Core Insights - Cibus, Inc. has successfully closed a public offering of 15,714,285 shares of Class A Common Stock at a price of $1.75 per share, raising gross proceeds of $27.5 million [1][2] Company Overview - Cibus is a leading agricultural biotechnology company focused on developing plant traits through proprietary gene editing technologies, addressing productivity and sustainability challenges for farmers [6] - The company is not a seed company but a technology company that licenses developed crop traits to seed companies in exchange for royalties on seed sales [6] Use of Proceeds - The net proceeds from the offering will be utilized for the development of weed management productivity traits in rice, as well as for working capital and general corporate purposes [2] Offering Details - The offering was conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission, with A.G.P./Alliance Global Partners acting as the sole placement agent [3][4]

Core Insights - Cibus, Inc. has received a "not regulated" designation from the USDA for its herbicide tolerance trait (HT2) in Canola, which supports the company's ongoing product development in this critical crop [1][2] - The HT2 trait is part of Cibus' strategy to provide advanced tools for weed management, addressing the challenge of herbicide-resistant weeds [2][3] - Cibus has a total of seventeen traits designated as not regulated, reflecting its successful regulatory progress and development pace [2] Company Overview - Cibus is a leader in gene-edited productivity traits aimed at addressing significant agricultural challenges, including diseases and pests, which cost the global economy approximately $300 billion annually [4] - The company focuses on developing productivity traits for major row crops and utilizes proprietary high-throughput gene editing technology to expedite the development process [4] Market Implications - The HT2 trait aims to enhance agricultural productivity and sustainability by improving weed management efficiency, which is crucial for crops like Canola and Soybean [3] - Cibus' advancements in herbicide tolerance traits are expected to benefit growers by increasing profitability and yield protection [3]

Core Viewpoint - Cibus, Inc. has announced a public offering of 15,714,285 shares of its Class A Common Stock at a price of $1.75 per share, aiming to raise approximately $27.5 million for further development and working capital [1][2]. Company Overview - Cibus is a leading agricultural biotechnology company specializing in gene editing technologies to develop plant traits in seeds, focusing on productivity traits for major crops [6]. - The company addresses significant agricultural challenges, including diseases and pests, which the United Nations estimates cost the global economy around $300 billion annually [6]. - Cibus operates as a technology company rather than a seed company, licensing its developed traits to seed companies for royalties on seed sales [6]. Offering Details - The offering consists solely of shares sold by Cibus, with gross proceeds expected to be approximately $27.5 million before expenses [2]. - The offering is anticipated to close on or about June 6, 2025, pending customary closing conditions [2]. - A.G.P./Alliance Global Partners is acting as the sole placement agent for this offering [3]. Use of Proceeds - The net proceeds from the offering will be utilized to fund the development of weed management productivity traits in rice and for general corporate purposes [2]. Regulatory Information - The offering is made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission, with a prospectus supplement to be filed [4].

Core Viewpoint - Cibus, Inc. plans to offer shares of its Class A common stock in a public offering, with the Chairman expressing interest in purchasing up to $10 million of shares [1][2]. Group 1: Offering Details - The offering will be conducted by Cibus and is subject to market conditions, with no assurance on the completion or terms of the offering [1]. - A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering [2]. - The securities will be offered under an effective shelf registration statement filed with the SEC [3]. Group 2: Use of Proceeds - The net proceeds from the offering are intended to fund the development of weed management productivity traits in rice and for general corporate purposes [2]. Group 3: Company Overview - Cibus is a leader in gene-edited productivity traits aimed at addressing significant agricultural challenges, with an estimated global economic cost of $300 billion annually due to diseases and pests [5]. - The company focuses on developing crop traits using proprietary gene editing technology, which is faster and more cost-effective than traditional breeding methods [5].

Group 1 - Cibus, Inc. is a leading agricultural biotechnology company focused on developing plant traits through proprietary gene editing technologies [1][3] - The company participated in the BofA Securities 2025 AgTech Virtual Conference, discussing its gene editing platform and productivity trait pipeline [2] - Cibus addresses significant agricultural challenges, with the United Nations estimating that diseases and pests cost the global economy approximately $300 billion annually [3] Group 2 - Cibus is not a seed company but a technology company that licenses traits to seed companies in exchange for royalties [3] - The company has a pipeline of five productivity traits, focusing on weed management in rice, pod shatter reduction, and disease resistance [3] - Cibus aims to develop and commercialize plant traits more efficiently and cost-effectively than conventional breeding methods [3]

Summary of Cibus (CBUS) Conference Call - May 21, 2025 Company Overview - **Company Name**: Cibus (Ticker: CBUS) - **Industry**: Agricultural Biotechnology - **Focus**: Development of gene-edited crop traits in canola, rice, and soy using a rapid trait development system - **Current Rating**: Buy with a price target of $23.50 [1] Core Points and Arguments Gene Editing vs. GMO - **Definition**: Gene editing involves making precise changes to an organism's DNA, while GMOs involve transferring genes from one organism to another [3][4] - **Regulatory Recognition**: Global regulators have acknowledged that gene-edited crops are indistinguishable from natural occurrences, leading to recent approvals in various countries, including Ecuador and the EU [6] Rapid Trait Development System (RTDS) - **Technology**: Utilizes a gene repair oligonucleotide to make precise edits at the single-cell level, allowing for multiple changes within genes and across genomes [7][8] - **Speed Advantage**: Traditional plant breeding can take 10-30 years; Cibus aims to deliver new traits within 12 months, significantly improving time-to-market [9][11] Revenue Model - **Pre-Revenue Status**: Currently, Cibus is a pre-revenue company, planning to generate income through royalties from developed traits [12] - **Market Potential**: Traits developed for major crops like soy, which covers over 250 million acres in North and South America, can lead to substantial royalty income [13] - **Royalty Estimates**: Expected royalties of $10 to $15 per acre for traits related to weed management, with potential for significant revenue as traits are adopted [14][15] Developed and Developing Traits - **Current Traits**: - **Rice**: Two herbicide-tolerant traits for efficient weed management [20][21] - **Canola**: Pod shatter reduction trait to preserve yield during harvest [22] - **Future Traits**: Advanced traits in development include additional herbicide tolerance and disease tolerance for canola and soy [23][24] Farmer Value Proposition - **Cost Reduction**: Traits can reduce input costs for farmers, improving profit margins by decreasing the need for herbicides and other inputs [25][26] - **Market Dynamics**: Farmers are willing to pay a premium for traits that enhance productivity and reduce operational costs [27] Timeline for Revenue Generation - **Projected Start**: Traits expected to be planted and royalties to begin flowing in 2027, with a gradual increase through 2029 [28][29] Near-Term Catalysts - **Customer Announcements**: New customer acquisitions in the rice portfolio and advancements in field trials for advanced traits [30][31] - **Wheat Platform**: Expansion into wheat traits is also being explored [31] Bio Fragrance Business - **Overview**: Cibus has discovered a yeast that produces oil, which can be used to create bio fragrances for consumer packaged goods (CPG) companies [32][33] - **Revenue Potential**: Expected nominal revenues in 2025, with significant growth potential in the tens of millions of dollars annually [34] Key Drivers for Business Growth - **Predictability and Speed**: Ability to deliver traits within 12 months is a significant competitive advantage [36] - **Regulatory Environment**: Harmonization of regulations globally opens up markets, allowing Cibus to operate similarly to conventional breeding programs [36][37] Other Important Content - **Market Size**: Major crops involved cover over 500 million acres, indicating a vast market opportunity for Cibus [36] - **Investor Interest**: Recent press releases have generated significant interest from prospective partners and customers [36] This summary encapsulates the key points discussed during the Cibus conference call, highlighting the company's innovative approach to agricultural biotechnology and its potential for future growth.

Group 1 - Cibus, Inc. is a leading agricultural biotechnology company focused on gene editing technologies to develop specific traits in seeds [1][3] - The company will present its advancements in gene-editing technology, regulatory developments, and commercialization strategy at the AGP Annual Virtual Healthcare Company Showcase [2][3] - Cibus addresses significant productivity and sustainability challenges for farmers, with an estimated global economic cost of $300 billion annually due to diseases and pests [3] Group 2 - Cibus operates as a technology company rather than a seed company, licensing traits to seed companies in exchange for royalties [3] - The company has a pipeline of five productivity traits, focusing on weed management in rice, pod shatter reduction, and disease resistance [3] - Cibus aims to develop and commercialize plant traits more efficiently and cost-effectively than conventional breeding methods [3]

Group 1: Earnings Performance - Cibus reported a quarterly loss of $0.74 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.70, but an improvement from a loss of $1.12 per share a year ago, indicating a year-over-year improvement [1] - The company posted revenues of $1.03 million for the quarter, missing the Zacks Consensus Estimate by 12.37%, but showing an increase from $0.55 million in the same quarter last year [2] - Over the last four quarters, Cibus has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Cibus shares have declined approximately 10.1% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the next quarter is -$0.68 on revenues of $1.2 million, and for the current fiscal year, it is -$2.66 on revenues of $9.93 million [7] Group 3: Industry Context - The Agriculture - Operations industry, to which Cibus belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Another company in the same industry, Bioceres Crop, is expected to report a quarterly loss of $0.10 per share, reflecting a significant year-over-year decline [9]

Financial Data and Key Metrics Changes - Cash and cash equivalents as of March 31, 2025, were $23.6 million, with net proceeds of $21.4 million from a registered direct offering in January 2025 [22] - Revenue for Q1 2025 was $1 million, an increase of $489,000 compared to $545,000 in the same period last year, attributed to increased activity in partner-funded projects [22] - R&D expenses were $11.8 million for Q1 2025, down from $12 million in the previous year due to cost reduction initiatives [23] - SG&A expenses rose to $9.9 million in Q1 2025 from $7 million in the prior year, primarily due to a $3 million litigation accrual [23] - Net loss for Q1 2025 was $49.4 million, compared to a net loss of $27 million in the same period last year, largely due to a $21 million non-cash goodwill impairment [23][24] Business Line Data and Key Metrics Changes - The rice platform secured agreements with four major rice seed companies, representing approximately 40% of estimated accessible rice acres across North and Latin America [7] - Progress in disease resistance traits for canola included successful edits for four different modes of action, with positive field trial results for the second mode of action [11] - The soybean platform achieved a significant milestone with successful editing of a soybean cell for the HT2 trait, enabling expanded platform development [12] Market Data and Key Metrics Changes - The regulatory environment has improved, with the California Rights Commission approving field research proposals for gene-edited rice, and Ecuador recognizing certain traits as equivalent to conventional breeding [16][17] - The USDA APHIS designated two disease resistance trait products for canola as not regulated, allowing for unrestricted product development in the U.S. [18] Company Strategy and Development Direction - The company is focused on optimizing operations and reducing cash burn in 2025 while pursuing strategic priorities in rice, canola, and soybean platforms [20][25] - The commercialization strategy is progressing, with anticipated trait validation trials in Latin America and continued development of bio-based fermentation products [19][15] - The company aims to maximize shareholder value by prioritizing investments in near-term commercial opportunities with developed traits [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformative potential of the RTDS technology platform and its ability to attract significant commercial interest [5][25] - The company is positioned at an important inflection point in the agricultural industry, with a focus on gene editing technologies that enhance crop adaptability and productivity [20][25] - Management highlighted the importance of regulatory advancements in supporting the commercialization of gene-edited traits [25] Other Important Information - The company anticipates nominal revenues from its sustainable ingredients program later in 2025, with ongoing partnerships with consumer packaged goods companies [15] - The company is taking a disciplined approach to resource allocation, ensuring financial flexibility to execute strategic priorities [20] Q&A Session Summary Question: Can you walk through the cash burn and the step up in SG&A in Q1? - Management indicated a cash burn of approximately $4.4 million gross in Q1, with the increase in SG&A primarily due to a litigation accrual [30][31] Question: What is the expected timeframe for EU regulatory discussions? - Management believes the trilogue discussions could conclude within six months, with secondary legislation expected within twelve months [33][34] Question: What are the working capital impacts when trait products hit commercial launch? - Management stated that there would not be a significant cash hit as they support customers from a stewardship standpoint [38][42] Question: What is the potential scale and ramp-up speed for biofragrance products? - Management noted strong demand for bio-based products, with a quick ramp-up expected from 2026 to 2028 [40] Question: Are there other Latin American countries with similar regulatory frameworks to Ecuador? - Management confirmed that several Latin American countries view gene-edited products as conventional breeding, following Ecuador's lead [66][68] Question: Is there existing usage data for clethodim by rice farmers in Latin America? - Management clarified that clethodim is an approved herbicide in South America, and the new trait will provide an additional tool for rice farmers [69][71]

Financial Performance - Total revenue for Q1 2025 was $1,034,000, a 90% increase from $545,000 in Q1 2024[23] - Net loss for Q1 2025 was $49,392,000, compared to a net loss of $26,972,000 in Q1 2024, indicating a worsening financial position[23] - Basic and diluted net loss per share of Class A common stock was $1.34 for Q1 2025, compared to $1.12 for Q1 2024[23] - Cibus, Inc. reported a net loss of $49,392,000 for the three months ended March 31, 2025, compared to a net loss of $26,972,000 for the same period in 2024, indicating an increase in losses of approximately 83.5% year-over-year[30] - The total segment loss for the three months ended March 31, 2025, was $(49,392,000), compared to $(26,972,000) in 2024, indicating a loss increase of 83.1%[84] Operating Expenses - Operating expenses for Q1 2025 totaled $42,605,000, compared to $18,998,000 in Q1 2024, reflecting a significant increase due to goodwill impairment of $20,950,000[23] - Total operating expenses for the three months ended March 31, 2025, were $42,605,000, up from $18,998,000 in 2024, reflecting a 124.4% increase[84] - The company incurred a royalty liability interest expense of $8,377,000 related to parties during the first quarter of 2025, slightly up from $8,329,000 in the prior year[30] Cash and Assets - Cash and cash equivalents increased to $23,587,000 as of March 31, 2025, from $14,433,000 as of December 31, 2024[21] - Total assets decreased to $335,045,000 as of March 31, 2025, down from $350,069,000 as of December 31, 2024[21] - As of March 31, 2025, the Company had $23.6 million in cash and cash equivalents and $21.0 million in current liabilities[41] Liabilities - Total liabilities increased to $261,088,000 as of March 31, 2025, compared to $252,238,000 as of December 31, 2024[21] - The company reported a royalty liability of $207,819,000 as of March 31, 2025, up from $199,442,000 as of December 31, 2024[21] - The Royalty Liability related to parties increased to $207,819,000 from $199,442,000 as of December 31, 2024, reflecting an effective yield of 16.5%[145] Goodwill and Impairment - The company recognized a goodwill impairment of $20,950,000 during the first quarter of 2025, which was not present in the same quarter of 2024[30] - Goodwill impairment for the three months ending March 31, 2025, was $20,950,000, with total accumulated impairment losses increasing to $352,750,000[103] Shareholder Information - The company had a total of 32,657,738 Class A common shares outstanding as of March 31, 2025, compared to 21,014,970 shares as of March 31, 2024, reflecting a significant increase in shares issued[28] - The weighted average shares of Class A common stock outstanding increased to 35,052,692 for the three months ended March 31, 2025, from 20,862,938 in 2024[74] Future Outlook - The company has not provided specific guidance for future performance, citing various risks and uncertainties in its operations[14] - The Company anticipates continued losses for the next several years and plans to finance future cash needs through various means, including commercialization activities and potential equity or debt financings[42] Stock-Based Compensation - Total stock-based compensation for the first quarter of 2025 was $2,499,000, compared to $2,528,000 in the same quarter of 2024[30] - The stock-based compensation expense for the three months ended March 31, 2025, was $232,000, compared to $19,000 for the same period in 2024[125] - Stock-based compensation expense related to RSAs decreased from $2,446,000 in Q1 2024 to $1,840,000 in Q1 2025, with unrecognized compensation expense of $6.0 million remaining[129] Revenue Recognition - Revenue for the three months ended March 31, 2025, was $1,034,000, compared to $545,000 for the same period in 2024, representing an increase of 89.5%[84] - Revenue recognized from the collaboration agreement with Procter & Gamble increased significantly from $172,000 in Q1 2024 to $869,000 in Q1 2025[148] Legal and Compliance - The Company has accrued an estimate of $3.0 million for litigation liability based on a recent court decision, although it is not a party to any material pending legal proceedings[143] - The Company has not experienced any counterparty credit losses as of March 31, 2025, maintaining a diversified portfolio of high investment-grade securities[100]