Thank you, Martin. Good afternoon everyone and welcome to MustGrow's Q2 2026 earnings call and question and answer session.

Before I begin, I'd like to draw your attention to our disclaimer. Forward-looking statements are going to be made in this presentation and and the Q&A session at the end.

Again, some of these statements will not come to fruition. This disclaimer can be read on our website at mustgrow.ca.

Last week we announced the Q2 2026 results. TerraSante sales revenue for the for the quarter was $75,000.

Gross profit, which is a gross loss, negative margin of about $17,000. That was due to us shipping product from Asia through airfreight into the US, and it's quite costly as you can see.

Licensing revenue, we were able to report in Q2 that we had earned licensing revenue revenue of about $1.4 million, and we made the announcement a couple weeks ago that we'd received that portion of the cash. In the Q2 financial statements, it reads as an accounts receivable.

Our expenses continue to normalize without NexusBioAg, with about $900,000 quarterly of expenses. Net profit, which which includes the discontinued operations of NexusBioAg, we had a profit of about $300,000 versus a loss of about $1.1 million in Q2 of 2025.

We have a strong cash position now with the the capital raise that we completed in June. We're sitting on cash at the end of the quarter of about $4.4 million and a working capital of $5.2 million.

Some comments on the results for 2026. Again, as we indicated in Q1's call in May that we expected the first half of the year's sales to be slower than expected.

This is due to manufacturing, specifically manufacturing issues. The new plants that have been been brought online, they're having some hiccups and not being able to produce product, enough product, in a timely fashion for us to get into market.

That's why we were focused on some of the product that they were able to produce to utilize airfreight to get it into the market in time. We are starting to see some improvements in terms of manufacturing.

We did announce in this latest earnings news release sent out on Thursday that as of August 15th of this year, year-to-date sales are about $900,000, which is up about 46% compared to all of 2025. We are starting to see some improvements in manufacturing.

As we go forward, airfreight being as costly as it is, we're looking to move the rest of the product for the remainder of the year and into '27 with ocean freight, which we start should start to see our margins improve back to where we've seen in Q Q1 of about 24% and and potentially better. Going forward, our focus is to drive TerraSante sales.

We continue to see an uptick in demand, and Colin will get into some of that in the in the question and answer session. We need to be able to have our manufacturers produce produce enough product in a timely manner for us to get the product into the market.

We're starting to see them do that. I I'm very confident that they can continue to see improvements in manufacturing, and we are also assessing opportunities to supplement production here in Canada and potentially the US.

We've seen a strong second start to the second half of the year as as you as as you've seen, over $900,000 or about approximately $900,000 of sales year to date, and we expect the remaining 4 months of 2026 and going into 2027 to be even stronger. We are excited to receive our first milestone payment from Bayer.

This continues to validate the efficacy of our technology and the need for it in the market, and we look forward to working with Bayer going forward, working our way towards doing the work and completing the completing the tasks required for our second milestone payment.

On that, I thought I'd go into just a reminder of what the Bayer commercial license is and and what is around it and and kind of the going forward with it. As you remember back in 2023, we did sign a commercial exclusive agreement with Bayer for the bio-pesticide and bio-herbicide.

That was all focused around Europe, Africa, and Middle East. We don't need to really go into the why.

The why still remains. European Union specifically and and the regions around it are are moving away from the synthetic chemistries.

It's more it's harder for a lot of these large organizations to get get the registrations in place and get some of the synthetic chemicals and fertilizers into those markets. The need is growing and continues to grow within that region right across where Bayer is working.

When we look at the commitment from Bayer, we always estimate as MustGrow that they'll be investing anywhere from $35 to $40 million to get that product registered. Right from day one, there is not a chance that we can go into that market without the regulatory expertise, without the investment, without the boots on the ground to really to access that marketplace.

When we look at what Bayer is potentially spending from R&D, market development, and then into the milestones, it is going to be between that $35, $40 million mark potentially through that that period. Once we move to sales, once the product is registered after the registration process, that's when we'll move into more of a royalty and then a cost-plus on the active ingredient.

Bayer continues to move this forward, and and I'll go through that a little bit later. We're very excited about the first milestone, we're very excited to hit those technical advancements and really start driving this product to that next stage of registration and more market development, and really looking at working with them, and and excited to work with them in the next 3 to 7 years.

Then if you look at the size of that market, it is a significant opportunity for us right across Europe, Africa, and Middle East. Just a small amount of market share could generate a significant amount of dollars.

Remember, Bayer would not be taking this forward if the product didn't work, if we weren't seeing efficacy, if they weren't able to get around some of these technical challenges and and questions, but also they they have to be profitable. Taking them and having them take this forward is very exciting for us.

In in terms of our pipeline, not not a lot has changed since our previous call back in May. Again, our focus remains on driving TerraSante sales in the US.

We think that this is a a massive market, a massive opportunity. It's up to us to be able to generate the product, to be able to have the manufacturers manufacture that product and get it into the market in a timely manner so that we can move this company into positive cash flows and continue to grow it from there.

The US is really key for us. We are also, as I've mentioned before, supplementing or looking to supplement TerraSante sales in other markets potentially.

This is going to take on-farm testing, which we're doing here right now. With with positive results and identifying an economic need for this product in the market, we'll be looking to do the initial ramp-up just as what we've done in California, for instance, starting a few years ago now.

In terms of our biocontrol, TerraMG in Canada and the US, not much has changed here. We continue to work with the EPA and the PMRA.

You will take note in our financial statements in the in the income statement that we are spending less and less on regulatory work. Part of it is a wait-and-see type of a period, and part of it is that we want to also make sure that we're we're driving cash to be able to generate those sales of TerraSante, which again, is going to get us to positive cash flows.

I won't comment any more on Bayer. Colin covered that very well in the last slide.

In terms of our capital structure, we have 70 million shares outstanding, about 92 million fully diluted. We have seen this count grow over the last few years as as we've raised some much-needed capital.

We're sitting in a very comfortable cash position right now. I believe if we're able to execute on manufacturing and selling this product into the market in a timely matter, our goal is still that we will will be positive cash flows next year in 2027.

We're well on our way to do that. We're fortunate to have manufacturers in Asia.

It's it's typical to have hiccups when you bring new equipment online. We understand some of these hiccups.

We've been working with them. We're fortunate to have them invest their own capital to go and do this work and be able to produce product for us now and into the future.

It allows us not to have to spend tens of millions of dollars to go and and develop a plant. We're we're also excited with some of the discussions we've had with some of these manufacturers is that not only do they want to be able to hit their targets right now in terms of production, but they want to continue to grow with us as we need more and more product in the future.

I think we've got some very good good partners that we have in terms of manufacturing, and I'm looking forward to us being able to to to hit those manufacturing numbers so that we can really start driving sales and and work this company into positive cash flow and beyond. With that, Martin, that's the presentation, and I'd like to open up to question and answers.

Martin, as I said, those were based on technical achievements and both technical on efficacy in field, but also on application. One of the key criteria is not only about having a product that actually works, but it's having a product that can go through the typical farm systems that are used in that region.

When you look at what's happening in Italy and Spain with the different types of equipment than some parts of the US, a big part of that milestone was based on those technical achievements. On that, and then, we're very hopeful and and the potential milestone for 2027.

We do believe we're well on our way for that milestone, but we also have to work through a lot of different meetings, a lot of different things with Bayer over the next next course of the year.

Yeah. As I said, the potential is there, and the opportunity is there.

I believe with the diligence that we're working with Bayer, hopefully within 2027, we'll see an additional milestone.

yeah. Based on the existing lines that have been put in place, I estimate there could be potentially $15 to $25 million of Canadian dollars of of product being produced at nameplate capacity.

No, they're not operating currently at full capacity. We have seen improvements, and I believe that they we will get there.

We're still experiencing periods of being sold out. We have an existing PO that we need to go and deliver on, we're waiting on some some product.

Our objective here is is to meet full fully meet customer demand and then be able to build up inventories, specifically for the end of the year so that we can hit the beginning of Q1 hard with sales.

All of our production is currently out of Asia. In we have two producers in Asia, one in Thailand, one in India.

One of the facilities is 100% dedication to TerraSante. The other facility, I'd say, is about 90 80% to 90% dedication to TerraSante.

They do need to produce another product, for a month or two over a particular period of time, and and I've taken that all into account in terms of the expected nameplate capacity. For the one facility where we don't have 100% availability, I've taken into account the months that they will be down.

well right now we're just trying to meet demand. Our whole goal is to I mean we will be carrying inventory in the future.

If we can get our manufacturing up to a level, there will be inventory carried in the future, which again is a good thing because, we have we have seen unexpected demand creep up, and that and we want to be able to not only sell to existing customer base, but any any orders that that aren't anticipated, we want to be able to supply those as well.

Right now, Martin, it is sold out, or sold throughout the year depending on the type of application method that's going on. There's pre-plant going on, but also in-season applications.

When I look at the the, I would say, the two heavy areas would be Q4 and then Q1. Q4 typically would be around the strawberry, specifically strawberry and vegetable production in southern southern US, specifically California.

Then Q1 is also strawberries, other berries, but potatoes. That's when you'd see potatoes come online, specifically in the Pacific Northwest.

As the US as a whole right now, it is spread out across the entire year, but the bulk of it would be a Q4/Q1 heavy heavy time frame just based on the the crop plantings.

Yeah. As Corey mentioned, and part of the I guess the release was the increase of over 40% already for TerraSante sales in 2026 versus all full-year 2025.

Now, most of that product has actually gone to repeat customers. We have to satisfy those needs first.

As Corey mentioned, we're still on a sold-out position, and as soon as we get product in, it is gone. Most of that is going to existing customers who are expanding acres.

As I always said, farmers will use a little bit and then continually expand over time. We have now branched out and are selling into some other new customers, which is which is great, to expand that some more.

For the most part, the bulk of the sales are are still coming out of strawberries, still coming out of California, and then also into potatoes. Those are the two main crops for us right now.

We we have seen a lot of good growth with existing customers who have used the product now for in some cases one year, in some cases two years.

We we go through distribution. You need to work with the right professional agronomists and the right distribution chain to do so.

I could say, we've been open about this, but we've had extremely song strong support from Nutrien, specifically looking in that California region. They've been tremendous partners for us driving that demand with with their key customers.

Everything we do in that sense is through distribution, and and that's how we will continue to go forward.

It's it is strawberries. Strawberries and potatoes, and I I would say the one key thing that we're seeing is is very good yield response in both those crops compared to synthetic fertilizers in in actually the synthetic systems that those growers are using.

We're seeing that growth head-to-head versus versus our targets.

California is the biggest driver of it right now. We are looking and and driving some new field trials and testing in Florida.

The two key markets for strawberries would be California and into Florida. Once we look at potatoes, like I said, that's more Northwest.

If you go into fruit and veg or other vegetables, that's still a very dominant California market.

In terms of gross margin improvements, in Q1, we had about 24% gross margin. I expect to see us going back to that 20 that 25% to to 30%, 40% range.

It all depends on, some of the costs, such as ocean freight at the time. We have seen ocean freight rates spike up during the the Iranian war.

In terms of delivery times, we're looking at about 6 weeks on ocean freight.

no. No, it's not at full production capacity.

No. What would

We've we've got agreements with our our partners in terms of the costs and purchase orders that we put in for the product. The more efficient that they get in terms of their production, and we've seen their efficiency starting to increase, it means that their costs are going to go down and that.

That's a good thing for them because with the low rates that they've been producing at, it it could be quite costly for them in terms of their margins.

Yeah. In terms of the PMRA, I'll let Colin comment on that.

In terms of the EPA in the US, we're in a wait-and-see period here right now. Again, we haven't been spending very much money there because we haven't had to.

When we get an idea in a sense of where the EPA is at and what our next steps would be, we're we'll have to assess, if it's going to cost more capital for us to do that. We'll have to assess do we want to be driving capital there versus TerraSante sales.

If if not, well, hopefully, hopefully hopefully if not, we don't have to spend any more money in this area. We look forward to receiving our registration.

In terms of a timeline with the EPA, it's hard to say.

Martin, in Canada, we are addressing one data need that we we're putting forward this this fall, and we hope to have that soon. Then with the European Union in Bayer's area, Bayer continually works towards that registration process across the EU-27 and their other regions.

Looking at other parts other parts of the world, we continually assess other markets and and seeing what would be the best route to market and and with who in other areas such as Asia, Latin America, etc.

As of right now, we are doing testing in Europe, specifically looking in flowers in the Netherlands. We have to wait for that process and that data to come through before we can then make the next step of working with the right partner and and the other partners.

Flowers is not part of the Bayer agreement. We do have freedom to to work in that area and and Netherlands being a very large opportunity.

It's going to depend on country, depending on the country, depending on the data, depending on the the crop as well. We're hopeful that we will be getting a lot of those answers here at the end of this end of 2026, and and really figuring out the plan as to when for TerraSante and where else we'll go with it.

We are, Martin. With TerraSante, with with TerraMG, both of those products are crop agnostic, we can work in in many different crops.

It all comes down to the dose, the timing, and the application. The one difference between something like vegetables versus strawberries is the value at a farm-gate level, we have to then work through different dose.

We continually look, leafy greens, tomatoes, we're looking in other berries, even down to the point of looking into specific row crops as well, just to continue that expansion. It it all comes down to you need to get the right value at the right time for that farmer, and that's where we have to work through some of those key key different metrics.

I guess, we have about 110 patents here right now. We think there's better value for us keeping these patents right now and moving our technologies into commercialization and scale-up because there'll be a lot more value for those patents down the road as we as we execute on commercialization.

In terms of tariffs, so far, our product, I mean as it sits here right now, our product being a biofertility product coming out of Asia, we're not seeing any tariffs. Again, that can change at any time.

Even if we were producing product here in Canada and exporting to the US, I believe, being a biofertility product, it would be not under the the the new 50% tariffs that are expected here.

they talk about it, Martin, but they have not clarified or changed the registration or regulations in that sense yet. There are still, like I said, discussions about utilizing natural products like ours to to drive that and go faster.

Every regulatory body, I think, on this globe says that they want to be fast, but they never are. It just takes time.

It's it's government, and that's something we just have to deal with.

In the marketplace right now for TerraSante, we we are in a good sweet spot to drive that growth. It is a profitable product for us in that in that sense and in those areas.

My mindset would be that we maintain our pricing, we maintain driving the value, showing the value at a farm-gate level, and and showing that value to the producers. Getting more product on the ground, getting more users, getting more turnover is going to benefit us over the long time.

Looking at a lot of the market sentiment right now, specifically in the US, fruit and vegetable growers are are having a tough time. To do a long-term price increase or pricing strategy with TerraSante right now just just wouldn't be feasible.

My goal would be to continue to look, continue to adjust and and look at the marketplace, see what's possible. The first priority is to increase sales and get more more product on the ground and get more users utilizing TerraSante so we can continue that that growth curve.

as of right now, we have a number of different states and new ones that we we just announced. There are a few key other states that I would like to get into just based on demand.

I would say first priority is to get the product placed and put into the marketplace as quickly as we can, number one. Number two is continue the growth curve in the key regions.

I would say those key regions would be Pacific Northwest, California, and Florida. In my mind, there's no use getting more states when we don't have enough boots on the ground.

I'd rather focus and get these other areas right first. Then we can look at additional states based on demand and and based on priority.

It is. Our technologies are covered in that Bayer agreement.

We will continue to work with Bayer to see how and and where we would take TerraSante into the marketplace in those regions. The first goal would be to get it into something like flowers where we have freedom to operate, show the demand, get the growth, get the data, and and drive that.

Flowers are a tremendous value crop. If you look at the Netherlands alone, there's roughly 28,000 hectares of flowers in the Netherlands, it's a very large opportunity.

First is to focus on there. Second would be then to look at, where else can we go with TerraSante and TerraMG with Bayer within their region and pick out those key countries.

Yeah. We've seen our share price down over the last year or so.

We're we're shareholders in this company, and and and it's not that we don't notice it, but we know we know how we can, see an appreciating share price, and that is going to be generating sales of TerraSante, moving the company into positive cash flows, showing the growth. That's our focus and that.

That's that's where we're headed.

All the all the work with Bayer right now is on TerraMG. TerraSante is a I would say a potential upside for both organizations.

I will be meeting with them coming up in October to go through potential next steps. When you look at a large agricultural chemical company like Bayer, having TerraMG in the marketplace first is something that's they want to do do first and foremost.

They do see TerraSante, though, as a potential upside, but we have to work through a number of different things with it to see the right place, the right time, and and where it has a good fit.

No, they are two separate products with separate claims with separate formulations, separate targets. The answer would be no.

It's it's two different systems. The biocontrol system versus biofertility and biostimulant is different, but it does come down to a country-level discussion then with biofertility products.

Biocontrol you work through the whole EU-27, where with biofertility, it is more country-level basis discussions. It's just really about understanding where those opportunities are and where the fit is and where a need is is having a or where where growers are having a desperate need right now.

Like I said, we'll be working through that to get a better understanding and and really see where we can drive that growth with with Bayer.