Financial Performance - As of June 30, 2022, the company had an accumulated deficit of $203.4 million and incurred net losses of $8.1 million for the first half of 2022[108]. - Revenue for the three months ended June 30, 2022, was $41,000, a decrease of 100% compared to $11,880,000 for the same period in 2021[132]. - Gross profit for the same period was $41,000, down 88% from $353,000 in the prior year[132]. - Revenues in Q2 2022 were $0.1 million, a decrease of $11.8 million, or 100%, from Q2 2021, primarily due to the wind-down of the soybean product line[133]. - Net loss improved to $2.5 million in Q2 2022, a reduction of $2.3 million, or 48%, from Q2 2021, aided by non-operating income[138]. - Adjusted net loss was $6.7 million in Q2 2022, an improvement of $1.2 million, or 15%, from Q2 2021, due to the completion of the soybean product line wind-down[139]. - The net loss for the Company was $8.1 million for the six months ended June 30, 2022[169]. - The Company reported a net loss of $2,485,000 for the three months ended June 30, 2022, compared to a net loss of $4,807,000 for the same period in 2021[186]. - Adjusted net loss for the six months ended June 30, 2022, was $12,655,000, a decrease from $16,693,000 for the same period in 2021[186]. - Adjusted net loss per share for the three months ended June 30, 2022, was $(0.14), compared to $(0.21) for the same period in 2021[188]. Research and Development - Research and development expenses increased by 14% to $3,250,000 from $2,844,000 year-over-year[132]. - R&D expenses increased to $3.3 million in Q2 2022, up $0.4 million, or 14%, from Q2 2021, driven by higher allocated SG&A costs[134]. - The company received nine new chemistries for evaluation in Q2 2022, bringing the total evaluated chemistries to 95, with 31 meeting the target product profile criteria[109]. - The company expects to produce small quantities of product for customer evaluation, potentially shortening the development cycle to less than 36 months[109]. - A pilot project for a high-value chemistry is expected to deliver an engineered solution in early 2023 for a large global consumer packaged goods company[111]. - The company anticipates that future revenues will primarily arise from product development activities and technology licensing arrangements, with strong positive gross profit margins expected over time[128]. Expenses and Cash Flow - SG&A expenses were $3.6 million in Q2 2022, an increase of $0.1 million, or 2%, from Q2 2021, influenced by higher stock compensation and lease accounting adjustments[135]. - Adjusted EBITDA loss was $4.8 million in Q2 2022, an improvement of $1.0 million, or 17%, from Q2 2021, reflecting operational adjustments[143]. - Net cash used by operating activities was $11.3 million in the first six months of 2022, flat compared to the same period in 2021[161]. - Cash used by investing activities increased by $12.7 million, or 111%, to $1.3 million in the first six months of 2022 compared to the same period in 2021[163]. - Net cash provided by financing activities was $10.1 million in the first six months of 2022, an increase of $10.0 million, or 20,427%, from the first six months of 2021[166]. - The Company expects cash used by operating activities in 2022 to be higher than in 2021 due to the elimination of the working capital benefit from the wind-down of the soybean product line[162]. - The Company expects cash provided by financing activities in 2022 to be higher than in 2021, driven by proceeds from the Follow-on Offering[167]. Capital and Financing - The company closed a Follow-On Offering in February 2022, raising gross proceeds of $10.9 million, with plans to use approximately $10.0 million for enhancing BioFactory capabilities and working capital[118]. - The Company completed a follow-on offering on February 23, 2022, raising net proceeds of $10.0 million by issuing 3,880,000 shares of common stock[158]. - The Company issued 3,880,000 shares of common stock in the Follow-On Offering, resulting in net proceeds of $10.0 million after expenses[171]. - The Company anticipates continuing to incur losses for the next several years and will need to raise additional capital to support its business plan[172]. - The Company plans to invest in scaling its BioFactory production system, which will increase capital expenditures in 2022[164]. Non-Operating Income and Adjustments - Non-operating income was $4.3 million in Q2 2022, an increase of $4.3 million, or 71,500%, from Q2 2021, driven by the mark-to-market of Common Warrants[137]. - Non-operating income (expenses) for the three months ended June 30, 2022, was $(4,296,000), compared to $(6,000) for the same period in 2021[192]. - The Company incurred Section 16 officer transition expenses of $116,000 for the three months ended June 30, 2022, compared to $13,000 for the same period in 2021[192]. - The Company recognized a gain upon extinguishment of the Payroll Protection Program loan of $(1,528,000) for the three months ended June 30, 2021[192]. - The Company adjusted for commodity derivative impacts, netting to $(658,000) for the three months ended June 30, 2021[192]. - The Company experienced a net realizable value adjustment to inventories of $(859,000) for the three months ended June 30, 2021[192]. Stock Price Volatility - The Company highlighted the volatility of its common stock price, which could significantly impact its net loss due to changes in the fair value of its common stock warrant liability[195].
Cibus(CBUS) - 2022 Q2 - Quarterly Report