would like to remind everyone that statements made on this conference call may include forward looking statements. Actual events or results could differ materially from those expressed or implied by any forward looking statements as a result of various risks, uncertainties and other factors, including those set forth in the Risk Factors section of ColdPlan's filings with the Securities and Exchange Commission. Speaker 100:01:46These filings can be found at www.sec.gov or on Coal Plant's website at www.coalplant.com. In addition, any forward looking statements made on this call represent Coal Plant's views only as of today, 03/26/2025, and should not be relied upon as representing the company's views as of any subsequent date. Coal Plant Management specifically disclaims any obligation to update or revise any of these forward looking statements. Finally, Coal Plant Management will refer to certain financial measures not reported in accordance with GAAP on this call. You can find reconciliations of these non GAAP financial measures to the GAAP financial measures in the earnings press release that Cold Plant published earlier today and which is available on Cold Plant's website at ir.coalplant.com. Speaker 100:02:46Now let me turn the call over to Yihil Taff, Chief Executive Officer of CoalPlant Biotechnologies. Please go ahead, sir. Speaker 200:02:56Good morning, everyone, and thank you for joining us today on CoalPlant's Investor Conference Call to discuss our fourth quarter and full year twenty twenty four financial results and corporate developments as we pursue our mission to be a leader in regenerative medicine. You may have seen that the field of regenerative medicine was highlighted at the end of the last year when the first lab grown blood vessels were approved by FDA for use by surgeons to restore blood flow in patients with traumatic injuries or in patients who need coronary bypass. This approval is a major milestone for the sector, a research and development effort that has finally been able to translate from an exciting bench side idea to an actual FDA approved product. As such, we want to and regenerative aesthetics and that we are advancing these programs ourselves through preclinical and clinical studies and ultimately potential collaborative agreements. The investment of our wholly owned programs represent additional opportunity for long term value creation for our stakeholders at ColaPlant. Speaker 200:04:26Therefore, I would like to start with highlighting our photocurable dermal filler candidate, which is in the preclinical phase. The photocurable dermal filler is our own and the market it is intended for is valued approximately $6,300,000,000 and with compound annual growth rate of 10%. We have received very positive feedback from thought leaders in the field of aesthetic medicine related to the experimental use of the photocurable dermal filler. Highlights from these testimonials mentioned that it could be a game changer for plastic facial plastic surgery and as a soft tissue filler, as well as huge advance in the dermal and soft tissue market and for facial plastic surgery and that nothing like this is observed with available fillers with the potential to change the overall approach of long lasting facial sculpting. All video testimonials from each physician can be found within our corporate presentation on our website. Speaker 200:05:39In addition to our proprietary photoker dermal filler development, our collaboration with Abzhi is focused on the development of another dermal and soft tissue filler product for the medical aesthetics market. In February 2025, CorPlant announced that Abzhi is collecting data and conducting a review of its real results from the first cohort of patients enrolled in the dermal and soft tissue filler clinical trials initiated in 2023. Next steps for the program are to be determined upon complete assessment. In addition, following the development achievement, CorePlant received a $2,000,000 payment from Avni. Now on to our second proprietary program in regenerative medicine, our regenerative breast implant. Speaker 200:06:32This quarter, we continue to advance our depressed clinical testing of our commercial size breast implants, now two sixty in volume. This study now using these commercial side prototypes is critical to advancing our technology towards the market of product and creating significant shareholder value. In August 2024, Cortland launched this preclinical study with two arms where the surgical protocol was refined to include implantation through small incision while preventing implant displacement or inversion. We were able to accomplish this with enhanced more durable form of the implant that we were able to produce. Analysis of MRI and ultrasound data conducted early this year confirmed facial integration and vascularization offering valuable diagnostic tools for future clinical applications. Speaker 200:07:38At six months post implementation, one study RM has shown promising outcomes with the implant demonstrating vascularization and rapid tissue in growth within the clinical site implant. No complications such as capstone formation, calcifications and local tissue reactions were observed. Additionally, volume retention and mechanical properties were maintained in the successful study arm. Following this study, CorPlant will continue to optimize the regenerative breast implants to ensure longevity and remodeling of the neo tissue with the goal of readying the implants to enter the clinic. Our regenerative breast implant product candidate could be revolutionary for both women undergoing aesthetic enhancement as well as cancer patient undergoing breast reconstruction since it has the potential to overcome the challenges of existing breast implants made of silicone, saline or autologous fat tissue. Speaker 200:08:43Our recombinant human collagen technology, which is the backbone of our product candidate pipeline and commercial product is the most characterized collagen on the market today, including its molecular, biological and physical properties. There is continuous demand for our BioInx and other applications for our recombinant human collagen. Along these lines, we have had additional interest from wide range of companies that want to gain access to our RH Collagen and are engaged in discussions. That concludes my initial remarks. Now I will turn the call over to our Deputy CEO and Chief Financial Officer, Eran Rotem to provide a recap of the financial results. Speaker 200:09:33Eran? Speaker 300:09:35Thank you, Yifiel. Good morning, everyone. I will now review our financial results for the three and twelve months period ending 12/31/2024. GAAP revenues for the fourth quarter ended 12/31/2024 were $164,000 compared to $299,000 for the fourth quarter ended 12/31/2023. The decrease we see is mainly related to sales of our RH Progel product. Speaker 300:10:12GAAP revenues for the year ended 12/31/2024 were $515,000 compared to $11,000,000 for the year ended 12/31/2023. In 2023, we achieved a milestone with respect to the AbbVie agreement, which triggered a $10,000,000 payment in 2023. This is the main reason for the decrease we see in revenues between these periods. GAAP cost of revenues for Q4 twenty twenty four was $272,000 compared to $773,000 in Q4 twenty twenty three. GAAP cost of revenue for the year ended 12/31/2024 was $1,600,000 compared to $2,000,000 for the year ended 12/31/2023. Speaker 300:11:13The decrease in cost of revenues is in the amount of approximately $400,000 mainly comprised of $312,000 in royalty expenses to the IAEA, mainly related to the milestone payment we received from AbbVie in 2023 and a decrease of $324,000 related to Bioink and Alej Collagen sales offset by $247,000 related to inventory impairment. GAAP gross loss for Q4 twenty twenty four was $108,000 compared to $474,000 in Q4 twenty twenty three. GAAP gross loss for the year ended 12/31/2024 was $1,100,000 compared to a gross profit of $9,000,000 in 2023. GAAP operating expenses for Q4 twenty twenty four were $3,900,000 compared to $4,600,000 in Q4 twenty twenty three. The decrease in operating expenses of approximately $700,000 is mainly related to a decrease of $303,000 in employees, salaries and share based compensation expenses and a decrease of $386,000 in research and development activities. Speaker 300:12:52GAAP operating expenses for the year ended 12/31/2024, were $16,100,000 compared to $16,500,000 for the year 2023. The decrease of approximately $400,000 is mainly related to Addictive in general, administrative and marketing expenses, mainly comprised of $287,000 in share based compensation expenses and $152,000 in insurance policy costs. Financial income net for Q4 twenty twenty four totaled $96,000 compared to $379,000 in Q4 twenty twenty three. Financial income net for the year ended 12/31/2024 totaled $642,000 compared to $493,000 in the year ended 12/31/2023. The increase in financial income is due to exchange rate differences. Speaker 300:14:07GAAP net loss for Q4 twenty twenty four was $3,900,000 or $0.34 basic loss per share compared to a net loss of $4,700,000 or $0.41 basic loss per share for Q4 twenty twenty three. GAAP net loss for the year ended 12/31/2024, was $16,600,000 or $1.45 basic loss per share compared to a net loss of $7,000,000 or $0.62 basic loss per share for the year 2023. The main difference in performance between the periods arises from corporate achievement in 2023 upon reaching a milestone in the dermal filler development plan, achieving the milestone as you already know led to a payment of $10,000,000 from Avdi to Copeland in 2023. Now I will review some of the balance sheet and cash flow data. Cash and cash equivalents as of 12/31/2024 were $11,900,000 In addition, following a development achievement under the AbbVie agreement, Copland received a $2,000,000 payment from AbbVie during Q1 twenty twenty five and the cash balance represent as of today the company cash runway that is expected to satisfy the company's operation requirements through the second quarter of twenty twenty six based on currently contemplated operations and plans. Speaker 300:16:01Cash used in operating activities during the year ended 12/31/2024 was 14,100,000 compared to $2,800,000 for the year ended 12/31/2023. Cash used in investing activities during the year ended 12/31/2024 was $539,000 compared to $1,200,000 which was provided by investing activities for the year ended 12/31/2023 and related primarily to the purchase of property and equipment. Cash provided by financing activities during the year ended 12/31/2024 was $9,000 compared to $1,100,000 for the year ended 12/31/2023. The period last year included proceeds from the exercise of the last warrants that the company granted to investors in previous years. This now concludes the financial summary. Speaker 300:17:11Operator, I believe that we can now open the call for questions. Operator00:17:17Thank you. The floor is now open for questions. Our first question is coming from H. C. Wainwright. Operator00:17:38Please go ahead. Speaker 400:17:40Thank you. This is RK from H. C. Wainwright. Couple of quick questions. Speaker 400:17:45So just trying to understand when would we potentially get an update from AbbVie on the studies that they are doing? And in 2025, should we expect any milestone payments? Speaker 500:18:07Hi, RK. This is Eran. Thank you for joining us and thank you for the question. So just to remind everyone under the agreement between coal plant and AbbVie, AbbVie is developing a dermal filler product. And as we updated about a month ago, the dermal filler product candidate is currently in the clinical phase and AVI is collecting data and conducting a review of interim results on the first cohort of patients enrolled under the trial initiated in 2023. Speaker 500:18:49The next steps for the program are to be determined by Avvi upon conducting their assessment. We are not a part of the timelines here and we are following AbbVie. So whenever they will update us, of course, we will update the markets. And I will mention maybe in this relation that at the last month following development achievement, we received $2,000,000 payment from Avvi in February, which is according to the agreement. And also you remember probably that in 2023 we received another $10,000,000 from another milestone. Speaker 500:19:34And the product development process is under the complete control of Avi. And we cannot estimate, therefore we cannot estimate when will be another milestone. Speaker 400:19:49Okay. Thank you for that. And then very recently you expanded your distribution channels for the REGENX product in Europe and some parts of Asia. What's the market there for this product? And how should we think about revenue flow from this relationship? Speaker 400:20:20And is there anything that you can help us estimate on flow of payments? Speaker 600:20:32So first of all, this is Yigal. Let me explain about the product itself. The product is called Virgenix STR, STR stands for Soft Tissue Repair. The product is basically intended for the treatment of tendinopathy, which is tendon inflammations, like for example, Taney Selbo, Rotator cuff, Achilleostendon, Lantar Fasciitis and others. The product is based on collagen in combination with PRP, which is autologous, it's platelets rich plasma, which is harvested from the patient. Speaker 600:21:11The market for this product is sports medicine, mostly from sport injuries. In terms of the market potential, the market potential is between one percent to three percent of the population. This is the market potential for tendon injuries. So basically what we are trying to do now is establishing a distribution network in Europe, as well as in Asia. This is in the initial stage. Speaker 600:21:48Each country should go through a regulatory process. So we are working on that. And hopefully after establishing this regulatory approval for the Asian countries, we should be able to start selling the product. And again, it will be a market penetration process, but we feel very comfortable about the potential because a competitor product is injection of steroids and repeat injections of steroids is harming the tissue, the treated tissue and it's not going to basically cure the tendinopathy issue. Our product usually a single injection would take care about the inflammation. Speaker 600:22:36This is based on data that we collected from European customers. And for this reason, we feel very comfortable about the potential and hopefully we'll start to see sales in the next year. Speaker 400:22:51Okay. Thank you. Thank you for taking my questions. Speaker 600:22:55Thank you. Operator00:22:57Thank you. At this time, I'd like to turn the floor back over to Mr. Rotem for any web submitted questions. Speaker 500:23:06Thank you. So we had a few questions coming through regarding the company's cash flow, cash the burn rate of the cash, the estimated cash flow. And if I'm summarizing those questions, then I can address them as follows. I mean, some of them mentioning that the company has $11,900,000 at the end of the year in cash and that we had some reduction plan to cut costs and wondering about for how long it can take us, what is the benefit. So please note that the balance is not including the additional $2,000,000 that the Koppen just received from AbbVie in February. Speaker 500:24:03And the cost reduction that we implemented in the company is not impacting materially the main development programs by the way or the other collaboration. And the cash runway guidance that we are counting on is not including any additional potential partnership revenues. So all in all, with this current cash position that we are holding and under conservative assumptions that we are saying that this still we will be able to continue operation into the second quarter of twenty twenty six, more than a year from now. Into the second quarter of twenty twenty six more than a year from now. So relatively we are in a stable position in this shaky markets and we are all aware to the market condition and the share price And we see that all situation is of course as a macro event. Speaker 500:25:10It's not something that happened in the company and we have enough cash for more than a year as of today. So this is regarding a few questions that we received from the audience. So that concludes the questions from the audience and I'll now turn the call back to Ekheel Tal, Copeland's Chief Executive Officer for any closing remarks. Rikhil? Speaker 600:25:43Yes. Thank you, Eran. CorePlant continues to carefully focus on our core programs and our supportive partners to discover, develop and provide collagen technology and regenerative medicine products to improve and prolong lives. As a result, we want to be sure that we are transparent with you, our shareholders, about our upcoming catalyst for the company for the remainder of the year related to our proprietary programs. For our photocurable dermal and soft tissue filler product candidate, our plan is to potentially launch a clinical trial within two years. Speaker 600:26:28For our regenerative breast implant program, we will continue to optimize the characteristics of the implant to ensure optimal regeneration of the neo tissue as well as optimize our clinical protocol with the aim to reach readiness for clinical trial. Related to our Virgenics STR marketed product, we will continue to expand the distribution network of this product in Europe and Asia. For our portfolio of Novel BioInks, we plan to broaden our product offerings to support various bioprinting technologies. And finally related to the sales of our Rh collagen as a raw product, we plan to expand sales to selected customers that comply with our business model. We will of course continue to focus on advancing the development of the dermal filler program with AbbVie And we will also continue to advance any potential partnership discussions. Speaker 600:27:36Thank you everyone for your time this morning and for joining us today for today's conference call. I want to thank our very important and valued Cortland team members who have contributed to another successful and productive quarter. Operator00:27:59Ladies and gentlemen, this concludes today's event. You may disconnect your lines and log off the webcast at this time and enjoy the rest of your day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallCollPlant Biotechnologies Q4 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(6-K)Annual report(20-F) CollPlant Biotechnologies Earnings HeadlinesCollPlant's Collink.3D® BioInks and Technologies Offer a Relevant and Timely Solution to FDA's Plan to Reduce Animal Testing in Preclinical Safety StudiesApril 15, 2025 | prnewswire.comCollPlant provides corporate updateMarch 27, 2025 | markets.businessinsider.comReal Americans Don’t Wait on Wall Street’s Next MoveWhat's happening in the markets right now should concern every freedom-loving American who's worked hard and saved smart. Your 401(k) doesn't deserve to be dragged through the mud by tariffs, trade wars, reckless spending, and political standoffs. And you don't have to stand by while Wall Street plays roulette with your future.April 25, 2025 | Premier Gold Co (Ad)CollPlant Biotechnologies Ltd. (NASDAQ:CLGN) Q4 2024 Earnings Call TranscriptMarch 27, 2025 | insidermonkey.comCollPlant Biotechnologies Reports 2024 Financial ResultsMarch 27, 2025 | tipranks.comCollPlant Biotechnologies Ltd. (CLGN) Q4 2024 Earnings Call TranscriptMarch 26, 2025 | seekingalpha.comSee More CollPlant Biotechnologies Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like CollPlant Biotechnologies? Sign up for Earnings360's daily newsletter to receive timely earnings updates on CollPlant Biotechnologies and other key companies, straight to your email. Email Address About CollPlant BiotechnologiesCollPlant Biotechnologies (NASDAQ:CLGN), a regenerative and aesthetic medicine company, focuses on three-dimensional (3D) bioprinting of tissues and organs, and medical aesthetics in the United States, Canada, Israel, Europe, and internationally. Its products are based on recombinant type I human collagen that is produced with its proprietary plant based genetic engineering technology. The company's products include BioInks for 3D printing of tissues and organs; dermal filler and soft tissue fillers for treating wrinkles; 3D Bioprinted breast implants for regeneration of breast tissue; VergenixSTR, a soft tissue repair matrix intended for the treatment of tendinopathy; and VergenixFG, an advanced wound care product for the treatment of deep surgical incisions and wounds, including diabetic ulcers, venous and pressure ulcers, burns, bedsores, and other chronic wounds; as well as develops injectable breast implants and 3D bioprinted regenerative soft tissue matrix for use in breast reconstruction procedures. It has collaboration agreements with Advanced Regenerative Manufacturing Institute; RegenMed Development Organization; International Society for Biofabrication; AbbVie; and STEMCELL Technologies. The company was formerly known as CollPlant Holdings Ltd. and changed its name to CollPlant Biotechnologies Ltd. in June 2019. The company was founded in 2004 and is headquartered in Rehovot, Israel.View CollPlant Biotechnologies ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step In Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 7 speakers on the call. Operator00:00:00Welcome to the Coal Plant Biotechnology's Investor Conference Call to discuss results for the Full Year and Fourth Quarter of twenty twenty four and corporate updates. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Dori Koralski of LifeSci Advisors. Operator00:00:29Thank you. Please go ahead. Speaker 100:00:31I would like to welcome everyone to Cold Plant Biotechnology's financial results conference call to discuss the results for the full year and fourth quarter ended 12/31/2024, where management will also provide a corporate business update. With us on the call today from CoPlant are Yajil Tal, Chief Executive Officer, who will provide a brief overview of the company's programs and associated updates and Eran Rotem, Deputy CEO and Chief Financial Officer, who will provide a summary of Colclan's financial results for the full year and fourth quarter ended 12/31/2024. Both will be available to answer questions on today's call. Before we get started, I would like to remind everyone that statements made on this conference call may include forward looking statements. Actual events or results could differ materially from those expressed or implied by any forward looking statements as a result of various risks, uncertainties and other factors, including those set forth in the Risk Factors section of ColdPlan's filings with the Securities and Exchange Commission. Speaker 100:01:46These filings can be found at www.sec.gov or on Coal Plant's website at www.coalplant.com. In addition, any forward looking statements made on this call represent Coal Plant's views only as of today, 03/26/2025, and should not be relied upon as representing the company's views as of any subsequent date. Coal Plant Management specifically disclaims any obligation to update or revise any of these forward looking statements. Finally, Coal Plant Management will refer to certain financial measures not reported in accordance with GAAP on this call. You can find reconciliations of these non GAAP financial measures to the GAAP financial measures in the earnings press release that Cold Plant published earlier today and which is available on Cold Plant's website at ir.coalplant.com. Speaker 100:02:46Now let me turn the call over to Yihil Taff, Chief Executive Officer of CoalPlant Biotechnologies. Please go ahead, sir. Speaker 200:02:56Good morning, everyone, and thank you for joining us today on CoalPlant's Investor Conference Call to discuss our fourth quarter and full year twenty twenty four financial results and corporate developments as we pursue our mission to be a leader in regenerative medicine. You may have seen that the field of regenerative medicine was highlighted at the end of the last year when the first lab grown blood vessels were approved by FDA for use by surgeons to restore blood flow in patients with traumatic injuries or in patients who need coronary bypass. This approval is a major milestone for the sector, a research and development effort that has finally been able to translate from an exciting bench side idea to an actual FDA approved product. As such, we want to and regenerative aesthetics and that we are advancing these programs ourselves through preclinical and clinical studies and ultimately potential collaborative agreements. The investment of our wholly owned programs represent additional opportunity for long term value creation for our stakeholders at ColaPlant. Speaker 200:04:26Therefore, I would like to start with highlighting our photocurable dermal filler candidate, which is in the preclinical phase. The photocurable dermal filler is our own and the market it is intended for is valued approximately $6,300,000,000 and with compound annual growth rate of 10%. We have received very positive feedback from thought leaders in the field of aesthetic medicine related to the experimental use of the photocurable dermal filler. Highlights from these testimonials mentioned that it could be a game changer for plastic facial plastic surgery and as a soft tissue filler, as well as huge advance in the dermal and soft tissue market and for facial plastic surgery and that nothing like this is observed with available fillers with the potential to change the overall approach of long lasting facial sculpting. All video testimonials from each physician can be found within our corporate presentation on our website. Speaker 200:05:39In addition to our proprietary photoker dermal filler development, our collaboration with Abzhi is focused on the development of another dermal and soft tissue filler product for the medical aesthetics market. In February 2025, CorPlant announced that Abzhi is collecting data and conducting a review of its real results from the first cohort of patients enrolled in the dermal and soft tissue filler clinical trials initiated in 2023. Next steps for the program are to be determined upon complete assessment. In addition, following the development achievement, CorePlant received a $2,000,000 payment from Avni. Now on to our second proprietary program in regenerative medicine, our regenerative breast implant. Speaker 200:06:32This quarter, we continue to advance our depressed clinical testing of our commercial size breast implants, now two sixty in volume. This study now using these commercial side prototypes is critical to advancing our technology towards the market of product and creating significant shareholder value. In August 2024, Cortland launched this preclinical study with two arms where the surgical protocol was refined to include implantation through small incision while preventing implant displacement or inversion. We were able to accomplish this with enhanced more durable form of the implant that we were able to produce. Analysis of MRI and ultrasound data conducted early this year confirmed facial integration and vascularization offering valuable diagnostic tools for future clinical applications. Speaker 200:07:38At six months post implementation, one study RM has shown promising outcomes with the implant demonstrating vascularization and rapid tissue in growth within the clinical site implant. No complications such as capstone formation, calcifications and local tissue reactions were observed. Additionally, volume retention and mechanical properties were maintained in the successful study arm. Following this study, CorPlant will continue to optimize the regenerative breast implants to ensure longevity and remodeling of the neo tissue with the goal of readying the implants to enter the clinic. Our regenerative breast implant product candidate could be revolutionary for both women undergoing aesthetic enhancement as well as cancer patient undergoing breast reconstruction since it has the potential to overcome the challenges of existing breast implants made of silicone, saline or autologous fat tissue. Speaker 200:08:43Our recombinant human collagen technology, which is the backbone of our product candidate pipeline and commercial product is the most characterized collagen on the market today, including its molecular, biological and physical properties. There is continuous demand for our BioInx and other applications for our recombinant human collagen. Along these lines, we have had additional interest from wide range of companies that want to gain access to our RH Collagen and are engaged in discussions. That concludes my initial remarks. Now I will turn the call over to our Deputy CEO and Chief Financial Officer, Eran Rotem to provide a recap of the financial results. Speaker 200:09:33Eran? Speaker 300:09:35Thank you, Yifiel. Good morning, everyone. I will now review our financial results for the three and twelve months period ending 12/31/2024. GAAP revenues for the fourth quarter ended 12/31/2024 were $164,000 compared to $299,000 for the fourth quarter ended 12/31/2023. The decrease we see is mainly related to sales of our RH Progel product. Speaker 300:10:12GAAP revenues for the year ended 12/31/2024 were $515,000 compared to $11,000,000 for the year ended 12/31/2023. In 2023, we achieved a milestone with respect to the AbbVie agreement, which triggered a $10,000,000 payment in 2023. This is the main reason for the decrease we see in revenues between these periods. GAAP cost of revenues for Q4 twenty twenty four was $272,000 compared to $773,000 in Q4 twenty twenty three. GAAP cost of revenue for the year ended 12/31/2024 was $1,600,000 compared to $2,000,000 for the year ended 12/31/2023. Speaker 300:11:13The decrease in cost of revenues is in the amount of approximately $400,000 mainly comprised of $312,000 in royalty expenses to the IAEA, mainly related to the milestone payment we received from AbbVie in 2023 and a decrease of $324,000 related to Bioink and Alej Collagen sales offset by $247,000 related to inventory impairment. GAAP gross loss for Q4 twenty twenty four was $108,000 compared to $474,000 in Q4 twenty twenty three. GAAP gross loss for the year ended 12/31/2024 was $1,100,000 compared to a gross profit of $9,000,000 in 2023. GAAP operating expenses for Q4 twenty twenty four were $3,900,000 compared to $4,600,000 in Q4 twenty twenty three. The decrease in operating expenses of approximately $700,000 is mainly related to a decrease of $303,000 in employees, salaries and share based compensation expenses and a decrease of $386,000 in research and development activities. Speaker 300:12:52GAAP operating expenses for the year ended 12/31/2024, were $16,100,000 compared to $16,500,000 for the year 2023. The decrease of approximately $400,000 is mainly related to Addictive in general, administrative and marketing expenses, mainly comprised of $287,000 in share based compensation expenses and $152,000 in insurance policy costs. Financial income net for Q4 twenty twenty four totaled $96,000 compared to $379,000 in Q4 twenty twenty three. Financial income net for the year ended 12/31/2024 totaled $642,000 compared to $493,000 in the year ended 12/31/2023. The increase in financial income is due to exchange rate differences. Speaker 300:14:07GAAP net loss for Q4 twenty twenty four was $3,900,000 or $0.34 basic loss per share compared to a net loss of $4,700,000 or $0.41 basic loss per share for Q4 twenty twenty three. GAAP net loss for the year ended 12/31/2024, was $16,600,000 or $1.45 basic loss per share compared to a net loss of $7,000,000 or $0.62 basic loss per share for the year 2023. The main difference in performance between the periods arises from corporate achievement in 2023 upon reaching a milestone in the dermal filler development plan, achieving the milestone as you already know led to a payment of $10,000,000 from Avdi to Copeland in 2023. Now I will review some of the balance sheet and cash flow data. Cash and cash equivalents as of 12/31/2024 were $11,900,000 In addition, following a development achievement under the AbbVie agreement, Copland received a $2,000,000 payment from AbbVie during Q1 twenty twenty five and the cash balance represent as of today the company cash runway that is expected to satisfy the company's operation requirements through the second quarter of twenty twenty six based on currently contemplated operations and plans. Speaker 300:16:01Cash used in operating activities during the year ended 12/31/2024 was 14,100,000 compared to $2,800,000 for the year ended 12/31/2023. Cash used in investing activities during the year ended 12/31/2024 was $539,000 compared to $1,200,000 which was provided by investing activities for the year ended 12/31/2023 and related primarily to the purchase of property and equipment. Cash provided by financing activities during the year ended 12/31/2024 was $9,000 compared to $1,100,000 for the year ended 12/31/2023. The period last year included proceeds from the exercise of the last warrants that the company granted to investors in previous years. This now concludes the financial summary. Speaker 300:17:11Operator, I believe that we can now open the call for questions. Operator00:17:17Thank you. The floor is now open for questions. Our first question is coming from H. C. Wainwright. Operator00:17:38Please go ahead. Speaker 400:17:40Thank you. This is RK from H. C. Wainwright. Couple of quick questions. Speaker 400:17:45So just trying to understand when would we potentially get an update from AbbVie on the studies that they are doing? And in 2025, should we expect any milestone payments? Speaker 500:18:07Hi, RK. This is Eran. Thank you for joining us and thank you for the question. So just to remind everyone under the agreement between coal plant and AbbVie, AbbVie is developing a dermal filler product. And as we updated about a month ago, the dermal filler product candidate is currently in the clinical phase and AVI is collecting data and conducting a review of interim results on the first cohort of patients enrolled under the trial initiated in 2023. Speaker 500:18:49The next steps for the program are to be determined by Avvi upon conducting their assessment. We are not a part of the timelines here and we are following AbbVie. So whenever they will update us, of course, we will update the markets. And I will mention maybe in this relation that at the last month following development achievement, we received $2,000,000 payment from Avvi in February, which is according to the agreement. And also you remember probably that in 2023 we received another $10,000,000 from another milestone. Speaker 500:19:34And the product development process is under the complete control of Avi. And we cannot estimate, therefore we cannot estimate when will be another milestone. Speaker 400:19:49Okay. Thank you for that. And then very recently you expanded your distribution channels for the REGENX product in Europe and some parts of Asia. What's the market there for this product? And how should we think about revenue flow from this relationship? Speaker 400:20:20And is there anything that you can help us estimate on flow of payments? Speaker 600:20:32So first of all, this is Yigal. Let me explain about the product itself. The product is called Virgenix STR, STR stands for Soft Tissue Repair. The product is basically intended for the treatment of tendinopathy, which is tendon inflammations, like for example, Taney Selbo, Rotator cuff, Achilleostendon, Lantar Fasciitis and others. The product is based on collagen in combination with PRP, which is autologous, it's platelets rich plasma, which is harvested from the patient. Speaker 600:21:11The market for this product is sports medicine, mostly from sport injuries. In terms of the market potential, the market potential is between one percent to three percent of the population. This is the market potential for tendon injuries. So basically what we are trying to do now is establishing a distribution network in Europe, as well as in Asia. This is in the initial stage. Speaker 600:21:48Each country should go through a regulatory process. So we are working on that. And hopefully after establishing this regulatory approval for the Asian countries, we should be able to start selling the product. And again, it will be a market penetration process, but we feel very comfortable about the potential because a competitor product is injection of steroids and repeat injections of steroids is harming the tissue, the treated tissue and it's not going to basically cure the tendinopathy issue. Our product usually a single injection would take care about the inflammation. Speaker 600:22:36This is based on data that we collected from European customers. And for this reason, we feel very comfortable about the potential and hopefully we'll start to see sales in the next year. Speaker 400:22:51Okay. Thank you. Thank you for taking my questions. Speaker 600:22:55Thank you. Operator00:22:57Thank you. At this time, I'd like to turn the floor back over to Mr. Rotem for any web submitted questions. Speaker 500:23:06Thank you. So we had a few questions coming through regarding the company's cash flow, cash the burn rate of the cash, the estimated cash flow. And if I'm summarizing those questions, then I can address them as follows. I mean, some of them mentioning that the company has $11,900,000 at the end of the year in cash and that we had some reduction plan to cut costs and wondering about for how long it can take us, what is the benefit. So please note that the balance is not including the additional $2,000,000 that the Koppen just received from AbbVie in February. Speaker 500:24:03And the cost reduction that we implemented in the company is not impacting materially the main development programs by the way or the other collaboration. And the cash runway guidance that we are counting on is not including any additional potential partnership revenues. So all in all, with this current cash position that we are holding and under conservative assumptions that we are saying that this still we will be able to continue operation into the second quarter of twenty twenty six, more than a year from now. Into the second quarter of twenty twenty six more than a year from now. So relatively we are in a stable position in this shaky markets and we are all aware to the market condition and the share price And we see that all situation is of course as a macro event. Speaker 500:25:10It's not something that happened in the company and we have enough cash for more than a year as of today. So this is regarding a few questions that we received from the audience. So that concludes the questions from the audience and I'll now turn the call back to Ekheel Tal, Copeland's Chief Executive Officer for any closing remarks. Rikhil? Speaker 600:25:43Yes. Thank you, Eran. CorePlant continues to carefully focus on our core programs and our supportive partners to discover, develop and provide collagen technology and regenerative medicine products to improve and prolong lives. As a result, we want to be sure that we are transparent with you, our shareholders, about our upcoming catalyst for the company for the remainder of the year related to our proprietary programs. For our photocurable dermal and soft tissue filler product candidate, our plan is to potentially launch a clinical trial within two years. Speaker 600:26:28For our regenerative breast implant program, we will continue to optimize the characteristics of the implant to ensure optimal regeneration of the neo tissue as well as optimize our clinical protocol with the aim to reach readiness for clinical trial. Related to our Virgenics STR marketed product, we will continue to expand the distribution network of this product in Europe and Asia. For our portfolio of Novel BioInks, we plan to broaden our product offerings to support various bioprinting technologies. And finally related to the sales of our Rh collagen as a raw product, we plan to expand sales to selected customers that comply with our business model. We will of course continue to focus on advancing the development of the dermal filler program with AbbVie And we will also continue to advance any potential partnership discussions. Speaker 600:27:36Thank you everyone for your time this morning and for joining us today for today's conference call. I want to thank our very important and valued Cortland team members who have contributed to another successful and productive quarter. Operator00:27:59Ladies and gentlemen, this concludes today's event. You may disconnect your lines and log off the webcast at this time and enjoy the rest of your day.Read morePowered by