Good morning, everyone, and thank you very much for joining us today. I'm Robert Kiesman, Senior Vice President and Director of Beyond Oil. Before we get started, I need to point out that today's presentation, as well as the Q&A session afterwards, has forward-looking statements, and that our entire discussion today is subject to this disclaimer. In advance of reporting our financial results next month, today is about stepping back and looking at the much bigger picture. Why does Beyond Oil exist? What problems are we trying to solve? Why do we believe that the opportunity in front of us today is much larger than simply selling another food service product? We're going to address these questions while answering the one question that we know matters to all of you the most.
How are we going to build a profitable, high-growth business that creates shareholder value for our investors? I would like to introduce my colleagues and co-presenters. First, Jonathan Or, our CEO and Co-Founder, Shany Touboul, our CFO, and both of these gentlemen are joining us from Israel. Michael Nemirow, our President of North America, who's with me in Vancouver, Canada. Finally, Daniel Birnbaum, a serial entrepreneur who's recently joined our Advisory Board and is also joining us from Israel. Now, before we discuss where we are and where we're going, I would like to invite Jonathan to briefly explain how we got here and how and why he and his father have spent more than 10 years building this company from the ground up. Over to you, Jonathan.
Thank you, Robert, and good morning, everyone. Let's start and share our story. The story about Beyond Oil started with a health problem in our family. For many years, my father suffered from chronic acidity problem. Now, think about reflux, but in the most extreme way. The medication he used to take only reduced the pain and the symptoms, but you know how it works. The real problem never went away. At some point of his life, he made some medical tests regarding this issue, and his doctor came to him and told him, listen, my friend, you are in high risk of developing esophageal cancer. My father was not a scientist. He was a husband, a father of four, I'm the oldest, a lawyer.
As a simple man that suffered for so long, he decided to do something about it and find a real solution for his problem. That is how our journey started. As a good son, I joined into the process. We opened a small lab in our backyard, in our family home, and we started a process, the R&D process, and the goal was simple, to heal my father. After about five years of trial and error, countless failures, when we invested almost everything our family had into this project, we finally found a solution. We succeeded to develop a formulation that my father used every day for a few months, and it dramatically improved his condition and health. Now, you probably ask yourself how it relates to fried food or frying oil, and here is the twist in the story.
As part of the experiments we did, we needed acidic material to test the formula on in order to simulate acidity in the human body. What was available for us back then was cooking oil, because as the oil breaks down, it becomes more acidic. Looking backward, I can say that that was our eureka moment. We discovered that the formula we developed for my father also did something remarkable to cooking oil or frying oil. We started looking deeper. We studied what happens to frying oil when it's heated and reused again and again. We learn how it affect the food we eat, the people around the fryer, the operators, the environment. The more we learn, the more we understood how serious and how big the problem really is, and you're going to hear about it during this webinar. Let's talk about it.
Frying is one of the most common ways of preparing food in the world, no matter where you are. Billions of fried meals are served every day. The way frying oil is managed is barely changed for decades. We realized that we can help far more people than just our own family, and that is why we created Beyond Oil. Fast-forward to today. Our purpose as a company is simple. We all love fried food, and it's not going to change. We believe that the future of fried food is not about changing what people love. It's about improving the system behind it, making better, healthier, more responsible for the people who enjoy the food, for the people who prepare it, for the operators who serve it, and for the planet. That is why Beyond Oil exists, to set a new standard for all.
What started as one family trying to solve personal problem has become a mission to improve an industry that impacts billions of people around the world every day. Back to you, Robert.
Thanks, Jonathan. Some quick background for those of you who might be new to the Beyond Oil story. Very few restaurant customers stop to ask one simple question, what happens to frying oil after it has been used over and over again? It becomes dark, and it gets thick, and it starts to smoke. I'm just going to show you this slide here. It smells really bad on top of that. This photo shows the degraded oil that soaks into the food that we're eating. What it doesn't show is the bad smell and the smoke. As many of you who are with us today know, our solution removes dangerous toxins from the frying oil, most importantly, reducing by 99% to nearly 0%, the acrylamide and the trans fats that are in the degraded oil, as you can see in these two graphs.
It reduces to zero even when the frying oil is used continuously for hundreds of cycles. What does that mean? This means that restaurants and industrial producers will be able to deliver healthier food, eliminating toxins that are not only hazardous but are gradually being regulated around the world, while at the same time reducing health exposure for their employees, and as a bonus, extending their safe oil cycle from an average of three days for most restaurants to as many as 25 days, representing a meaningful cost savings opportunity for the restaurant customers. Based on our commercial experience, many of you will know that customers can reduce their frying oil costs by up to 50%, and for many restaurant operators, that can translate into annual savings of thousands of dollars per location while enhancing food quality and reducing waste.
These two slides here are showing some standard examples in Europe and the United States of what those savings can be, although it certainly varies depending on what kind of oil they're using, how much oil, and how many fryers they have, and so on. We can pull these slides down now. Thank you. 2026 is the year where we're accelerating our progress. Everything we're doing in 2026, from expanding direct sales, optimizing our distributor network, supporting customer rollouts, increasing recurring revenue, everything is designed around one objective, scaling commercial adoption. We're working to ensure that Beyond Oil will not simply become another supplier, but will become part of the new global standard for frying oil management. Now, many of you are aware that since becoming commercialized in 2024, Beyond Oil has signed distribution deals in Canada, Israel, Europe, and elsewhere.
We're selling our product to some of the largest and most recognized fast food chains in the world. As they say, success in America is unlike success anywhere else, and we know that in order for this company to create significant value for our investors, we must scale quickly in the U.S. market. Since January of this year, we've announced four commercial deals, and we're now poised for significant scaling in the most important market in the world. In order to do that, we know that we need people on our team who have done it before. It's at this point that I would like to introduce Daniel Birnbaum, who transformed SodaStream into one of the world's most recognized consumer brands and largely created a new consumer category of home-prepared sparkling beverages.
He took the helm of SodaStream in 2007 at $0.24 a share, listed on Nasdaq 10 years later at $20 a share, and ultimately sold it to PepsiCo at $144 for $3.2 billion in 2018. It'd be an understatement to say that Daniel delivered to his shareholders dramatic returns, and we're very excited that he has chosen to join our company. Daniel, thank you for joining us. The floor is yours.
Thank you, Robert. In recent years after SodaStream, I was not looking actively to join just any company, opportunities came my way from time- to- time. When I choose to become involved with a company, I ask myself a simple question: Is there something here that can truly change the world? Can it make a big difference, and can I personally contribute to making that something truly remarkable? I received a cold call one day about six months ago from Adi Olesker, who's Beyond Oil's Investor Relations lead in Israel. I never met Adi. I don't know how he got my phone number. He introduced himself, and without mincing words, he simply asked me a favor to come and see something in a restaurant. That's it. I figured, what the heck? Worst case, it sounds like a free lunch. I'll go. I did it.
I was shocked by what I saw at that restaurant. I'm blown away, and I still am. I saw a product, which is basically a powder, that almost instantly transformed dark, burnt frying oil into clear, like-new oil in the kitchen of that restaurant. From dark burnt to clear in a minute. The folks showed me the measurements, the TPM of that oil before and after the treatment. They explained to me what that means. I didn't know anything about TPM. I don't come from the oil industry, and I'm not a chemist. For those of you who might not be into oil chemistry, TPM means Total Polar Materials. That includes the oxidation products, the free fatty acids, and other bad stuff. These are indicative of oil degradation, oil degradation that is due to repeated frying cycles, TPM.
More importantly, I've later seen internal research at Beyond Oil about the reduction in toxins, Robert mentioned them, specifically trans fats and acrylamide in restaurant oil data that simply blew me away. I'll make sure to share that research after it's scientifically concurred for publication and claim support. I'm also making sure that I'm going to send that to CEOs of major restaurant chains and industrial frying companies around the world. If ever I was looking for something that could change the world and really get me fired up, I found it in that restaurant. Bottom line, I agreed with enthusiasm to join the company as a Board advisor to work closely with Jonathan. Our ambition is to bring Beyond Oil's revolution to the world and become the global leader for oil management systems, both industrial companies as well as restaurants.
The size of the market is nearly infinite, we're not positioned to upset or replace a specific competitor. We're not out for market share. We're bringing a solution to a problem that has no solution today, a need that is growing very quickly, and it's being reinforced by regulatory standards worldwide. Acrylamide and trans fats are being regulated, we want them at zero. Beyond Oil can do that almost to the extreme. We're looking to launch a management system for frying oil to keep it safe and healthy for repeated cycles, even weeks and hundreds of repeated frying cycles. This does not exist today. When you build a new category, the journey is not only about selling. You need to educate the market, build trust, work with major customers. You need to work with regulators and governments. You need to create a new language.
You need to help the world understand that there is a global problem. Now there's a solution, and that's what we intend to do. The challenge is significant, but so is the size of the prize. As a relatively newcomer to the team, I've been impressed not only with the incredible potential of the product, but also with the quality of the people. I met a dynamic group of mavericks who are all excited and committed to working hard and delivering the revolution. A group of talent that combine experience from within the industry, as well as outsiders who bring new thinking to the conservative industry, but who share the determination and courage to disrupt and transform the way frying oil is managed around the world. What started as a free lunch at a restaurant now became another life mission for me.
Jonathan asked me to hop on this call just to share some of my thoughts about the company and my vision for its future. I hope this accurately tells my story. I look forward with great anticipation to share our fantastic journey ahead. Back to you, Robert.
Great. Thank you, Daniel. We know ultimately long-term shareholder value is created through disciplined commercial execution. Today we believe we're entering a very different phase of the company's evolution, particularly, as I said, in the U.S. market. To explain that journey and why we believe Beyond Oil is transitioning from building its commercial platform to scaling it, I'd now like to walk you through where the company is today. As many of you will know, our product is patented. It's cleared by the U.S. FDA, Health Canada, and other regulatory bodies. The vast majority of the commercial infrastructure required for long-term growth has already been built. Beyond Oil is approaching now an inflection point where years of investment can begin translating into scalable commercial growth over the coming months and years. Everything we do today is designed around the objective of scaling commercial adoption.
That transformation is also reflected in our organization. Since the end of 2024, our team has grown from about 20 employees to 45 today, with the majority of those additions focused on commercial execution, sales, and marketing, largely in the U.S. market. As our commercial platform matured, we recognized that our opportunity became helping customers directly to successfully adopt the product, expand across locations, and generate recurring revenue for us. At this stage, across multiple markets, we're seeing several commercial initiatives advance simultaneously from customer implementations to enterprise discussions and broader commercial engagement, some of which we expect will be company-making deals for Beyond Oil. We're focused on adding new customers, ensuring the customers are reordering and expanding into additional locations, increasing our recurring revenue, and ensuring that enterprise relationships are growing into additional brands.
I'm now going to pass it on to Michael to provide some more color on our U.S. and direct sales initiatives. Over to you, Michael. Michael, I think you might be stuck on mute.
There we go. Good morning. As has been said earlier, we do have a serious focus on scaling our commercial adoption, particularly in the U.S., and we've been adding to our U.S. sales organization. We've added more leadership and salespeople who have decades of experience selling innovative solutions, particularly focused in cooking oil, in the food service industry, and back-of-the-house solutions that improve kitchen operations. These new team members, they come to Beyond Oil with a real understanding of our customers' needs and how to work with the various processes in these complex organizations for getting them on board and expanding through their wide network of locations and different parts of the organization. They also bring contacts to Beyond Oil, and we leverage those contacts, of course, every day.
We also are continuing to evolve our hybrid commercial model because sometimes we work with our distribution partners, where that's most effective, and we also work directly when that's the best approach, such as many of the large chains, grocery, convenience, and other food service categories. A key focus for our team is to work on expanding our current customers that we have already in fast food, fast casual, and food retail. We're also doing numerous pilots and market tests to demonstrate the value we provide to a new set of potential customers. Some of this work that we do in pilots and market tests are with brands that are known all over the world, and others that have a very large presence in North America.
When we're working with some of our current customers, part of the work that we're doing is to develop plans to take what we learned in these initial roll-outs, so that we can fine-tune how we would approach a broader corporate rollout or market to other groups under their banner. We're also working closely with our distribution partners in the same way to help them manage their current customers and opportunities that they have. One of the things I think is important to note about all of this work that we're doing with customers and prospects is that we are getting really direct experience related to the impact we make positively on their operation. There's been a lot of discussion about how we extend oil, which is important, and we provide a great financial value to our customers in doing that.
What we see time and time again is that what really excites them is the improvement in food quality and the easier operations that their team experiences. By the way, I'm also happy to report that they do care about the ESG goals and the health benefits for their workers and their customers, which is especially true for the larger organizations that we work with. In the kitchen, the enhanced food quality and easier operations are really important for how we scale and roll out the product, because it's much better if the people actually doing the work in the kitchen support it, versus just being a program that the executives want to implement. One of the toughest jobs is cleaning the fryer.
Less time cleaning a fryer is a real benefit in the kitchen, and if you're working in a kitchen and you care about food quality, serving more consistently high-quality food is also a great benefit. They become our biggest champions, advocating for us during the pilots and market tests. Also, at the highest level, when we're talking particularly to a large customer, they want to make sure we can scale as a new market entrant with their operations. Our manufacturing capabilities can support annual sales of up to $100 million with strategies to expand further. If we're being evaluated on scaling, we can certainly meet that requirement. Now, through all the work that we're doing, we validated how our customer benefits from Beyond Oil in well over 100 locations through our direct work in the U.S..
That includes three well-known food operators who have thousands of potential locations for us. We've worked closely with distributors to add other locations. Overall, we're working with end customers around the world and have an expanding commercial network with 25 distributors in over 50 countries. That's giving us a great deal of understanding and experience with our customer group. The current sales cycle does range very widely. It's certainly a multi-month process as we go from engagement to pilot, then pilot to broader market test, and then eventually to a broader rollout. However, as we keep adding customers, including the expected marquee customers that people have mentioned, we believe that those timelines will become shorter, become more compressed, as it will become more of a performance assessment versus just testing a new market entrant.
Given our team's experience introducing products and working in the industry, we anticipate a decrease from over a six-month process today to a three-month average. However, of course, in some cases, especially these bigger brands, we do recognize that they have their own processes and bureaucracies, so we'll have to work under their timeline, so we have to be patient in those cases. Overall, we really see a compression in our sales cycle coming. While we do all of this work that I've talked about, it is also key to understand that our team is working on several meaningful market tests or pilots at any given time, and working with our current customers and doing a bunch of other customer success work. We're really getting involved in the market.
All of us on the U.S. team and in the company are excited about the progress that we're making with these current customers and prospects. We're working to expand locations with people who are customers today and convert prospects into announceable customers. We've definitely, through what we've learned, we've been evolving our sales process and our customer success programs. We are seeing that pay off. We're seeing positive growth with the companies that we are engaged with and new ones that are just starting to connect with. That's it.
All right. Thank you, Michael, very much. Over to Jonathan for some closing remarks before we turn over to the Q&A session. Jonathan.
Okay. Thank you, Robert. I'd like to leave you with one final thought. Our technology has been proven, our commercial platform is in place, and we have built an incredible team. Now our mission is clear: execute, scale, and create long-term shareholder value. We believe the opportunity ahead of Beyond Oil has never been greater. The next chapter in our journey starts now. It's about accelerating customer adoption, converting commercial momentum into recurring revenue, and delivering sustainable growth and long-term value. I want to thank you for joining us today and for being part of this journey. We look forward to continue work hard to deliver the best value for our customers, partners, and of course, shareholders in 2026 and beyond. Thank you.
All right.
Robert, back to you for questions.
Thank you, Jonathan. We have a number of questions from everybody who's watching. Thank you, by the way, for sending them. First question, this is a very common one. It's been asked by multiple people. At some point, you will need to produce your product in the United States and not across the world in Israel. What are your plans for that? I think we'll turn that one over to Jonathan.
For sure. Yes, we have plans to expand our production and manufacturing capabilities to North America and other regions, and we are ready to do so when the business require. We are ready, when we need to do it, will do.
Right. Next question. With such a great value proposition, why isn't everyone immediately adopting it? This is probably a good one for Michael.
That's a good question. It's a new market entrant. We really do see when we go and meet with a potential customer and explain what we're doing, there's a lot of interest, but they want to test us quite thoroughly, especially because it's something that will make such a broad impact on their food quality and operations, health benefits. I'm seeing the process of testing our product take a while, but we really like it when they're testing us because we provide great results, and I expect over time, as we become more known in the market, that whole cycle that I mentioned before will compress, and we'll see more and more adoption.
Right. Thank you. Another question. We were asked this by a number of people, actually. Can you give us an update on the industrial application of your product? Is Beyond Oil still planning to enter the industrial market? I think that one would be another good one for Jonathan.
Definitely. The industrial market is a major opportunity for the company. It's the next stage of the company. This segment, it's even bigger than the food service market for us. We have some R&D activities that we're working on with key potential customers. We see the progress. When we will have announcement to make, we will make them.
All right. Good stuff. How do you segment the market? How do you decide what companies to approach? I think, Michael, you should take that one.
It's a huge market, right? We first segment businesses by size. There's really three distinct categories the way we look at it. There's those huge brands that you would know, international brands. They for sure are part of our strategy, but it's a very complex sales process, lots of different stakeholders. We're working on those as a part of our broad strategy. There's also a huge market of small chains, one to tens of units, and our primary strategy for those is to work with them through our distribution partners because they can service them better as they already work with many of them today. The meat of what we focus on is what I broadly call those 200 to 2,000 location chains, largely corporately owned. They can make a decision to roll out Beyond Oil through their locations.
You can understand and navigate the buying process more directly. They still represent enormous opportunity for Beyond Oil. We also try and focus on customers with strong operations who care about food quality. I think our product can be used all over, but those folks who are going to be adopting a new product in the market are the ones that have the strongest operations and the most care about the food that they're serving. We also, of course, segment by all the traditional fast casual and quick serve and food retail. There's a whole matrix of activity that occurs as we approach the market, and we try to have a good representation across different categories as we're doing our selling processes.
All right. Thank you. Quick question for Jonathan. Is the product patented? If so, when does the patent expire, and what is your plan with respect to protecting your IP after that? Oh, you're on mute, Jonathan.
Yeah. The product is, and the patent expired by 2035. That being said, as a growing company and innovative, every time we create more and more developments and products and come with more solutions to the market. I plan by then to be a standard in the industry and to have much more solutions and collaborations and opportunities when we get to this point. I'm not worried about it.
All right.
I'm very optimistic.
Okay. Thank you. Question for Michael, you keep mentioning market tests and pilots. Can you give a little more explanation of what restaurants are actually trying to test for?
Yeah. Well, definitely a key part of the test are the economics. They want to see what we call the net oil savings, so how much less they're spending on oil, then add back in the cost of Beyond Oil. We score very well in that, and that's a part of every test process. The other part of the test is we've talked a lot about food quality, how do they measure that? We've become better, just as an organization, setting that up from the beginning. Through the test, we're really paying attention to how much oil is being absorbed into the food, the customer feedback, all of the different components. Food quality they want to test. They want to test impact on their operations.
Another place that we really invite that, as we're doing the tests, we get a lot of endorsements from the actual kitchen staff that corporate hears and cares about. That's part of what they want to make sure it's something that operations endorses. They do care about the health and ESG type goals. We are testing oil usage, not just from a financial basis, but from an impact on their ESG goals. We're giving them reporting of all the toxins we're removing from the food so they have a better understanding on health.
All right. Thank you. There's a quick question here. Where's the manufacturing plant, is it large enough to handle the anticipated demand? As mentioned by Michael earlier, we're currently producing in Israel, we have the capacity to produce up to $100 million a year in revenue out of that plant. We certainly are planning and expecting to need to move production also to the U.S.. There is a question, a very common question I've been asked several times actually in this list. What are the plans for Nasdaq uplisting and creating more awareness for the stock? It's a very good question and a very important question.
We have known, since day one that in order for us to be successful commercially, we needed to focus on the U.S. also to be successful as a public company, creating value for shareholders, that we need to be listed in the U.S.. It's always been part of our plan. Our plan has been to uplist to Nasdaq at the time when we have enough commercial action in the U.S. to justify it, we are approaching that time now. Believe me, it is front of mind for us. We are planning to do it. I could see it happening. I could see us starting the process next year, certainly. I could see that. We're going to make the decision at the time when we have enough commercial action to justify the cost and so on to move up to Nasdaq.
It is front of mind, it's always been part of our plan. We will be doing that. I think last question here. Why has the share price been pretty stable? Actually, I like this question. We have a very good shareholder base. We have very loyal supporters. As most of you know who've been following the stock, we have strategic investors who've invested in us in equity twice. We have investments from institutions in Israel who supported us, also restaurant owners, franchisees, kitchen workers who use our product and like our product, believe in the company, they have been supporting the stock.
It's been generally stable, but we are going to, as we start, and this is important for everyone to know, as we start executing in the U.S. and announcing U.S. deals, we are aware that we need to start promoting the stock, creating market awareness for us in the U.S. market to get U.S. eyeballs on the stock as we start and continue accelerating our commercial execution in the U.S.. That's also front of mind. Everybody can be assured of that. We will do it at the right time. I think that is it for the questions. We're running close on time. Thank you to everyone for joining us and feel free to reach out. Our emails are on our website, of course, our IR. You can reach out to us anytime with more questions.
You can contact us, and we'll be happy to continue engaging with you. Thank you again for investing in our company. We appreciate it, and we're going to do everything we can to create a lot of value for all of us. Thank you.