JUVAF - Earnings call transcript Q2 2022

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Operator

Greetings and welcome to the Juva Life Second Quarter 2022 conference call. At this time all participants are in listen-only, and this conference is being recorded.

Following the formal remarks, we will conduct a question-and-answer session. questions were submitted ahead of time via email. Offering remarks today will be the company's Chief Executive Officer, Vice President of Chemistry and Chief Financial Officer. research will XXXX from results as cannabis and management of second from call, organization. operations year the fiscal well pharmaceutical this discuss the results quarter the On of outside as operational

The second found and investor statement, and session. believe, which as section could management are during this relations remarks uncertainties, presentation may all statement. OTC risks company statement and well call, it forward-looking not can expressions websites. time, except question-and-answer to Juva's and prepared as like intend, potential, the this in participants to website, remind no do the Executive applicable make of to this on statement earnings the At call, therefore, Life should, statements contain such performance made during the The to When securities forward-looking laws. forward-looking Juva required should additional publicly to expect, reflect may quarter undue forward-looking enable, release be estimate, anticipate or may guarantee the SEDAR I subject management's reliance in will, the would introduce Doug? that be them. as undertakes Chief are events during words my not under upon These future pleasure circumstances, is Officer, and update obligation correct placed or future similar be the project used

Doug Chloupek

market, further detail to further XXXX. look program. expand our and action, heading the world's it to foundation heard tremendous on further business let's success from some what research side. two to one year our We you foundational. on and plant. Last we're where cannabis and in in mean To in really Not company, at give welcome one potential a in medical division and describe went we're on at of more all here at and process. exciting we've drug our laying where programs year, context are, all most We've the we've our the our down unlocked the will on while and we that I development upside really you're but shown our now introduction, only What truly to at the Chemistry of research research, makes founding discovery very President one you the opportunity Juva, the really this, treating updates year expansive compounds, first were effective cannabis, work. remainder coming first, our the cannabis is We've we alike, Sanjeev, is our year I of by Sanjeev, we mode our reveal to excited Juva-XXX as operations, way. largest a have and we're way. on pharmaceutical new the for be this, Kyle here discovery, focused to our with not Vice these in shareholders the not through conditions. inflammation, in but therapeutic operator that Since is a anecdotal we transformative, I one spoil I time it which both that as Juva two acted able to most hear believe the to for you, of world's into this expansion these pillars that of of mid-year what their some identified our potential Juva-XXX inflammation, of kind of a a patented and able Last our call, California, have we successful and of really Thanks, our the everyone positive what's saving that proprietary researchers determine transition, some going profound through provide through this been mission, our building through going clinical believe update. refine believe cannabis half of had scientific the moving doubled for what Juva. expanded evidence pharmaceutical compounds what to impacts pain this and in in in community but fast I of tell it very research have our have we're in cost truly widespread quarters. importantly, the Later establishment, tracked

Stockton, and way. cost operations, set potential our at of announced the Back we capacity the increased step the to gears California, XXXX then, without raising cultivation our a shifting for every stage nearly half in and cannabis of Now Since harvest to all. second our say optimize Juva with of which the costs our in March, first completion quality have with that facility set our success. at I really production to pillar, processes, continued to by refining we've our decreasing facility. We've doubled every for

the starting you and had to to has share past a months. the eager the crop. quarter. In in months date revenue harvest to to coming that details records just coming in after fourth milestone. generating will facility pure we all we third continue planted increase very harvest revenue I'm month the in is Friday, just offer our This expect month. those here I to We're this fact, realize internal in with largest our first since break this we our

last missed link the it out. find Investor go our of website, the be During you of our In check I to gave under click you'll encourage able all our you I where to please and shareholders tour video a to webinar, this facility. it, case

to research of quarter, pharmaceutical into program of our early bit are So for talk to a with what of next bit and where want is do I'm take XXXX that, I year. Mat, financial Then have the look little a first bit portion him results financial and year And going to and go our like. looks half a to little introduce to little like which we dive to second that, more him this for the a I'd Sanjeev about at review. our the with this now and a CFO you into

Mat Lee

Doug. so the much you for intro, Thank

my may Some name Matthew and Lee, known, not of Chief Juva you but is Life. of I'm Officer the Financial

market release over XXX% As the year. that million to saw, QX financial generated out press of happy we same you Wednesday of Juva many put We're in period and released after results filing report our $X.X increase year, XX a Tuesday, morning. and a revenue August previous on this of the on

June XXXX, Juva a by a is period in the record period increase same ending growth Looking in revenue, driven increases $X.X generated in XXX% million cultivated our all year. bulk facility six-month was we XX, at continue we business, This the the of which both which sales from a cannabis retail as in our California. from to recently major of see previous wholesale as expanded flour, delivery Stockton, growth where opportunity, sales at well

substantially. bottom sustainable to costs how line, loss from and the million, net was focusing healthy as million to our When pointing looking we at our and second as year, $XX.X Also continue We growth. trend for noting, we we last were expenses an margins this positive able at $X.X our quarter the the same is quarter, of the our are in as worth increase a believe a year. operating a complete well cutting to Looking the period decrease over sales in last financing. on substantial margins percentage decrease

additional real completion Juva strengthening we improvements for continue the to in the outlook to cannabis and funds well completion we purchase and building our facility, have capital estate cash asset controlled continue testament to fully leasehold hold Juva, our of a our a is owned potential the it The investors of clinic balance. and to proud which the markets, we bulk believe programs Stockton have one. closure in major that for the to operations, $XX plus allowed the The Given purchase positive capitalizing feel expand by as on announce large Juva. furthering allowed the this upside including million as of this Stockton our was were previous of research the of us

Thank look sharing to forward that guidance all and again revenue with of call a as to. can back I the are your not QX will time, believe we While very we you share will results for trajectory that, similar QX And attendance those today. on And year. able offering in over Doug. are at continue just turn as this I growth this soon the to will we I

Doug Chloupek

for that it. Matt, overview. Thanks, Really appreciate

research Next, to on we're our division. to going chemistry move and

any I Sanjeev. I'm So to this to my over going pieces, before turn dive into of

of couple and industry him speak months. mean looks about like in these they the let next what updates the coming Let's are, what that what for

Sanjeev Gangwar

CBX Thanks, like of is the anti-inflammatory update Life. compounds at two and very have shown [ph] our compound CBX would are to or inflammation mentioned selectivity give progress potency particular shown had Gangwar, which Doug. of in two Chemistry also My receptor cannabis high potent have terms Juva receptor. I'm essentially name derived and Juva-XXX we properties These we where VP compounds Sanjeev which as of very Recently an I from as that a all Juva-XXX. a before, plant, are assays. have for these in well a a

as which it the standard both CBX as well actually important you receptors. for what that has It receptor take important? why THC Now, of literature responsible is that is researched because properties CBX the CBX actions if example, one anti-inflammatory like drug literature activates And lot the and abuse that pathways cannabinoid its is receptor shown property. for has is have receptor for responsible a versus, CBX for psychometric mainly is potential

has dampen selectivity and to for candidate that interest So be a CBX, candidate better it's drug for drug has as in to be the CBX otherwise, past. actually over that THC developed the important

need compounds of efforts we medical believe And safe unmet development drugs. two significant all current small lot process. drug and our and focused on small these So typical both anti-inflammatory compounds advancing molecule these for molecule of are hold addressing very promise in effective

understand for distribution, a this the really animal clear. try drug the stands for distributed, how first get one elimination, the to is we metabolized, humans, does how it example, give So fast is metabolism, or gets to just it how absorption, ADME gets to when

pharmacodynamics and also properties, And that's also the once candidate. right very this is understand as the good PK/PD essentially pharmacokinetics so those dictate once we're on will preclinical it's now. once trigger a relationship of have we understanding, So for and important [ph] data compounds go are to we vivo are it the have development, which we those required two, we reaches this in with later And human. in called we forth through then good data toxicology a process. why assays chronic dictate so the And a compounds these these this for that that and essentially then to will from and establishing drug doing before diseases then development these models that number of the have mice Sinos studies will

this we So right is where now. are

So update, an to just this give nine take months. wanted I six to will you probably

more be more hopefully will I the you this, next of able we're and sort what update, about to these this in compounds. assays So learning different my shed on how know light

Doug So to Thank on thank you very much, and you. I'll it pass again.

Doug Chloupek

Really Thanks, update. appreciate Sanjeev. that

In told working you, chemistry Sanjeev addition to everything side. the just on he's

We have our Division. Research Juva

you the JuLi release, of month's relaunched last have some As in we've may seen press Registry.

aims a study it is to conducted research potential the benefits Registry division. don't world's the JuLi one is registry products. on datasets clinical through WCG, of know, listed cannabis world or evidence the of of The derived is which you amass health IRB-approved, Clinicaltrials.gov on multi-year our and real largest cannabis If

and participation San cannabis best-in-class Benito Company, some the brands. have Sunderstorm, from LEVEL, CBD include We dosist, Those and CannaCraft, WYLD. Hemp of

people very survey, We're the As this taken ramp in can have and will about Anyone in excited coming see of qualification of to ways. start this which, Monday, past we each in these now the this have to various of XX JuLi are Registry XXX up registered and consented participate. the who participate brands U.S. have as weeks study. promoting

the there's take qualification a you're intro from more, there. participating go step-by-step learning or guide participation If survey, just Juvaresearch.com, interested to in and to

business switch Redwood out We forward of to to operators milestone bit storefront kind the known same providing nearly worked a and retail business's a back community a delivery of of location. business products safety say a two to we Redwood benefits, offer strategically like is our included and four-phase Retail continue the that five-star plan, XX% proud compatibility, storefront location. process to customers to the that the The the operating. successfully of best that rigorous our process over Juva application business, staff we city those our neighborhood through the talk And recently for evaluated retail each permit. City with Now led of six applicant years. was about of ensure applicants Sauce. a only were that awarded I'm point we've the six through to received on history service process permits. RWC applied, new cannabis score. merit-based security, highest that had operations. cannabis a little look Inc. best-in-class only The application To City launched the that our Secret I'd XX City Juva's cannabis side plan, out

two And to releases, launched for expanded the more a the Secret sales for market our the been of asking to past you our products. One, market our Some it's category concentrates time seen flower Secret other on our We ideal number the have of concentrate in-house Analytics. tuned those. Stay this news making coming of XX% product decided have Sauce but we've our months press first in each BDS represent been branded reasons. of of line in consumer busy customers two, a may fastest one in and flours. production according version growing for because concentrated the of launch beyond bulk Sauce. are work We've

hard has reap those to team and starting have of of overall say development, research, of work. of been years XXXX just four development, product construction, permitting, culmination of I we're nearly rewards hard Now, lots to work, now the the years core

making are is industry. unseen division pharmaceutical the strides chemistry Our that in

few be shareholders. we is be I our as that to that and market able a cultivation a records. developments division from with think in where the With position our happier have company breaking quarters. Our couldn't all Juva in we disclose I internal stands will chemistry Juva's where the with questions coming

Mat Lee

Awesome. Thank you Doug. for that,

with of here the we're going or to related here. Juva Shareholders any started some send off with of ahead Juva-XXX were in to questions Let's interest get start or any questions encouraged working has pharmaceutical expressed company webinar. And this purchasing assets Juva-XXX? with, to

Doug Chloupek

we'll going. those the information yet. and had of core have that on elaborate sale And can't side some is those the mission some discussions that been direction We the always discussions. of molecules, or is the is company the full be That release the the of But licensing, details I and foundation quite has research still Juva more the Juva. shareholders. to of when still foundation. time And was appropriate, the able to

Mat Lee

been you The out is, presentation next believe to operations. this in have relates Fantastic. to? you the maybe Thank the question did. you. it you the on increase hoping metrics. cannabis going exact elaborate how you of further just some in I maybe The to question Stockton? could you somewhat were covered able capacity And like But is

Doug Chloupek

ability crops. And This Yes. that, last to doubled yield capacities' doubled of construction, harvest. the harvest, average previous of to completion the in nearly our addition

add facility. an frequency potentially harvest of in coming that volume and out at looking the a increase of we're So a fourfold

QX-QX extremely what, what's quarter like. to sales I'm next about excited going and So going into look really are --

Mat Lee

in one going? Awesome, see you you release says, of heavily attributed online on the Can in expand for sales press here thank and that. revenue your part you business delivery next where increase you The sales. the to that that mentioned is

Doug Chloupek

in. increase the business. in retail online did sales, have reported then volume our reflect that they a are are delivery heavily online now orders Revenue those by direct-to-consumer When was that fulfilled we lot of just coming say sales,

some had we ramp our of a of In cultivation. addition, up

to coming mentioned, most until going cultivation up. materialized be numbers those QX-QX, of As I aren't

do a those in expect numbers. really I bump nice to an that's see So

Mat Lee

you it? call. can the I City up Redwood the location think But also with an brought is, give the question this you. and timelines on any Awesome. Great you update update. on us Thank retail in associated

Doug Chloupek

Sure. barring possible demolition. run hiccups or the as value unforeseen, And with the approvals. end plans, any much the of Plans the so to started are January-February, the we're of under or final as of our engineer we'll operational currently this towards construction that dollars maximize latest. this refined city. return. city the some really review by That's investor building stretch We've have to are We've can kind hopeful we with into to early year those

Mat Lee

That's And question, of one for you running update. be you The I as guess asking are same side this well is the cannabis Thank here operations as of regarding at balance kind exciting. business that of a pharmaceutical question it? the program can really gum chew the time? and to walk whole. Awesome. as is, it's how the next going kind able to The you

Doug Chloupek

some chewing raising we've two walk some the What next last construction. may had building been the has business was we've and capital physical the XX-XX never years that the realize for mission the the Good first times infrastructure, four months not building question. heavier team of at focuses some facilities in years. for is The gum was shifted, of the

we and the and was research [Indiscernible] the behind happening, that and had working research entire the stealthily Sanjeev, While team scenes.

we all we're down dual for the to able what's many very the many, paying this and Both just coming now years. point, and dividends of at forefront next been excited on So parallel this coming fruit. have for these path are pathways, to where step. see shareholders It's investors the operating

proper So all on performance. planning, prevents I of feel really, have it was the five this. P's poor we executed And

Mat Lee

Thank update. That's an awesome you.

Do need Looking are any next the that where that? to in relates to or here, further you to foresee be question expand the back you to cultivation facility. at the need about you

Doug Chloupek

the as down do expand have We're our as possible. optimizing profitable any just so plans to processes, We can be now much refining No. as further. costs any facility as not possible bringing and

Mat Lee

to was do you funds fundraising? great Doug. highlight the the financing has Thank The were, of next second the in those closed purpose quarter. announced the further the update. with that, that Could you a in question what use for That's of and

Doug Chloupek

Yeah.

a just really financing as we a announced. of for of The of bulk facility. shy the the acquisition took we debt little used was So that $XX million of Stockton

about into $X So the we Stockton of it for while $XX million invested $XX just we've And almost build out million. appraised purchased for million. that it facility,

out going completion bit We good company for estate. real side, to a the was facility. part a and some of bridges It operating then well QX-QX, have of R&D be that build until the coming And is business retail financing, very for we the and other the early year. So next the decision equity. to we're then chemistry the materializing which of gap the potential of as own the of some revenue coming smart as that out into cultivation facility utilized of the the capital of of true

Mat Lee

Great. in along those about? know that. you to future the question next you actually, do And here need the additional foresee right shareholders Thank lines, let can you that do raises near for the is,

Doug Chloupek

City, totality. in just that in like massive retail will expect almost the its the with business this constructions cultivation, over is it's research gives design have then cannabis -- we very operations this the to allow maximizing revenue are by the do that business. further the finish revenue, company of beginning, the for And to do We side, construction. purpose And a the the And side fund not it's and in now chemistry by we're have plans. business done then was to Stockton, continue I that from I what done out We built reason. build the said, Redwood to which fund the halo

Mat Lee

here next Registry. I that. that. for love The your on to you passion really thank Awesome, relates JuLi the question

that could the some you with industry I Juva working whole? looks that and you're further as the would to as large brands mentioned name brings And value it actually expand say on a You like.

Doug Chloupek

number Yeah, state that every at absolutely. the of the of California. just the terms is about in retail of Well, sort of some just in mentioned, I between reach brands store there footprint

evidence. industry class retail of folks State is retail of and choice materials, then lot formulated the of throughout that in these to I world and have have of have brands, partner be through offs able drop bring channels distributed products, was with in this their had a natural that of a to California. now a data a state. which haven't sales to with level to their goal us with forefront to distribution stores as brands materials, So just The been distribution materials, set the have many the at have distribution ability for are the mentioned really so companies their a partner clinical efficacy this, It starting to amass they folks the with real-world

evidence anecdotal We on have the industry the information. cannabis so science in much work real anecdotal that doesn't

to been has an cannabis and basically inception So assessment severely medicinal the level scientific while validate lacking rigor we cannabis beyond take benefits, industry. of of know the that from has the it anecdotal

this that set clinically conditions will Registry JuLi, It don't clinical scoring fixing Juva-XXX will that. matter, longer baseline is a So become anecdotal using data the against developed. validated on reported outcomes, give patients for physician us what be information then with no that Juva-XXX or and overseen products a be work JuLi will the patient by certain which were things which products for compounds certain scales

Mat Lee

to by how future? announcement brand of you question you'll cool. with the that. brand owned the next that further That's, in look new we and do for explain you that's Juva saw sharing a to very strategy released. here Can Thank The has your recently

Doug Chloupek

prepends from it your you other production, some of comes by product or to bulk down that with the products. then starts those utilizing and trim be extracts, lines, line. to small Sure, whether for product bulk whether that be whether diversifying refine really production our manufactured that product packaged flours flours, be they start other Everything lines or

was utilizing and in material revenue that our progression natural to and the So input refining in this just stream. diversify

Mat Lee

relations Juva's thanks within this Doug Well, website was XX our hours. really that. And I of much. today, will questions. and the that portion the so for your call. on And time And who the everyone of be you appreciate last investor Thank Awesome. posted joined

Doug Chloupek

a Have day everyone. you great Thank

Juva Life (JUVAF) 6 Sep 222022 Q2 Earnings call transcript