Hypha Labs, Inc. announced the addition of significant mycological innovations to its current patent portfolio. The expanded patent portfolio now includes several filings with the United States Patent and Tradark Office (USPTO) that seek to protect a series of novel methods and devices designed to revolutionize the extraction of active components from mycelium. These active components include psychedelic, functional and medicinal ingredients such as psilocybin.

Hypha Laboratories is intent on bringing the first fully functional in-home device that will allow a consumer to produce their own mushroom-based ingredients in a grow cycle of less than ten days and with greater potency precision than commonly sold mushrooms and mushroom ingredients. These home grown functional mushroom ingredients would be produced at a fraction of current market prices and in the privacy of a residence using the Company's patent pending elegant bioreactor instead of less desirable substrates such as animal waste. In 2022, the U.S. market for functional and psychedelic mushrooms reached a valuation of USD 3.6 billion, with anticipated growth at a CAGR of 12.1% from 2023 to 2030.

This upward trajectory aligns with the increasing momentum in the United States toward the decriminalization of not only psychedelic mushrooms, but the rapid growth and benefits of functional mushrooms as well. The pending patents seek to protect the use of sophisticated machine learning algorithms to process mycelium, the vegetative part of fungi composed of an intricate network of hyphae. The Company believes that this has tremendous potential across various sectors including pharmaceuticals, nutraceuticals, and biotechnology.

Traditionally, mycelium processing to produce psilocybin has faced challenges due to prolonged cultivation times and the necessity of soil-based mushroom growth over extended durations. To address these issues, Hypha Labs has introduced Artificial Intelligence (AI) with novel machine learning methods that overcome these barriers, providing a more efficient and sustainable way to process mycelium for cultivating, producing and extracting active psilocybin. The integration of advanced machine learning offers significant advantages, including optimized growth conditions, accelerated processing times, enhanced yield predictability, and reduced resource consumption, thus revolutionizing the mycelium industry.