Bolt Projects Reports Q3 2024 Financial Results

Vegan Silk Traction Drives Third Quarter Results

   -- Full year 2024 b-silk$(TM)$ revenues are projected to exceed $1 million, 
      propelled by deeper segment penetration and growing customers and 
      consumers adoption 
 
   -- For 2025, b-silk revenues are projected to reach at least $4.5 million, 
      bolstered by new customer acquisition 
 
   -- Our 2024 COGS reduction program has delivered over 60% in 
      cost-per-kilogram produced reduction for b-silk for the year, following 
      on prior year gains 
 
   -- Continued operational efficiencies and additional COGS reduction to 
      create a path toward the goal of long-term, sustainable profitability 
BERKELEY, Calif.--(BUSINESS WIRE)--November 07, 2024-- 

Bolt Projects Holdings, Inc. ("Bolt," "Bolt Projects" or the "Company") (Nasdaq: BSLK), which develops and produces innovative biomaterials for the beauty and personal care industry, reported its financial results for the third quarter ended September 30, 2024 and provided a business update. In addition, the Company's Third Quarter 2024 Shareholder Letter can be found on Bolt Projects' Investor Relations website at https://www.boltprojectsholdings.com/.

"Over the past eighteen months, Bolt has undergone a transformational change toward a sustainable and efficient business model focused on replacing harmful environmental materials with sustainable, high-performance alternatives in the beauty and personal care market," said Dan Widmaier, Bolt Projects Chairman and CEO. "The cornerstone of this strategy is our commercially ready b-silk(TM) technology, which has been on the market since 2019 and in multiple products within the beauty industry. As we have continued to work through the sales funnel we are seeing accelerated traction with prospects who want to use biotechnology ingredients to drive the products of the future."

"We believe that Bolt is entering the market at an optimal time for market expansion, as companies have been facing aggressive environmental targets and regulatory restrictions, particularly around the biodegradability of materials used in their processes," said Bolt Projects President Cintia Nardi. "Bolt's sustainable biomaterials have the ability to meet these demands and drive a cleaner, more responsible future without sacrificing the high performance of their product offering."

Market Traction

"This effort has been led by b-silk, a revolutionary biodegradable, film-former polypeptide that offers additional functional benefits for hair care, skin care and color cosmetics," said Widmaier. "Since 2019, B-silk has delivered consistent and proven consumer satisfaction."

During the third quarter, two new products featuring b-silk -- the Daily Defender SPF30 and the Peak Performance SPF50 -- from Freaks of Nature(TM) were introduced to the market, driving higher visibility and deeper penetration in the sunscreen product type within skin care.

This launch adds to b-silk's long-standing success in the hair care segment as part of Vegamour's GRO Revitalizing Shampoo and Conditioner since 2020, powering their proprietary Karmatin(TM) offering. Vegamour's success drove our revenue growth for multiple years, illustrating the impact new customer launches can have.

Bolt anticipates continued progress in multiple segments with established and indie ("independent") consumer brands launching new products into the global market featuring Bolt's Vegan Silk Technology Platform.

During the third quarter, Bolt also launched a second proprietary product from its Vegan Silk Technology Platform under the trade name xl-silk and an exclusive b-silk serum ingredient.

Looking forward, the two launches currently anticipated for 2025 are:

   -- As early as the first quarter of 2025, a cosmetics brand is scheduled to 
      debut a color cosmetic offering that uses Bolt's Vegan Silk Technology 
      Platform. "We see this product expansion as a testament to our 
      cutting-edge Vegan Silk Technology Platform, showcasing its novel 
      functionality," said Nardi. "This offering has the potential to set a new 
      standard in the beauty industry by enabling high-performance formulations 
      in this product type. We are excited about the potential of this 
      collaboration and its market innovation." 
 
   -- Later in 2025, a separate cosmetics brand is slated to launch a 
      professional haircare line using Bolt's Vegan Silk Technology Platform. 
      "This brand will feature an exclusive b-silk serum with unique, 
      scientifically proven, functional benefits," said Nardi. "This innovation 
      aims to bring true differentiation into the segment and to deliver 
      substantial growth backed by a multi-year contract with an exciting new 
      partner." 

Bolt management expects to share information about additional customer launches in the coming year and will further showcase the potential of its Vegan Silk Technology Platform across segments of the beauty and personal care industry. "Overall, we believe 2025 will be pivotal in demonstrating the impact of our innovative technology as it is unveiled by our customers," said Widmaier. "We anticipate new products that not only meet new and challenging regulatory rules around silicones and that can deliver compelling and differentiated benefits but also aim to meet the consumer's desire for more sustainable materials."

"We aspire to be the most desirable biotech ingredient innovator for the beauty and personal care industry," said Widmaier, "and so we will continue relentlessly developing breakthrough innovations that surprise and delight the market, helping us gain meaningful market share, because we believe that 'the best days are ahead of us' and we believe the future is one 'Where Doing Good Will Help Us Do Well.'"

Based on current planned and pending launches, Bolt anticipates deliveries in the fourth quarter will bring 2024 revenue over $1.0 million. For 2025, Bolt foresees significant acceleration of b-silk and xl-silk sales, with at least $4.5 million of revenue already committed in 2025.

Operational Scalability & Supply Chain Reliability

"Bolt recognizes that to accelerate adoption and market penetration, our product needs to be priced to reflect its biotech innovation while also supporting the cost structure of our brand partners," said Widmaier. "Bolt has implemented a clear plan for cost optimization through process improvements, strategic procurement, and volume-driven savings."

"We believe that these changes will position us to pursue our target margins and expand our market presence," said Nardi, "clearing a path to both profitability and competitive pricing."

These strategic efforts delivered unprecedented results for the company in 2024. Year-to-date, Bolt has manufactured more than 3,000 kilograms of vegan silk material with its contract-manufacturing $(CMO)$ partner. "These runs exceeded our highest historical production runs by more than 50%, and cost per kilo for 2024 was reduced by over 60%, both strong results along the company's path to becoming a free-cash-flow generating business," said Nardi.

Bolt continues to strengthen its partnership with its manufacturing network while strategically diversifying its supply chain to support business continuity and future growth. "The current capacity at our CMO partner comfortably meets our 2025 needs and projected year-over-year growth," said Nardi. "Additionally, with the completion of their newest facility, our biomanufacturing partner has significantly expanded its production capacity and enhanced our business continuity. This should better position us to continue scaling efficiently while providing greater production stability and fostering long-term growth potential."

"Beyond their efforts to establish reliable and efficient operational processes, our supply chain team has been focused on delivering excellent customer service and exceptional quality performance, all while maintaining a focus on a key attribute of our business and products -- sustainability," said Nardi.

"Sustainability for both people and the planet is at the core of Bolt's mission: 'Way Better Materials for a Way Better World'," said Widmaier. "I am proud to share that in the third quarter, we reached a significant milestone for this aspect of our mission by being awarded the EcoVadis Silver Medal"." EcoVadis is a third-party rating organization that reviews approximately 73,000 companies each year. "This accomplishment puts us in the top 15% of companies assessed globally for sustainability, and it underscores our dedication to ethical practices, environmental stewardship, and social impact, positioning us as a trusted partner for customers and a responsible investment opportunity for stakeholders."

Research and Development Delivers

While our focus in the past eighteen months has been optimizing Bolt's operational processes and bolstering its go-to-market strategy, Bolt's Research and Development effort continues to be the driving force of the company's unique value proposition, building on an intellectual property portfolio anchored by 64 granted patents and 170 pending patent applications.

"Our Vegan Silk Technology Platform has benefited from decades of advancements in silk and biomaterials research and 15 years of development at Bolt," said Chief Technology Officer David Breslauer. "Our breakthroughs have enabled the creation of b-silk and xl-silk, highly efficacious ingredients for the beauty and personal care industry. These materials have been shown to deliver exceptional solutions to pressing regulatory constraints and consumer's preferences, while enabling brands to deliver on their commitment to environmental health and sustainability."

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November 07, 2024 16:30 ET (21:30 GMT)