Cibus (CBUS) Q3 2024 earnings summary

Executive summary

• Transitioned from R&D-focused to commercial-stage gene editing, establishing a platform for rapid trait development and commercialization across multiple crops and customers.

• Achieved key milestones in rice, canola, and soybean platforms, including successful field trials, commercial agreements with major seed companies, and strategic realignment to focus on weed management, pod shatter reduction, and sclerotinia resistance.

• Built a robust pipeline of five traits, with efficient integration into customer germplasm and predictable timelines for greenhouse and field results.

• Positioned as a leader in agricultural gene editing, leveraging global regulatory momentum, industry partnerships, and expansion of intellectual property portfolio.

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

Financial highlights

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

• Q3 2024 revenue was $1.7 million, up 251% year-over-year, driven by collaboration agreements in soybean and rice research.

• R&D expense for Q3 2024 was $13 million, down from $17.5 million year-over-year due to cost-saving initiatives.

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

• Net loss for Q3 2024 was $201.5 million, primarily due to a $181.4 million goodwill impairment; excluding goodwill, net loss improved to $20 million from $34.5 million year-over-year.

Outlook and guidance

• Existing cash expected to fund operations and capital expenditures through Q1 2025, with monthly cash usage projected to decrease by 20% after full implementation of cost-saving measures.

• Commercial launches for rice traits targeted for 2026-2028 in Latin America and the U.S.; canola launch expected in the U.S. in 2026; soybean platform proof anticipated by end of 2024.

• Anticipates profitable cost-sharing with partners for trait editing by 2026, with editing services evolving into a for-profit business.

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

• One-time severance charge expected in Q4 2024 due to cost-saving initiatives.