Financial Data and Key Metrics Changes - Cash and cash equivalents were 21.6 million net proceeds received in 2025 from a registered direct offering [37] - R&D expense decreased to 14.2 million in the previous year, primarily due to lower non-cash stock compensation and cost-saving initiatives [38] - Net loss improved to 277.2 million in the prior year, which included a non-cash goodwill impairment charge of $249 million [38] Business Line Data and Key Metrics Changes - The rice platform is gaining momentum with collaborations affirming herbicide resistance traits, and agreements with four major rice seed companies covering approximately 40% of accessible rice acres [15][16] - In canola, Cibus has developed productivity traits for Pod Shatter Reduction and continues to progress on advanced traits for disease resistance and herbicide tolerance [18][19] - The soybean platform achieved a significant milestone with successful editing of soybean cells for HT2 traits, allowing access to an estimated 125 million accessible soybean acres [26][27] Market Data and Key Metrics Changes - The global regulatory environment is evolving favorably, with the EU's pending legislation expected to regulate gene-edited plants similarly to conventional breeding, opening new markets for Cibus [29][30] - The California Rice Commission approved planned field trials for advanced rice traits, marking a significant milestone in a key American market [30] Company Strategy and Development Direction - Cibus is transitioning from an agricultural trait development company to a commercial trait company, focusing on gene-edited productivity traits that address sustainability challenges for farmers [8][9] - The company emphasizes its proprietary Rapid Trait Development System (RTDS) as a key differentiator, enabling rapid and predictable trait development [14] - Cibus is also advancing its Sustainable Ingredients program, targeting low carbon ingredients and biofragrances for the consumer packaged goods industry [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in key markets and the potential for significant value capture as regulatory frameworks evolve [41][42] - The company is positioned to capitalize on the global adoption of gene-edited solutions, with traits moving into customer germplasm and showing promising results in field trials [42] Other Important Information - Cibus expects existing cash and cash equivalents to fund planned operating expenses into late Q3 2025, supported by recent financing [37][64] - The company is focused on achieving several important milestones in 2025, including the completion of EU legislation and continued development of its soybean platform [34][35] Q&A Session Summary Question: What does the EU decision mean for commercial products in Europe? - Management highlighted the importance of the EU's regulatory process and its implications for accelerating customer programs and trade [46][49] Question: Can you discuss the patentability of genetic modifications under the current EU law? - Management noted that the EU Council advocates for transparency in patenting, which is seen as beneficial for the seed industry [52][54] Question: Are commercialization dates for products on track? - Management confirmed that all timelines are on track, with significant progress expected in the current year [58][60] Question: Will there be meaningful revenues from the sustainable ingredient business in 2026? - Management expressed confidence in generating revenues from biofragrance products in 2026, indicating strong market interest [68][70] Question: Are you in touch with potential customers in Europe? - Management confirmed ongoing collaboration with European customers on various traits, including Sclerotinia tolerance [72][74] Question: What are the expectations for operating costs moving forward? - Management indicated that while current cost reductions are significant, further optimizations are expected as processes are refined [76][78] Question: What priority traits and crops will receive the most resources? - Management emphasized focus on rice, canola, and soybean platforms, particularly in disease resistance and productivity traits [84][86]
Cibus(CBUS) - 2024 Q4 - Earnings Call Transcript