Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $7.8 million, an increase of $2.5 million or 48% from Q3 2020, driven by the volume and mix of products sold [58] - Gross profit was negative $0.5 million or negative 7% of revenue in Q3 2021, compared to negative $1.8 million or negative 35% of revenue in Q3 2020 [58] - Net loss improved to $7.3 million in Q3 2021, a reduction of $2.2 million or 23% from Q3 2020 [62] - Adjusted EBITDA loss was $6.9 million in Q3 2021, essentially flat compared to Q3 2020 [62] Business Line Data and Key Metrics Changes - The company transitioned from selling oil and meal to grain, which positively impacted revenue and gross profit margins [58][59] - Adjusted gross profit was negative $2.7 million or negative 35% of revenue in Q3 2021, compared to negative $1.3 million or negative 24% of revenue in Q3 2020, indicating a shift in product mix [60] Market Data and Key Metrics Changes - The company is targeting diverse end markets including nutraceuticals, cosmeceuticals, pharmaceuticals, advanced materials, and chemicals, which are increasingly seeking sustainable solutions [45][70] - The Boston Consulting Group estimates that nature-derived products will impact $30 trillion of the global economy over the next 30 years, driven by sustainability and decarbonization goals [23] Company Strategy and Development Direction - The company announced a strategic initiative to expand its offerings to provide innovative, sustainably produced plant-based solutions [9] - The PlantSpring Technology Platform and BioFactory production system are central to the company's strategy, enabling faster and more sustainable production of complex plant-based chemistries [42][35] - The company aims to develop 2 to 4 new compounds per year, targeting significant revenue growth from these products [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet sustainability and financial targets for customers, positioning itself as a key player in plant-based synthetic biology [68] - The regulatory environment for new end-markets is expected to be less burdensome compared to traditional agricultural products, which may facilitate quicker market entry [74] Other Important Information - The company ended Q3 2021 with cash and cash equivalents of $14.9 million [18] - A research collaboration was announced with a leading global food ingredient manufacturer to develop a sustainable alternative to palm oil [16] - The company has initiated a $50 million ATM share issuance program, raising approximately $3.7 million to date [64] Q&A Session Summary Question: Regulatory issues around plant trait development vs. BioFactory products - Management indicated that the regulatory requirements for new end-markets are less onerous and costly compared to traditional agricultural products [74] Question: Revenue expectations for BioFactory products - Management clarified that the expected $1 million in the first year includes both development and product revenue [75][77] Question: Liquidity comments and runway - Management confirmed that the liquidity runway includes the recent $3.7 million raised [78] Question: Collaboration with global food manufacturer - Management confirmed that the collaboration is based on legacy technology but aligns with the new PlantSpring initiative [96] Question: Proof-of-concept compounds development - Management stated that the proof-of-concept compounds were developed organically to showcase the capabilities of the PlantSpring platform [94] Question: Capacity of the bioreactor - Management confirmed that the initial pilot bioreactor has a capacity of 200 liters [95] Question: Expected operating expenses for 2022 - Management indicated that cash operating expenses for 2022 are expected to be similar to 2021, with a slight increase [98]
Cibus(CBUS) - 2021 Q3 - Earnings Call Transcript