CBUS

• New CEO Strategic Framework

  • New CEO Craig Wichner (appointed two months prior, with 30 years of technology and agricultural experience) established a three-tier business model to leverage CBUS's IP-protected, scalable genome editing platform, which cuts conventional plant breeding time and costs dramatically.
  • The three tiers are: 1) near-term platform program revenue for partners, 2) scalable trait royalty business for commercialized crops like rice, 3) deepened long-term partnerships that turn CBUS into an extension of partner breeding programs.
  • The company will prioritize capital discipline, near-term revenue growth, balance sheet strengthening, and unlocking existing built value, with increased investment in AI and technology to improve team productivity.

• Commercial Program Progress

  • Sustainable Ingredients (near-term platform priority): The initial biofragrance program (engineered yeast producing sustainable fragrance ingredients) completed partner performance validation, with additional commercial scale-up orders expected in H2 2026. When fully commercialized, the biofragrance partnership is expected to generate $20 to $40 million in annual revenue, serving as a near-term revenue bridge while rice royalties ramp. A second partner-funded program, the Lauric Oils soybean program, continues to advance.
  • Rice (royalty priority): Development of herbicide tolerance traits is progressing, with field trials underway for the improved first-generation trait, and testing ongoing for traits transferred to Latin American partner InterRock. The partnership framework with InterRock was expanded from 2 traits to 5, moving toward a full trait pipeline relationship rather than single-trait licensing. Initial commercial launch in Latin America is targeted for 2028, with a U.S. launch targeted for 2029.
  • Other crop trait programs: The nutrient use efficiency canola program (in partnership with the John Innes Centre) expects to deliver edited material in Q3 2026, with trait applicability across rice, wheat, and canola. Two UK canola programs (light leaf spot disease resistance, pod shatter reduction yield enhancer) are advancing, with pod shatter reduction moving to expanded trialing under England's new precision breeding rules. A second-generation canola herbicide tolerance trait is progressing through trials.

• Regulatory Milestones

  • The EU finalized new rules that treat most gene-edited crops without foreign DNA as conventionally bred (rather than GMOs), with a two-year implementation period starting in July 2026. CBUS plans to submit its pod shatter reduction winter oilseed rape trait first under the new framework.
  • Ecuador and Peru have confirmed CBUS's rice herbicide tolerance traits qualify as conventionally bred. The U.S. FDA completed review of CBUS's altered lignin alfalfa trait with no further questions, and USDA APHIS has determined CBUS traits are not regulated biotechnology articles.

• Cash runway: Existing cash and cash equivalents ($20.4 million as of June 30, 2026) are sufficient to fund planned operating expenses and capital expenditures into early Q1 2027, excluding any potential future financing transactions.
• Net cash usage: The company targets a net cash usage run rate of approximately $35 million exiting 2026, reflecting continued cost discipline alongside incremental growth investments in technology and personnel.
• Commercial launch timing: Initial commercial launch of herbicide tolerant rice in Latin America was revised from late 2027 to 2028, with both leading customers Federos and InterRock (which is focusing on hybrid varieties) on track for a potential limited 2028 launch. U.S. rice launch remains targeted for 2029, aligned with partner herbicide registration timelines.
• Revenue ramp: Rice royalties are expected to start flowing in 2028, with incremental growth through 2029 as farmer adoption expands. Scaling to the full $200 million annual peak royalty opportunity will take a multi-year ramp after launch.
• Biofragrance: Additional commercial scale-up orders for the initial biofragrance product are expected in H2 2026.

CBUS reports results across three core business segments aligned to its scalable gene editing platform: 1) Platform programs (current near-term revenue, led by Sustainable Ingredients): Q2 2026 revenue was $1 million, with year-to-date revenue up 35% year-over-year. This segment is the primary source of current revenue, contributing 100% of the company's current top line. 2) Trait royalty business (long-term scalable revenue, led by rice): No royalty revenue has been recognized yet, as the business is still in pre-commercial development. It targets a roughly $200 million annual addressable royalty opportunity across 5 to 7 million peak addressable acres in the Americas, with royalties expected to start flowing only after commercial launch. 3) Deepened long-term partnership pipelines: This segment consists of early-stage partnered programs across multiple crops that do not yet generate revenue, but represent future optionality and pipeline growth for the business.

The call did not include explicit discussion of material risks or operational failures. The main implicit risk highlighted is the company's limited cash runway (extending only into early Q1 2027 without new financing), and the multi-year timeline for commercialization and revenue ramp for the core royalty rice business, which means the company will need additional capital to reach meaningful royalty revenue.

Q: What are the economics and competitive advantage of the 'trait machine' model that partners with specific seed companies, versus licensing traits to large agricultural conglomerates?

A: CBUS will continue to offer its technology across the broader industry, but the new model deepens relationships with specific partners by crop and geography, providing partners with a full pipeline of traits rather than just one-off edits. For example, the expanded partnership with InterRock in rice lets InterRock build a strong competitive advantage in the market, while accelerating CBUS's deployment and broadening its overall market opportunity through closer collaboration.

Q: How prevalent is hybrid rice in Latin America, and how many acres does CBUS model for its 2028 market entry?

A: The Latin American rice market, historically dominated by inbred/conventional varieties, is moving quickly toward hybrid seed production, which aligns with CBUS's expanded partnership model. Globally, all major row crops are shifting to hybrids, following corn and canola, and rice is now following this trend. CBUS models a total of 5 to 7 million total addressable acres in Latin America, with hybrids rapidly penetrating this market, and it works with both hybrid-focused and inbred-focused partners to cover the full market.

Q: How is CBUS preparing for the two-year implementation period of the EU's new gene editing rules, and is the company engaging to shape the process?

A: CBUS has been following the EU regulatory process closely for a long time, and has already held multiple stakeholder interactions on implementation details. Peter Beetham has already presented in Brussels, and the company is scheduled to present at multiple additional industry conferences in the coming months to support DG Sante (the European Commission body leading implementation) as it develops regulatory processes.