Cibus, Inc. Q3 FY2025 earnings call

• Board additions: Kimberly Box and Craig Wichner joined the board in Q3. Kim brings tech ops and strategic transformation experience; Craig has expertise in regenerative and sustainable agriculture.
• Rice commercialization: Signed 7 Rice customer agreements in USA and Latin America, with addressable acres for HT1 and HT3 traits and potential $200M+ annual royalties. Progress in Latin America with 5 agreements, and collaboration in India via AgVaya.
• Biofragrance: Pre-commercial pilot runs for 2 products completed, validating readiness for full commercial scale and initial payments in Q4 2025.
• Regulatory: EU regulatory process near completion, Ecuador positive determination, California Rice Commission approved field research for gene-edited rice.
• Operational: Consolidated Oberlin facility into San Diego, aiming for $30M annual net cash usage by 2026.
• Technical milestones: Enhanced editing efficiency in Rice, HT2 herbicide tolerance and Sclerotinia resistance in canola validated, Pod Shatter Reduction trait in Winter Oilseed Rape showed promising performance.

In the third quarter, revenue was $615,000 compared to $1.7 million in the year-ago period. Research and development expense was $10.8 million for Q3 vs $13 million year-ago. Selling, general and administrative expense was $5.2 million vs $7.7 million year-ago. Royalty liability interest expense was $9 million. Net loss was $24.3 million vs $201.5 million year-ago. For product segments, Rice herbicide tolerance traits have 7 customer agreements in USA and Latin America, with addressable acres of approximately 5 million to 7 million and potential annual royalties over $200 million. Biofragrance had pre-commercial pilot runs completed, positioning for initial payments in Q4 2025.

• Biofragrance: Pre-commercial scale-up completed in 2025, ramping up in 2026 with revenue expected to grow.
• Rice traits: Targeted commercial launch in Latin America in 2027, US in 2028, Asia in 2030, with potential $200M+ annual royalties.
• Regulatory: EU final text expected by year-end, enabling global market access for gene-edited products.

• Regulatory uncertainties: Delays or changes in EU regulations could slow down commercialization.
• Market adoption: Slow uptake of gene-edited products in certain regions may impact revenue.
• Competition: Other companies developing similar traits could affect Cibus' market share.

Q: Chances of potential R&D sharing or bespoke R&D projects in 2026?

A: Peter mentioned gene editing is happening now with inbound interest in expanding partnerships beyond current focus, and Greg added on opportunities in various traits like HT2 and Sclerotinia resistance.

Q: EU regulations timeline?

A: Peter said EU final text expected by year-end, with Carlo adding on seed companies' realization of gene editing's importance at Euroseeds.

Q: Addressable acres in rice markets?

A: Peter stated 5 million to 7 million addressable acres in Rice markets with current customers, increased from previous quarter in Latin America.

Q: Why HT traits different from Pod Shatter Reduction?

A: Peter explained HT traits are like operating systems for farmers with wide market traction, while Pod Shatter Reduction is more confined. Greg added on weed control's importance for farmers.

Q: Biofragrance ramp in 2026?

A: Peter said biofragrance pre-commercial scale-up successful, with ramp in 2026 expected in single-digit millions, then taking off in 2027.

Q: European parliament updates?

A: Peter said EU trialogue discussions went well, close to final text with next 4-6 weeks key, and Carlo added on Danish leading council discussions.

Q: Cash position and financing options?

A: Peter said exploring strategic financing options, Carlo added on progress in milestones and burn rate control.

Q: Biofragrance product launch timeline?

A: Peter said working with CPG on fragrances, scale-up completed in 2025, with launch in 2026 and ramp in 2027.

Q: Edit and automation in Cibus?

A: Greg said efficiency improving in editing, automation in cell culture and liquid handling, with AI/ML aiding in edit choices.