Cibus(CBUS) - 2025 Q2 - Quarterly Results

Q2 2025 Business and Financial Highlights Cibus reports Q2 2025 business and financial highlights, focusing on Rice trait advancement, sustainable ingredients, and capital raising for cash runway extension - Operational focus is being streamlined to Rice herbicide tolerance traits and partner-funded programs, targeting a reduction in annual cash usage to ~$30 million by 2026[1] - Commercial launch of Rice herbicide tolerance traits (HT1, HT3) is on track, targeting Latin America in 2027 and the U.S. in 2028, with potential annual royalties over $200 million[1] - Raised $27.5 million in gross proceeds from a public offering to extend the cash runway and advance toward initial revenues[1] Management Commentary Management emphasizes advancing Rice herbicide tolerance traits and sustainable ingredients, targeting 2027-2028 commercialization and reduced cash usage by 2026 - The company is focusing on two core priorities: Rice herbicide tolerance traits and a partner-funded sustainable ingredients program[2] - Cost streamlining initiatives are expected to reduce annualized cash usage to approximately $30 million by 2026[2] - A new collaboration agreement was signed with Colombian Rice producer Semillano, indicating progress in customer engagement and market penetration[4] Operational Progress and Regulatory Update The company details commercial progress for priority programs, advancements in opportunity pipeline traits, and favorable global regulatory developments for gene editing Priority Pipeline Programs Significant progress is reported for Rice herbicide tolerance traits and partner-funded sustainable ingredients, with commercial launches on schedule and nominal revenues anticipated - The Rice herbicide tolerance traits (HT1, HT3) program is on track for initial commercial launches in Latin America (2027-2028) and the U.S. (2028)[7] - Completed delivery of Rice lines with the HT3 trait to an existing US customer and signed a new collaboration agreement with Colombian Rice producer Semillano[7] - The sustainable ingredients program is on track for nominal revenues in 2025, with targeted commercial expansion in 2026[7] Opportunity Pipeline Programs (Available for Partnership) Cibus highlights a deep pipeline of traits available for partnership, including promising results in Canola, Soybean, and Wheat, alongside regulatory clearances - Canola traits, including pod shatter resistance and next-generation HT2, are showing promising results in trials and are available for partnership[12] - Successfully edited a Soybean cell for the HT2 trait, enabling expanded development of the Soybean platform[15] - Successfully regenerated plants from single cells in a wheat cultivar, creating potential for partner-funded development in wheat[15] - The FDA issued a "no-further-questions" letter for the altered lignin alfalfa trait, clearing the path for U.S. commercialization by partner S&W Seed Company[15] Global Regulatory Developments The global regulatory environment for gene editing remains favorable, with key approvals in Ecuador, USDA-APHIS, and California for Cibus' traits - Ecuador's Ministry of Agriculture determined that Cibus' HT1 and HT3 Rice traits are equivalent to conventionally bred seeds[11] - USDA-APHIS designated Cibus' HT2 herbicide-tolerance trait in canola as "not regulated," marking the 17th Cibus trait to receive this designation[11] - The California Rice Commission approved Cibus' field research proposal, marking the first time gene-edited Rice has been authorized for planting in California[11] Expected 2025 Milestones Cibus anticipates expanding Rice program customer relationships, conducting Latin American trials, and generating nominal revenues from biofragrance products in 2025 - Rice Program: Expect first trait validation trials and delivery of initial traits to a Latin American customer by the end of 2025[18] - Sustainable Ingredients: Expect to receive nominal revenues in 2025 from the commercialization of biofragrance products[18] Second Quarter 2025 Financial Results This section presents Cibus' Q2 2025 financial performance, detailing net loss, operating expenses, and cash position, alongside comprehensive financial statements Financial Performance Summary Cibus reported a reduced net loss in Q2 2025 due to lower operating expenses, ending the quarter with $36.5 million in cash, extending its runway into Q2 2026 - Cash and cash equivalents were $36.5 million as of June 30, 2025. This is expected to fund planned operating expenses into the second quarter of 2026[18] Financial Performance Summary (in Millions) | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | R&D Expense | $12.2M | $13.0M | ($0.8M) | | SG&A Expense | $6.6M | $9.3M | ($2.7M) | | Net Loss | ($26.6M) | ($28.5M) | $1.9M | | Net Loss Per Share | ($0.61) | ($1.14) | $0.53 | Financial Statements The financial statements provide a detailed overview of the company's balance sheet, statement of operations, and cash flows for Q2 2025 and year-to-date Condensed Consolidated Balance Sheets The balance sheets present the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $36,463 | $14,433 | | Total current assets | $39,839 | $16,946 | | Total assets | $346,198 | $350,069 | | Total current liabilities | $22,423 | $19,878 | | Total liabilities | $271,722 | $252,238 | | Total stockholders' equity | $74,476 | $92,157 | Condensed Consolidated Statements of Operations The statements of operations detail revenue, expenses, and net loss for the three months ended June 30, 2025, and the prior year period Condensed Consolidated Statements of Operations (in thousands) | Statement of Operations Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $933 | $838 | | Research and development | $12,228 | $12,993 | | Selling, general, and administrative | $6,651 | $9,327 | | Loss from operations | ($17,946) | ($21,482) | | Net loss | ($26,558) | ($28,478) | | Net loss per share | ($0.61) | ($1.14) | Condensed Consolidated Statements of Cash Flows The cash flow statements outline net cash used in operating and investing activities, and cash provided by financing activities for the six months ended June 30, 2025 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($25,431) | ($30,528) | | Net cash used in investing activities | ($384) | ($397) | | Net cash provided by financing activities | $47,831 | $28,252 | | Net increase (decrease) in cash | $22,030 | ($2,678) | | Cash and cash equivalents – end of period | $36,463 | $30,021 | Company Information This section provides an overview of Cibus' business model as an agricultural technology company and includes standard forward-looking statements About Cibus Cibus is an agricultural technology company specializing in gene-editing plant traits, licensing them to seed companies for royalties - Cibus is a technology company that develops and licenses plant traits to seed companies for royalties, rather than being a seed company itself[23] - The company's core technology is its proprietary high-throughput breeding process (Trait Machine™), which is an application of its patented Rapid Trait Development System™ (RTDS®)[24] Forward-Looking Statements This section contains standard forward-looking statements, cautioning about risks and uncertainties that could cause actual results to differ materially - The press release contains forward-looking statements regarding operational performance, liquidity, cost savings, and future revenues, which are subject to significant risks and uncertainties[27] - Key risks include the need for additional near-term funding, competition, intellectual property protection, reliance on third-party partners, and regulatory developments[28][30]