Diamond Equity Research Releases Update Note on BioHarvest Sciences Inc. (NASDAQ: BHST)
New York, May 21, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released an Update Note on BioHarvest Sciences Inc. (NASDAQ:BHST). The update note includes detailed information on the BioHarvest Sciences' financial results, operational updates, business model, management commentary, valuation, and risks.
The update note is available below.
BioHarvest Sciences May 2025 Update Note
Highlights from the note include:
- Q1 Results Surpass Expectations on VINIA Strength and Operating Efficiencies: BioHarvest Sciences reported robust financial performance for the first quarter of 2025, with revenue rising 47% year-over-year to $7.9 billion, surpassing both management guidance and our estimates of $7.82 million. The growth was primarily driven by continued momentum in the VINIA product line, which exceeded 50,000 active subscribers as of February 2025. Gross Profit rose 53% to $4.6 million, with gross margins improving to 58.5% from 56.2% in Q1 2024, benefiting from increased manufacturing scale and better yields. Operating expenses increased to $6.3 million from $4.4 million due to higher marketing spend and expanded CDMO operations, though marketing as a percentage of revenue declined to 46.8% from 48.0% in Q1 2024. General and administrative expenses increased 67% year-over-year but declined 6% as compared to the fourth quarter of 2024, reflecting improved operating efficiency. The company reported a net loss of $2.3 million, or $0.13 per share, representing a notable improvement over the prior-year loss of $6.6 million and exceeding our expectation of a loss of $0.16 per share. The company concluded the quarter with an improved cash position of $3.4 million, compared to $2.4 million at the end of 2024, supported by $3.9 million in debt financing secured primarily from existing investors. Looking ahead, management guided for second quarter 2025 revenues of at least $8.5 million and anticipates reaching adjusted EBITDA break-even in the second half of the year.
- Expanding VINIA® Product Lines and Accelerating CDMO Pipeline with Robust Near-term Targets: BioHarvest plans to further extend its "VINIA® Inside" strategy by introducing new product lines, including VINIA® SuperFood Tea in K Cup® compatible pods, VINIA® Espresso in Nespresso®-compatible pods, and the forthcoming VINIA® 2X Formula Daily Chews, aimed at capturing incremental revenues from a younger, high-growth consumer segment. To support these launches, the company is expanding into new marketing channels, such as podcast integrations, TikTok, and Health & Wellness influencer programs. The company is also progressing its Olive Cell initiative, which has shown promising in vitro results in reducing liver fat accumulation, with commercial launch as a nutraceutical product targeted for 2026. Within its CDMO division, BioHarvest is advancing projects rapidly, leveraging robust laboratory infrastructure and proprietary AI-driven R&D processes to develop sustainable, plant-based, non-GMO biologic compounds for pharma, nutraceutical, nutrition, and cosmetics industries. Recent achievements include the progression of a pharma CDMO contract into Stage 2 and the initiation of Stage 1 tissue-culture activities with Tate & Lyle to co-develop next-generation plant-based sweeteners. BioHarvest anticipates signing several additional CDMO agreements by year-end, supported by a strong near-term contract pipeline across targeted industry verticals. In our view, BioHarvest's clearly defined roadmap for new product launches and an active CDMO pipeline enhance visibility on near-term growth drivers, reinforcing our confidence in the company's ability to execute its strategic vision effectively.
- BioHarvest Sciences Successfully Completes Stage 1 of Key CDMO Contract with Nasdaq-Listed Pharmaceutical Company, Validating Versatile Botanical Synthesis Platform: BioHarvest Sciences announced the successful completion of Stage 1 of its previously disclosed CDMO contract with a Nasdaq-listed pharmaceutical client, advancing the project into Stage 2. Stage 1 involved isolating and multiplying the target plant cells required to produce an approved drug compound, leveraging BioHarvest's proprietary Botanical Synthesis technology. Progression to Stage 2 involves optimizing biomass growth conditions in liquid media and delivering biomass samples suitable for client testing, ultimately paving the way for commercial-scale production. Contract size and commercial potential typically increase significantly in Stage 2 of CDMO engagements. This development significantly validates the versatility and commercial applicability of BioHarvest's Botanical Synthesis platform across diverse molecule types, positioning the company as a trusted provider of scalable, cost-effective solutions in the pharmaceutical and nutraceutical sectors. The successful transition to Stage 2 notably reduces technical risks, significantly increases the probability of success, and demonstrates BioHarvest's strengthened analytical and AI capabilities developed through this engagement. In our view, this milestone emphasizes the strategic value and broad applicability of BioHarvest's technology, potentially accelerating additional CDMO opportunities and providing a robust validation of its ability to execute technically demanding pharmaceutical projects.
- Valuation: The company is well-positioned for continued growth, driven by expansion in the VINIA product line, a growing subscriber base, and new CDMO partnerships. Its proprietary Botanical Synthesis platform is well-positioned to benefit from rising global demand for health and wellness solutions. With a strategic focus on profitable growth, the company's scalable model provides meaningful opportunities for margin expansion supported by inherent operating leverage. Reflecting the strong Q1 2025 financial performance and encouraging management guidance, we have marginally adjusted our operating expense estimates and reassessed our comparable company analysis, yielding a valuation of $18.45 per share, contingent on successful execution by the company.
About BioHarvest Sciences Inc.
BioHarvest Sciences Inc. specializes in botanical and cellular-based health solutions through its patented Botanical Synthesis technology, focusing on nutraceuticals, pharmaceuticals and CDMO services.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by BioHarvest Sciences Inc. for producing research materials regarding BioHarvest Sciences Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. As of 05/21/25, Diamond Equity Research LLC has been paid $35,000 ($34,980 post bank charges) for research services, which commenced 04/30/24, payable in two installments for the initial year and not applicable to renewals. The first installment of $17,500 ($17,490 post bank charges) was paid within a month after signing the agreement. The second installment of $17,500 ($17,490 post bank charges) was paid after a management content draft version of the initiation of coverage report was provided electronically to BioHarvest Sciences Inc., but prior to the release of the actual initiation of coverage. No further research payments have been made after the first-year term as of the date of this note. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 05/21/2025. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for BioHarvest Sciences Inc. Please review update report attached for full disclosure page.
Contact:
Diamond Equity Research
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