Mr. Ilan Sobel reports

BIOHARVEST REPORTS Q1 2023 RESULTS DEMONSTRATING STRONG YEAR OVER YEAR GROWTH

Bioharvest Sciences Inc. has released its Q1 2023 results. Revenue of its flagship Vinia product reached $2.2-million (U.S.), representing 209-per-cent growth compared with the same quarter of last year. Net loss for the quarter was $752,000 (U.S.) (includes $1.9-million (U.S.) nonrecurring amount), compared with $2.13-million (U.S.) in Q1 2022. The company is reiterating both its announced revenue guidance of over $17-million (U.S.) for the year, and that it is targeting to be cash flow break-even by Q4 of this year. The company has already successfully completed a large proportion of its required fundraising activities and is forecasting that the current financing round will finance all operations until the company reaches the target of financial independence by year-end.

BioHarvest has focused, for the first half of this year, on the improvement in production yield and driving a reduction in the cost of goods despite major supply chain inflationary cost pressures. Gross margins in Q1 2023 increased to 37 per cent, from 26 per cent in Q1 2022, representing an improvement of 42 per cent. The company is focused on the continued improvement of gross profit margins with increased manufacturing scale, on the introduction of new drying technologies to optimize yield levels and on implementing additional cost-reduction measures.

The increase in the number of new customers driven by the health benefits that Vinia delivers is an assurance of the ability of the business to grow further and achieve the scale required for profitability. Vinia sales metrics continue to improve and increased marketing efficiency has been achieved in Q1. Cost of customer acquisition in Q1 2023 declined by 13 per cent compared with Q1 2022, further demonstrating the power of the Vinia brand. Vinia continues to achieve a best-in-class verified customer rating of 4.7 out of five, with over 2,200 verified reviews, demonstrating its significant positive impact to consumers' lives.

The company plans to introduce new products such as Vinia Functional Coffee by year-end, which will not only fuel revenue growth but would also further increase production and marketing efficiency.

"I am proud of our Q1 results", stated Ilan Sobel, chief executive officer. "We made some tough decisions in Q1 which aimed at building a healthy and profitable business. I strongly believe that the renewed focus resulting from these decisions is paying off, and is yielding the desired results both in growth and ultimately in near-term profitability. Our activities across all departments are flexing our biotech muscles and are demonstrating the power of our technology platform. I look forward to the upcoming months, where our shareholder partners will see the continued demonstration of this progress."

The company will hold a live shareholder presentation on June 22 at 2 p.m. ET. The interactive meeting will include a discussion of the first quarter results, an update on marketing and new product activities, and a question-and-answer session with Dr. Brian Cornblatt. All interested media and investors are welcome to register on-line.

Note: The $1.9-million (U.S.) reduction in the net loss reported for Q1 is due to a fair-value adjustment of derivative liability related to a convertible loan. This accounting line item had zero impact on cash flow.

About Bioharvest Sciences Inc.

Bioharvest Sciences is a fast-growing biotech firm listed on the Canadian Securities Exchange. Bioharvest has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at industrial scale, without the need to grow the plant itself. Bioharvest is currently focused on leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions, within two major business verticals: nutraceutical health and wellness products such as dietary supplements; and development of plant cell-based active pharmaceutical ingredients (APIs) that focus on specific medical indications.

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