NASDAQ:CLGN CollPlant Biotechnologies Q3 2024 Earnings Report $2.18 +0.06 (+2.83%) Closing price 05/1/2025 03:50 PM EasternExtended Trading$2.17 -0.01 (-0.23%) As of 05/1/2025 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-$0.38Consensus EPS -$0.37Beat/MissMissed by -$0.01One Year Ago EPS-$0.38CollPlant Biotechnologies Revenue ResultsActual RevenueN/AExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ACollPlant Biotechnologies Announcement DetailsQuarterQ3 2024Date11/27/2024TimeBefore Market OpensConference Call DateWednesday, November 27, 2024Conference 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 (8-K)Earnings HistoryCompany ProfilePowered by CollPlant Biotechnologies Q3 2024 Earnings Call TranscriptProvided by QuartrNovember 27, 2024 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Greetings, and welcome to the Coal Plant Biotechnologies Third Quarter 20 24 Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Dori Kurowski with LifeSci Advisors. Operator00:00:24Thank you. You may begin. Speaker 100:00:26I would like to welcome everyone to Coal Plant Biotechnology's financial results conference call to discuss the results for the Q3 ended September 30, 2024, where management will also provide a corporate business update. With us on the call today from Coal Plant are, Nihir Tal, Chief Executive Officer, who will provide an overview of the company's programs and associated updates and Eran Rotim, Deputy CEO and Chief Financial Officer, who will provide a summary of Coal Plant's financial results for the Q2 ending September 30, 2024. Both will be able to answer questions at the end of the 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 Coal Plant's filings with the Securities and Exchange Commission. Speaker 100:01:38These 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, November 27, 2024, 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 Coal Plant published earlier today and which is available on Coal Plant's website at ir.coalplant.com. Speaker 100:02:34Now let me turn the call over to Yihil Tal, Chief Executive Officer of Coal Plant Biotechnologies. Please go ahead, sir. Speaker 200:02:43Good morning, everyone, and thank you for joining us today on Coal Plant's investor conference call to discuss our Q3 2024 financial results and corporate development as we pursue our mission to be a leader in the field of regenerative medicine. I will start with an update on the regenerative breast implant program. This quarter, we continue to advance our preclinical study that includes 200cc commercial size breast implants composed of our proprietary RH collagen based bioinks and printed with the Stratasys 3 d printer. This study is critical to advancing our technology towards a marketed product and creating significant shareholder value. This most recent preclinical study launched in Q3 using clinical size implants has been designed to assess product performance and safety and is implementing a new and more suitable animal model, a refined surgical protocol and optimized implant design and formulation. Speaker 200:03:55Specifically, the implant has been designed to enable controlled degradation kinetics, which means that the implant degrades over time in full synchronization with new tissue in growth, allowing for structural stability throughout the tissue regeneration process. Furthermore, the implant now has enhanced durability and its design has been optimized to enable minimally invasive administration of the implant through smaller incisions as well as providing natural fill. All these improvements significantly contribute to the procedure's efficiency. I'm happy to update today that the study shows good results 3 months post implantation. So far, we have seen significant implant vascularization and rapid ingrowth of native tissue. Speaker 200:04:49Both are critical factors which enable an effective integration of the implant with the host tissue and support long lasting regenerative processes. In terms of follow-up, an MRI as well as histopathology serve as the primary tools to follow-up on tissue ingrowth as well as implant integrity and degradation over time. This study is intended to mark the completion of the development phase and we are now one step closer to advancing to human studies. It is also important to note that this data will enhance our position in discussions with potential partners. Our recombinant human collagen technology, which is the backbone of our programs, including the regenerative breast implant, has the same molecular identity as human collagen. Speaker 200:05:49As shown here, our collagen has been fully characterized for its molecular, biological and physical properties, and therefore serves as an ideal scaffolding molecule for tissue regeneration without eliciting immune response. It is considered to be the most characterized Coragen in the regenerative medicine market. Our regenerative breast implant product candidate could be revolutionary for both women undergoing aesthetic enhancement as well as cancer patients undergoing breast reconstruction, since it has the potential to overcome the challenges of existing breast implants made of silicone saline or autologous fat tissue. Additionally, a breast regenerated from the patient's own tissue may eliminate the need for future procedures or corrections. We know that the global breast implant market is extremely lucrative and estimated at approximately $3,000,000,000 Speaker 300:07:00with breast reconstruction and augmentation procedures representing the 2nd most common plastic surgery procedure Speaker 200:07:08performed worldwide today. This market also has attractive growth characteristics and is projected to grow to approximately $6,500,000,000 by 2,033. Based on historical safety concerns and worries about future surgical corrections, we believe that the organic demand for natural newly grown human tissue breast implants could be significant. As we have noted previously, current implant materials can cause immunogenic reactions and has been associated with anaplastic Cloud Cell Lymphoma, a rare form of cancer, the availability of a regenerative breast implant could be transformational for aesthetic and reconstructive procedures to minimize the adverse events related to currently available implants. Our collaboration with AbbVie continues and it is currently focused on the development of a dermal and soft tissue filler product for the medical aesthetics market. Speaker 200:08:20This product candidate offers both wrinkle filling properties as well as the ability to regenerate skin tissue and therefore has its own potential to create a paradigm shift in the aesthetics market. The filler market is valued approximately $5,500,000,000 and is expected to grow 10% by year. We fully support capitalized path towards clinical testing of our implants. Therefore, we are prioritizing being able to secure non dilutive cash for the company through forming additional collaboration partnerships. There is a continuous demand for our bioinks and other applications for our recombinant human collagen. Speaker 200:09:13Along these lines, we have had additional interest from a wide range of companies that want to gain access to our RH Collagen and are engaged in discussions. We are also streamlining existing operations and being prudent about reducing our annual burn rate. And lastly, during November 10 to 13, Core Plant showcased at the Annual Meeting of the International Society For Biofabrication, ISBF. ISBF is a professional society promoting biofabrication research and development for medical applications. During the conference, we presented our technology platform for the mass production of human collagen and biofabrication of innovative regenerative breast implants. Speaker 200:10:09Our presentation has gained a wide interest from the audience and opened new collaboration opportunities with academic institutes. That concludes my initial remarks. Now I'll turn the call over to our Deputy CEO and Chief Financial Officer, Eran Rotem, to provide a recap of the financial results. Eran? Speaker 300:10:31Thank you, Yihir. Good morning, everyone. I will now review our financial results for the 3 9 months periods ending September 30, 2024. GAAP revenues for the Q3 ended September 30, 2024 were $4,000 compared to $43,000 for the Q3 ended September 30, 2023. The decrease we see is mainly related to sales of our RH Collagen to Corpen's largest customer. Speaker 300:11:08The deliveries to this customer are in accordance with the development plan of the customer and in the Q3 no deliveries were planned or made. In accordance with the plan, Corbant is prepared to supply RH Collagen to this customer this quarter during December 2024. GAAP revenues for the 9 months ended September 30, 2024 were $351,000 compared to $10,700,000 for the 9 months ended September 30, 2023. In 2023, we achieved a milestone with respect to the ROV 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. Speaker 300:12:05GAAP cost of revenues for Q3 2024 was $272,000 compared to $278,000 in Q3 2023. GAAP cost of revenues for the 9 months ended September 30, 2024 was $1,400,000 compared to $1,200,000 for the 9 months ended September 30, 2023. The increase in cost of revenues in the amount of approximately $200,000 mainly comprised of $462,000 in inventory impairments, offset by $308,000 in royalty expenses to the IAA, mainly related to the milestone payment received from AbbVie in 2023. GAAP gross loss for Q3 2024 was $268,000 compared to $235,000 in Q3 2023. GAAP gross loss for the 9 months ended September 30, 2024 was $1,000,000 compared to a gross profit of $9,400,000 in the 9 months ended September 30, 2023. Speaker 300:13:34GAAP operating expenses for Q3, 2024 were $4,300,000 compared to $4,400,000 in Q3 2023. The decrease of approximately $100,000 is mainly related to a decrease of $213,000 in employees, salaries and to share based compensation expenses, offset by an increase of $358,000 in development activities, mainly related to the breast implant product. On a non GAAP basis, operating expenses for Q3, 2024 were $3,800,000 compared to $3,900,000 in Q3 2023. Non GAAP measures exclude certain non cash expenses. GAAP operating expenses for the 9 months ended September 30, 2024 were $12,300,000 compared to $11,900,000 for the 9 months ended September 30, 2023. Speaker 300:14:51The increase of approximately $400,000 is mainly related to development activities in the breast implants project. On a non GAAP basis, operating expenses for the 9 months ended September 30, 2024 were $11,000,000 compared to $10,600,000 for the 9 months ended September 30, 2023. GAAP financial income net for Q3, 2024 totaled Speaker 200:15:24$216,000 Speaker 300:15:27compared to $225,000 in Q3, 2023. GAAP financial income net for the 9 months ended September 30, 2024 totaled $546,000 compared to $114,000 in the 9 months ended September 30, 2023. The increase in financial income is due to interest received from the company's short term cash deposits and exchange rate differences. GAAP net loss for Q3 2024 was $4,300,000 or $0.38 basic loss per share, compared to a net loss of $4,400,000 or $0.38 basic loss per share for Q3 2023. Non GAAP net loss for Q3 2024 was $3,800,000 or $0.33 loss per share compared to a net loss of $4,000,000 or $0.35 basic loss per share for Q3 2023. Speaker 300:16:48GAAP net loss for the 9 months ended September 30, 2024 was $12,700,000 or $1.11 basic loss per share compared to a net loss of $2,300,000 or $0.20 basic loss per share for the 9 months ended September 30, 2023. The main differences between the periods of the financial performance arises from Corfman's achievement in 2023 upon reaching a milestone in the dermal field development plan. Achieving the milestone, as you already know, led to a payment of $10,000,000 from RBV to CorPlant in 2023. Non GAAP net loss for the 9 months ended September 30, 2024 was $11,500,000 or $1 loss per share, compared to a net loss of $1,200,000 or $0.11 basic loss per share for the 9 months ended September 30, 2023. Cash and cash equivalents as of September 30, 2024 were $15,400,000 The cash balance represents the company cash runway that is expected to satisfy the company's operation requirements at least until the end of 2025 based on currently contemplated operations and plans. Speaker 300:18:23Cash used in operating activities during the 9 month period ended September 30, 2024 was $10,600,000 compared to $418,000 for the 9 months ended September 30, 2023. Cash used in investing activities during the 9 months ended September 30, 2024 was $481,000 compared to $784,000 for the 9 months ended September 30, 2023 and related finally to purchase of property and equipment. Cash provided by financing activities during the 9 months ended September 30, 2024 was $9,000 compared to $1,100,000 for the 9 months ended September 30, 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 300:19:34Operator, I believe that we can now open the call for questions. Operator00:19:44Thank you. I would now like to turn the floor back over to Arun Rotem to go over the Q and A session. Speaker 400:19:51Thank you. So we have a couple of questions from the audience. And the first one is regarding the breast implants. Can you please elaborate on the meaning of the results you have reported from your preclinical studies? Speaker 500:20:12So there are many challenges in developing a breast implant. Among these challenges, I would say is that with respect to the patient, the implant should be or should enable natural filling. And during the healing process, it's like a dynamic condition. So the stiffness of the implant plus the newly generated issue is changing. So one of the things one of the challenges is to control it. Speaker 500:20:48Secondly, from the surgeon point of view, the implant handling as well as the implant administration to a very small incision are also challenges that we needed to address and the procedure should be very simple. 3rd challenge is the formation of fat tissue and we also need to control the degradation kinetics of the implant. So the growth of the new tissue should be synchronized with the degradation of the implant. And of course, there is the safety challenge for these implants, they should not induce immune response as well as the fatigue free. So the purpose of the study was to basically to see how the implants which are optimized in terms of formulation of design and the printing process are basically performing in large animals. Speaker 500:21:53We are testing the implant degradation over time. We check the structural stability throughout the tissue regeneration process. The implant should be intact during this regeneration process, should not fail. We are also checking the ability to administer the implant to a very small incision. The size of the incision, which is usually used in augmentation processes is about 2 inches and not more than that. Speaker 500:22:31So the implant should be able to be folded and basically enable easy administration. And of course the natural feel of the implant during this regeneration process. So in this study we tested optimized formulation and optimized design. And what we saw in the study so far is significant implant vascularization and rapid ingrowth of new native tissue. This ingrowth is in the rate of 1 centimeter per month. Speaker 500:23:11So basically the implant will be fully populated in the spaces, the open spaces of the implant with a newly grown tissue after 3 months. So we saw this tissue in growth in the implant. By the way, as mentioned in my talk earlier, the way that we assess the tissue in growth is using MRI and later on histopathology just to confirm this data. So we also check the integration between the implant and the host tissue. We should not see any foreign tissue reaction to the implant. Speaker 500:23:56So this is what we saw in the study so far and of course we continue to monitor the animals. We have it's a large study with many subjects and hopefully in our next call we should be able to report additional results from the study. Speaker 400:24:19Thank you, Achal. Another question that we have is as follows. Today you mentioned that you are in dialogue with companies in the medical and aesthetics fields regarding the collagen. Can you elaborate and estimate when will we see another agreement announced? So our collagen technology is indeed of interest of many companies who are interested in developing a product in their field with the collagen. Speaker 400:24:56And the collagen is indeed we are indeed in a dialogue and consideration with a number of companies today regarding various products as mentioned. It is difficult to estimate when the next agreement will be signed, as it takes time to finish examining the technologies and reach a written agreement. However, it is on our top objectives to sign another agreement during 2025 next year. So that concludes the questions from the audience. And I will now turn the call back to Yihir Tal, Copeland's Chief Executive Officer, for any closing remarks. Speaker 400:25:44Yihir? Speaker 500:25:45Thank you, Eran. So, our Comtech mission is to discover, develop and deliver collagen technology and regenerative medicine products to improve and prolong lives. We continue to carefully focus on our core programs and our supportive partners to advance this mission with the goal of creating products that enable the regeneration of tissues and organs. Our vision is to be the leaders in regenerative medicine helping people live longer and better through our innovative collagen technology. In closing, I want to reiterate our goals as we conclude 2024 and enter 2025, we plan to focus on advancing the development of the dermal filler program with AVE, generate additional safety and efficacy data related to our regenerative breast implants in support of future clinical studies and commercialization of this product candidate, continue to form collaborations with industry leaders for utilizing our RH Collagen and Bio Inc. Speaker 500:27:01Technologies, and continue discussions related to potential collaborations on our existing programs and products. Thank you everyone for your time this morning and for joining us for today's conference call. I want to thank our very important and valued Corpland team members who have contributed to another successful and productive quarter. Operator00:27:35Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallCollPlant Biotechnologies Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) 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.comBuffett’s favorite chart just hit 209% – here’s what that means for goldA Historic Gold Announcement Is About to Rock Wall Street For months, sharp-eyed analysts have watched the quiet buildup behind the scenes. Now, in just days, the floodgates are set to open. The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent — and four tiny miners could be your ticket to 100X gains.May 2, 2025 | Golden Portfolio (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 Microsoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of EarningsAmazon's Earnings Will Make or Break the Stock's Comeback CrowdStrike Stock Nears Record High, Dip Ahead of Earnings?Alphabet Rebounds After Strong Earnings and Buyback AnnouncementMarkets Think Robinhood Earnings Could Send the Stock Up Upcoming Earnings Apollo Global Management (5/2/2025)The Cigna Group (5/2/2025)Chevron (5/2/2025)Eaton (5/2/2025)NatWest Group (5/2/2025)Shell (5/2/2025)Exxon Mobil (5/2/2025)Palantir Technologies (5/5/2025)Vertex Pharmaceuticals (5/5/2025)CRH (5/5/2025) 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 6 speakers on the call. Operator00:00:00Greetings, and welcome to the Coal Plant Biotechnologies Third Quarter 20 24 Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Dori Kurowski with LifeSci Advisors. Operator00:00:24Thank you. You may begin. Speaker 100:00:26I would like to welcome everyone to Coal Plant Biotechnology's financial results conference call to discuss the results for the Q3 ended September 30, 2024, where management will also provide a corporate business update. With us on the call today from Coal Plant are, Nihir Tal, Chief Executive Officer, who will provide an overview of the company's programs and associated updates and Eran Rotim, Deputy CEO and Chief Financial Officer, who will provide a summary of Coal Plant's financial results for the Q2 ending September 30, 2024. Both will be able to answer questions at the end of the 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 Coal Plant's filings with the Securities and Exchange Commission. Speaker 100:01:38These 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, November 27, 2024, 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 Coal Plant published earlier today and which is available on Coal Plant's website at ir.coalplant.com. Speaker 100:02:34Now let me turn the call over to Yihil Tal, Chief Executive Officer of Coal Plant Biotechnologies. Please go ahead, sir. Speaker 200:02:43Good morning, everyone, and thank you for joining us today on Coal Plant's investor conference call to discuss our Q3 2024 financial results and corporate development as we pursue our mission to be a leader in the field of regenerative medicine. I will start with an update on the regenerative breast implant program. This quarter, we continue to advance our preclinical study that includes 200cc commercial size breast implants composed of our proprietary RH collagen based bioinks and printed with the Stratasys 3 d printer. This study is critical to advancing our technology towards a marketed product and creating significant shareholder value. This most recent preclinical study launched in Q3 using clinical size implants has been designed to assess product performance and safety and is implementing a new and more suitable animal model, a refined surgical protocol and optimized implant design and formulation. Speaker 200:03:55Specifically, the implant has been designed to enable controlled degradation kinetics, which means that the implant degrades over time in full synchronization with new tissue in growth, allowing for structural stability throughout the tissue regeneration process. Furthermore, the implant now has enhanced durability and its design has been optimized to enable minimally invasive administration of the implant through smaller incisions as well as providing natural fill. All these improvements significantly contribute to the procedure's efficiency. I'm happy to update today that the study shows good results 3 months post implantation. So far, we have seen significant implant vascularization and rapid ingrowth of native tissue. Speaker 200:04:49Both are critical factors which enable an effective integration of the implant with the host tissue and support long lasting regenerative processes. In terms of follow-up, an MRI as well as histopathology serve as the primary tools to follow-up on tissue ingrowth as well as implant integrity and degradation over time. This study is intended to mark the completion of the development phase and we are now one step closer to advancing to human studies. It is also important to note that this data will enhance our position in discussions with potential partners. Our recombinant human collagen technology, which is the backbone of our programs, including the regenerative breast implant, has the same molecular identity as human collagen. Speaker 200:05:49As shown here, our collagen has been fully characterized for its molecular, biological and physical properties, and therefore serves as an ideal scaffolding molecule for tissue regeneration without eliciting immune response. It is considered to be the most characterized Coragen in the regenerative medicine market. Our regenerative breast implant product candidate could be revolutionary for both women undergoing aesthetic enhancement as well as cancer patients undergoing breast reconstruction, since it has the potential to overcome the challenges of existing breast implants made of silicone saline or autologous fat tissue. Additionally, a breast regenerated from the patient's own tissue may eliminate the need for future procedures or corrections. We know that the global breast implant market is extremely lucrative and estimated at approximately $3,000,000,000 Speaker 300:07:00with breast reconstruction and augmentation procedures representing the 2nd most common plastic surgery procedure Speaker 200:07:08performed worldwide today. This market also has attractive growth characteristics and is projected to grow to approximately $6,500,000,000 by 2,033. Based on historical safety concerns and worries about future surgical corrections, we believe that the organic demand for natural newly grown human tissue breast implants could be significant. As we have noted previously, current implant materials can cause immunogenic reactions and has been associated with anaplastic Cloud Cell Lymphoma, a rare form of cancer, the availability of a regenerative breast implant could be transformational for aesthetic and reconstructive procedures to minimize the adverse events related to currently available implants. Our collaboration with AbbVie continues and it is currently focused on the development of a dermal and soft tissue filler product for the medical aesthetics market. Speaker 200:08:20This product candidate offers both wrinkle filling properties as well as the ability to regenerate skin tissue and therefore has its own potential to create a paradigm shift in the aesthetics market. The filler market is valued approximately $5,500,000,000 and is expected to grow 10% by year. We fully support capitalized path towards clinical testing of our implants. Therefore, we are prioritizing being able to secure non dilutive cash for the company through forming additional collaboration partnerships. There is a continuous demand for our bioinks and other applications for our recombinant human collagen. Speaker 200:09:13Along these lines, we have had additional interest from a wide range of companies that want to gain access to our RH Collagen and are engaged in discussions. We are also streamlining existing operations and being prudent about reducing our annual burn rate. And lastly, during November 10 to 13, Core Plant showcased at the Annual Meeting of the International Society For Biofabrication, ISBF. ISBF is a professional society promoting biofabrication research and development for medical applications. During the conference, we presented our technology platform for the mass production of human collagen and biofabrication of innovative regenerative breast implants. Speaker 200:10:09Our presentation has gained a wide interest from the audience and opened new collaboration opportunities with academic institutes. That concludes my initial remarks. Now I'll turn the call over to our Deputy CEO and Chief Financial Officer, Eran Rotem, to provide a recap of the financial results. Eran? Speaker 300:10:31Thank you, Yihir. Good morning, everyone. I will now review our financial results for the 3 9 months periods ending September 30, 2024. GAAP revenues for the Q3 ended September 30, 2024 were $4,000 compared to $43,000 for the Q3 ended September 30, 2023. The decrease we see is mainly related to sales of our RH Collagen to Corpen's largest customer. Speaker 300:11:08The deliveries to this customer are in accordance with the development plan of the customer and in the Q3 no deliveries were planned or made. In accordance with the plan, Corbant is prepared to supply RH Collagen to this customer this quarter during December 2024. GAAP revenues for the 9 months ended September 30, 2024 were $351,000 compared to $10,700,000 for the 9 months ended September 30, 2023. In 2023, we achieved a milestone with respect to the ROV 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. Speaker 300:12:05GAAP cost of revenues for Q3 2024 was $272,000 compared to $278,000 in Q3 2023. GAAP cost of revenues for the 9 months ended September 30, 2024 was $1,400,000 compared to $1,200,000 for the 9 months ended September 30, 2023. The increase in cost of revenues in the amount of approximately $200,000 mainly comprised of $462,000 in inventory impairments, offset by $308,000 in royalty expenses to the IAA, mainly related to the milestone payment received from AbbVie in 2023. GAAP gross loss for Q3 2024 was $268,000 compared to $235,000 in Q3 2023. GAAP gross loss for the 9 months ended September 30, 2024 was $1,000,000 compared to a gross profit of $9,400,000 in the 9 months ended September 30, 2023. Speaker 300:13:34GAAP operating expenses for Q3, 2024 were $4,300,000 compared to $4,400,000 in Q3 2023. The decrease of approximately $100,000 is mainly related to a decrease of $213,000 in employees, salaries and to share based compensation expenses, offset by an increase of $358,000 in development activities, mainly related to the breast implant product. On a non GAAP basis, operating expenses for Q3, 2024 were $3,800,000 compared to $3,900,000 in Q3 2023. Non GAAP measures exclude certain non cash expenses. GAAP operating expenses for the 9 months ended September 30, 2024 were $12,300,000 compared to $11,900,000 for the 9 months ended September 30, 2023. Speaker 300:14:51The increase of approximately $400,000 is mainly related to development activities in the breast implants project. On a non GAAP basis, operating expenses for the 9 months ended September 30, 2024 were $11,000,000 compared to $10,600,000 for the 9 months ended September 30, 2023. GAAP financial income net for Q3, 2024 totaled Speaker 200:15:24$216,000 Speaker 300:15:27compared to $225,000 in Q3, 2023. GAAP financial income net for the 9 months ended September 30, 2024 totaled $546,000 compared to $114,000 in the 9 months ended September 30, 2023. The increase in financial income is due to interest received from the company's short term cash deposits and exchange rate differences. GAAP net loss for Q3 2024 was $4,300,000 or $0.38 basic loss per share, compared to a net loss of $4,400,000 or $0.38 basic loss per share for Q3 2023. Non GAAP net loss for Q3 2024 was $3,800,000 or $0.33 loss per share compared to a net loss of $4,000,000 or $0.35 basic loss per share for Q3 2023. Speaker 300:16:48GAAP net loss for the 9 months ended September 30, 2024 was $12,700,000 or $1.11 basic loss per share compared to a net loss of $2,300,000 or $0.20 basic loss per share for the 9 months ended September 30, 2023. The main differences between the periods of the financial performance arises from Corfman's achievement in 2023 upon reaching a milestone in the dermal field development plan. Achieving the milestone, as you already know, led to a payment of $10,000,000 from RBV to CorPlant in 2023. Non GAAP net loss for the 9 months ended September 30, 2024 was $11,500,000 or $1 loss per share, compared to a net loss of $1,200,000 or $0.11 basic loss per share for the 9 months ended September 30, 2023. Cash and cash equivalents as of September 30, 2024 were $15,400,000 The cash balance represents the company cash runway that is expected to satisfy the company's operation requirements at least until the end of 2025 based on currently contemplated operations and plans. Speaker 300:18:23Cash used in operating activities during the 9 month period ended September 30, 2024 was $10,600,000 compared to $418,000 for the 9 months ended September 30, 2023. Cash used in investing activities during the 9 months ended September 30, 2024 was $481,000 compared to $784,000 for the 9 months ended September 30, 2023 and related finally to purchase of property and equipment. Cash provided by financing activities during the 9 months ended September 30, 2024 was $9,000 compared to $1,100,000 for the 9 months ended September 30, 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 300:19:34Operator, I believe that we can now open the call for questions. Operator00:19:44Thank you. I would now like to turn the floor back over to Arun Rotem to go over the Q and A session. Speaker 400:19:51Thank you. So we have a couple of questions from the audience. And the first one is regarding the breast implants. Can you please elaborate on the meaning of the results you have reported from your preclinical studies? Speaker 500:20:12So there are many challenges in developing a breast implant. Among these challenges, I would say is that with respect to the patient, the implant should be or should enable natural filling. And during the healing process, it's like a dynamic condition. So the stiffness of the implant plus the newly generated issue is changing. So one of the things one of the challenges is to control it. Speaker 500:20:48Secondly, from the surgeon point of view, the implant handling as well as the implant administration to a very small incision are also challenges that we needed to address and the procedure should be very simple. 3rd challenge is the formation of fat tissue and we also need to control the degradation kinetics of the implant. So the growth of the new tissue should be synchronized with the degradation of the implant. And of course, there is the safety challenge for these implants, they should not induce immune response as well as the fatigue free. So the purpose of the study was to basically to see how the implants which are optimized in terms of formulation of design and the printing process are basically performing in large animals. Speaker 500:21:53We are testing the implant degradation over time. We check the structural stability throughout the tissue regeneration process. The implant should be intact during this regeneration process, should not fail. We are also checking the ability to administer the implant to a very small incision. The size of the incision, which is usually used in augmentation processes is about 2 inches and not more than that. Speaker 500:22:31So the implant should be able to be folded and basically enable easy administration. And of course the natural feel of the implant during this regeneration process. So in this study we tested optimized formulation and optimized design. And what we saw in the study so far is significant implant vascularization and rapid ingrowth of new native tissue. This ingrowth is in the rate of 1 centimeter per month. Speaker 500:23:11So basically the implant will be fully populated in the spaces, the open spaces of the implant with a newly grown tissue after 3 months. So we saw this tissue in growth in the implant. By the way, as mentioned in my talk earlier, the way that we assess the tissue in growth is using MRI and later on histopathology just to confirm this data. So we also check the integration between the implant and the host tissue. We should not see any foreign tissue reaction to the implant. Speaker 500:23:56So this is what we saw in the study so far and of course we continue to monitor the animals. We have it's a large study with many subjects and hopefully in our next call we should be able to report additional results from the study. Speaker 400:24:19Thank you, Achal. Another question that we have is as follows. Today you mentioned that you are in dialogue with companies in the medical and aesthetics fields regarding the collagen. Can you elaborate and estimate when will we see another agreement announced? So our collagen technology is indeed of interest of many companies who are interested in developing a product in their field with the collagen. Speaker 400:24:56And the collagen is indeed we are indeed in a dialogue and consideration with a number of companies today regarding various products as mentioned. It is difficult to estimate when the next agreement will be signed, as it takes time to finish examining the technologies and reach a written agreement. However, it is on our top objectives to sign another agreement during 2025 next year. So that concludes the questions from the audience. And I will now turn the call back to Yihir Tal, Copeland's Chief Executive Officer, for any closing remarks. Speaker 400:25:44Yihir? Speaker 500:25:45Thank you, Eran. So, our Comtech mission is to discover, develop and deliver collagen technology and regenerative medicine products to improve and prolong lives. We continue to carefully focus on our core programs and our supportive partners to advance this mission with the goal of creating products that enable the regeneration of tissues and organs. Our vision is to be the leaders in regenerative medicine helping people live longer and better through our innovative collagen technology. In closing, I want to reiterate our goals as we conclude 2024 and enter 2025, we plan to focus on advancing the development of the dermal filler program with AVE, generate additional safety and efficacy data related to our regenerative breast implants in support of future clinical studies and commercialization of this product candidate, continue to form collaborations with industry leaders for utilizing our RH Collagen and Bio Inc. Speaker 500:27:01Technologies, and continue discussions related to potential collaborations on our existing programs and products. Thank you everyone for your time this morning and for joining us for today's conference call. I want to thank our very important and valued Corpland team members who have contributed to another successful and productive quarter. Operator00:27:35Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.Read morePowered by