Cibus (CBUS) Q2 2024 earnings summary

Executive summary

• Achieved significant commercial and technological progress in Q2 2024, including expansion of rice and canola platforms, new wheat and soybean platform milestones, and a five-trait pipeline.

• Four leading rice seed company customers now represent 40% of addressable rice acres in the Americas.

• Advanced trait development in canola (Sclerotinia resistance, NUE), operational wheat platform, and progress toward operationalizing the soybean platform by year-end 2024.

• Sustainable Ingredients business, funded by corporate partners, is positioned as a major growth opportunity, with increased funding for 2024 and 2025.

• Regulatory progress in Canada, UK, and EU supports gene editing adoption, aligning with major markets.

Financial highlights

• Cash and cash equivalents were $30.0 million as of June 30, 2024.

• Revenue for Q2 2024 was $0.8 million, up 325% year-over-year; six-month revenue was $1.4 million, up 479%.

• R&D expense rose to $13.0 million in Q2 2024 from $8.4 million in Q2 2023, mainly due to increased lab, facility, and personnel costs.

• SG&A expense was $9.3 million, down from $11.1 million in the prior year, reflecting lower one-time merger costs.

• Net loss was $28.5 million for Q2 2024, compared to $20.5 million in Q2 2023; net loss per share was $1.14, improved from $3.05.

Outlook and guidance

• Cash runway projected into Q4 2024; additional capital required to continue as a going concern beyond that period.

• Soybean platform expected to be operational with initial editing by end of 2024, unlocking a 200 million acre market.

• Sustainable Ingredients business anticipated to launch in 2025, with continued funding from corporate partners.

• SG&A and cash spend expected to remain consistent at approximately $5 million per month.

• Ongoing cost reduction initiatives, but further financing or cost measures may be needed.