Q4 2024 Cibus Inc Earnings Call
Speaker Change: Thank you and good afternoon, we'd like to thank you for taking time to join us for <unk> fourth quarter 'twenty 'twenty four financial results and business update conference call and webcast.
Speaker Change: Presenting with me today is Peter Beaven co founder interim Chief Executive Officer, President and COO.
Speaker Change: Yeah go Shaw, our Chief Scientific Officer will also be on today's call.
Speaker Change: And during the Q&A session.
Speaker Change: Before we begin the call I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and future operational goals and industry prospects are forward looking and maybe subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the.
Speaker Change: Cool.
Speaker Change: Please refer to <unk> as you see findings were released the associated risks this.
Speaker Change: This conference call is being webcast the webcast link along with our press release and corporate presentation are available on the Investor Relations section of shippers.
Speaker Change: We'll come to assist you in your analysis.
Speaker Change: Yes.
Peter Beaven: With that I would like now to turn the call over to Peter.
Peter Beaven: Thanks, Tyler and good afternoon, everyone.
Speaker Change: Before diving into our results and business update I'd like to address our recent leadership transition.
Speaker Change: As a cofounder of status with worry rigs, our chairman and Greg <unk>, Our Chief Scientific officer, and having served as president and C. O O since 2021 and city yard for the seven years prior to that I'm deeply committed to our mission and vision.
Speaker Change: Leadership transitions can be significant moments for any company.
Speaker Change: Our strategic direction remains on track.
Speaker Change: I also want to acknowledge worries unwavering dedication to service that spans more than two decades since its formation.
Speaker Change: He has been instrumental in building save us investing behind our strategy and evolving its technology into what they are today.
Speaker Change: Cutting edge agricultural company poised to transform the development and commercialization of crop sites.
Speaker Change: He has stressed previously see this is an important inflection point as we continue our transformation from an agricultural site development company to a commercial type company.
Speaker Change: David is a leader in developing gene edited productivity types that address critical productivity and sustainability challenges to families such as diseases, and pests, which the United Nations estimates costs, the global economy, approximately $300 billion annually.
Speaker Change: Accordingly.
Speaker Change: This is not a seed company rather we are a technology company that uses gene editing to develop and license types to see companies in exchange for annual royalties on seed sales.
Speaker Change: A key differentiator about technology compared to existing modern plant breeding technologies like GMO is that the traits developed using our rapids trait development system or a T D S.
Speaker Change: Distinguishable from twice develops well I conventional breeding methodologies.
Speaker Change: Notably in pending EU legislation, which I will speak more about later as there was some recent great news about the progress they use the term conventional lie.
Speaker Change: So unlike GMO based approaches that integrate burns Eni algae teeing approach allows us to make precise changes that could occur in nature.
Speaker Change: This distinction is critical from a regulatory perspective as it means that products are regulated similar to conventional breeding in many market significantly expanding our global addressable market compared to GMO traits.
Speaker Change: For nearly three decades faced significant regulatory obstacles around the world where.
Speaker Change: We believe our business model will create a potential long term revenue stream based on the cost savings realized why pharma is sort of application specific crops rice.
As I step into my expanded role I'm energized by the momentum we are building across our key markets.
Speaker Change: The opportunities for our gene edited traits I don't use why they're materializing right now.
Speaker Change: Al herbicide tolerance traits in rice are generating commercial interest across markets, including United States, Uruguay, Colombia, Brazil, and Asia, representing significant future royalty potential.
Speaker Change: Without price moving into customer germplasm, and field trials, showing promising results and with a more harmonized global regulatory environment for gene edited traits I believe we are positioned to capture significant value for our shareholders.
Speaker Change: I'd really like to emphasize that services differentiation lies in our proprietary I T. D. S gene editing process, which enables us to edit the customers' elite germplasm and return it with a specific trial in under 12 months.
Speaker Change: Creating a time bound and predictable model to try it development.
Speaker Change: And commercialization that's unlike anything agriculture has seen before.
Speaker Change: This is the significant value of a standardized platform.
Speaker Change: Rapidly delivering twice that help farmers address their most pressing productivity challenges, while positioning <unk> to capture the significant commercial value through annual royalties per acre.
Speaker Change: I'll now highlight some of our recent achievements and progress from the past year.
Ross: I'll start with Ross.
Ross: Our rock platform continues to gain substantial momentum in December we affirmed our collaboration with a T. D. C Corporation limited at all by LLC to provide the herbicide class with them as part of our new and exciting weight management solutions. The U S. Last time was using our H T three types.
Ross: Collaboration is instrumental to our herbicide resistance raw strike commercialization efforts as we continue to work with U S rice seed customers.
Ross: Including our agreement with <unk>, we now have agreements with all major watch T companies in North and Latin America.
Ross: Representing approximately 40% of our estimated accessible lost acres across these regions.
Ross: Importantly, we've received germplasm from each of these customers, which is a crucial step in this commercialization process.
Ross: We completed a successful series of U S field trials with one of our largest customers varieties containing our Ht three trials showcasing the exciting continued progress we are making towards commercialization.
Ross: Additionally, last summer we received initial field trial results for <unk>.
Ross: That gene edited herbicide tolerance traits in rice as we announced at the time. We believe this represents the first field trial that uses a sex gene edited herbicide tolerant trait in Ross.
Ross: For that matter any major crop to improve weight management.
Ross: Right through that further differentiate our offering and stands to bring significant value to filings.
Ross: As we've presented we believe our ability to add sites and improve existing tried some time bound and predictable way paves the way for plant breeders to accelerate their best genetics to commercial seed production and sales to farmers.
Ross: Let me go to canola.
Ross: This is developed productivity Detroit, the bloodshed, a reduction or P. S. A in canola and winter oilseed rape strengthens the sheet that as part of the part around the canola things. This shape is important to protect the pods improving shadow pallets when faced with adverse impacts from high winds and extreme weather that can cause a loss of.
Ross: <unk>.
Ross: <unk> continues to make good progress on its canola and winter oilseed rape advanced productivity tracks. These austerity any resistance in ice tea to offer white mold disease resistance and broadleaf weed herbicide tolerance, respectively.
Ross: I will discuss these in more detail in the bottoms.
Ross: As previously discussed safest has 10 customers, who is developed and advanced tried canola and winter I'll segue.
Ross: Six of whom continue to work with the company to progress its developed P. S outright for approximately 7 million customer accessible anchors.
Ross: By the shifting commercial landscape.
Ross: And with that I'd like to turn to our advanced strides we've made substantial advances in our disease resistance program.
Ross: In November we announced the collaboration with Bio Africa, a U K based leader in AI and machine learning for gene discovery.
Ross: Focusing on advanced disease resistance, and oilseed rape and canola.
Ross: This partnership Leverages biographical proprietary AI platform to complement surfaces own computational biology team to identify and prioritize completely novel genetic targets for gene editing.
Speaker Change: I am really proud to partner with one of the leaders in the AI space, who has taken a allergy to help decode crop genetics.
Ross: Now.
Ross: Let me move to what I believe is one of our more significant advances over the past year.
Ross: We've also reported on the significant results we have achieved over the past several months in the development of multiple modes of action to try it so resistance to what Oscar Virginia.
Ross: What my old is a devastating and widespread disease that can significantly impact farmers crop yields in the same way that antiviral cocktails I used to treat diseases like HIV and people developing multiple independent modes of action for plant disease is expected to enable durable disease resistance.
Ross: What I mean by that is resistance that lasts.
Ross: As we have discussed previously developing this tight one crops like canola as a guide to how we would and disease resistance to other crops like soybeans.
Ross: This is a great example of a multi crop trait that will address and help to resolve a major disease impacting yield on over 100 million acres of crops.
In November we successfully completed the edits in canola for the fourth motive action. This clarity near resistance with controlled environment assay results expected in the first quarter of 2025.
Ross: This work builds upon our other work surrounding other modes of action, which continued to progress for instance, we would say field trial results for the second mode of action in canola showing improved disease resistance, while the first bio SA results for our third mode of action showed improved resistance.
Ross: What is impressive.
Ross: Well how quickly the safest team developed the third mode of action plots.
Ross: Looking ahead, we expect to continue identifying evaluating and testing additional modes of action to support our site that is durable and applicable to customers across all growing wages.
Ross: This is important as gene editing in such a time bound in a predictable way.
Ross: These multiplex types, where traditional techniques like advanced breeding, including GMO have notes.
Ross: I believe that this methodical multi pronged approach exemplifies our commitment to developing robust strides.
Ross: Dress a targeted solution for real world challenges facing today's filings.
Ross: Let me turn now to our soybean platform.
Ross: A significant milestone for us in January 2025 was the successful editing of soybeans cells for al H T to try to achieve.
Ross: Savings sufficiently high editing rights.
Ross: Our neighborhood expanded development about soybean platform.
Ross: We remain excited about our soybean platform as it positions us to continue to pursue the H T. Two and other trades like white mold resistance and soybean.
Ross: These types alone allow us to eventually access a substantial market estimated at 125 million accessible soybean acres.
Ross: Hussein without tasting solar the ability to extend out technologies across multiple crops multiplies, our market potential and revenue opportunities as presented previously with the potential annual type royalties in the range of 10 to $15. This represents a large market opportunity on which service can build.
Ross: We will continue to work diligently toward a fully operational soybean platform.
Ross: Soybean gene editing of complex trades like White mold resistance is an area of endeavour, a great commercial interest and we are working hard to advance our discussions with current and prospective partners.
Ross: So now let me jump to the exciting news around global regulatory.
Ross: This past week, we welcomed the announcement of the EU Council negotiation mandate on the regulation of plants obtained by new genomic techniques or N V taste.
Ross: This is important advancement enables the council to engage in three way discussions knowing there's a trial or discussions with the EU Parliament and European Commission to agree on the final text of the legislation prior to final adoption.
Crucially the use pending legislation is central to harmonize the global regulatory landscape for gene editing.
Ross: And does it use pending legislation most gene edited plants will be regulated in a similar way to conventional breeding which would open the European market for the first time the gene edited products such as those let's say this is developing.
Ross: Along with this exciting news from Europe. We also shared today that the California Ros Commission has approved our plan field trials with our advanced lost rates in California.
Ross: For California.
Ross: This represents an important milestone for our last night and a key American market.
This progress coupled with previously mentioned development in the EU demonstrates the global trajectory toward treating gene editing technologies similar to those products developed using conventional breeding.
Ross: These regulatory advancements across Europe, North America, Latin America, and parts of Asia.
Speaker Change: <unk> strengthened the commercial opportunity for our type platform.
Ross: And will serve as important catalysts.
Speaker Change: That crop trait development.
Ross: With that in mind, we are.
Ross: Really well positioned with our customers to act swiftly as the regulatory environment continues to shift towards the global adoption of gene edited solutions.
Ross: So let me move now to sustainable ingredients.
Ross: While our primary focus remains on our five try three club pipeline. We also continue to advance our sustainable ingredients program.
Ross: Our large multinational CPG partner funded project is progressing well.
Ross: Our collective goal is focused on sustainable low carbon ingredients, representing an exciting adjacent opportunity with crops and leverages, our core gene editing capabilities.
Ross: Global companies seek ingredients that don't negatively impact the environment during production use or disposal al technologies offer unique solutions that help them advance their sustainability objectives.
Ross: In connection with how sustainable ingredients program savings on its own has also been developing bio fragrances for the CPG industry using its proprietary yeast fermentation system.
Ross: This process also pits with ambition to provide natural sustainable alternatives for the fragrance market.
Ross: So looking ahead to 2025, we have several important milestones with Pakistan.
Ross: The expected completion of the final text of EU legislation.
Ross: Techniques N G Ts.
Ross: The continued development toward an operational soybean platform.
Ross: Continuing field trials of our developed P. S outright in the U K.
Ross: Focused activities on pizza instead of a tenure with our north American customers with positive data for various modes of action for disease resistance now in hand.
Ross: We also plan to conduct field trials, there were two new resistance and canola in North America. This summer.
Ross: Third mode of action in that first attack disease resistance.
Ross: And controlled environment rooms.
Ross: We expect results from controlled environment testing, the fourth mode of action and canola in the first quarter of 2025.
Ross: We also expect initial field trial data for <unk>.
Ross: To try and canola in the third quarter of 2025.
Ross: And finally, we are excited to see the advancement of our buyer fragrance with where we expect to see nominal revenues later this year.
Ross: I want to emphasize that while we're focusing our resources on near term commercial opportunities with developed and advanced trials were not limiting our opportunity set in anyway.
Ross: Each of these opportunities, including sustainable ingredients by breakthroughs, we've made in weight and specialty crops like peanuts, and I work on nutrient use efficiency each represent developments, we are uniquely positioned to capitalize on.
Ross: And with that I'll hand, the call over to Colin for a financial update Colo.
Colin: Thank you Peter.
Ross: Looking at our financials for the fourth quarter.
Ross: Cash and cash equivalents were $14 4 million as of December 31st 2024, taking into account the $21 6 million net proceeds received thus far in 2025 from the registered direct offering in January and the impact of cost saving initiatives and without giving effect to potential.
Ross: Financing transactions that she was just pursuing sheepish expect that existing cash and cash equivalents will fund planned operating expenses and capital expenditure requirements into late third quarter of 2025.
Ross: Moving to our income statements.
Ross: <unk> expense was $12 4 million for the fourth quarter of 2024 compared to $48 2 million in the year ago period. The decrease of 1.8 million was primarily due to lower noncash stock compensation expense and the strategic realignment and reduction in force.
Ross: Amounts during the fourth quarter was 2023 with deliberate decrease in personnel costs and supplies.
Ross: G&A expense was $6 8 million for the fourth quarter of 2024 compared to $6 8 million in the year ago period.
Ross: Net loss was $75 8 million for the fourth quarter of 2024 compared to a net loss of $277 2 million in the year ago period.
Ross: The prior year period included a noncash goodwill impairment charge of $249 million and when excluding discharge. We are pleased that our net loss has improved approximately $2 million year over year, driven by the cost reduction efforts, we implemented in the quarter.
Ross: For additional details about our financials for the fourth quarter and full year of 'twenty 'twenty four please refer to our press release and filings with the SEC.
Peter Beaven: That concludes our financial discussion Peter back to you for your closing remarks.
Peter Beaven: Thanks Carlo.
Speaker Change: It really has been an exciting 12 months here at city was as.
Speaker Change: As we've discussed the past year has been pivotal so save us in so many ways, we saw substantial progress across our key platforms and trades, particularly in Ross Sclerocornea resistance and we continue to make progress towards an operational soybean platform.
Speaker Change: The global regulatory environment continues to evolve favorably, which we expect will continue to encourage our customers to embrace technologies.
Speaker Change: Our gene editing technologies and focus on productivity try it holds great promise for the future of timing because they enable crops to be more adaptable to a changing environment and the changing demands of our global food supply chain.
Speaker Change: As global Agriculture Places I'm pleased at the end of challenges our I T. D. S technologies have the potential to help the industry rapidly and reliably adapt in ways. The traditional breeding methods or GMO approaches simply cannot match.
Speaker Change: I want to emphasize again that the opportunities for a gene edited tried on years away.
Speaker Change: They are materializing right now.
Cultural timelines are inherently long as many in the industry are well aware, but we believe we're on the precipice of moving up the J curve, where this opportunity really starts to take off.
Speaker Change: Without rights moving into customer germplasm, and showing promising results in field trials, along with crops containing outright already on the path to commercialization, we are positioned to capture significant value as regulatory frameworks continue that positive evolution in the second half of this decade.
Speaker Change: So thanks, so much for your attention and interest we're really looking forward to updating you again next quarter as we continue to hit our milestones and advance our mission.
Speaker Change: Concludes our remarks, operator could you. Please open the call for questions. Thank you.
Speaker Change: Thank you we will now begin the question and answer session.
Speaker Change: To ask a question you May press Star then one on your Touchtone phone, if you're using a speakerphone. Please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw. Your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
Speaker Change: And the first question will come from Laurence Alexander with Jefferies. Please go ahead.
Laurence Alexander: Oh good afternoon could you maybe just start by unpacking a little bit.
Speaker Change: What the EU decision means in terms of who my.
Speaker Change: Milestones or timeline for you to have commercial products.
Speaker Change: With a customer in Europe.
Speaker Change: And also can you give a flavor for how the changes in the regulatory landscape over the last 18 months have changed the customer interest in looking at alternative revenue structures with new to incentivize you to scale up faster and move faster or kind of how.
Speaker Change: Or is there anything that they were looking for from you perhaps.
Speaker Change: Such discussions.
Laurence Alexander: So thanks, so much for your question Laurence I really appreciate them. This is such an important.
Speak to that business and I think that I really can't underestimate the importance of the process in Europe on the regulatory front.
Laurence Alexander: The what happened on March 14th.
Laurence Alexander: It was where the EU council have been.
Laurence Alexander: Working over the last few months to really understand how to advance the EU trilogue discussions.
Laurence Alexander: And this is really to complete the text of the new genomic techniques as I mentioned in my remarks.
Laurence Alexander: This ends up as that allows them to do.
Laurence Alexander: <unk> improves the final adoption of pitched the Parliament approved last year, what's important to really understand about that is the parliament has already voted the.
Laurence Alexander: The test is not changing them apart from a few amendments of the EU Council now ratified as part of the discussion so you.
Laurence Alexander: The implications of this are not just in Europe.
Laurence Alexander: There are trade and cultivation implications.
Laurence Alexander: And.
Laurence Alexander: A lot of the jurisdictions around the world look to the EU for guidance on how new technologies and discharged new genomic technologies like gene editing are going to advance.
Laurence Alexander: In a lot of seed companies breeding programs around the world. So you know.
Laurence Alexander: We know that a lot of our customers.
Laurence Alexander: I have been looking to this.
Laurence Alexander: To accelerate their programs understanding that you know when you think about plant breeding program, making sure that you have a clear path to cultivation.
Laurence Alexander: And as well as some of the major companies that trade right around the world look to it for.
Laurence Alexander: Guidance on trade, so I think there's.
Laurence Alexander: Like I said, you can't underestimate how important this is to the whole gene editing World. We live in right now and I'm going to ask Greg to make a couple of additional comments yeah. Thanks, Peter and thanks for the question.
Laurence Alexander: Warrants.
Laurence Alexander: No.
Laurence Alexander: Remember that what this does is non transgenic and process and product so non GMO and conventional like ours the legislation indicates.
Laurence Alexander: So independent of whether we're developing productivity traits.
Our five trades and tree crops or whether we're developing other edits for.
Laurence Alexander: Purposes, but are towards sustainable ingredients, all of those and a clear path through the grain trade.
Laurence Alexander: Really helpful to what we're trying to accomplish.
Laurence Alexander: And then just secondly.
Laurence Alexander: Can you just talk a little bit about.
Laurence Alexander: <unk>.
Laurence Alexander: Sort of is the degree to which the current draft of the ear law lets people patents.
Laurence Alexander: Re genetic modifications.
Speaker Change: And from your perspective in terms of your discussions with customers in terms of the speed of demand pull through is it better or worse that those changes be patentable or not.
Speaker Change: So the good news St. Lawrence because I think that's a really good follow on question because one of the.
Speaker Change: The amendments that was discussed was around patent suit.
Speaker Change: And this is.
Speaker Change: Message from the accounts so that they see this is transparency.
Speaker Change: So what they are.
Speaker Change: Advocating for is that as you bring a product to market as a seed company that youll transparent about the patents that are behind that.
Speaker Change: So it's a little different to where they started.
Speaker Change:
Speaker Change: And the good news is for US I think they ended up in a very strong position of making sure that there is transparency.
Speaker Change: For the seed industry in Europe too.
To conform to IP coverage intellectual property coverage and I think that's a very strong position they ended up at.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Speaker Change: The next question will come from Austin Moeller with Canaccord. Please go ahead.
Speaker Change: Hi, Good afternoon, just my first question given the progress on H T two greenhouse staying and going to the field.
Speaker Change: Foreign patients by a fragrance products in the third motive action for white mold and canola, how does the timing of the commercialization dates for any of the products in your investor deck changed at all from last quarter or is everything on track.
Speaker Change: So Austin Thanks for that question I think let me focus on your the first part of your question on ice tea too.
Speaker Change:
Speaker Change: I think the field trials. This some are going to be very important for making sure we stay on track.
Speaker Change: So everything you've mentioned today is we are staying on track is the key message So I watch.
Laurence Alexander: I think when you think about what Laurence just a on the European regulatory part of the the importance of that is.
Laurence Alexander: The acceleration of a lot of our customers are thinking how how to get products on the market as fast as possible.
Laurence Alexander: So as we as we expand our efforts in the the different modes of action is for tenure of white mold resistance.
There is a.
Laurence Alexander: Kaine interest to really accelerate a lot of that work in both our canola winter Oilseed rape program.
Laurence Alexander: And so no. This is a really important here for both IC too and it's clearer to me a tolerance for canola winter oilseed rape.
Laurence Alexander: I'll leave it there and see if Greg has anything he.
Greg: He wants to add.
Greg: Yes, I think you covered it I think we're really excited about what the team has delivered in <unk>.
Greg: In the last 12 months.
Greg: In the last quarter, especially.
Speaker Change: With respect to our advance trades off score of 10 year resistance on HQ2.
Speaker Change: Great and just a follow up I understand you expect to raise in Q3 a year prior to Q3, but do you expect your current cash balance and consumption to be insufficient levels, where you can advance all of the trades that you're currently developing.
Speaker Change: Yeah. Thanks for that Austin, I think the there's no doubt.
Speaker Change: We are working hard to achieve all of the milestones that I listed out in our remarks I think there's.
Speaker Change: A lot of this is progressing really well.
Speaker Change: We know we will work to to meet our cash requirements are all I'll hand, it to Carlo to make additional comments.
Speaker Change: Thank you Peter the only thing I would like to go through from year from year end, recognizing strip to financing in January over $20 million.
Speaker Change: You look at that and then realize that we have this.
Speaker Change: Serious.
Speaker Change: <unk> or burn this year, where we're confident that we can move forward nicely all the way into late quarter, three and can do all the things we have to do or want to do.
Speaker Change: Excellent. Thanks for the details I'll pass it back there.
Speaker Change: Thanks Austin.
Speaker Change: The next question will come from Sameer Joshi with H C. Wainwright. Please go ahead.
Sameer Joshi: Oh, Hey, good afternoon, thanks for taking my questions.
Sameer Joshi: Just a little bit of a related to the previous questions.
Sameer Joshi: The sustainable ingredient business.
Sameer Joshi: I think you were expecting initial nominal revenues from that should we expect like meaningful revenues in 2020.
Sameer Joshi: Six Oh from maybe the bio fragrance or maybe you are one of the partner base.
Sameer Joshi: Base revenues.
Speaker Change: So thank you for the question is on point because the one thing that we haven't discussed a lot previously about fragrance work and I'm excited to share with you that over the last 12 months.
Speaker Change: We have made great progress in that area. It is affirmed mentation based product a wave.
Speaker Change: <unk> made some really.
Speaker Change: Important milestones over the last even last two to three months on that and so we're very comfortable that we are going to see revenues in 2026, and where we sit today.
Speaker Change: There.
Speaker Change: There is a fine fragrance market for the there's a lot of the large multinational CPG companies are looking forward to and I think that we can meet their needs with some of the buy fragrance work we've done.
Speaker Change: It is.
Speaker Change: It is the legacy of some of the early work that Greg. We got you on the team have done of understanding how to look at least genetics.
Speaker Change: And I think that's youth we've used that platform often to understand how we go about some of our targets for weight management and so it's been a.
Speaker Change: A surprising result that July and exciting to say that we're going to see them.
Speaker Change: Some revenues in 2026.
Speaker Change: Interesting.
Speaker Change: It sounds really promising.
Speaker Change:
Speaker Change: On the on the European regulatory pathway.
Speaker Change: Is it likely to open up for you.
Speaker Change: You already and that's the goal.
Speaker Change: Like Boston potential customers also part two of that question.
Speaker Change: Are you also working on crops that are growing in Europe, like wheat, and barley and.
Speaker Change: And creates a lot clumsily booths.
Speaker Change: So thanks for that question, it's really important.
Speaker Change: That we stress it in all five of our.
Speaker Change: Winter Oilseed rape customers based in Europe.
Speaker Change: So we are working closely with European customers already.
Speaker Change: On both favorite senior tolerance.
Speaker Change: As well as some other Reits and I think that.
Speaker Change: Right now last year, we reported that we have a.
Speaker Change: <unk> platform.
Speaker Change: And so we're actually.
Speaker Change: Suspecting that we will see more interest from Europe now on some of the other crops. So we have winter honestly right now we.
Speaker Change: We have a platform in waves.
Speaker Change: And we do see some opportunities in that area.
Speaker Change: What I will stress is the clarity of tolerance, Oh disease tolerance in general being a multi crop.
Speaker Change: Price is really valuable to the market like Europe.
And with that I'll hand, it off to a great to say if he wants to add a little bit yes. So excellent question Amir.
Speaker Change: And.
Peter Beaven: As Peter reinforced.
Peter Beaven: What we've been able to accomplish in terms of a couple of this is the second year of field trials that we're doing in the U K for our pod shatter trade and we're excited by what we saw last year.
Peter Beaven: But also in terms of future opportunities. So the fact that we have a rate rise platform we've done.
Peter Beaven: The wheat platform enables us potentially to access other crops like barley, but as probably as partnered opportunities not us things that would be unnecessarily funded today bye bye.
Peter Beaven: Yeah.
Peter Beaven: Understood Thanks for that.
Peter Beaven: And then just maybe on the cost front are the operating costs, so come down nicely sequentially over the last three quarters.
Peter Beaven: Are those cost cuts already like is this a lot of them, but you should expect going forward or are you expecting for the cost optimizations anymore.
Peter Beaven: <unk>.
Peter Beaven: So let me start off thank you for that question there no.
Peter Beaven: Hello, and myself and Greg we spent a lot of time, making sure we looked at our cost structure. So that we believe there are some additional savings over time.
Peter Beaven: As we refine some of the processes I think the.
Speaker Change: No even some of the work that Carl has been doing and the finance group has allowed us to streamline some of our early processes.
Speaker Change: And so we continue to work on that and maybe Carl I wanted to make that one.
Speaker Change: Next bill Keith or we look at the efficiencies in the back office like better systems.
Speaker Change: There I think we were able to further streamline and reduce where we can.
Speaker Change: But I think the 20% was already impressive we just delivered.
Speaker Change: Yeah, no that does.
Speaker Change: Thanks for taking my questions and good luck.
Speaker Change: Thank you.
Matthew <unk>: The next question will come from Matthew <unk> with Alliance Global Partners. Please go ahead.
Matthew <unk>: Hey, guys congrats on the corner thanks for taking my questions.
Speaker Change: Firstly I just wanted to ask if you've identified any priority traits in crops that you intend to spend the most resources on it in your ramp to commercialization.
Speaker Change: Do you expect to answer that before I give you my others.
Speaker Change: So I think we you know.
Speaker Change: Thanks, Matt for the question.
Speaker Change: They're important to.
Speaker Change: Stress that we are really focused on the three drop five trade platform.
Speaker Change: So the but.
Speaker Change: But as you've heard from us over the last couple of quarters as well as today.
Speaker Change: No we were very excited about what we're seeing with right.
Speaker Change: Particularly and.
Speaker Change: Now advance traits in canola and winter oilseed rape. So we're very much focused in that area and I think this.
Speaker Change: I would go back to the EU regulatory that really allows us to get.
Confident of some of that timeline to commercialization.
Speaker Change: The other area I believe is soybean and I think this is an area that we're really I'm very much focused on.
Speaker Change: The team is doing a great job of progressing towards an operational soybean platform.
Speaker Change: This as you might imagine it is very interesting that there's a lot of interest on soybean, particularly in the U S.
Speaker Change: And so.
Speaker Change: The strides that we have worked on with celebrity near tolerance.
Speaker Change: Disease resistance is something that traditional breeding and GMO just never addressed and so as you saw him earlier. This year, we've done a we announced a AI.
Speaker Change: Now gene discovery partnership with biographical and so.
Speaker Change: Additional focus on understanding the gene targets around disease resistance for canola and wins or winter oilseed right.
Speaker Change: Was one of our areas that we really wanted to put some real resource behind but it really complements our computational biology team you know the power of AI is incredible and understanding what's the target.
Speaker Change: And really our.
Speaker Change: Understanding that we now have a time bound unpredictable process in canola and trades.
Matt: So are there other areas of real focus for us right now Matt.
Speaker Change: Got it.
Matt: Thank you.
Speaker Change: And I have kind of a technical question on the soybean front I don't know.
Speaker Change: Public yet.
Matt: Given that.
Matt: Regeneration from Protoplasts has been achieved in the literature before.
Matt: Soybean.
Speaker Change: But in only in certain genotype should we assume that you guys have achieved regeneration of full plants, just not genotype non specifically or just not and some of the genotype that your customers have sent you on if you could I guess, you're Greg could comment. Thank you.
Speaker Change: Yeah of course, I'm going to ask Craig to comment on this one too, but I I'm going to start off by saying that.
Speaker Change: Regeneration from protoplasts.
There is I think at least one signed to publish publicly publication sorry from many years ago, which was a very much.
Speaker Change: Jean atop specific what we're focused on is building the operational platform and otherwise that makes without partners names.
With elite genetics.
Speaker Change: As people May know soybean is growing.
Speaker Change: Growing across many.
Speaker Change: Geographies and so you'd have to have a lot of different maturity groups of soybean to actually have a commercial relevant genetics background.
Speaker Change: So that's what we've been focused on.
Speaker Change: Looking at multiple ways to get there what were excited about was the fact that the team was able to show editing and protoplasts at a high level.
Speaker Change: Targeting one of the al traits that we know at the time of school, but with that I'm going to hand, it off to Greg to make some comments there. Thanks.
Speaker Change: Thanks Peter.
Speaker Change: Thanks for the question, Matt So really really excited for what the team has delivered over the last last year, and especially the last quarter for soybean and to reinforce what we're seeing is a very high rate of editing in in soybean and a single cell level.
Speaker Change: And we have multiple paths that we.
Speaker Change: We've seen lots of lots of great progress on towards the trades, we understand all of the edits or with the edits for the different modes of action for square tenure as well as support the HQ2 train to be successful.
Speaker Change: Got it thank you guys.
And.
Speaker Change: In terms of pods shatter reduction I know I know you had answered about the timelines earlier, but are we still assuming 2026 for the first royalties from Canada.
Speaker Change: And how about from the EU does this decision at all push up those time lines, a little bit or are we still on track for 27 28 there.
Speaker Change: So let me let me take the last part of your question.
Speaker Change: Where we sit today the au regulatory is a really important aspect of any tracings and Ola.
Speaker Change: We've given guidance people between 26 and 28, when we see revenues coming from canola in winter right.
Speaker Change: And so.
Speaker Change: It's that respect Hasnt changed.
Speaker Change: When it comes to Pud shatter, where we continue to move ahead.
Speaker Change: But today you know.
Speaker Change: There's.
Speaker Change: I think the European regulatory accelerates any of those time lines.
Got it.
Speaker Change: Thank you alright.
Speaker Change: Alright, Thanks for taking my questions and I'll hop back in the queue.
Speaker Change: Thanks, Matt.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks. Please go ahead.
Speaker Change: So thank you all for joining today as I mentioned in my prepared remarks, I, just really wanted to thank everyone for their interest and the support of our company I'm Yeah.
Speaker Change: Am I able to represent an amazing team here at service and I'm. So proud of the progress they've made in the last quarter. We have a big year ahead, we have a lot of milestones that we see.
Speaker Change: We're excited by that and I would like to just finish than say. Thank you again for the great questions today and the opportunity to present C was two <unk>.
Speaker Change: Totally.
Speaker Change: Earnings report thank you.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].