Q1 2025 Cibus Inc Earnings Call

Operator: Good afternoon and welcome to the CIBUS 1Q25 earnings call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note, today's event is being recorded.

Good afternoon, and welcome to the CBS, One Q2 five earnings call all participants will be in a listen only mode. After today's presentation. There will be an opportunity to ask questions. Please also note today's event is being worked.

Speaker Change: Corded at this time I'd like to turn the conference over to Carlo Bruce Interim Chief Financial Officer, Sir. Please go ahead.

Carlo Broos: At this time, I'd like to turn the conference over to Carlo Broos, Interim Chief Financial Officer. Sir, please go ahead. Thank you and good afternoon.

Speaker Change: Thank you and good afternoon, I would like to thank you for taking time to join US receive its first quarter 2025 financial results and business update conference call and webcast presenting with me today is Peter Beeson Cofounder interim Chief Executive Officer, President and CEO, Oh, Yeah go Joe our Chief scientific.

Carlo Broos: I would like to thank you for taking time to join us for Cibus' first quarter 2025 financial results and business update conference call and webcast.

Carlo Broos: Presenting with me today is Peter Beetham, co-founder, interim chief executive officer, president and COO.

Carlo Broos: Greg Gocal, our chief scientific officer, will also be on today's call for participation during the Q&A session.

Speaker Change: Oh for sure will also be on today's Gulfport participation during the Q&A session.

Carlo Broos: 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 may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to Cibus SEC filings for a list of associated risks.

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.

Speaker Change: Really from those described in the call.

Speaker Change: Please refer to <unk> SEC filings for at least the associated risks. This Goldman school is being webcast. The webcast link along with our press release and corporate presentation are available on the Investor Relations section well see because they'll come to assist you in your analysis of our business and with that I would now.

Operator: This conference call is being webcast.

Carlo Broos: The webcast link, along with our press release and corporate presentation are available on the investor relations section of cibus.com to assist you in your analysis of our business.

Peter Beetham: And with that, I would now like to turn the call over to you, Peter. Thanks Carlo, and good afternoon everyone. We believe the first quarter of 2025 continues to demonstrate clear validation of our commercial strategy and the transformative potential of our RTDS technology platform. Our first quarter press releases have confirmed our ability to deliver time-bound and predictable results. This, alongside what has been favourable regulatory decisions, is resonating across multiple fronts, expanding and attracting commercial interest from some of our current customers, while also attracting many new prospective partners.

Peter Beeson: During the call over to you Peter.

Peter Beeson: Thanks, Carlo and good afternoon, everyone.

Peter Beeson: We believe the first quarter of 2025 continues to demonstrate.

Peter Beeson: The validation of our commercial strategy and the transformative potential of our I T D. A technology platform.

Peter Beeson: Our first quarter press releases have confirmed our ability to deliver time bound and predictable results.

Peter Beeson: This alongside what is being favorable regulatory decisions is resonating across multiple fronts.

Peter Beeson: Banding and attracting commercial interest from some of our current customers. While also attracting many new prospective partners.

Peter Beetham: Cibus is uniquely positioned at an important inflection point in the agricultural industry. Our proprietary RTDS gene editing process has established a new paradigm for trait development. One that is time-bound and predictable, enabling us to edit a customer's elite germplasm and return it with specific traits in under 12 months. This standardized platform is being recognized as a fundamental breakthrough that intersects with agriculture's important plant breeding program. These programs are the engine room of genetic innovation for the seed industry. We believe this is unlike anything agriculture has seen before, creating a dependable model for trade development and commercialization for gene editing that's resonating strongly with our customers, partners, and more broadly, across the whole industry.

David: David is uniquely position.

David: Important inflection point in the agricultural industry.

David: Our proprietary I E D S gene editing products it has established.

A new paradigm of trait development.

David: One that is time bound unpredictable, enabling us to edit our customers' elite germplasm and re tenant with specific type in under 12 months.

David: This standardized platform is being recognized as a fundamental breakthrough that intersects with agriculture important plant breeding program.

David: These programs are the engine room of genetic innovation because the seed industry.

David: We believe this is unlike anything agriculture seen before creating a dependable model.

David: Development and commercialization of gene editing, that's resonating strongly with our customers partners and more broadly across the whole industry.

Peter Beetham: What's particularly encouraging is how our time-bound and predictable message is attracting significant new interest in development projects, especially in disease resistance training. We continue to show great progress with confirmed edits for different modes of action in the disease trait category that is unique and highly valuable for multiple crops in global markets.

David: What's particularly encouraging is how at a time bound as predictable message is attracting significant new interest in development projects, especially in disease resistance sites.

David: We continue to show great progress with confirmed edits the different modes of action in the disease category that is unique and highly valuable for multiple crops in global markets.

Peter Beetham: This validation from the market affirms our strategic direction and the value proposition of our technology as we focus on achieving our key milestones for 2025.

David: This validation from the market our firms to our strategic direction and the value proposition of our technology as we focus on achieving our key milestones for 2025.

Peter Beetham: Let me start with Russ. Throughout 2024, we established a strong foundation in our rights platform. securing agreements with four major rice seed companies representing approximately 40% of our estimated accessible rice acres across North and Latin America. The momentum continues to build as we advance toward commercialization. This momentum is carried forward from last year's field trials, where we achieved a milestone with field trial results for stacked, gene-edited, herbicide-tolerant traits in rice. This year in March, we expanded this opportunity for additional stacked HT traits in RITES, where trials are planned for the 2025 season. Last year's trials represent the first known trial using stacked gene-edited herbicide tolerance traits in rights for improved weed management.

Rod: Let me start with Rod.

Rod: Throughout 2024, we established a strong foundation in our rock platform securing agreements with four major I see companies, representing approximately 40% of our estimated extensible rice acres across north and Latin America.

Rod: The momentum continues to build as we advance toward commercialization.

Rod: This momentum is carried forward from last year as field trials, where we achieved a milestone with field trial results. The stacked gene edited herbicide tolerant traits in rice.

Rod: This year in March we expanded this opportunity for additional stacked Ht traits in rice wheat trials are planned for the 2025 season.

Rod: Last year's trials represent the first node trial using stacks gene edited herbicide tolerance traits in rice for improved weight management.

Peter Beetham: a huge breakthrough that further differentiates our offering and stands to bring significant value to farms. This is of particular importance given the global need for weed management solutions that enable right farmers to manage these challenges more efficiently. We are working hard to advance partnerships to do just that.

Rod: A huge breakthrough that further differentiates our offering and fans to bring significant value to filings.

This is of particular importance given the global need for weight management solutions that enable razzano to manage these challenges more efficiently.

Rod: We are working hard to advance partnership to do just that.

Peter Beetham: A great example of our efforts is our strategic collaboration with RTD Corporation Ltd. and ORBAR LLC to provide the herbicide clethodim as part of our weed management solution for U.S. rice farmers using the HT3 trait as a means to further our commercialization strategy.

Rod: A great example of that if it is a strategic collaboration with ITT Corporation limited and <unk> L. L. C to provide the herbicide close to them as part of that weight management solution for U S. Reits pilots using the H T. Three trade as a means to further our commercialization strategy.

Peter Beetham: With our registrations lining up, we remain on track for our anticipated 2027 commercial launch. The momentum we're seeing in Latin America is particularly exciting, as these markets have historically lacked access to advanced weed management solutions and rights. This represents a transformative opportunity both for farmers in these regions and for Cibus as an innovator that is helping deliver value-added solutions to the market. We also expect to initiate our first trait validation trials in Latin America later this year with delivery of initial traits to a Latin American customer anticipated by year end.

Rod: Yeah.

Rod: Without registration is lining up we remain on track for all anticipated 2027 commercial our commercial launch.

Rod: The momentum we're seeing in Latin America is particularly exciting as these markets have historically lacked access to advanced weight management solutions and Ross.

Rod: This represents a transformative opportunity, but the common in these regions and this is David as an innovator that is helping deliver value added solutions to the market.

Rod: We also expect to initiate a first strike validation trials in Latin America. Later this year with delivery of initial phase two a Latin American customer anticipated by year end.

Peter Beetham: The broader message here is clear. Our rights commercialization strategy is progressing according to plan, with TRACE integrated into multiple customers germplasm that is adapted to diverse geographies. This represents a significant market opportunity for Cibus as we approach commercialisation.

Rod: The broader message here is clear.

Alrighty commercialization strategy is progressing according to plan with <unk> integrated into multiple customers Jim has done.

Rod: That has adapted so diverse geographies. This represents a significant market opportunity cause C, but as we approach commercialization.

Peter Beetham: So now turning to disease resistance work. Disease, in our case, sclerotinia or white mold. This program continues to be a standout area of our program. Building on our breakthrough achievements in 2024, where we successfully completed edits in Canola for four different modes of action for sclerotinia resistance and observed positive field trial results for our second mode of action. We've continued to advance this critical platform. In March 2025, we announced positive greenhouse data for canola plants containing a third mode of action for serotonin resistance.

Rod: So now turning to disease resistance work.

Rod: Disease in that case, there tenure a whiteboard.

Rod: This program continues to be a standout area our progress builds.

Rod: Building on a breakthrough achievements in 2020 pool, where do we successfully completed edits and canola all different modes of action to Celerity, no resistance and observed positive field trial results for a second what exactly.

Rod: We've continued to advance this critical platform.

Rod: In March 2025, we announced positive greenhouse data.

Rod: Canola plants containing a third mode of action Frisco retina resistance. This represents a significant milestone in our.

Peter Beetham: This represents a significant milestone in our multi-layered approach to create durable disease resistance, very similar to how antiviral cocktails create lasting protection against diseases in humans like HIV. Our Sclerotinia resistance trait in canola now offers multiple modes of action to provide durable resistance and enable farmers to improve yields and lower input costs by reducing their reliance on funded This is particularly critical as sclerotinia, or white mold, is a fungal pathogen that causes significant disease in oilseed crops and most legumes, reducing canola yields by 7 to 15%, with individual plant-level yield losses being as great as 50% per infection.

Rod: A multi layered approach to create durable disease resistance very similar to how antiviral cocktails create lasting protection against diseases in humans like HIV.

Speaker Change: Alex Claret tinea resistance tight and canola now offers multiple modes of action to provide durable resistance and enable farmers to improve yields and lower input costs by reducing their reliance on fungicides. This is particularly critical as clearer tenure of white mold is a fungal pathogen.

Speaker Change: Cause a significant disease in oilseed crops, and most leggings, reducing canola yields, but 7%, 15% with individual client level yield losses being as great as 50% co infection.

Speaker Change: Okay.

Peter Beetham: We're now preparing to conduct field trials for our third and fourth modes of action in canola in North America this summer, along with testing our first stag disease resistance trait in controlled environment growth chains.

Speaker Change: We're now preparing to conduct field trials for our third and fourth modes of action and canola in North America. This summer.

Speaker Change: Along with testing after this stacked disease resistance strike and controlled environment quite assignments.

Peter Beetham: So let me now turn to the Soybean platform.

Speaker Change: So let me now turn to the soybean platform.

Peter Beetham: Our soybean platform reached a significant milestone in January when we successfully edited a soybean cell for our HC2 trait. a good afternoon. potentially accessing a substantial market estimated at 125 million accessible acres with annual trade royalties per acre potentially in the range of $10 to $15. While we continue... Soybean Platform, the success achieved early in the year validates our approach and technical capabilities. We expect to achieve HT2 edits in soybean plants later this year, building upon our successful cell edits from earlier this year. The company continues to work diligently toward a fully operational soybean plant.

Speaker Change: Our soybean platform reached a significant milestone in January when we successfully edited.

Speaker Change: Soybeans, so for our AC to excite.

Speaker Change: Achieving editing right to enable expanded platform development. This achievement represents a critical step forward in our soybeans strategy and positions us to continue pursuing both the AC to site and white mold resistance is slipping.

Speaker Change: Potentially accessing a substantial market estimated at 125 billion accessible acres with annual type royalties per acre potentially in the range of 10 to $15.

Speaker Change: While we continue.

Speaker Change: So I've been platform. The success achieved early in the year validates our approach and technical capabilities.

Speaker Change: We expect to achieve HC, two edits and soy pain plan later this year.

Speaker Change: Building upon our successful sell it at some earlier this year.

Speaker Change: The company continues to work diligently toward a fully operational soybean platform.

Peter Beetham: Soybean gene editing of complex traits like white mold resistance remains an area of significant commercial interest. And we continue to advance discussions with current and prospective partners who recognize the value of our time-bound and predictable approach to trade development.

Speaker Change: Soybean gene editing of complex trials like White mold resistance remains an area of significant commercial interest.

Speaker Change: And we continue to advance discussions with current and prospective partners, who recognize the value of that time bound and predictable approach to track development.

Peter Beetham: Which now brings me to our Sustainable Ingredients Program. Within our Sustainable Ingredients Program, we've advanced our bio-based fermentation, bio-fragrance products, and now anticipate entering into commercialization agreements with consumer packaged goods partners this year. This quarter we successfully completed the first stage scaler of two biofragrance products.

Speaker Change: Which now brings me to ask sustainable ingredients program with the analysis titled Ingredients program, We've advanced our biobank segmentation bio fragrance products and now anticipate entering into commercialization agreements with consumer packaged goods partners. This year.

Speaker Change: This quarter, we successfully completed the first stage scalar to buy a fragrance products.

Peter Beetham: This important advance affirms our expectations in realising nominal revenues from this program later in 2025. In addition, our partner-funded project with a large multinational CPG company also continues to progress well. This work leverages our core crop gene editing capabilities to develop sustainable low-carbon ingredients, helping major global companies advance their sustainability objectives.

Speaker Change: This important advance.

Speaker Change: Alex they taste and begin realizing nominal revenues from this program later in 2025.

Speaker Change: In addition, our partner funded project with a large multinational CPG.

Speaker Change: Company also continues to progress well this work Leverages, our core crop gene editing capabilities to develop sustainable low carbon ingredients, helping major global companies advance their sustainability objectives.

Peter Beetham: So let's turn to Regulatory. On the regulatory front, we achieved several historic milestones this quarter that strengthen our commercialisation pathway. In February, the California Rights Commission's Rights Certification Committee approved our field research proposal marking the first authorization for planting gene-edited rice in California. Additionally, on March 14th this year, EU member states endorsed the EU Council's negotiating mandate on the regulation of class obtained by New Genomic Techniques, or NGTs, enabling a three-way or trilogue discussions with the EU Parliament, EU Commission and EU Council to finalise legislation. In April 2025, the Ministry of Agriculture and Livestock in Ecuador determined that Cibus' HT1 and HT3 rice traits are equivalent to those developed through conventional breeding.

Speaker Change: So, let's turn to regulatory.

Speaker Change: On the regulatory front, we achieved several historic milestones this quarter that strengthen our commercialization pathway.

Speaker Change: In February the California, Rice commissions right certification Committee approved our field research proposal, marking the first authorization for planting gene edited Boston, California.

Speaker Change: Additionally on March 14th of this year.

Speaker Change: Member States endorsed the EU Council negotiating mandate on the regulation.

Speaker Change: Obtained by new genomic techniques or N D Ts, enabling a three way or siloed discussions with the EU Parliament EU Commission and EU Council to finalize legislation.

Speaker Change: In April 2025, the Ministry of Agriculture in low <unk>.

Speaker Change: In livestock in Ecuador determined that save as H T. One in AC three loss trades are equivalent to $1 developed through conventional Brady.

Peter Beetham: This was a really important determination for our RTDS technologies as Ecuador strictly prohibits the commercial planting of transgenic or GMO crops. This determination confirms rice plants containing Cibus' HD1 and HD3 traits may proceed with registration and commercialization in Ecuador in accordance with the provisions of the Organic Law of Agrobiodiversity, Seed, and Promotion of Sustainable Agriculture and its Regulations. known as L-O-A-F-F-A-S.

Speaker Change: This was a really important determination fab C D S technologies as Ecuador strictly prohibit.

Speaker Change: The commercial plantings of transgenic or GMO crops.

Speaker Change: Its determination confirms rice plants containing surfaces SD Wan and <unk> Street rates May proceed with registration and commercialization in Ecuador in accordance with the provisions of the organic little of agro biodiversity CS and promotion of sustainable agriculture.

Speaker Change: Its regulations known as L O I S I S.

Peter Beetham: And just two weeks ago, we were excited to announce that the USDA APHIS has designated two of our disease resistance trait products under development for canola as not regulated. This favorable designation confirms that our traits do not meet the definition of a regulated article. enabling us to proceed with product development without restrictions associated with regulated articles in the U.S. This USDA designation is especially significant as it further validates our RTDS technology platform that enables targeted genetic changes without integrating recombinant DNA. The U.S. has long been a leader in regulatory modernization. And this designation represents yet another example of how regulatory frameworks have evolved and continue to evolve to support the promise of gene editing technology.

Speaker Change: Just two weeks ago.

Speaker Change: We were excited to announce that the USDA APHIS has designated two about disease resistant type products under development for canola is not regulated this favorable designation concerns that outright do not meet the definition of a regulated article.

Speaker Change: Enabling us to proceed with product development without restrictions associated with regulated that it goes in the U S.

Speaker Change: This USDA nitrogen is especially significant as it further validates our I T. D. S technology platform that enables targeted genetic changes without integrating recombinant DNA.

Speaker Change: The U S has long been a leader in regulatory modernization.

Speaker Change: And this designation represents yet. Another example of how regulatory filings have evolved and continued to evolve to support the promise of gene editing technologies.

Peter Beetham: These regulatory developments across multiple geographies significantly strengthen the commercial opportunity for our trade pipeline and serve as important catalysts for our crop trade development.

Speaker Change: These regulatory developments across multiple geographies.

Speaker Change: The strength of the commercial opportunity cropped tight pipeline and serve as important catalysts thrive crop trait development business.

Peter Beetham: So now let's look ahead to 2025. We have several important milestones we're focused on while simultaneously optimising our operations. Expansion of commercial relationships with light feed companies across North and South America. The first trait validation trials in Latin America with delivery of initial traits to customers by year end. Field trials for sclerotinia resistance in Cornelis are third and fourth modes of action, and trials of our first SACT disease resistance trait in controlled environment growth changes. Initial field, trial data for our HT2 trait in canola. continued development toward an operational soybean platform, and advancement of our biofragrance work with expected nominal revenues later this year.

Speaker Change: So now let's look ahead to 2025.

Speaker Change: We have several important milestones with focused on while simultaneously optimizing our operations.

Speaker Change: Expansion of commercial relationships with what I see companies across North and South America.

Speaker Change: The first type validation caused in Latin America with delivery of the initial types to customers by year end.

Speaker Change: Field trials for <unk> resistance in canola, the third and fourth modes of action and trials of our first stacked disease resistance kite and controlled environment changes.

Speaker Change: Initial field trial data pull out H T too tight in canola.

Speaker Change: Continued development toward an operational soybean platform and advancement of our buyer fragrance way with expected normal revenues later this year.

Peter Beetham: As we pursue these strategic priorities, we're laser focused on optimising our operations and significantly reducing our cash burn rate in 2025. We are taking a disciplined approach to resource allocation, prioritizing investments in near-term commercial opportunities with developed and advanced traits, while ensuring we have the financial flexibility to execute on our strategic priorities and extend our runway. This balanced approach to growth and fiscal discipline positions us to maximise shareholder value as we approach key commercial milestones.

Speaker Change: As we pursue these strategic priorities, we're laser focused on optimizing our operations and significantly reducing our cash burn rate in 2020 bonds.

Speaker Change: We're taking a disciplined approach to resource allocation prioritizing investments in near term commercial opportunities with developed and advanced strides well then.

Speaker Change: Shoring, we have the financial flexibility to execute on our strategic priorities and extend our runway.

Speaker Change: This balanced approach to growth and fiscal discipline positions us to maximize shareholder value as we approach key commercial.

Speaker Change: <unk>.

Peter Beetham: Our gene editing technologies and focus on productivity traits hold great promise for the future of farming, enabling crops to be more adaptable to a changing environment and the changing demands of a global food supply chain. As demonstrated by our progress this quarter and over the past year, the opportunities for our gene-edited traits aren't in the distant future, they're materialising and expanding now. With our traits moving into customer germplasm, showing promising results in field trials and a more harmonised global regulatory environment emerging for gene-edited traits, we are uniquely positioned within the agricultural gene-editing industry to capture significant value for our shareholders.

Speaker Change: Now gene editing technologies and focus on productivity credits hold great promise for the future of bonding.

Speaker Change: Enabling clubs to be more adaptable to a changing environment and the changing demands of the global food supply chain.

Speaker Change: As demonstrated by our progress this quarter and over the past year the opportunities for a gene edited traits.

Speaker Change: In the distant future, they're materializing and expanding now.

Speaker Change: Without twice moving into customer germ plasm, showing promising results in field trials and a more harmonized global regulatory environment emerging to gene edited traits. We are uniquely positioned within the agricultural gene editing industry to capture significant value for our shareholders.

Carlo Broos: And with that, I'll hand over the call to Carlo for a financial update. Carlo? Thank you, Peter. Looking at our financials for the third quarter, cash and cash equivalents were $23.6 million as of March 31st, 2025. Taking into account the $21.4 million net proceeds received in 2025 from the registered direct offering in January, the impact of implemented cost saving initiatives, and without giving effect to potential financing transactions that Cibus is pursuing, Cibus expects that existing cash and cash equivalents is sufficient to fund planned operating expenses and capital expenditure requirements into the third quarter of 2025.

Speaker Change: And with that I'll hand over the call to carload for a financial update call us.

Speaker Change: Yes.

Speaker Change: Thank you Peter looking at our financial.

Speaker Change: [noise] financials for the first quarter cash and cash equivalents were $23 6 million as of March 31st 2025, taking into account the $21 4 million net proceeds received in 2025 from the registered direct offering in January the impact of implemented cost saving initiatives and without giving.

Speaker Change: The effect of potential financing transactions that you'd be just pursuing she just expect that existing cash and cash equivalents is sufficient to fund planned operating expenses and capital expenditure requirements into the third quarter of 2025.

Carlo Broos: Move it to your income statement. Revenue for the first quarter of 2025 was $1 million, an increase of $489,000 compared to the $545,000 in the year-ago period due to increased activity in partner-funded projects. R&D expense was $11.8 million for the first quarter of 2025, compared to $12 million in the year-ago period. The decrease is primarily due to cost reduction initiatives. SG&A expense was $9.9 million for the first quarter of 2025, compared to $7 million in the year-ago period. The increase is primarily due to a $3 million litigation accrual, partially offset by a decrease related to cost reduction initiatives.

Speaker Change: Moving to our income statement.

Speaker Change: Revenue for the first quarter of 2025 1 million an increase of 489000 compared to 545000 in the year ago period.

Speaker Change: Due to increased activity in partner funded projects.

Speaker Change: R&D expense was $11 8 million for the first quarter of 2025 compared to $12 million in the year ago period.

Speaker Change: The decrease is primarily due to cost reduction initiatives.

Speaker Change: SG&A expense was $9 9 million for the first quarter of 2025 compared to 7 million in the year ago period. The increase is primarily due to a 3 million litigation accrual, partially offset by a decrease related to cost reduction initiatives.

Carlo Broos: Net loss was $49.4 million for the first quarter of 2025 compared to net loss of $27 million in the year-ago period. The increase in net loss was primarily due to the $21 million non-cash mutual impairment that was recorded in the first quarter of 2025 compared to no such charge in the prior year period. Net loss excluding this goodwill impairment was $28.4 million.

Net loss was $49 4 million for the first quarter of 2025 compared to net loss of $27 million in the year ago period.

Speaker Change: The increase in net loss was primarily due to the 21 million noncash goodwill impairment that was recorded in the first quarter of 2025 compared to no such charge in it.

Speaker Change: Prior year period.

Speaker Change: Net loss, excluding this goodwill impairment was $28 4 million.

Carlo Broos: For additional details about the financials for the first quarter of 2025, please refer to our press release and filings with the SEC.

Speaker Change: For additional details about our financials for the first quarter 2025, please refer to our press release and filings with the SEC.

Carlo Broos: That concludes our financial discussion.

Speaker Change: That concludes our financial discussion.

Peter Beetham: Peter, now back to you for your closing remarks. Thank you, Carlo. The first quarter of 2025 has demonstrated clear validation of our commercial strategy and the transformative potential of our RTDS technology platform. As I've mentioned, our time-bound and predictable approach to trade development is resonating strongly with customers and partners, attracting significant commercial interest across our rice, canola and soybean platforms, where we believe we will garner further development program support. This is with regulatory progress advancing globally, including the favorable USDA APHIS designation of our canola disease resistance traits just two weeks ago. Arrive Trace moving into customer germplasm and our disease resistance program showing remarkable results with multiple modes of action.

Speaker Change: Now back to you for your closing remarks.

Speaker Change: Thank you Kayla.

Speaker Change: The first quarter of 'twenty 'twenty four is demonstrating clear validation of our commercial strategy and the transformative potential of I C. D S technology platform.

Speaker Change: As I've mentioned, our time bound and predictable approach to trait development is resonating strongly with customers and partners.

Speaker Change: <unk> significant commercial interest across that Ross canola and soybean platforms, where we believe we will garner further development program support.

Speaker Change: This is with regulatory progress advancing globally.

Speaker Change: Including the favorable USDA APHIS designation about canola disease resistance traits, just two weeks ago.

Speaker Change: Iraq trace moving into customer germplasm and disease resistance program, showing remarkable results with multiple lines of action.

Peter Beetham: We're positioned at an important inflection point where seed genetics is now offering broad innovation in global seed markets.

Speaker Change: We are positioned at an important inflection point with seed genetics is now offering broad innovation.

Speaker Change: Global seed market.

Peter Beetham: As we remain laser focused on optimizing operations and reducing cash burn in 2025 through 2026, we continue to advance our highest value commercial opportunities that will drive long term shareholder value. And with that, I thank you for your attention and interest. We look forward to updating you on our continued progress next quarter.

Speaker Change: As we remain laser focused on optimizing operations and reducing cash burn in 2025 through 2026, we continue to advance our highest value commercial opportunities that will drive long term shareholder value.

Speaker Change: And with that I.

Speaker Change: Thank you for your attention and interest we look forward to updating you on our continued progress next quarter.

Operator: This concludes our remarks.

Speaker Change: This concludes our remarks, operator could you open the call for questions. Thank you.

Operator: Operator, could you open the call for questions? Thank you. Certainly. At this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may withdraw yourself from the queue at any time by pressing star 2. And once again, that is star and 1.

Speaker Change: Certainly at this time, if you would like to ask a question. Please press the star and one on your telephone keypad.

Speaker Change: May withdraw yourself from the queue at any time by pressing star two.

Speaker Change: And once again that is star and one well move first to Laurence Alexander with Jefferies. Your line is open.

Lawrence Alexander: We'll move first to Lawrence Alexander with Jeffreys. Your line is open. Good afternoon. I guess three or four things, if I may. First, can you just walk through the cash burn and the step up in the SG&A in Q1? You know, kind of what your views on both of those and how to think about them for the balance of the year. Thanks. Thanks, Lawrence.

Laurence Alexander: So good afternoon, I guess, three three or four things if I may.

Laurence Alexander: First can you just walk through the cash burn in the step up in the SG&A in Q1.

Laurence Alexander: You know kind of what your views on both of those and how to think about them for the balance of the year.

Speaker Change: Thanks, Thanks, Laurence I'm going to hand that to carloads.

Carlo Broos: I'm going to hand that to Carlo to answer. Thank you. Yeah. Thank you, Peter. So, good question. The cash burn, quarter one, as we have said in the previous presentations, following an executed RIP last year, we went seriously down. So, we are now around 4.4 million gross. So, that was successfully planned and executed. What you see in quarter one in the SG&A is an approval for litigation we took. And that's why the number is higher compared to the quarter in previous periods. But when you really, from a cash perspective, look at it, we went down.

Laurence Alexander: Yeah.

Speaker Change: So Peter that's a good question the cash burn quarter, one Oh, yes, we have is that in the previous presentations.

Speaker Change: Halloween and executed the rate last year, we went to we see them. So we are now around $4 4 million gross.

Speaker Change: So that will successfully planned and executed what you see in quarter one.

Speaker Change: Using a cool for litigation, we do and that's why the number is higher compared to the quarter and previous periods.

Speaker Change: But when you really from a guest perspective look at it we went down.

Lawrence Alexander: Okay, perfect.

Speaker Change: Okay, perfect and then on the.

Lawrence Alexander: And then on the on the EU regulatory discussions.

Speaker Change: Yeah.

Speaker Change: On the EU regulatory discussions.

Lawrence Alexander: Have your contacts in Europe given you any sense for what a reasonable timeframe would be for the three-way discussions? coalesce on a final tack.

Speaker Change: Have your contacts in Europe, given you any sense for what a reasonable timeframe would be for the three way discussions.

Speaker Change: To coalesce around a final tax.

Peter Beetham: So thanks, Lawrence. Let me expand on that a little bit because I think, as I've mentioned, this result of the EU Council vote in March is really a historic thing for gene editing industry in general. And we're so excited about that because finally, gene editing is being recognised as what they call conventional like. So it's essentially indistinguishable from what occurs in nature or from plant breeding programs. And, you know, as you go through this process, the Parliament last year actually tabled the text, confirmed that the text wouldn't change. And then when they went through the amendments, it goes to the EU Council vote, which was positive in March.

Speaker Change: So thanks Laurence.

Speaker Change: Let me expand on that a little bit because I think as I mentioned.

Speaker Change: This was the result of.

Speaker Change: The EU Council votes in March is really the historic thing for gene editing industry in general and we're so excited about that because finally gene editing is being recognized.

Speaker Change: Is what they call conventional lock so it's essentially indistinguishable from what occurs in nature often plant breeding programs.

Speaker Change: And.

Speaker Change: No as you go through this process the parliament last year actually.

Speaker Change: Titled The text concerns that that takes wouldn't change and then when they went through the amendments. It goes to the EU Council vote, which was positive in March.

Peter Beetham: From that time now, they've entered into what they call the Trilogue, which is three-way discussions with Parliament, the Commission and the Council in the EU. And just as recent as yesterday, we heard that they have scheduled many meetings between now and the end of June to complete that Trilogue. And what that means is they're heading to a final text. Now, that could be delayed, but it will happen, we believe, within six months. And the beauty of that is, within the 12 months after that, you'll have the secondary legislation to move forward with gene-edited products, both for cultivation and trade with the EU, which again, as we talked in some of our earlier remarks around regulatory, is harmonizing around the world.

Speaker Change: From that time now they've entered into what they call the Trilogue, which are three way discussions with parliament.

Speaker Change: The Commission and the council in the EU.

Speaker Change: And.

Speaker Change: Just as recent as yesterday, we heard that they have scheduled many meetings between now and the end of June to complete that trial logs.

Speaker Change: And what that means is the heading to a final text now that could be delayed.

Speaker Change: But it will happen, we believe within six months.

Speaker Change: And that's the beauty of that is it's in the 12 months after that you'll have the secondary legislation.

Speaker Change: To move forward with teenagers effects, both for cultivation and trade and with.

Speaker Change: With the EU, which again.

Speaker Change: As we talked in some of our early remarks around regulatory is harmonizing around the world. So as you'll see from our press release.

Lawrence Alexander: So, as you'll see from our press release, there's a number of items devoted to regulatory because we're seeing a great... harmonizing and therefore a clear path for us to go on commercialization. Does that rate him enough? Sorry, go ahead. No, I was just making sure that I answered your question effectively. Yep. No, no, great.

Speaker Change: A number of items.

Devoted to regulatory because we're seeing.

Speaker Change: Great.

Speaker Change: Harmonizing and therefore, it's a clear path for us to go in commercialization.

Speaker Change: Does that great and then.

Speaker Change: Sorry go ahead.

Speaker Change: No I was just making sure that I answered your question.

Lawrence Alexander: And then can you just walk through two last pieces? One is, when your trade products hit commercial launch, What is the working capital or cash flow impact? ahead of booking incoming cash flow from your customers.

Speaker Change: Great and then just can you just.

Speaker Change: Walk through to last pieces, one is for when your.

Speaker Change: Trade products hit commercial launch.

Speaker Change: What is the working capital or cash flow impacts.

Speaker Change: Ahead of booking kind of income and cash flow from your customers and.

Lawrence Alexander: And secondly, for biofragrance, can you give some sense of the potential scale, how fast it could ramp, what the customers are telling you. And if they do get what they want, and they're enthusiastic about your result, your product, what the impact will be on your working capital needs and need to have the right sort of technical support and quality assurance staff to support them.

Speaker Change: And secondly for bio fragrance can you give some sense.

Speaker Change: The potential scale.

Speaker Change: How fast it could ramp and what the customers are telling you and if they do get what they want and they are enthusiastic about you resolved your product what the impact will be on your working capital needs and to have the right sort of technical support and quality assurance staff to support them.

Peter Beetham: So let me start with the first part of your question.

Speaker Change: So let me start with the first part of your question. So.

Peter Beetham: So thank you, Lawrence. I think that, you know, as we go forward on our traits, particularly in rice, we're really excited about rice. It is one of our strategic priorities that we've been very much focused on over the last couple of years, and we've had great demand and success around the two herbicide tolerant traits in rice, including, you know, a really favorable result from the Ecuador regulatory just recently. So, you know, the handoff point with materials once they're edited in Rice, we don't effectively have a big hit on our cash at all. We support our customers from a stewardship standpoint, making sure that the traits are handled correctly, that there's some genotyping and some...

Laurence Alexander: Thank you Laurence.

Speaker Change: I think the.

Speaker Change: You know as we as we go forward on outside.

Speaker Change: Outright, particularly in Russia, I'm really excited about Ross is one of our strategic priorities that we've been very much focused on over the last couple of years, and we've had great demand and success around.

The two herbicide tolerant traits in rice.

Speaker Change: <unk> really favorable.

Speaker Change: Salt from Ecuador, regulatory just recently.

Speaker Change: So you know the handoff point with materials once they edited and Ross.

Speaker Change: We don't we don't.

Speaker Change: Effectively have a beat on our cash at all we support our customers.

Speaker Change: A stewardship standpoint, making sure that the trades are handled correctly that there's some.

Speaker Change: Some genotyping and some.

Speaker Change: Eventually we will allow them to come back to us in the breeding program to do some genotyping, but it's not a big hit at all.

Peter Beetham: Eventually, we will allow them to come back to us in their breeding program to do some genotyping, but it's not a big hit at all.

Peter Beetham: So that's the first part of your question.

Speaker Change: So that's the first part of your question and then the second part was with regards to buy fragrance glam fragrance are what we're hearing from prospective partners. On this is there's a great demand and the ramp can be very quick because it's a fermentation for that so as we've mentioned.

Peter Beetham: And then the second part was with regard to biofragrance. Biofragrance, what we're hearing from prospective partners on this is there's a great demand and the ramp can be very quick because it's a fermentation product. So as we've mentioned, we've got nominal revenues here in 25, building in 26. You know, what's interesting about this area is it really is. are companies looking for bio-based products. So they're very excited about the opportunity for us to provide fragrances that they have had to source through either a very expensive natural process or synthetics, and it's mainly been synthetics. And so we see the ramp could go really quickly in this area over the 26 to 28 years.

Speaker Change: No modal revenues here in 'twenty five.

Speaker Change: Building in 'twenty six.

Speaker Change: You know what.

Speaker Change: What's interesting about this area is a.

Speaker Change: It really is.

Speaker Change: Companies looking for bio based products. So they're very excited about the opportunity for us to provide fragrances.

Speaker Change: They have had to source for them.

Speaker Change: Either.

Speaker Change: Every expensive natural process or synthetics and is mainly based synthetics.

Speaker Change: So we see the rent could go really quickly in this area over the 26 to 28 years.

Speaker Change: Yes.

Greg Gocal: Greg, have you got a thing to add? Yeah, just just to add our our approach with the bio fragrances is is unique to us. And we've demonstrated with the first two molecules, the success and the interest in this, in this platform, and we're accepting that that's going to generate future interest from a variety of customers.

Speaker Change: You guys seem to Ed Yeah, just just to add to our approach with the bio fragrances is unique to us.

Speaker Change: And we've demonstrated with the first two molecules.

Speaker Change: The success of the interest in this in this platform in <unk>.

Speaker Change: We're expecting that that's going to generate future interest from.

Speaker Change: A variety of customers.

Peter Beetham: And if I may weigh in just a few seconds, Lawrence, I come from seed companies. And the beauty of this of this business of this royalty business is that the inventory built is done by your partners by the seed companies and not by Cibus. And I love that piece. So that working capital requirement is not with us, it's with them.

Speaker Change: If I may weigh in just a few seconds Laurence I come from seed companies and the beauty of this of this business somebody's royalty basis is that the inventory build is done by your partners by the seed companies and nobody cheapest and I loved that piece of that working capital requirement is not with us is with them.

Lawrence Alexander: Okay, great.

Speaker Change: Okay, great Okay.

Lawrence Alexander: Okay.

Lawrence Alexander: Thank you very much.

Speaker Change: Thank you very much.

Austin Moeller: Thanks, Lawrence. We'll move next to Austin Moeller with Canaccord. Your line is open. Hi, good afternoon.

Speaker Change: Thanks Laurence.

Speaker Change: We'll move next to Austin Muller with Canaccord. Your line is open.

Austin Muller: Hi, good afternoon.

Austin Moeller: What do you expect to see during fourth mode of action field trials in canola in the second quarter? And what would be a favorable result in your view? So thanks, Austin.

Austin Muller: What do you expect to see during fourth motive action field trials and canola in the second quarter, and what would be a favorable herschel and year over year.

Austin Muller: Yes.

Greg: So thanks, Austin of course, I'm going to let Greg answer this one thank you.

Greg Gocal: Of course, I'm going to let Greg answer this one. Thank you. Yeah, thanks, Austin, and good afternoon. We're, our approach with with sclerotinia resistance specifically with multiple modes of action is to address multiple ways that the pathogen is interacting with with the plant. And so the fourth mode of action is specifically addresses one of the ways that the pathogen interacts with the plant. And our expectation is one, that the field trials Success in the field trials demonstrate that control material is infected by the pathogen and that the edited material is more resistant than what we see in that control material.

Speaker Change: Yeah, Thanks, Austin and good afternoon.

Speaker Change: We're our approach with <unk>.

Speaker Change: Sclerotin year resistance, specifically with multiple modes of action is to address multiple ways that the pathogen is interacting with with the plant and so the fourth motive action spin.

Speaker Change: Specifically addresses one of the ways that the pathogen interacts with the plants and our expectation is.

Speaker Change: One that the field trials.

Speaker Change: Success in the field trial demonstrate that.

Speaker Change: <unk> material.

Speaker Change: Is infected by the pathogen and that the added material is more resistant than what we see in that control material.

Greg Gocal: That would lead us then to going the next step in terms of combining that mode of action with other modes of action that are showing similar efficacy. At this point, what we've discussed for mode of action two, but also encouraging results that we've seen in controlled environments for mode of action three already.

Speaker Change: That would lead US then too.

Speaker Change: Going the next step in terms of combining that mode of action with other modes of action that are showing similar efficacy.

Speaker Change: At this point on what we discussed four motive action too, but also encouraging results that we've seen in controlled environments for motive action three already.

Austin Moeller: Okay, and just to follow up on the sustainable ingredients opportunity with with the large Goods Customer. Are you able to indicate whether you expect the revenues to start from that either in 25 or 26 or has that changed from what you had said in the prior quarter? Thanks, Austin. No, we continue to see, you know, medium milestones. The scale-up went well on the sustainable greens with the bio-based fermentation fragrance, and we do see things on track for 2025. Later this year, nominally, and then orders in Q4, so heading into 2026. So we're still on track on that.

Speaker Change: Okay, and just to follow up on the sustainable ingredients opportunity with with the large.

Speaker Change: Good customer.

Speaker Change: Are you able to indicate whether you expect the revenues to start from that either in 25 or 26 or has that changed from what you had said in the prior quarter.

Speaker Change: Yeah.

Speaker Change: Thanks Austin.

Speaker Change: We continue to say.

Speaker Change: Media and milestones the skylight went well.

Speaker Change: The sustainable agreements with the bio based fermentation fragrance.

Speaker Change: And we do see.

Speaker Change: Things on track. So 25 later this year are normally and then orders in Q4, so heading into 'twenty six so we're still on track on that in fact, everything has gone very well on that process I think you know what.

Peter Beetham: In fact, everything has gone very well on that process.

Peter Beetham: I think the, you know, what's exciting about this area is that, you know, I can't not stress the framework around where we're working in the industry of gene editing right now because of the regulatory framework and people recognizing products from that are seen so favorably, you know, sustainable ingredients, you know, our other activity is in crop-based products in sustainable greens, and that is a huge opportunity for us, and it continues to grow. We continue to get a lot of interest, inbound interest from companies, and this goes back to some of our earlier comments and the fact that we're, we've been able to develop systems for editing in crops like rice and canola and, you know, when we're bringing soybean on stream, there's time bound and predictable.

Speaker Change: What's exciting about this area is that.

Speaker Change: I can not stress the framework around the way we're working in the industry of gene editing right now because of the regulatory framework and people are recognizing our.

Speaker Change: Products from that.

Speaker Change: Seen so favorably.

Speaker Change: Sustainable ingredients.

Speaker Change: Other activities in crop based.

Speaker Change: But I've seen the stats decidedly grades and that is a huge opportunity for us.

Speaker Change: Continues to grow we continue to get a lot of interest.

Speaker Change: Inbound interest from companies and this goes back to some of the earlier comments and the fact that where we've been over just developed systems for editing in in crops like rice and canola.

Speaker Change: And Linda.

Speaker Change: And we're bringing soybean on strain that is time bound unpredictable.

Peter Beetham: You know, it really has triggered a lot of interest because being able to return edited plants back to prospective customers within 12 months really changes the whole paradigm of what you do and how you integrate that into plant breeding programs. So, you know, when you think about some novel sustainable ingredients, our productivity traits that we're developing with herbicide tolerance, as well as our disease work, you know, you can see we've made a lot of progress very quickly with our canola work in the mode of actions that Greg explained with regard to disease resistance.

Speaker Change: It really has triggered a lot of interest because being up to return edited.

Speaker Change: <unk> back to prospective.

Speaker Change: Prospective customers within 12 months really changes the whole paradigm of what you do.

Speaker Change: And how you integrate that into plant breeding programs, so when you're thinking about.

Speaker Change: Some novel sustainable ingredients.

Speaker Change: Our productivity right.

Speaker Change: We are developing with our herbicide tolerance as well as.

Speaker Change: <unk> disease with you know you can say.

Speaker Change: We've made a lot of progress very quickly without canola work in the mode of actions that Greg just explained.

Speaker Change: Disease resistance so.

Austin Moeller: So, you know, I've expanded a little bit there to give you a good idea of why sustainable ingredients we see as a big part of our future business. Excellent. Thanks for the deep dive there. I appreciate it.

Speaker Change: I've expanded a little bit there too to give you a good idea of why sustainably in grade as we see it as a big part of our future business.

Speaker Change: Excellent. Thanks for the deep dive there I appreciate it.

Sameer Joshi: We'll take our next question from Sameer Joshi with H.C. Wainwright. Your line is open. Hey, good afternoon, guys. Thanks for taking my questions. Just some of the questions on the same topics that have been discussed by other callers.

Speaker Change: We'll take our next question from Sameer Joshi with H C. Wainwright Your line is open.

Sameer Joshi: Oh, Hey, good afternoon, guys. Thanks for taking my questions.

Speaker Change: Just some off.

Speaker Change: Quick questions on the same topics that have been discussed on the call.

Speaker Change: All of those.

Sameer Joshi: On the sustainable ingredients space, Is there, apart from customer testing, is there any other regulatory or other kind of testing that is required before you can start selling or it's just because it's the molecule is the same, the customer is the only one who is going to test? So thanks for the questions, Sameer. What we've been able to do over the last couple of years is really work pretty closely with prospective customers. And so they understand the active ingredient of the product already. What we've been excited by is the ability to scale quickly and maintain that quality.

Speaker Change: On the sustainable ingredients.

Speaker Change: Speech.

Speaker Change: The space is.

Speaker Change: Is there a part from customer testing.

Speaker Change: Testing is there any other regulatory or other kind of testing that is required before you can start selling or its just because its the molecule theme.

Speaker Change: The customer is the only one who is going to test it.

Sumit: So thanks for the question Sumit.

Sumit: What we've been able to do over the last couple of years has really worked pretty closely with prospective customers.

Sumit: And so they understand.

Sumit: The active ingredient.

Sumit: <unk> already.

Sumit: Now what we're what we've been excited by is the ability to scale quickly and maintain that quality.

Peter Beetham: And so to answer specifically to your question, over the next few months that will be tested within the hands of customers and they will look to see where the demand is. We know primarily that there is great demand and then the supply of managing that.

Sumit: So.

Sumit: To answer specifically to your question.

Sumit: Over the next few months that will be.

Sumit: Tested within.

Sumit: The hands of customers and they will look to see where the demand is we know primarily that there is great demand and then the supply is managing that and I think the.

Peter Beetham: And I think the The exciting part about this for us at Cibus is, you know, we are a royalty-based company with regard to the business model. This does fit with the same business model but does diversify things because this allows us to get some development programs to expand in this area. And, you know, what we've been able to do is work on a fermentation product that is scalable but it is also easily to work through other opportunities. So we've started with two. There are, you know, over a dozen more opportunities in this space and so, you know, diversifying our Now both with development programs and royalties allows us to sort of really broaden our portfolio.

Sumit: The exciting part about this for us to say this is we are royalty based company.

Sumit: Company was.

Sumit: With regards to the business model. This does fit with the same business model, but it does diversify things because this allows us to get some development programs.

Sumit: To expand in this area.

Sumit: And.

Sumit: What we've been able to do is.

Sumit: Work on a fermentation product that is and then this scalable but it is also easily too.

Sumit: Works through other opportunities. So we've started with true.

Sumit: There are no over dozen more opportunities in this space and so diversifying al.

Sumit: No both with development programs and royalties allows us to sort of really broaden our portfolio.

Sameer Joshi: Understood.

Sameer Joshi: On the European front, once the trilogue is done and all the regulations are in place, Do you anticipate repeating any of the trials for that region or there will be some of the different crops there, but just wanted to see if the same crops are to be used on, or same traits are to be used on the same crops. You can just transfer the U.S. tests onto there.

Sumit: Understood.

Sumit: On the European front once the Trilogue has done and all the regulations.

Sumit: These.

Speaker Change: Do you anticipate repeating any of the trials for that region or they.

Sumit: It will be for.

Sumit: So on the different crops, there, but just wanted to see the same crops are.

Sumit: It can be used upon our St Pete's ought to be using the same crops. You can just Johnson the U S.

Sumit: That's onto that.

Peter Beetham: So Sameer, it's a really good question. As we've shared before, we've been running trials in the U.K. already. One thing that is hot off the press just yesterday was that the U.K. actually passed their secondary legislation. So that'll make our trialing easier because we'll be putting in applications to broaden that later this year. The The beauty of doing it in the UK is that we can use trialling, and this will be our second year trialling in the UK, with materials that are adapted for the European market conditions but also the environmental conditions. So, you know, we've already sort of got a leapfrog on that with regards to a couple of years in the UK.

Sumit: So to me as well.

Sumit: Really good question I the as we've.

Speaker Change: Shared before we've been running trials in the UK already.

Sumit: The.

Sumit: One thing that is hot off the press just yesterday was the U K actually Costa as secondary legislation.

Sumit: So that.

Sumit: That will make our trialing easier because we'll be putting in applications to broaden that later this year.

Sumit:

Sumit: The beauty of doing it in the U K is that we can use trialing.

Sumit: And this will be a second you're trialing in the UK.

Sumit: With materials that are adapted for the European market conditions, but also the environmental conditions. So no.

Sumit: We've already sort of got a leapfrog on that with regards to a couple of years in the U K and this this is fairly standard a lot of seed companies based in Europe are often use the.

Peter Beetham: And this is fairly standard. A lot of seed companies based in Europe often use the UK as a site for trialing. We believe, you know, that... based on the EU's decision now that we could also start trialing next year in the EU. There have been trials already in Italy with rice that's been edited. So we're moving pretty quickly in that area as well. Sounds good. It looks like you have already sort of a little bit of a head start there. That's good to know.

Sumit: The U K as a site for Trialing.

Sumit: We believe.

Sumit: That.

Sumit: Based on the use decision now that we could also start Trialing next year in the U E U.

Sumit: There have been trials already in Italy, with Ross, there's been Edison. So we're moving pretty quickly in that area as well.

Sumit: Sounds good looks.

Speaker Change: It looks like you have already sort of a little bit of head start that Oh, that's good to know.

Sameer Joshi: On the cost reduction front, I know the R&D costs have been reduced a bit, and apart from this one-time cost, your costs are expected to be lower this year.

Speaker Change: On the cluster addiction front I know the like the R&D costs have been reduced a bit and apart from this one time costs.

Speaker Change: Costs are expected to be lower this year.

Speaker Change: Sure.

Carlo Broos: What kind of run rate are you expecting for the rest of the three quarters in terms of cash burn? So, let me start out. Thanks, Sameer, because it's an important question. We can always work on making sure that we resource the right programs and look at our cost reductions. You know, I think we've done well over the last couple of years where we've, you know, essentially, just in last October, we've reduced it by 20%. We'd like to further that. We're seeing synergies within our organization and some consolidation of facilities, activity, and I think that is going to help in the future.

Speaker Change: What kind of run rate are you expecting.

Speaker Change: For the rest of the.

Speaker Change: Three quarters in terms of cash burn.

Speaker Change: So let me start out thanks to me because it's an important question.

Speaker Change: We can always working on on making sure that we were sourcing programs and look at our cost reductions.

Speaker Change: I think we've done well over the last.

Speaker Change: A couple of years, where we've.

Speaker Change: Essentially no adjusted last October we've reduced it by 20%.

Speaker Change: We'd like to further that.

Speaker Change: Were seeing synergies within our organization and some consolidation.

Speaker Change: All facilities activity and I think that is going to help in the future, but that's something we're very much focused on and I'll, let tallo expand on that to be specific on the burn for this year. So I don't like to talk about doing that doing so and what you see in quarter. One is what you can almost projects.

Carlo Broos: But that's something we're very much focused on, and I'll let Carlo expand on that.

Sameer Joshi: Yeah, to be specific on the burn for this year. So, I always like to talk about the net burn. So, and what you see in quarter one is what you can almost project later in the year. So, there we talk about a burn, a net burn of around $4 million and opportunities to reduce that would sit in increased partner success. But that's where we are today. Understood. Thanks. Thanks a lot, Rana.

Speaker Change: Later in the year. So there was talk about burn and that bring us around $4 million.

Speaker Change: And opportunities you would use that would sit in the increase.

Speaker Change: Partner success.

Speaker Change: But that's where we are today.

Speaker Change: Thanks, Thanks for that matter.

Sameer Joshi: Thanks for taking my call.

Speaker Change:

Speaker Change: Thanks for taking my questions.

Matthew Venezia: We'll take our last question from Matthew Venezia with AGP. Your line is open. Hey, guys, thanks for taking my questions. So to get into the regulatory approvals a little bit, you had the one coming from Ecuador. I was wondering if there are other Latin American countries that are rice producers. Do do they have similar regulatory frameworks to Ecuador where it's kind of like an M.I. regulated situation? And then I have a couple more on top of that.

Speaker Change: Well take our last question from Matthew <unk> with a G. P. <unk> your line is open.

Speaker Change: Hey, guys. Thanks for taking my questions.

Speaker Change: So to get into the regulatory approvals a little bit.

Speaker Change: Had one come in from Ecuador, I was wondering if there are other Latin American countries that have rights producers.

Speaker Change: Do they have similar regulatory frameworks to Ecuador, where it's kind of like an M. I regulated situation and then I have a couple more.

Speaker Change: On top of that.

Peter Beetham: That's a great question, Matt, so thank you. You know, Ecuador is specifically a country that had said they do not accept, strictly prohibits was the words, for transgenic or GMO crops. So for us, it was one of the important Latin American countries to make sure that they understood what our products were and that they would be accepted as gene-edited or as conventional breeding. A lot of the other Latin American countries actually have looked to Ecuador as sort of a lightning rod for understanding the best way to go forward. So I think that has clearly opened up a really positive approach to the regulatory.

Matt: That's a great question, Matt So thank you.

Speaker Change: Ecuador is specifically a country that has.

Speaker Change: Said, they do not accept strictly prohibits was it was for.

Speaker Change: Trends Jennie O GMO.

Speaker Change: <unk> crops so for us it was one.

Speaker Change: One of the important Latin American countries to make sure that I understood.

Speaker Change: But I swear and that they wouldn't be accepted as gene edited and O as conventional breeding.

Speaker Change: Hmm.

Speaker Change: A lot of the other Latin America countries actually looks to Ecuador, as sort of a lightning rod for understanding the best way to go forward. So I think that has.

Speaker Change: Clearly opened up I really positive approach to the regulatory and you know many of the other countries have already gone down that path. So Ecuador was the one that we wanted to make sure was clear.

Peter Beetham: And many of the other countries have already gone down that path. So Ecuador is the one that we wanted to make sure was clear. Yeah, and just to add to that, Matthew, so you you have a number of other countries in South America who already look Gene-edited Products as Conventional Breeding. So, as for our canola business, for instance, we've been producing seed in the off-season in Chile, but you also have sort of the same sort of confirmation in countries like Colombia, Brazil, and other. Got it, thank you.

Speaker Change: Yes, and just to add to that Matthew So you.

Speaker Change: You have a.

Speaker Change: Number of other countries in South America and.

Speaker Change: Already look at gene edited products as conventional breeding so.

Speaker Change: As for Canola business for instance, we've been producing seed in the off season in Chile.

Speaker Change: But you also how.

Speaker Change: Sort of the same sort of confirmation in countries like Colombia, Brazil.

Speaker Change: And others.

Speaker Change: Okay.

Speaker Change: Got it thank you and then.

Peter Beetham: And then in terms of your rice products, I just wanted to ask if there's like existent use of cholesoderm by rice farmers in the Latin American geography, or if it's kind of going to be like a de novo launch of the herbicide tolerance trait with the herbicide to farmers. Excellent question, Matthew. So, for tolerance to clusidem, clusidem is an approved herbicide in South America. And this trait enables resistance to that herbicide. And clusidem is a grass herbicide and the biggest challenges for rice growers are Red rice or rice, weedy rice that's very related to the regular conventional rice, but also other grass weeds that are challenging, especially in South America where you're in a very tropical environment.

Speaker Change: In terms of your rice products I just wanted to ask if there is like existent use of class sedan by rice farmers in the Latin American geography, or if it's kind of going to be like a de novo launch out of the Hum.

Speaker Change: I heard was that tolerance trait with herbicide to farmers.

Speaker Change: Yeah excellent question Matthew so.

Speaker Change: Four four tolerance to cluster them all.

Speaker Change: Cost item isn't approved herbicide in our in South America.

Speaker Change: And.

Speaker Change: This is a this trade enables resistance to that herbicides and close it.

Speaker Change: Closet, and Theres, a grass herbicide in the biggest challenges for rice growers are.

Speaker Change: Red Rice or rice, <unk> rice dairy related to <unk> to the regular conventional rice, but also other grass weeds that are challenging, especially in south.

Speaker Change: South America.

Speaker Change: Where you are in a very tropical environment.

Peter Beetham: Gotcha. So it's an improved herbicide. And is there like usage data right now for I guess, or like maybe sales data that Alba has of how well Clethodim does in the market currently? Let me jump in there too, and then I'll let Greg expand, but I think the, you know, calcidin on unedited rice will kill it. So it's used in other crops right now, and you know, OBAR, have done a number of registrations in other geographies, but I think that where we're the Latin American partners, we will be working with them going through the variety registration as well as the chemical registrations over the next 12 months.

Speaker Change: Gotcha.

Speaker Change: It's been improved herbicide and is there like usage data right now for I guess learned like maybe sales data that Alba has of how well question guys in the market currently.

Speaker Change: Let me jump in there too and then I'll, let Greg.

Speaker Change: Great.

Speaker Change: <unk>, but I think the.

Speaker Change: Close to them.

Speaker Change: I needed to address will kill it.

Speaker Change: So it's used it's used in.

Speaker Change: In other crops.

Speaker Change: Right now and I know Obama.

Speaker Change: They have done a number of.

Speaker Change: Registrations.

Speaker Change: Other geographies, but I think the way we're.

Speaker Change: Latin American.

Speaker Change: Partners.

Speaker Change: We will be working with them going through the variety of registration as.

Speaker Change: As well as the chemical registrations.

Speaker Change: Over the next 12 months.

Greg Gocal: And Matthew, just to add a little, just to add a little bit. So as Peter said, you're using Plessaden to manage, to manage grass weeds, not in, not in rice today, but with the trade that we're moving forward that that provides an additional tool for rice farmers to use in South American markets and globally in Got it.

Matthew: And Matthew just to add a little just to add a little bit so as Peter said youre using closet to manage.

Matthew: To manage grass weeds not in not.

Speaker Change: Not in rice today, but with the trade that we're moving forward that that provides an additional tool for rice farmers to use in the South American markets.

Matthew: Globally an attack.

Matthew Venezia: All right. Thank you guys for taking my question. Thank you.

Matthew: Got it alright, Thank you guys for taking my questions.

Matthew: Okay.

Operator: This does conclude the Q&A portion of today's call.

Speaker Change: This does conclude the Q&A portion of today's call I'd now like to turn it back to management for any additional or closing remarks.

Peter Beetham: I'd now like to turn it back to management for any additional or closing remarks. So thank you, everybody, for today.

Speaker Change: So thank you everybody for today.

Peter Beetham: I want to just stress that we do see this as an inflection point for the company. So many things have been moving in the right direction for us as a company on both the ability to provide edited products back to customers in time-bound and predictable ways. uh We also have that in. The understanding that the regulatory agencies around the world are recognizing what we do and the outcomes of what we have from our procedures are seen as indistinguishable from what occurs in nature and intersect with plant breeding programs with the seed company partners that we've been working with for a number of years.

Matthew: I want to just stress that we.

Matthew: We do see this as an inflection point for the company.

Matthew: So many things have been moving in the right direction for us as a company on both the ability to provide edited.

Matthew: Alex back to customers at a time bound and predictable way.

Matthew: Uh huh.

Matthew: We also have that in there.

Matthew:

Matthew: Understanding that the regulatory agencies around the world are recognizing what we do and the outcomes of what we.

Matthew: Have from Al Chris Ages.

Matthew: Scene is indistinguishable from what it says in nature.

Matthew: And intersect with plant breeding programs with the seed company partners that we've been working with for a number of years.

Peter Beetham: So, you know, with those two key items, you know, it's been, we're very proud to present, you know, opportunities in this marketplace. And as I said before, I think this whole industry is really recognizing the power of gene editing. And so providing traits that allow you. As a farmer, to be more productive on every acre, to use less inputs, less chemistry is really good for the environment and for the impact on climate, but it's also, most importantly for the farmer, allows them to be more profitable. And at this stage and time, I think it's really important that farmers can access seeds that we provide through our partners to be more profitable.

Matthew: So with those two key items.

Matthew: And we're very proud to.

Matthew: Present.

Matthew: Opportunities in this marketplace and as I said before I think this whole industry is really recognizing the power of gene editing.

Matthew: And so providing traits that allow you.

Matthew: As a farmer to be more productive.

Speaker Change: Yeah on every acre to use less imports less chemistry.

Speaker Change: It was really good for the environment and so the impact on climate, but it's also most importantly for the farmer.

Speaker Change: <unk> allows them to be more profitable and this and at this stage in time I think it's really important.

Kent: As Kent.

Kent: Can access seeds that we provide for.

Speaker Change: What about partners to be more profitable.

Peter Beetham: So the other, last thing I'd like to say, and in closing, is also just how proud I am of the team. You know, we're very fortunate at Cibus. We have a team that has been together for many years. So many of us have been involved in building to where we are today. I couldn't be prouder of working for and presenting this on behalf of that team. So thank you very much.

Speaker Change: So the last thing I'd like to say in closing is also just how proud I am of the team. We're very fortunate that save US we have a team that has been together for many years.

Speaker Change: So many of US have been involved in building to where we are today I couldn't be prouder of working full and presenting this on behalf of that team. So thank you very much.

Operator: This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful evening.

Speaker Change: This does conclude today's program. Thank you for your participation you may disconnect at any time and have a wonderful evening.

Operator: Employee of the Week.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: [music].