eXoZymes Inc. Common Stock 2026 Q2 Earnings Call

Everything in this presentation, other than statements of historical fact, will be forward-looking statements. Please read our SEC filings to better understand eXoZymes as a business, our risk factors, and as an investment opportunity.

Welcome to the quarterly investor call. We've been looking forward to presenting for you and speaking with you all. We are four speakers today. I will open, Tyler will cover the product and platform progress, Damien will cover NCT from a partner selection and the commercialization roadmap perspective. Fouad will come and show us the finances, and then I'll end, where I can talk about the fundraising we did in Q2 and the strategic perspectives of how we are running eXoZymes. I know we today have a good mix of long-term investors and brand new investor candidates. So let me show you how we pitch eXoZymes in 30 seconds. It goes like this. eXoZymes makes highly valuable natural products that, until now, have been inaccessible.

Most of them are molecules someone have found in nature, but only in tiny amounts, enough for people to realize a huge market potential, but no practical way of building a commercial product or business. eXoZymes enables these new and valuable nutraceuticals and pharmaceuticals with the next generation of biomanufacturing. I will start the update by expressing my super excitement about the news we released yesterday. Our R&D team and our product development teams have been super over-performing, and it's setting us up for success with NCT. Tyler, I'll let you go through that and what it means in practice.

Over to you. Hello, I'm Tyler Korman, CSO and co-founder of eXoZymes.

I'd like to pick up on our recent work with NCT, namely the productivity work and what it took to get there. Back in March, we announced our first pilot scale campaign for NCT, run with Cayman Chemical. Our process went from one liter to 100 liters, with Cayman operating it independently, working from the package we handed them. They produced over 500 grams of high purity NCT at 99.6% purity, with 99% of the feedstock converted to product. That campaign answered the first question any manufacturer asks, "Does this chemistry work outside our lab in someone else's hands at scale?" It does. But working and being worth doing are two different things. Process can be perfectly reliable and still be too slow or too expensive to build a business on. In the months since March, we've focused on productivity.

There are three numbers on this slide I'd like to highlight. First, we now get about 67% more NCT out of every liter of reaction volume than we did in the pilot run. Same size tank, substantially more product. Second, the reaction finishes about 5 times faster. That's about 80% less time in the tank. That one number matters more than it might sound, because time in the tank is exactly what a contract manufacturer charges you for. Third, and this is the number we point you to, combining the first two gains with other improvements we've made, the process is roughly 10 times more productive than the pilot run. There's a fourth item on this slide that isn't a number, and I'd argue is just as important. We've moved the process onto commercially relevant unit operations.

These are the equipment and handling steps a commercial plant actually uses, rather than the ones that happen to be convenient in a development lab. 10 times the productivity is productivity a partner can actually receive. The pilot campaign in March demonstrated the process could work. This productivity work here is what we believe makes it economically attractive. We believe greater productivity and a simplified process strengthen the pathway toward technology transfer, though the timing and outcome of any transfer will depend on factors described in our SEC filings. I'll now hand it over to Damien, who will take the third piece, how we're approaching partner selection.

realization activities this year has been advancing the next stage of NCT scale up through the selection of a manufacturing partner and site. Importantly, this work builds on two major milestones that we've already achieved. Earlier this year, we successfully completed pilot scale production with an independent manufacturing partner, demonstrating the scalability of our NCT process. More recently, we announced a significant process optimization breakthrough that further improved the economics and commercial readiness of NCT. With those milestones in place, our focus advanced to selecting the manufacturing partner who will help us execute the next stage of commercialization. Our partner evaluation extended well beyond just cost and equipment. With decades of industrial biotechnology scale-up experience, our team has learned that successful technology transfer depends more on the quality of collaboration as they do on the quality of the assets.

Strong communication channels and a shared commitment to problem-solving are frequently the difference between a smooth scale-up and a difficult one. By qualifying multiple manufacturing options, we have reinforced one of the core strengths of the eXoZymes platform. We do not need to build and operate our own manufacturing facilities in order to commercialize products. Instead, we can leverage an established global manufacturing ecosystem and focus our capital on product innovation. The short list also creates strategic optionality. In addition to selecting a primary manufacturing partner, we are establishing qualified backup options that can support future supply continuity and risk management as demand for NCT grows. We expect to finalize a partner selection by the end of the third quarter, and we look forward to advancing the next phase of NCT commercialization while continuing to build the manufacturing ecosystem that will support future products across the eXoZymes platform.

One of our major areas of focus this year has been advancing the commercialization roadmap for NCT. Importantly, the work we're discussing today builds on a series of milestones we've already announced, including pilot scale production, productivity breakthrough, and the screening process through production partner options. These achievements move NCT beyond technical feasibility and toward commercial readiness. Our focus has now expanded from proving we can make NCT, to building the ecosystem required to successfully launch it into market. Our commercialization strategy is centered on assembling an integrated ecosystem that can efficiently bring NCT to market. That ecosystem begins with the supply chain. Over the past year, we've tested and verified multiple suppliers for key production inputs, creating sourcing flexibility and reducing future supply risk. The next layer is manufacturing.

As previously reported in this meeting today, we've advanced through a comprehensive manufacturing partner selection process and are establishing a scalable asset light production model that leverages world-class external manufacturing capabilities rather than requiring us to build our own facilities. We're also assembling the regulatory and clinical foundation needed for launch. Activities including GRAS preparation and supporting human studies are creating the framework necessary to support commercialization. The most important relationship we're building is our commercial and marketing partnership. This partner will play a central role in translating NCT from a novel ingredient into a successful market product by providing branding, channel development, commercialization expertise, and market reach. The opportunity is not simply to launch NCT, but to establish meaningful market adoption and product revenue. We're making solid progress screening and evaluating prospective launch partners and are encouraged by the quality of discussions underway.

We look forward to sharing details regarding that relationship toward the end of Q4. Our expectation is that this partnership will provide the capabilities, infrastructure, and market experience necessary to support an NCT product launch by mid-2027. Ultimately, this ecosystem is about more than one product. It demonstrates how the eXoZymes platform can repeatedly create new molecular opportunities and efficiently assemble the partnerships required to transform those opportunities into sustainable, high-value businesses.

Thank you. I want to spend two minutes on a question investors ask us often: What comes after our current programs?

Everything we do starts with the same asset, our cell-free AI-enhanced biomanufacturing platform. What the platform produces, we call biosolutions, which we use to make molecules that are traditionally difficult, expensive, or impractical to make at commercial scale by conventional methods. NCT is our first biosolution. It is the program most of you know best and the clearest demonstration of what the platform is designed to do. Cannabinoids are our second. In June, the NIH awarded us a $2 million phase II-B SBIR to support development of rare and novel cannabinoid analogs. Beyond the phase II-B NIH grant, federal support has broadened this year.