CollPlant Biotechnologies Ltd.

Greetings, and welcome to the Coal Plant Biotechnologies Investor Conference Call to discuss financial results for the full year and fourth quarter of 2023 and corporate updates. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. Now I'll turn the call over to Dori Kurowski of LifeSci Advisors. Please go ahead.

I would like to welcome everyone to Coal Plant Biotechnology's Financial Results Conference Call to discuss the results for the full year and fourth quarter ended December 31st, 2023 and provide a corporate business update. With us on the call today from Coal Plant are Yahil Tal, Chief Executive Officer, who will provide an overview of the company's programs and associated updates, and Aron Rotem, Deputy CEO and Chief Financial Officer, who will provide a summary of Coal Plan's financial results for the full year and fourth quarter ending December 31st, 2023. Both will be available 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 COLE Plan's filings with the Securities and Exchange Commission. These filings can be found at www.sec.gov or on COLE Plan's website at www.sec.gov. In addition, any forward-looking statements made on this call represent Coal Plant's views only as of today, April 4th, 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. Now, let me turn the call over to Gil Tal, Chief Executive Officer of Coal Plant Biotechnologies. Please go ahead, sir.

Good morning, everyone, and thank you for joining us today on Coal Plant Investor Conference Call to discuss our full year and fourth quarter 2023 financial results and corporate developments. As you know, the war that began last October very unfortunately continues. However, Coal Plant's main development programs and production plan thankfully continue to be minimally affected as a result of the war. The morale of our employees these days continues to be admirable according to these circumstances, and I want to take this opportunity to say that I am extremely thankful for our dynamic and resilient workforce. Coal Plant's 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 coal programs and our supportive partners to advance this mission with the goal of creating products that enable the regeneration of tissues and organs. We are extremely pleased with the momentum we gained last year and have maintained through the beginning of this year to advance our innovative programs in the fields of regenerative and aesthetic medicine. Allow me now to recap a summary of what we accomplished. On this slide is the thermal filler product candidate that we are partnering with AbbVie on, specifically its Allergan Division for development. Throughout 2023, we made significant progress with AbbVie to advance this candidate towards commercialization. In June of last year, we announced the achievement of an important milestone, either this collaboration, which triggered a $10 million payment from AbbVie to Copeland. Per Copeland's agreement with AbbVie, Copeland has the potential to receive additional milestones and option product payments, as well as receive meaningful royalties on product sales. In their full year and fourth quarter conference call, AbbVie stated that they expect meaningful growth in the aesthetics market, and that importantly, a ramping up is now anticipated after multiple quarters of decline in the US filler market. The dermal filler product candidate, which is our top focus, is now in the clinical phase of development and has the potential to create a paradigm shift in the dermal fillers market, since in addition to tissue filling, it is expected to impart regenerative properties to the skin tissue. In addition to our partner program with AbbVie, we have another version of a dermal filler under development. In the fourth quarter of 2023, we announced that a U.S. patent was granted related to our photocurable dermal filler product candidate being developed by Coldplant for the aesthetics market. This patent is related to the method of use of Coldplant's photocuring technology and serves as the basis of its photocurable dermal filler product candidate. We believe that the patent will strengthen our position in the aesthetics market for many years to come. Furthermore, we received a notice of allowance for a patent application which covers the use of this product candidate in Brazil. another important market in medical aesthetics valued at $741 million with a compound annual growth rate of 10.7%. It should be noted that Coldplant has granted its partner AbbVie the right of first negotiation to obtain a worldwide exclusive license to this product candidate. Now, I will discuss our other in-house development programs that are our core focus. Our next leading program is our regenerative breast implants. These implants that are comprised of our proprietary non-animal derived Rh collagen and other biomaterials are intended to promote tissue regeneration and the grade in synchronization with the development of natural breast tissue. In 2023, the global breast implant market size reached $2.6 billion U.S., and the market is expected to reach $4.1 billion by 2032, exhibiting a compound annual growth rate of 3.7% during 2024 to 2032. We have begun an additional large animal study with clinically relevant commercial size implants. This study's results are intended to be used for the design of a pivotal large animal study. This study follows the completion of our first large animal study, the results of which were announced in January 2023. This study demonstrated progressive stages of tissue regeneration After three months, as highlighted by the formation of maturing connective tissue and neovascular networks within the implant, with importantly, no adverse events reported. Since then, during 2023, Cotland also conducted additional large animal studies that were intended to further optimize the implant design and composition. In these studies, new tissue formation and no vascularization with no adverse tissue reactions were demonstrated confirming previous results. We look forward to reporting results from these animal studies in the fourth quarter of this year and the first quarter of 2025. We cannot stress enough the improvement that the regenerative breast implant could provide given the adverse events associated with currently available silicone implants. Use of the silicone implants carries an increased risk of developing breast implant-associated anaplastic loud-cell lymphoma, which is a type of a cancer. Every year in the U.S. alone, hundreds of thousands of people experience adverse events that range from autoimmune symptoms to these most serious side effects. Our breast implants are expected to regenerate breast tissue without eliciting immune response, and that may provide a revolutionary alternative for aesthetic and reconstructive procedures. The additional safety and efficacy data that we will generate from the recently initiated large animal study is intended to be used to optimize the development of our regenerative breast implants and combined with data from all previous studies, is expected to support future regulatory submissions and clinical studies. In April of last year, we announced a joint development and collaboration agreement with Stratasys to collaborate on the development of a printing solution to biofabricate human tissues and organs using Stratasys P3 technology-based bioprinter and ColdPlant's Rh-collagen-based bioinks. The first project under this agreement is to devise a process for industrial-scale bioprinting of ColdPlant's breast implants. Here is an example of a breast implant printed with our collaborators at Stratasys using ColdPlant's Rh-collagen-based bioinks. Now, I want to draw your attention to a decision that we recently made related to our Gut on a Chip program. In the spirit of being good stewards of our own capital and with our focus on the medical aesthetics arena and collaboration with AbbVie, we have decided to put our resources directed to this program on hold. I want to emphasize that this program is important to Cold Plant and that it is still very much a focus of ours. However, we made this decision for now, since we felt it wouldn't be responsible to continue after assessing the projected timeline to progress the tissue model. Anyway, once resources are secured at the appropriate time, we do plan to reinitiate this program. In 2023, we blustered our commitment to ESG, environmental, social, and governance initiatives by appointing a dedicated expert to lead our efforts. Following the endorsement of our company's sustainability roadmap for the upcoming year, we embarked on a series of bold initiatives aimed at significantly reducing coal plant's carbon footprint while harmonizing with our overarching sustainability objectives. Through meticulous analysis and prioritization of key topics, we have finalized the ESG strategy and goals, ensuring their integration into our corporate framework. In September of 2023, we proudly announced our participation in the United Nations Global Compact, a prominent initiative for sustainable and responsible corporate governance. By aligning ourselves with this esteemed platform, Corpland reaffirms its unwavering dedication to bioprinting sustainable practices, further solidifying our mission to revolutionize regenerative anesthetics medicine with sustainable alternatives. Furthermore, we are set to unveil our inaugural formalized ESG report for 2023 during the second quarter of this year. This report will showcase our bold commitment to environmental, social, and governance facets, including ambitious targets in climate action and energy and efficiency, comprehensive workforce, health and safety initiatives, and the integration of ESG considerations into our governance structure. This commitment underscores Copeland's unwavering dedication to responsible and sustainable business practices promising long-term value creation for our stakeholders. That concludes my initial remarks. Now I will turn the call over to our Deputy CEO and Chief Financial Officer, Eran Rotem, to provide a recap of the financial results.