Cibus (CBUS) 17th Annual LD Micro Main Event Conference summary

Technology and innovation

• Focus on gene editing to develop crop traits that are indistinguishable from natural or traditional breeding, enabling rapid introduction of new characteristics in major crops.

• Rapid Trait Development System (RTDS) accelerates trait development from centuries to weeks or months, using precise DNA edits without introducing foreign DNA.

• Traits target productivity, weed control, disease resistance, and yield protection, with ongoing development for canola, rice, and soybean.

• Technology enables stacking and updating of traits, similar to software updates, with low incremental costs per new variety.

• Regulatory changes globally, including in Europe, now differentiate gene-edited crops from GMOs, opening new markets and facilitating trade.

Business model and partnerships

• Operates a trait licensing and royalty business, partnering with major seed companies and non-seed partners for sustainable ingredients.

• Five-trait pipeline focused on canola, rice, and soybean, with traits for weed management, disease resistance, and pod shatter reduction.

• No exclusive licensing; traits are licensed to multiple customers, with field trials demonstrating effectiveness before customer adoption.

• Royalty revenue is expected to begin in 2026, with a stable and growing addressable market, especially in soybeans.

• Estimated trait value per acre ranges from $5 to $15, with rice traits offering higher annual royalty potential.

Financial outlook and funding

• Currently pre-revenue, with reported income from R&D funding rather than trait royalties.

• Annual cash burn is under $50 million, with financing needs until royalty revenue starts in 2026.

• Plans to bridge funding gap through equity raises and potentially royalty debt.

• Cost to upgrade or add new traits is significantly lower than traditional GMO development, often less than $100,000 per variety.

• Long-term royalty streams are expected to be highly recurring and sticky, similar to historical GMO trait royalties.