Cibus (CBUS) Q3 2024 earnings summary

Executive summary

• Transitioned from R&D-focused to commercial-stage gene editing, emphasizing product launches in rice and canola, and advancing soybean platform development, with strategic realignment and cost-saving initiatives.

• Achieved key milestones: operational Trait Machine process, scaling multi-trait pipeline, collaborations with major seed companies, and successful field trials in rice and canola.

• Secured commercial agreements with four major rice seed companies in the Americas and expanded partnerships for herbicide-tolerant traits.

• Revenue increased to $1.7 million for Q3 2024, up 251% year-over-year, driven by collaboration agreements in Soybean and Rice research.

• $10 million in annualized cost savings initiated, with a 20% reduction in monthly cash usage expected.

Financial highlights

• Cash and cash equivalents were $28.8 million as of September 30, 2024, expected to fund operations into late Q1 2025.

• R&D expense for Q3 2024 was $13.0 million, down from $17.5 million year-over-year due to cost reductions.

• SG&A expense was $7.7 million, down from $8.8 million year-over-year.

• Net loss for Q3 2024 was $201.5 million, including a $181.4 million goodwill impairment due to a decline in stock price.

• Accumulated deficit as of September 30, 2024: $708.1 million.

Outlook and guidance

• Commercial launches for rice traits expected in Latin America by 2026-2027 and in the U.S. by 2027-2028.

• Canola commercial launch in the U.S. anticipated in 2026, pending regulatory progress in Europe.

• Soybean platform proof-of-concept and operational single-cell regeneration expected by end of 2024, with commercial opportunities to follow.

• Company expects to continue incurring significant losses and negative cash flows for several years as it advances its trait development pipeline.

• Cost reduction initiatives are expected to extend cash runway into late Q1 2025, but additional capital will be required to continue as a going concern.