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New words:
accurate, affirmative, afforded, appeal, arrangement, back, bankruptcy, begun, Chile, concept, counter, cure, cut, cybersecurity, defense, delisted, delisting, delivered, difficult, discontinue, flat, fluid, forego, foreseeable, grace, Haaser, inclusion, infrastructure, instruction, invasion, Israel, kind, larger, long, malware, manner, met, mitigate, monitor, newer, notice, Panel, PIK, practice, predict, profitable, proliferation, proof, prototype, pursuit, quotation, retaliation, retired, Russian, satisfied, satisfy, seeking, short, situation, split, stage, system, top, Ukrainian, unable, unknown, unrelated, unused, urgently, written
Removed:
accounted, analogy, applied, applying, assistance, biodegradable, bioplastic, conducted, decrease, expect, fall, fieldwork, imposed, line, occur, pandemic, PHA, replacement, scope, transparency
Financial report summary
?Risks
- If we are unable to raise substantial additional funds in the near term, we will be unable to continue to operate our business and remain a going concern.
- There can be no assurance that we will be able to comply with the continued listing standards of Nasdaq.
- The impact of global geopolitical conflicts, including the Russian invasion of Ukraine and the Israel-Hamas war may adversely affect our business, financial condition or results of operations.
Management Discussion
- Grant revenue of $111 during the three months ended September 30, 2022 was derived from our DOE sub-award with MSU. As of March 31, 2023, our work in support of this research grant was completed with no further grant revenue to be recognized. We currently do not have any active government grants and cannot assess whether additional U.S. or Canadian government research grants will be awarded to us during the remainder of 2023.
- During the three months ended September 30, 2023, we took first-time deliveries of harvested Camelina grain produced under winter and spring season grower contracts in Western Canada and the United States. Harvest from these initial winter and spring seasons will continue into the fourth quarter of 2023. Our first two seasons were small in scale, representing a proof-of-concept for our Camelina products to be used in the biofuel feedstock market. We are at an early stage in the commercialization of Camelina and have not yet begun to capitalize product inventory. The costs of producing Camelina planting seed and the purchase cost of grain harvests acquired from our growers during the three months ended September 30, 2023 were recorded to research and development expense. Payments received or due to us from our shipments of seed and harvested grain to growers and offtake partners that were completed during the three months ended September 30, 2023, have been recorded as an offset to research and development expense. This accounting practice will continue until such time that we have more fully validated our markets and believe the value of capitalized inventory can be realized through product sales. Our intention is to continue expansion of Camelina acreage under contract with growers for future winter and spring seasons as we manage the growth of our business and introduce newer Camelina plant varieties incorporating herbicide tolerance and improved yield traits. The Company's Camelina seed and harvested grain shipments are expected to remain seasonal in the foreseeable future, with acreage planted in the winter and spring growing seasons being harvested and shipped annually to our offtake partners in our third and fourth fiscal quarters.
- Research and development expenses increased by $121, or 6 percent, from $2,083 during the three months ended September 30, 2022, to $2,204 during the three months ended September 30, 2023. The increase in expense was primarily the result of increased expenditures in crop trials and pre-commercial grain production. Crop trial costs increased by $109 during the three months ended September 30, 2023, in comparison to the three months ended September 30, 2022, and was the result of expanded trials in the United States and Canada to evaluate herbicide tolerant Camelina plant varieties. Grain production costs increased by $107 during the three months ended September 30, 2023, compared to the same period of the previous year, primarily as a result of our scale-up of Camelina planting seed in Chile. During the three months ended September 30, 2023, we recorded $91 in offsets to research and development expense from payments received or due to us from shipments of seed and harvested grain to growers and offtake partners that were completed during the period.