Amyris, Inc. (NASDAQ:AMRS) Q4 2022 Earnings Call Transcript

And most businesses over time, we just end up adding stuff and adding processes and people. And whenever the environment changes, it is rare that you can’t go back and look at maybe what we would have done it differently, maybe we would have had less, maybe we would have actually wired it differently. And that’s what we are finding, we started with the executive team, the executive team in total is reduced by 60%. And actual people leaving the company is about 30% of my direct reports. And I started with the executive team, because we wanted to set a tone organizationally for how we really want to simplify the organization gets to faster decision making, and make sure we have got the right skills to execute on the business we have. So, I am not necessarily worried about in total staffing the right people, I am sorry, the right number of people, I am worried because across our teams, it’s not imbalanced, we have some teams that probably have more than they should and other teams that don’t have the critical skills to execute.

And that is why it takes €“ it is taking us time to really work through that in detail. The last point I would make is a quite a bit of what we are seeing a change going ahead as far as headcount reduction, has to do with brands were de-emphasizing or changes to our portfolio. So, I hope that helps.

Steven Mah: Yes. That’s really helpful. Appreciate the color. Thank you.

Operator: The next question comes from Sameer Joshi of H.C. Wainwright. Please go ahead.

Sameer Joshi: Yes. Good afternoon, everyone. Thanks for taking my questions. This one to confirm the Brazil facility, I know it is up and running, but is it running at full capacity right now?

John Melo: I will Eduardo talk to that. I mean the only thing I would just throw up there in before Eduardo starts. I think we have made it clear publicly that we focused on getting the three big lines up and running, which by the way, are equivalent to the Brotas facility from a capacity perspective. And it’s almost like as I am sure, Eduardo will cover, like three separate factories and the way it’s configured, the smaller lines, which were actually not very material volume, are not up and running it. And that was really driven by the liquidity, we decided to not invest in getting those two lines, all the hardware is in place. It’s more about getting all the lines connected and making sure the critical controls are in place. But I just wanted to frame that and then let Eduardo actually give you detail beneath that.

Eduardo Alvarez: Yes. Sameer, just to add some color to what John said, we have all three lines, and large lines, fully operational, just to remind everyone that each line has two tanks. So, it toggles so it’s almost like three separate factories, each with twice the volume capacity 200 thousand liters for each one of those tanks, so just to give you that. One thing I would like to say is the last of the three lines was being commissioned in the fourth quarter, I think we commented that we have some capacity constraints that was really dealing with the commissioning of that last line. As we were ramping up production, we did complete four different products during the fourth quarter in those three lines. So, we proved that we could really operate multiple products at the same time across all three lines, and even turn around one of these lines for a fourth product at the end of the quarter.

So, the functionality of the plant was really well demonstrated by the fourth quarter, albeit as we said and admittedly, we had €“ we were constrained as we weren’t commissioning the last part of production.

Sameer Joshi: Got it. Thanks for that. As far as the divestiture of the partnership for the human health ingredient or molecule, is there €“ should we expect that to be a 2023 event, or at least an announcement regarding that?