Cibus, Inc. Q4 FY2024 earnings call

• Leadership Transition: Peter Beetham stepped into an expanded role, noting Rory Riggs' long - term contribution to Cibus. Cibus is at an inflection point from an agricultural trait development company to a commercial trait company. - Business Model: Cibus is a technology company using gene editing to develop and license traits to seed companies for annual royalties. Its gene - edited traits are distinguishable from GMOs as they use precise changes like conventional breeding. - Crop Platforms:
  • Rice: Herbicide tolerance traits in rice generate commercial interest across multiple markets, with collaborations and field trials showing progress.
  • Canola: Made progress on productivity traits like Pod Shatter Reduction, Sclerotinia resistance, and HT2; collaborated with Biographica for disease resistance; made advances in multiple modes of action for Sclerotinia resistance.
  • Soybean: Successfully edited soybean cells for HT2 traits in January 2025, with potential to access a large market.
  • Regulatory: EU Council's negotiation mandate on NGT regulation is important for harmonizing global regulation; California Rice Commission approved field trials for advanced rice traits in California.
  • Sustainable Ingredients: Progress in biofragrance work with expected nominal revenues later this year.

Cash and cash equivalents were $14.4 million as of December 31, 2024. R&D expense for the fourth quarter of 2024 was $12.4 million, a decrease of $1.8 million from the year - ago period, primarily due to lower non - cash stock compensation expense and cost - saving initiatives. SG&A expense for the fourth quarter of 2024 was $6.8 million, same as the year - ago period. Net loss for the fourth quarter of 2024 was $25.8 million, compared to a net loss of $277.2 million in the year - ago period, with the prior year period including a non - cash goodwill impairment charge of $249 million.

• Existing cash and cash equivalents are expected to fund planned operating expenses and capital expenditure requirements into late third quarter of 2025. - Expect continued progress on various traits including HT2 field trials, Sclerotinia mode of action testing, and soybean platform development. - Anticipate global regulatory evolution to continue encouraging customer adoption of its technologies.

• Forward - looking statements may have differences between actual results and described in the call. - Regulatory uncertainties could impact the commercialization timelines of gene - edited products.

Q: Unpack the EU decision's milestones and its impact on commercial products in Europe, and how customer interest in revenue structures has changed.

A: The EU Council's negotiation mandate on the regulation of plants obtained by new genomic techniques is important for harmonizing the global regulatory landscape. It enables the Council to engage in trilogue discussions, and most gene - edited plants will be regulated similarly to conventional breeding, opening the European market for Cibus' products. On customer interest in revenue structures, patenting amendments ensure transparency for the seed industry in Europe.

Q: Talk about the progress on HT2 greenhouse data going to the field, fermentation biofragrance products and the third mode of action for white mold and canola, and if commercialization dates have changed.

A: HT2 field trials in summer are on track, everything is staying on track. Biofragrance products have progress with expected revenues in 2026. The third mode of action for white mold in canola is ongoing with progress.

Q: Ask about sustainable ingredients revenue expectations, European regulatory impact on other crops, and cost cuts.

A: Sustainable ingredients are expected to have nominal revenues in 2026. Europe has existing customers in winter oilseed rape and has opportunities in other crops like wheat. Cost cuts have been realized with potential for further optimizations.

Q: Inquire about priority traits and crops, soybean regeneration, and Pod Shatter reduction royalties.

A: Priority traits and crops include rice, canola, and soybean. Soybean regeneration has made progress with high editing rates. Pod Shatter reduction royalties are still expected between 2026 - 2028.