Q2 2025 Cibus Inc Earnings Call

August 14, 2025

Opportunity to ask questions.

Peter Beetham: Thank you.

Operator: Mode. After today's presentation, there will be an opportunity to ask questions. Please also note, today's event is being recorded. At this time, I would like to turn the conference over to Carlo Broos, Interim Chief Financial Officer. Please go ahead.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Please also note today's event is being recorded.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

At this time I would like to turn the conference over to Carlo Bruce Interim Chief Financial Officer. Please go ahead.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Thank you.

Operator: Thank you.

Peter Beetham: Please stand by your program is about to begin. If you need assistance during your conference today, please press star zero. Good afternoon and welcome to the CBIS second quarter 2025 results conference 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. At this time, I would like to turn the conference over to Carlo Broos, interim chief financial officer. Please go ahead.

Speaker #2: If you need assistance during your conference today, please press star zero. Good afternoon and welcome to the Cibus second quarter 2025 results conference call.

Thank you and good afternoon, I would like to thank you for taking time to join US receive the second quarter 2025 financial results and business update conference call and webcast.

Carlo Broos: Thank you. Good afternoon. I would like to thank you for taking time to join us for Cibus' Q2 2025 Financial Results and Business Update Conference Call and Webcast. Presenting with me today is Peter Beetham, Co-Founder, Interim Chief Executive Officer, President, and COO, and Greg Gocal, Co-Founder and our Chief Scientific Officer. 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, 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. This conference call is being webcast.

Speaker #2: All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note that today's event is being recorded.

Presenting with me today is going to be some co founded interim Chief Executive Officer, President and COO, and Matt Goetschel co founder and our Chief Scientific Officer.

Speaker #2: At this time, I would like to turn the conference over to Carlo Broos, Interim Chief Financial Officer. Please go ahead.

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.

Speaker #3: Thank you, and good afternoon. I would like to thank you for taking the time to join us for Cibus' second quarter 2025 financial results and business update conference call and webcast.

Carlo Broos: Thank you and good afternoon. I would like to thank you for taking time to join us for CBIS second quarter 2025 financial results and business update conference call and webcast. Presenting with me today is Peter Beetham, co-founder, interim chief executive officer, president and COO, and Greg Gotcho, co-founder and our chief scientific officer. 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 CBIS SEC findings for a list of associated risks. This conference call is being webcast.

Speaker #3: Presenting with me today is Peter Beetham, co-founder, interim Chief Executive Officer, President, and COO, and Greg Goccio, co-founder and our Chief Scientific Officer. 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, 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.

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Please refer to <unk> SEC filings for at least the associated risks. This going from school is being webcast. The webcast link along with our press release and corporate presentation are available on the Investor Relations section of <unk> Com to assist you in your analysis of our business.

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. With that, I would now like to turn the call over to Peter.

With that I would now like to during the call over to Peter.

Thanks, Carlo and good afternoon to everyone.

Speaker #3: Please refer to Cibus as you see findings for a list of associated risks. 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 cibus.com.

Peter Beetham: Thanks, Carlo, and good afternoon to everyone. I'd like to start today's call to recognize that our team here at Cibus remains laser-focused on delivering our targeted near-term revenues. Our Q2 demonstrates continued execution toward our commercial objectives with clear progress across our focus programs in rice and partner-funded and/or supported sustainable ingredients, including biofragrances, that are positioning Cibus to begin recognizing initial revenue in 2026. Every quarter, we are getting closer to that pivotal initial revenue moment through tangible commercial progress, which includes successful field trials, milestone achievements, regulatory clearances, and direct customer engagement. The path to revenue is really clear. Let me be even more specific about what we're building toward. Our rice herbicide tolerance traits, HT1 and HT3 alone, represent over $200 million in potential annual royalty revenue across our initial target geographies in the United States and Latin America.

I'd like to start today's call to recognize that our team here at Phoebus remains laser focused on delivering our targeted near term revenues.

Carlo Broos: The webcast link, along with our press release and corporate presentation, are available on the investor relations section of cbis.com to assist you in your analysis of our business. And with that, I would now like to turn the call over to Peter.

Our second quarter demonstrates continued execution toward our commercial objectives with clear progress across our focus programs and Ron.

Speaker #3: To assist you in your analysis of our business, I would now like to turn the call over to Peter.

The funded and will support a sustainable ingredients, including by fragrances that are positioning <unk> to begin recognizing initial revenue in 2026.

Speaker #4: Thanks, Carlo, and good afternoon to everyone. I'd like to start today's call by recognizing that our team here at Cibus remains laser-focused on delivering our targeted near-term revenues.

Peter Beetham: Thanks, Carlo, and good afternoon to everyone. I'd like to start today's call to recognize that our team here at CBIS remains laser-focused on delivering our targeted near-term revenues. Our second quarter demonstrates continued execution toward our commercial objectives, with clear progress across our focus programs in rice and partner-funded and/or supported sustainable ingredients, including biofragrances, that are positioning CBIS to begin recognizing initial revenue in 2026. Every quarter, we are getting closer to that pivotal initial revenue moment through tangible commercial progress, which includes successful field trials, milestone achievements, regulatory clearances, and direct customer engagement. The path to revenue is really clear. Let me be even more specific about what we're building toward. Our rice herbicide tolerance traits, HT1 and HT3 alone, represent over $200 million in potential annual royalty revenue across our initial target geographies in the United States and Latin America.

Every quarter, we are getting closer to that pivotal initial revenue moment through tangible commercial progress which includes successful field trials.

Speaker #4: Our second quarter demonstrates continued execution toward our commercial objectives. With clear progress across our focus programs and RICE, along with partner-funded and/or supported sustainable ingredients, including biofragrances, Cibus is positioning itself to begin recognizing initial revenue in 2026.

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The path to revenue is really clear.

Let me be even more specific about what we're building toward.

Our <unk> HD, one HD three alone represent over $200 million.

Speaker #4: Every quarter, we are getting closer to that pivotal initial revenue moment through tangible commercial progress, which includes successful field trials, milestone achievements, regulatory clearances, and direct customer engagement.

In potential annual royalty revenue across our initial target geographies in the United States and Latin America.

Speaker #4: The path to revenue is really clear. Let me be even more specific about what we're building toward. Our RICE herbicide tolerance traits, HT1 and HT3 alone, represent over $200 million in potential annual royalty revenue across our initial target geographies in the United States and Latin America.

These traits are progressing on schedule towards targeted initial launches in Latin America, beginning in 2027 and expanding to the United States in 2028.

Peter Beetham: These traits are progressing on schedule toward targeted initial launches in Latin America beginning in 2027 and expanding to the United States in 2028, which would generate initial royalty revenue and set the stage for further opportunities in the immense global rice seed market. This pursuit doesn't represent a distant aspiration. Rather, this is the reality of our near-term commercial opportunities. We believe we are developing a new industrial plant breeding platform. We have traits moving into customer germplasm. We're seeing positive results in field trials, and we're witnessing an increasingly accepting global regulatory environment that's opening doors for customer engagement and market penetration opportunities that simply didn't exist before. As we advance towards revenue generation, we're taking a disciplined and strategic approach to capital allocation that maximizes our near-term commercial opportunities while preserving the significant value we've created across our broader trait portfolio.

Which would generate initial royalty revenue and set the stage for further opportunities in the immense global rights seed market.

This pursuit doesn't represent a distant aspiration rather this is the reality of our near term commercial opportunities. We believe we are developing a new industrial plant breeding platform.

Speaker #4: These traits are progressing on schedule toward targeted initial launches in Latin America beginning in 2027 and expanding to the United States in 2028, which would generate initial royalty revenue and set the stage for further opportunities in the immense global RICE feed market.

Peter Beetham: These traits are progressing on schedule toward targeted initial launches in Latin America beginning in 2027 and expanding to the United States in 2028, which would generate initial royalty revenue and set the stage for further opportunities in the immense global rice seed market. This pursuit doesn't represent a distant aspiration; rather, this is the reality of our near-term commercial opportunities. We believe we are developing a new industrial plant breeding platform. We have traits moving into customer germplasm. We're seeing positive results in field trials, and we're witnessing an increasingly accepting global regulatory environment that's opening doors for customer engagement and market penetration opportunities that simply didn't exist before. As we advance towards revenue generation, we're taking a disciplined and strategic approach to capital allocation that maximizes our near-term commercial opportunities while preserving the significant value we've created across our broader trait portfolio.

We have tried to moving into customer germ plasm, we're seeing positive results in field trials and we are witnessing an increasingly accepting global regulatory environment that is opening doors for customer engagement and market penetration opportunities that simply didn't exist before.

Speaker #4: This pursuit doesn't represent a distant aspiration. Rather, this is the reality of our near-term commercial opportunities. We believe we are developing a new industrial plant breeding platform, we have traits moving into customer germplasm, we're seeing positive results in field trials, and we're witnessing an increasingly accepting global regulatory environment that's opening doors for customer engagement and market penetration opportunities that simply didn't exist before.

As we advance towards revenue generation, we're taking a disciplined and strategic approach to capital allocation that maximizes our near term commercial opportunities while preserving the significant value we've created across our broader <unk> portfolio.

The streamlined operational focus we just announced in July concentrate our resources on our rice herbicide tolerant traits partner funded and all support a sustainable ingredients programs, including by fragrances.

Peter Beetham: The streamlined operational focus we just announced in July concentrates our resources on our rice herbicide tolerance traits, partner-funded and/or supported sustainable ingredients programs, including biofragrances. These are our nearest term revenue opportunity drivers with the clearest, most efficient path to market. This calibrated focus is designed to reduce our annual cash usage to approximately a net $30 million by 2026, extending our runway while positioning us to capture the significant revenue opportunity ahead of us. That said, we have invested substantial resources and expertise in developing a portfolio of opportunity pipeline traits and programs that includes highly valuable productivity traits across multiple crops. We are actively in pursuit of partner-funded projects for these traits until such time as our capital resources are sufficient to efficiently support more robust development efforts.

Speaker #4: As we advance towards revenue generation, we're taking a disciplined and strategic approach to capital allocation that maximizes our near-term commercial opportunities while preserving the significant value we've created across our broader trait portfolio.

These are our near term revenue opportunity drivers with the clearest most efficient path to market.

This calibrated focus is designed to reduce our annual cash usage to approximately a net $30 million by 2026, extending our runway while positioning us to capture the significant revenue opportunity ahead of us.

Speaker #4: The streamlined operational focus we just announced in July concentrates our resources on our RICE herbicide tolerance traits, partner-funded and/or supported sustainable ingredients programs, including biofragrances.

Peter Beetham: The streamlined operational focus we just announced in July concentrates our resources on our rice herbicide tolerance traits, partner-funded and/or supported sustainable ingredients programs, including biofragrances. These are our nearest-term revenue opportunity drivers with the clearest, most efficient path to market. This calibrated focus is designed to reduce our annual cash usage to approximately a net $30 million by 2026, extending our runway while positioning us to capture the significant revenue opportunity ahead of us. That said, we have invested substantial resources and expertise in developing a portfolio of opportunity pipeline traits and programs that includes highly valuable productivity traits across multiple crops. We are actively in pursuit of partner-funded projects for these traits until such time as our capital resources are sufficient to efficiently support more robust development efforts.

Speaker #4: These are our nearest-term revenue opportunity drivers, with the clearest, most efficient path to market. This calibrated focus is designed to reduce our annual cash usage to approximately a net $30 million by 2026.

That said, we have invested substantial resources and expertise in developing a portfolio of opportunity pipeline traits in programs that includes highly valuable productivity trades across multiple crops.

We are actively in pursuit of partner funded projects.

Speaker #4: Extending our runway while positioning us to capture the significant revenue opportunity ahead of us. That said, we have investors substantial resources and expertise in developing a portfolio of opportunity pipeline traits and programs, that includes highly valuable productivity traits across multiple crops.

These traits until such time as our capital resources are sufficient to efficiently support more robust development efforts.

I will now take a few moments to discuss our priority programs and recent regulatory progress before passing it over to Greg to discuss our opportunity pipeline tried some programs in more detail.

Peter Beetham: I will now take a few moments to discuss our priority programs and recent regulatory progress before passing it over to Greg to discuss our opportunity pipeline traits and programs in more detail. Starting with our rice platform, which is our number one priority pipeline trait and foundation for near-term revenue generation, we continue to make significant progress with trait integration, field trials, and registration activities, each of which are on track to meet our targeted commercial timelines. This quarter, we also achieved a key milestone by completing edits and delivering stacked traits containing our HT3 trait to a second US partner. Our customer momentum continues to build significantly. Recently, we signed an agreement with Semillano, a Colombian-based Latin American rice seed company, marking our fifth customer in the Americas.

Speaker #4: We are actively in pursuit of partner-funded projects for these traits until such time as our capital resources are sufficient to efficiently support more robust development efforts.

Starting with our rock platform, which is our number one priority pipeline try and foundation for near term revenue generation, we continue to make significant progress with trait integration field trials and registration activities each of which are on track to meet our targeted commercial timelines.

Speaker #4: I will now take a few moments to discuss our priority programs and recent regulatory progress before passing it over to Greg to discuss our opportunity pipeline traits and programs, in more detail.

Peter Beetham: I will now take a few moments to discuss our priority programs and recent regulatory progress before passing it over to Greg to discuss our opportunity pipeline traits and programs in more detail. Starting with our rice platform, which is our number one priority pipeline trait and foundation for near-term revenue generation, we continue to make significant progress with trait integration, field trials, and registration activities, each of which are on track to meet our targeted commercial timelines. This quarter, we also achieved a key milestone by completing edits and delivering stacked traits containing our HT3 trait to a second US partner. Our customer momentum continues to build significantly. Recently, we signed an agreement with Semilano, a Colombian-based Latin American rice seed company, marking our fifth customer in the Americas.

This quarter, we also achieved a key milestone by completing edits and delivering stacked traits containing our AC <unk> to our second U S partner.

Speaker #4: Starting with our RICE platform, which is our number one priority pipeline trait and foundation for near-term revenue generation, we continue to make significant progress with trait integration field trials and registration activities, each of which are on track to meet our targeted commercial timelines.

Our customer momentum continues to build significantly.

Recently, we signed an agreement with semi Lino, a Colombian based Latin Americans right seed company, marking our fifth customer in the Americas.

Speaker #4: This quarter, we also achieved a key milestone by completing edits and delivering stacked traits containing our HT3 trait to a second US partner. Our customer momentum continues to build significantly.

The greater penetration of Latin America is particularly exciting both with large and small participants as these markets have historically lacked access to advanced weight management solutions and Ross.

Peter Beetham: The greater penetration of Latin America is particularly exciting, both with large and small participants, as these markets have historically lacked access to advanced weed management solutions in rice, representing a transformative opportunity for Cibus to drive value for farmers in these key regions with our gene-edited HT traits. What's driving this commercial interest is our standardized platform that enables us to edit customers' elite germplasm and return it with specific traits in approximately 12 to 15 months. This represents a fundamental breakthrough that intersects with agriculture's important plant breeding programs, which, as I've said before, are the engine room of genetic innovation for the seed industry. Seed companies are coming to us because they recognize this creates a dependable model for trait development that is unlike anything the seed industry has seen before.

Representing a transformative opportunity for <unk> to drive value for farmers in these key regions without gene edited Ht traits.

Speaker #4: Recently, we signed an agreement with Semilano, a Colombia-based Latin American rice seed company, marking our fifth customer in the Americas. The greater penetration of Latin America is particularly exciting, both with large and small participants, as these markets have historically lacked access to advanced weed management solutions in rice.

What's driving this commercial interest is a standardized platform that enables us to edit customers elite germplasm and return it with specific trades in approximately 12 to 15 months.

Peter Beetham: The greater penetration of Latin America is particularly exciting, both with large and small participants, as these markets have historically lacked access to advanced weed management solutions in rice, representing a transformative opportunity for CBIS to drive value for farmers in these key regions with our gene-edited HT traits. What's driving this commercial interest is our standardized platform that enables us to edit customers' elite germplasm and return it with specific traits in approximately 12 to 15 months. This represents a fundamental breakthrough that intersects with agriculture's important plant breeding programs, which, as I've said before, are the engine room of genetic innovation for the seed industry. Seed companies are coming to us because they recognize this creates a dependable model for trait development that is unlike anything the seed industry has seen before.

This represents a fundamental breakthrough that intersects with agriculture is important plant breeding programs, which as I've said before the engine room of genetic innovation for the seed industry.

Speaker #4: Representing a transformative opportunity for Cibus to drive value for farmers in these key regions with our gene-edited HT traits. What's driving this commercial interest is our standardized platform that enables us to edit customers' elite germplasm and return it with specific traits in approximately 12 to 15 months.

<unk> companies are coming to us because they recognize this creates a dependable model the trade development that is unlike anything the seed industry has seen before.

This is the recognition that our rapid trait development system accelerates the adoption of gene edited traits into their best genetics faster than modern trade integration.

Speaker #4: This represents a fundamental breakthrough that intersects with agriculture's important plant breeding programs, which, as I've said before, are the engine room of genetic innovation for the seed industry.

Peter Beetham: This is the recognition that our rapid trait development system accelerates the adoption of gene-edited traits into their best genetics faster than modern trait integration. Field trial programs for rice are progressing as planned across our customer base, and we continue to advance trait registration activities that are essential for our Latin American launch targeted for 2027, 2028, and subsequent US commercialization targeted for 2028. We also expect to initiate our first trait validation trials in Latin America later this year, with delivery of initial HT traits to Latin American customers anticipated by year-end. Our partner-funded and supported sustainable ingredients program continues to serve as a complementary near-term revenue opportunity driver. We remain on track for nominal revenues from our biofragrance products beginning later this year, with targeted commercial expansion ramping in 2026.

Bill trial programs for us are progressing as planned across our customer base.

Speaker #4: Seed companies are coming to us because they recognize this creates a dependable model for trait development that is unlike anything the seed industry has seen before.

And we continue to advance registration activities that are essential for our Latin American launch target for 2027, 2028, and subsequent U S commercialization targeted for 2028.

Speaker #4: This is the recognition that our rapid trait development system accelerates the adoption of gene-edited traits into their best genetics faster than modern trait integration.

We also expect to initiate our first trial validation trials.

Latin America later this year with delivery of initial Ht traits to Latin American customers anticipated by year end.

Speaker #4: Field trial programs for RICE are progressing as planned, across our customer base. And we continue to advance trait registration activities, that are essential for our Latin American launch targeted for 2027, 2028, and subsequent US commercialization targeted for 2028.

Our partner funded and supported sustainable ingredients program continues to serve as a complementary near term revenue opportunity driver. We remain on track to nominal revenues from a buyer fragrance products. Beginning later this year with targeted commercial expansion ramping in 2026.

Speaker #4: We also expect to initiate our first trait validation trials in Latin America later this year, with delivery of initial HT traits to Latin American customers anticipated by year-end.

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This quarter, we successfully completed first a scale up up to buy a fragrance products.

Peter Beetham: This quarter, we successfully completed first-stage scale-up of two biofragrance products, supporting our expectations for realizing revenues from this program. The biofragrance program continues to meet development milestones and demonstrates the versatility of our core capabilities in creating value beyond our crop productivity traits. What's exciting about this area is the strong interest for bio-based products we're seeing from the consumer packaged goods industry. The industry is very interested in our ability to provide fragrances and other products that they previously had to source through either expensive natural processes or synthetics. We expect the revenue ramp to accelerate in this area over the next few years, providing a near-term offset to expenses as we advance our rice traits towards commercialization. Now shifting over to the regulatory front.

Speaker #4: Our partner-funded and supported sustainable ingredients program continues to serve as a complementary near-term revenue opportunity driver. We remain on track for nominal revenues from our bio fragrance products beginning later this year, with targeted commercial expansion ramping in 2026.

Floating and our expectations for realizing revenues from this program.

The buyer fragrance program continues to make development milestones and demonstrates the versatility of our core capabilities and creating value beyond the hour crop productivity traits.

What's exciting about this area is the strong interest for Biobased products, we're seeing from the consumer packaged goods industry.

Speaker #4: This quarter, we successfully completed the first-stage scale-up of two bio fragrance products. Supporting our expectations for realizing revenues from this program, the bio fragrance program continues to meet development milestones and demonstrates the versatility of our core capabilities in creating value beyond our crop productivity traits.

The industry is very interested in our ability to provide fragrances and other products that they previously had to source through either expensive natural processes.

Synthetics.

We expect the revenue ramp to accelerate in this area over the next few years, providing a near term offset to expenses as we advance our raw strides towards commercialization.

Speaker #4: What's exciting about this area is the strong interest for bio-based products we're seeing from the consumer packaged goods industry. The industry is very interested in our ability to provide fragrances and other products that they previously had to source through either expensive natural processes or synthetics.

Now shifting over to the regulatory front, we continue to see acceptance of gene editing technologies that is fundamentally changing the commercial landscape and the opportunity set for innovators such as savings.

Peter Beetham: We continue to see acceptance of gene editing technologies that is fundamentally changing the commercial landscape and the opportunity set for innovators such as Cibus. While the EU trialogue discussions have extended beyond their initial 30 June target this year, I want to emphasize that this process, while delayed, has not stalled, and customers remain engaged and excited about the opportunities that await. The trialogue is a highly iterative process involving detailed committee work streams and negotiations among individual member countries, the parliament, and the commission. These discussions are actively progressing, and we believe resolution will occur within the next 6 months. When completed, this will represent an incredible moment for our industry, one in which Cibus is uniquely positioned to benefit from due to our positive regulatory track record and commercial-ready traits.

Speaker #4: We expect the revenue ramp to accelerate in this area over the next few years, providing a near-term offset to expenses as we advance our RICE traits towards commercialization.

While the AUR Shiloh discussions.

Have extended beyond the initial June 30th target. This year I want to emphasize that this process, while delayed has not stalled and customers remain engaged and excited about the opportunity that awaits.

Speaker #4: Now, shifting over to the regulatory front, we continue to see acceptance of gene-editing technologies that are fundamentally changing the commercial landscape and the opportunity set for innovators such as Cibus.

Peter Beetham: Now, shifting over to the regulatory front, we continue to see acceptance of gene-editing technologies that are fundamentally changing the commercial landscape and the opportunity set for innovators such as CBIS. While the EU trilog discussions have extended beyond their initial June 30th target this year, I want to emphasize that this process, while delayed, has not stalled, and customers remain engaged and excited about the opportunity that awaits. The trilog is a highly iterative process involving detailed committee workstreams and negotiations among individual member countries, the Parliament, and the Commission. These discussions are actively progressing, and we believe resolution will occur within the next six months. When completed, this will represent an incredible moment for our industry, one in which CBIS is uniquely positioned to benefit from due to our positive regulatory track record and commercial-ready traits.

The Trilogue has a highly iterative process involving detailed committee work streams and negotiations among individual member countries. The Parliament and the commission. These discussions are actively progressing and we believe resolution will occur within the next six months.

Speaker #4: While the EU trilog discussions have extended beyond their initial June 30th target this year, I want to emphasize that this process, while delayed, has not stalled and customers remain engaged and excited about the opportunities that await.

When completed this will represent an incredible moment for our industry, one in which <unk> is uniquely positioned to benefit from due to our positive regulatory track record and commercial ready twice.

Speaker #4: The trilog is a highly iterative process, involving detailed committee workstreams and negotiations among individual member countries. The Parliament and the Commission. These discussions are actively progressing and we believe resolution will occur within the next six months.

The transition from Paulista Danish EU Council presidency has brought fresh momentum with Danish officials, having clear visibility on the specific outstanding items requiring resolutions.

Peter Beetham: The transition from Polish to Danish European Council presidency has brought fresh momentum, with Danish officials having clear visibility on the specific outstanding items requiring resolution. This regulatory advancement, combined with our recent positive determination in Ecuador, ongoing approvals across North and South America, and continued regulatory clarity in India and parts of Asia, is creating a foundation to market our traits globally. These regulatory developments across multiple geographies significantly strengthen the commercial opportunity for our trait pipeline and serve as important catalysts for our business. With that, I will now pass the call over to Greg to discuss our opportunity pipeline traits and programs. Greg?

Speaker #4: When completed, this will represent an incredible moment for our industry. One in which Cibus is uniquely positioned to benefit from, due to our positive regulatory track record and commercial-ready traits.

This regulatory advancement combined with our recent positive determination in Ecuador ongoing approvals across North and South America, and continued regulatory clarity in India and parts of Asia.

Creating a foundation to market outright globally.

Speaker #4: The transition from polished to Danish EU council presidency has brought fresh momentum, with Danish officials having clear visibility on the specific outstanding items requiring resolution.

Peter Beetham: The transition from Polish to Danish EU Council presidency has brought fresh momentum, with Danish officials having clear visibility on the specific outstanding items requiring resolution. This regulatory advancement, combined with our recent positive determination in Ecuador, ongoing approvals across North and South America, and continued regulatory clarity in India and parts of Asia, is creating a foundation to market our traits globally. These regulatory developments across multiple geographies significantly strengthen the commercial opportunity for our trait pipeline and serve as important catalysts for our business. And with that, I will now pass the call over to Greg to discuss our opportunity pipeline traits and programs. Greg?

These regulatory developments across multiple geographies significantly strengthened the commercial opportunity for outright Potline and service.

Important catalysts around business and.

Speaker #4: This regulatory advancement, combined with our recent positive determination in Ecuador, ongoing approvals across North and South America, and continued regulatory clarity in India and parts of Asia, is creating a foundation to market our traits globally.

With that I will now pass the call over to Greg to discuss our opportunity pipeline traits and programs right.

Thank you Peter.

Now before I share more details about our substantial opportunity pipeline.

Greg Gocal: Thank you, Peter. Now, before I share more details about our substantial opportunity pipeline, I would like to add my own endorsement of the breadth of the gene editing toolbox our talented team has developed here at Cibus. As a career plant biologist with over 25 years experience in gene editing development, I continue to be impressed by the advances we make at Cibus in our underlying editing frequency of gene editing at a cellular level. These advances pave the way for our commercial opportunities for the most important traits in our partners' most elite seeds. Now let me share more details about the substantial opportunity trait pipeline Peter just referenced, specifically our productivity traits portfolio and the partner interest we're seeing across multiple programs.

Speaker #4: These regulatory developments across multiple geographies significantly strengthen the commercial opportunity for our trait pipeline and serve as important catalysts for our business. And with that, I will now pass the call over to Greg to discuss our opportunity pipeline traits and programs.

I would like to add my own endorsement of the breath of the gene editing tool box, our talented team Hasnt developed here at Chico's.

As a career plant biologists with over 25 years experience in gene editing development.

I continue to be impressed by the advances we make at <unk> and.

Speaker #4: Greg? Thank you, Peter. Now, before I share more details about our substantial opportunity pipeline, I would like to add my own endorsement of the breadth of the gene-editing toolbox our talented team has developed here at Cibus.

Greg Gotcho: Thank you, Peter. Now, before I share more details about our substantial opportunity pipeline, I would like to add my own endorsement of the breadth of the gene-editing toolbox our talented team has developed here at CBIS. As a career plant biologist with over 25 years' experience in gene-editing development, I continue to be impressed by the advances we make at CBIS in our underlying editing frequency of gene editing at a cellular level. These advances pave the way for our commercial opportunities for the most important traits in our partners' most elite seeds. Now, let me share more details about the substantial opportunity trait pipeline Peter just referenced, specifically our productivity traits portfolio and the partner interest we're seeing across multiple programs.

Our underlying editing frequency of gene editing at a solid level.

These advances paved the way for our commercial opportunities.

For the most important traits in our partners most of wheat seeds.

Speaker #4: As a career plant biologist with over 25 years of experience in gene-editing development, I continue to be impressed by the advances we make at Cibus in our underlying editing frequency of gene editing at a cellular level.

Now, let me share more details about the substantial opportunity trade pipeline Peter just referenced.

Specifically, our productivity traits portfolio and the partner interest, forcing across multiple programs.

Speaker #4: These advances pave the way for our commercial opportunities for the most important traits in our partners' most elite seeds. Now, let me share more details about the substantial opportunity trait pipeline Peter just referenced.

While we remain strategically focused on our priority near term revenue drivers.

Greg Gocal: While we remain strategically focused on our priority near-term revenue drivers, the value we've built in our broader trait portfolio continues to generate meaningful commercial opportunities that we're well-positioned to pursue through partnerships. I'll briefly review some specific examples of the progress and partner interest we're seeing, starting with our canola programs. Our HT2 field trials have delivered promising early results, validating both the trait's tolerance profile and field efficacy. These positive field demonstrations have generated concrete interest from potential partners who recognize the significant commercial value of next-generation herbicide tolerance in canola's global market. Remember, this is our second-generation HT2 edits, which is a great example of how our technology can iterate and improve trait development. Equally compelling is our Sclerotinia resistance program in canola, which continues to attract substantial interest.

Value, we built in our broader trade portfolio continues to generate meaningful commercial opportunities.

That we are well positioned to pursue through partnerships.

Speaker #4: Specifically, our productivity traits portfolio and the partner interest we're seeing across multiple programs. While we remain strategically focused on our priority near-term revenue drivers, the value we've built in our broader trait portfolio continues to generate meaningful commercial opportunities.

I'll briefly review some specific examples of the progress and partner interest we're seeing.

Greg Gotcho: While we remain strategically focused on our priority near-term revenue drivers, the value we've built in our broader trait portfolio continues to generate meaningful commercial opportunities that we're well positioned to pursue through partnerships. I'll briefly review some specific examples of the progress and partner interest we're seeing, starting with our canola programs. Our HT2 field trials have delivered promising early results, validating both the trait's tolerance profile and field efficacy. These positive field demonstrations have generated concrete interest from potential partners who recognize the significant commercial value of next-generation herbicide tolerance in canola's global market. Remember, this is our second-generation HT2 edits, which is a great example of how our technology can iterate and improve trait development. Equally compelling is our sclerotinia resistance program in canola, which continues to attract substantial interest.

Starting with our canola programs.

Our H T. Two field trials have delivered promising early results validated both the traits tolerance profile and field efficacy.

Speaker #4: That we're well-positioned to pursue through partnerships. I'll briefly review some specific examples of the progress and partner interest we're seeing. Starting with our canola programs.

These positive field demonstrations have generated concrete interest from potential partners, who recognize the significant commercial value of next generation herbicide tolerance in canola global market.

Speaker #4: Our HT2 field trials have delivered promising early results, validating both the traits tolerance profile and field efficacy. These positive field demonstrations have generated concrete interest from potential partners who recognize the significant commercial value of next-generation herbicide tolerance in canola's global market.

Remember this is our second generation <unk> T to address.

Which is a great example of how our technology can iterate and improve trait development.

Equally compelling is our sclerotin year resistance program in canola.

Which continues to attract substantial interest potential.

Partners are particularly drawn to our multi layered approach to durable disease resistance.

Greg Gocal: Potential partners are particularly drawn to our multi-layered approach to durable disease resistance, an approach that addresses one of canola's most persistent and costly challenges while offering growers a more sustainable solution. Beyond canola, our soybean platform represents perhaps our most substantial long-term opportunity. Having successfully edited soybean cells for our HT2 trait earlier this year, we've made an initial step to demonstrate proof of concept to potentially access a market with an estimated 125 million accessible acres and potential annual trait royalties in the range of $10 to $15 per acre. The scale of this opportunity, combined with our technical progress, has generated serious partnership discussions. More recently, we've realized a commercial milestone with our altered lignin alfalfa program. Last month, the FDA completed its review of our altered lignin alfalfa trait, clearing the way for US commercialization.

Speaker #4: Remember, this is our second-generation HT2 edits. Which is a great example of how our technology can iterate and improve trait development. Equally compelling is our sclerotinia resistance program in canola.

An approach that addresses one of <unk>, most persistent and costly challenges, while offering growers a more sustainable solution.

Beyond canola, our soybean platform represents perhaps our most substantial long term opportunity.

Speaker #4: Which continues to attract substantial interest. Potential partners are particularly drawn to our multi-layered approach to durable disease resistance—an approach that addresses one of canola's most persistent and costly challenges while offering growers a more sustainable solution.

Greg Gotcho: Potential partners are particularly drawn to our multi-layered approach to durable disease resistance, an approach that addresses one of canola's most persistent and costly challenges while offering growers a more sustainable solution. Beyond canola, our soybean platform represents perhaps our most substantial long-term opportunity. Having successfully edited soybean cells for our HT2 trait earlier this year, we've made an initial step to demonstrate proof of concept to potentially access a market with an estimated 125 million accessible acres and potential annual trait royalties in the range of $10 to $15 per acre. The scale of this opportunity, combined with our technical progress, has generated serious partnership discussions. More recently, we've realized a commercial milestone with our altered lignin alfalfa program. Last month, the FDA completed its review of our altered lignin alfalfa trait, clearing the way for US commercialization.

Having successfully edited soybean solves for our HQ2 trade earlier this year.

We've made an initial step to demonstrate proof of concept to potentially access a market with an estimated $125 million accessible acres.

And potential annual trait royalties in the range of 10 to $15 per acre.

Speaker #4: Beyond canola, our soybean platform represents perhaps our most substantial long-term opportunity. Having successfully edited soybean cells for our HT2 trait earlier this year, we've made an initial step to demonstrate proof of concept to potentially access a market with an estimated 125 million accessible acres.

The scale of this opportunity combined with our technical progress has generated serious partnership discussions.

More recently, we've realized a commercial milestone with our altered lignin alfalfa program.

Last month, the FDA completed its review of our altered lignin alfalfa trait.

Speaker #4: And potential annual trait royalties in the range of 10 to 15 dollars per acre. The scale of this opportunity combined with our technical progress has generated serious partnership discussions.

Clearing the way for U S commercialization.

Our seed company customer is now positioned to offer the first commercial gene edited alfalfa varieties to U S growers.

Greg Gocal: Our seed company customer is now positioned to offer the first commercial gene-edited alfalfa varieties to US growers with commercial seed quantities available in two initial variety offerings. This trait delivers compelling value by providing potentially improved digestibility for livestock while giving farmers greater harvest flexibility, essentially creating higher value alfalfa on the same acres with the same inputs. While not a significant potential revenue driver for us as compared to our priority programs such as rice and biofragrances, this successful partnership exemplifies our strategy of working with established seed companies to bring our traits to market efficiently while generating meaningful revenue streams for Cibus. What ties all of these programs together is the strong foundation we've built through our development activities, including ongoing greenhouse and field trials, and the recent regulatory designations by the USDA APHIS of multiple Cibus traits as not regulated.

Speaker #4: More recently, we've realized a commercial milestone with our altered lignin alfalfa program. Last month, the FDA completed its review of our altered lignin alfalfa trait.

With commercial seed quantities available in two initial variety offerings.

This trade delivers compelling value by providing potentially improved digestibility for livestock, while giving farmers greater harvest flexibility.

Speaker #4: Clearing the way for U.S. commercialization. Our seed company customer is now positioned to offer the first commercial gene-edited alfalfa varieties to U.S. growers, with commercial seed quantities available in two initial variety offerings.

Greg Gotcho: Our seed company customer is now positioned to offer the first commercial gene-edited alfalfa varieties to US growers, with commercial seed quantities available in two initial variety offerings. This trait delivers compelling value by providing potentially improved digestibility for livestock while giving farmers greater harvest flexibility, essentially creating higher-value alfalfa on the same acres with the same inputs. While not a significant potential revenue driver for us as compared to our priority programs such as rice and biofragrances, this successful partnership exemplifies our strategy of working with established seed companies to bring our traits to market efficiently while generating meaningful revenue streams for CBIS. What ties all of these programs together is the strong foundation we've built through our development activities, including ongoing greenhouse and field trials and the recent regulatory designations by the USDA APHIS of multiple CBIS traits as not regulated.

Essentially creating higher value all fell off on the same acres with the same inputs.

While not a significant potential revenue driver for assets compared to our priority programs, such as rice and bio fragrances.

Speaker #4: This trait delivers compelling value by providing potentially improved digestibility for livestock while giving farmers greater harvest flexibility. Essentially, it creates higher-value alfalfa on the same acres with the same inputs.

This successful partnership exemplifies our strategy of working with established seed companies to bring our traits to market efficiently, while generating meaningful revenue streams perceive us.

What ties all of these programs together as the strong foundation, we've built through our development activities.

Speaker #4: While not a significant potential revenue driver, for us as compared to our priority programs, such as RICE and bio fragrances, this successful partnership exemplifies our strategy of working with established seed companies to bring our traits to market efficiently, while generating meaningful revenue streams for Cibus.

Including ongoing greenhouse and field trials.

And the recent regulatory designations by the USDA APHIS of multiple see those trades as nonregulated.

This progress combined with our demonstrated technical capabilities.

Greg Gocal: This progress, combined with our demonstrated technical capabilities, positions us exceptionally well to engage partners who can provide both funding and market access for these valuable productivity traits. This partnership-driven approach perfectly aligns with our capital discipline strategy Peter outlined, allowing us to advance these high-value assets while maintaining our focused execution on priority revenue drivers. With that, I'll hand the call over to Carlo for a financial update. Carlo?

Speaker #4: What ties all of these programs together is the strong foundation we've built through our development activities, including ongoing greenhouse and field trials, and the recent regulatory designations by the USDA APHIS of multiple Cibus traits as not regulated.

<unk> us exceptionally well to engage partners.

Who can provide both funding and market access for these valuable productivity trades.

This partnership driven approach perfectly aligns with our capital discipline strategy Peter outlined.

Allowing us to advance these high value assets, while maintaining our focused execution on priority revenue drivers.

Speaker #4: This progress, combined with our demonstrated technical capabilities, positions us exceptionally well to engage partners who can provide both funding and market access for these valuable productivity traits.

Greg Gotcho: This progress, combined with our demonstrated technical capabilities, positions us exceptionally well to engage partners who can provide both funding and market access for these valuable productivity traits. This partnership-driven approach perfectly aligns with our capital discipline strategy Peter outlined, allowing us to advance these high-value assets while maintaining our focused execution on priority revenue drivers. And with that, I'll hand the call over to Carlo for a financial update. Carlo?

And with that I'll hand, the call over to Carlo for a financial update Carlo.

Carlo.

Thank you Greg.

Speaker #4: This partnership-driven approach perfectly aligns with our capital discipline strategy Peter outlined. Allowing us to advance these high-value assets while maintaining our focused execution on priority revenue drivers.

Looking at our financials for the second quarter.

Carlo Broos: Thank you, Greg. Looking at our financials for Q2, our cash and cash equivalents were $36.5 million as of 30 June 2025. Taking into account the $27.5 million in gross proceeds we raised from our public offering in June, along with the impact of implemented cost-saving initiatives, we expect that our existing cash and cash equivalents will be sufficient to fund planned OpEx and capital expenditure requirements into Q2 2026. Moving to our operating results. Revenue for Q2 was $933,000 compared to $838,000 in the year-ago period, reflecting increased activity in our partner-funded programs.

Our cash and cash equivalents were $36 5 million as of June 32025.

Taking into account the $27 5 million in gross proceeds we raised from our public offering in June along with the impact of implemented cost saving initiatives, we expect that our existing cash and cash equivalents will be sufficient to fund planned operating expenses and capital expenditure requirements into the <unk>.

Speaker #4: And with that, I'll hand the call over to Carlo for a financial update. Carlo?

Speaker #5: Thank you, Greg. Looking at our financials for the second quarter, our cash and cash equivalents were 36.5 million as of June 30, 2025. Taking into account the 27.5 million in gross proceeds we raised from our public offering in June, along with the impact of implemented cost-saving initiatives, we expect that our existing cash and cash equivalents will be sufficient to fund planned operating expenses and capital expenditure requirements into the second quarter of 2026.

Carlo Broos: Thank you, Greg. Looking at our financials for the second quarter, our cash and cash equivalents were $36.5 million as of June 30, 2025. Taking into account the $27.5 million in gross proceeds we raised from our public offering in June, along with the impact of implemented cost-saving initiatives, we expect that our existing cash and cash equivalents will be sufficient to fund planned operating expenses and capital expenditure requirements into the second quarter of 2026. Moving to our operating results, revenue for the second quarter was $933,000 compared to $838,000 in the year-ago period, reflecting increased activity in our partner-funded programs. Research and development expense was $12.2 million for the second quarter compared to $13 million in the year-ago period. This $800,000 decrease is primarily due to cost reduction initiatives that we have implemented as part of our streamlined operational focus.

Quarter 2026.

Moving to our operating results.

Revenue for the second quarter was 933000 compared to 838000 in the year ago period.

Selecting increased activity in our partner funded programs.

Research and development expense was $12 2 million for the second quarter compared to $13 million in the year ago period.

Carlo Broos: Research and development expense was $12.2 million for Q2 compared to $13 million in the year-ago period. This $800,000 decrease is primarily due to cost reduction initiatives that we have implemented as part of our streamlined operational focus. Selling, general, and administrative expense was $6.6 million for Q2 compared to $9.3 million in the year ago period. The $2.7 million decrease is primarily due to cost reduction initiatives. Net loss was $26.6 million for Q2 compared to $28.5 million in the year ago period. As Peter mentioned, we're focused on managing our cash usage as we approach revenue generation. Subsequent to Q2 end, we announced a reduction in force as a pivotal step in implementing our streamlined business focus.

This 800000 decrease is primarily due to cost reduction initiatives that we have implemented as part of our streamlined operational focus.

Speaker #5: Moving to our operating results. Revenue for the second quarter was $933 thousand, compared to $838 thousand in the year ago period. Reflecting increased activity in our partner-funded programs.

Selling general and administrative expense was $6 6 million for the second quarter compared to $9 3 million in the year ago period to the $2 7 million decrease is primarily due to cost reduction initiatives.

Speaker #5: Research and development expense was $12.2 million for the second quarter, compared to $13 million in the year ago period. This $800 thousand decrease is primarily due to cost reduction initiatives that we have implemented as part of our streamlined operational focus.

Net loss was $26 6 million for the second quarter compared to $28 5 million in the year ago period.

As Pete mentioned, we're focused on managing our cash usage as we approach revenue generation.

Speaker #5: Selling general and administrative expense was $6.6 million for the second quarter. Compared to $9.3 million in the year ago period. The $2.7 million decrease is primarily due to cost reduction initiatives.

Carlo Broos: Selling, general, and administrative expense was $6.6 million for the second quarter compared to $9.3 million in the year-ago period. The $2.7 million decrease is primarily due to cost reduction initiatives. Net loss was $26.6 million for the second quarter compared to $28.5 million in the year-ago period. As Peter mentioned, we're focused on managing our cash usage as we approach revenue generation. Subsequent to quarter end, we announced a reduction in FORCE as a pivotal step in implementing our streamlined business focus. We expect this RIF to result in related one-time charges of approximately $0.5 million in the third quarter. However, the RIF, along with other initiatives, is expected to reduce our annual net cash usage to approximately $30 million by 2026.

Subsequent to quarter end, we announced a reduction in force as a pivotal step in implementing our streamlined business focus.

We expect those units to result, and related one time charges of approximately <unk> 5 million in the third quarter.

Speaker #5: Net loss was $26.6 million for the second quarter, compared to $28.5 million in the year ago period. As Peter mentioned, we're focused on managing our cash usage as we approach revenue generation.

Carlo Broos: We expect this RIF to result in related one-time charges of approximately $0.5 million in Q3. However, the RIF, along with other initiatives, is expected to reduce our annual net cash usage to approximately $30 million by 2026. This disciplined approach to capital allocation extends our cash runway while positioning us to capture the significant revenue opportunity ahead of us, with initial revenues beginning in 2026 and meaningful commercial expansion thereafter. With that financial overview, let me turn it back to Peter for closing remarks.

However, the <unk> along with other initiatives is expected to reduce our annual net cash usage to approximately $30 million or 2026.

This disciplined approach to capital allocation extends our cash runway.

Speaker #5: Subsequent to quarter end, we announced a reduction in force as a pivotal step in implementing our streamlined business focus. We expect this rift to result in related one-time charges of approximately $0.5 million in the third quarter.

All positioning us to capture the significant revenue opportunity ahead of us with initial revenues beginning in 2026 and meaningful commercial expansion thereafter.

Speaker #5: However, the rift, along with other initiatives, is expected to reduce our annual net cash usage to approximately $30 million by 2026. This disciplined approach to capital allocation extends our cash runway while positioning us to capture the significant revenue opportunity ahead of us.

And with that financial overview, let me turn it back to Peter for closing remarks.

Thank you Carlo.

As I reflect on our progress this quarter and look ahead I'm really confident we're executing on the strategy.

Peter Beetham: Thank you, Carlo. As I reflect on our progress this quarter and look ahead, I'm really confident we're executing on the strategy that will deliver long-term value for our shareholders. Our team has made some tough decisions this past quarter, and I'd like to recognize the entire team for their impactful contributions. While difficult, this has positioned us to stay laser-focused on the commercial path in front of us as we pursue our long-term strategy. We see this as a natural evolution of our business as our partner interactions are now more focused on delivering traits in a time-bound and predictable way. As I noted previously, improved genetics are the engine room to seed genetic advancement, driving real value creation for farmers, our seed company partners, and for Cibus shareholders.

Carlo Broos: This disciplined approach to capital allocation extends our cash runway while positioning us to capture the significant revenue opportunity ahead of us, with initial revenues beginning in 2026 and meaningful commercial expansion thereafter. And with that financial overview, let me turn it back to Peter for closing remarks.

That will deliver long term value for our shareholders.

Speaker #5: With initial revenues beginning in 2026 and meaningful commercial expansion thereafter. With that financial overview, let me turn it back to Peter for closing remarks.

Our team has made some tough decisions this past quarter and I'd like to recognize the entire team for their impactful contributions.

While difficult this has positioned us to stay laser focused on the commercial path in front of us as we pursue our long term strategy.

Speaker #4: Thank you, Carlo. As I reflect on our progress this quarter and look ahead, I'm really confident we're executing on the strategy that will deliver long-term value for our shareholders.

Peter Beetham: Thank you, Carlo. As I reflect on our progress this quarter and look ahead, I'm really confident we're executing on the strategy that will deliver long-term value for our shareholders. Our team has made some tough decisions this past quarter, and I'd like to recognize the entire team for their impactful contributions. While difficult, this has positioned us to stay laser-focused on the commercial path in front of us as we pursue our long-term strategy. We see this as a natural evolution of our business, as our partner interactions are now more focused on delivering traits in a time-bound and predictable way. As I noted previously, improved genetics are the engine room for seed genetic advancement, driving real value creation for farmers, our seed company partners, and for CBIS shareholders. The bottom line is we have traits moving into customer germplasm.

We see this as a natural evolution of our business.

Our partner interactions are now more focused on delivering twice in a time bound and predictable way.

Speaker #4: Our team has made some tough decisions this past quarter, and I'd like to recognize the entire team for their impactful contributions. While difficult, this has positioned us to stay laser-focused on the commercial path in front of us as we pursue our long-term strategy.

As I noted previously improved genetics.

Engine room to see genetic advancement driving real value creation for farmers see company partners and to see the shareholders.

The bottom line is we have <unk> moving into customer Gen plants, and we continue to see positive field trial results and we're operating in an increasingly favorable regulatory environment that is opening up global market opportunities.

Speaker #4: We see this as a natural evolution of our business. As our partner interactions are now more focused on delivering traits in a time-bound and predictable way.

Peter Beetham: The bottom line is we have traits moving into customer germplasm, we continue to see positive field trial results, and we're operating in an increasingly favorable regulatory environment that's opening up global market opportunities. The gene editing revolution in agriculture is happening now, and Cibus is positioned at the forefront of this transformation with a clear path to approximately $200 million in potential annual royalty revenue from our rice traits alone. With initial biofragrance revenues beginning next fiscal year and meaningful expansion as we progress through to our rice commercial launch timeline. As I've mentioned a few times, we remain laser-focused on our core priorities, advancing our rice herbicide tolerance traits toward commercialization, growing our partner-funded and supported sustainable ingredients program, and building the operational foundation for sustainable revenue and cash flow generation that will capture significant value as our market opportunities materialize.

Speaker #4: As I noted previously, improved genetics are the engine room for seed genetic advancement driving real value creation for farmers, our seed company partners, and for Cibus shareholders.

The gene editing Revolution in agriculture is happening now and see this is positioned at the forefront of this transformation with a clear path to approximately $200 million in potential annual royalty revenue from <unk> alone.

Speaker #4: The bottom line is we have traits moving into customer germplasm, we continue to see positive field trial results, and we're operating in an increasingly favorable regulatory environment that's opening up global market opportunities.

Peter Beetham: We continue to see positive field trial results, and we're operating in an increasingly favorable regulatory environment that's opening up global market opportunities. The gene-editing revolution in agriculture is happening now, and CBIS is positioned at the forefront of this transformation with a clear path to approximately $200 million in potential annual royalty revenue from our rice traits alone, with initial biofragrance revenues beginning next fiscal year and meaningful expansion as we progress through to our rice commercial launch timeline. As I've mentioned a few times, we remain laser-focused on our core priorities, advancing our rice herbicide tolerance traits toward commercialization, growing our partner-funded and supported sustainable ingredients program, and building the operational foundation for sustainable revenue and cash flow generation that will capture significant value as our market opportunities materialize. We are confident that in time, the gene-editing opportunities will expand to many of the world's important fruit crops.

With initial buy of fragrance revenues, beginning next fiscal year and meaningfully expansion as we progress through to a Roth commercial launch timeline.

Speaker #4: The gene-editing revolution in agriculture is happening now, and Cibus is positioned at the forefront of this transformation, with a clear path to approximately $200 million in potential annual royalty revenue from our RICE traits alone.

As I've mentioned, a few times, we remain laser focused on our core priorities advancing our rice herbicide tolerance traits toward commercialization.

Growing our partner funded and supported sustainable ingredients program and building the operational foundation for sustainable revenue and cash flow generation that will capture significant value as a market opportunities materialize.

Speaker #4: With initial bio fragrance revenues beginning next fiscal year, and meaningful expansion as we progress through to our RICE commercial launch timeline. As I've mentioned a few times, we remain laser-focused on our core priorities, advancing our RICE herbicide tolerance traits toward commercialization.

We are confident that in time, the gene editing opportunities will expand to many of the world's important food crops.

Peter Beetham: We are confident that in time, the gene editing opportunities will expand to many of the world's important food crops. In concert with this, and with the advent of AI and tools like gene editing to execute on complex traits, we do see expanding trait development categories opening up like nutrient use efficiency, NUE, and the exciting opportunities of non-allergenic crops. With that small look into the future, thank you all for your attention and interest, and we look forward to updating you on our continued progress next quarter. Operator, we are now ready to take questions.

In concert with this.

Speaker #4: Growing our partner-funded and supported sustainable ingredients program, and building the operational foundation for sustainable revenue and cash flow generation that will capture significant value as our market opportunities materialize.

And with the advent of AI and tools like gene editing to execute on complex trades, we do see expanding trade development categories opening up like nutrient use efficiency and UAE.

And the exciting opportunities of known allogeneic crops.

Speaker #4: We are confident that in time, the gene-editing opportunities will expand to many of the world's important food crops. In concert with this, and with the advent of AI and tools like gene-editing to execute on complex traits, we do see expanding trait development categories opening up like nutrient use efficiency and UE, and the exciting opportunities of non-allergic crops.

And with that small look into the future.

Thank you will appear attention and interest and we look forward to updating you on our continued progress next quarter.

Peter Beetham: In concert with this and with the advent of AI and tools like gene editing to execute on complex traits, we do see expanding trait development categories opening up, like nutrient use efficiency, NUE, and the exciting opportunities of non-allergenic crops. And with that, a small look into the future. Thank you all for your attention and interest, and we look forward to updating you on our continued progress next quarter. Operator, we're now ready to take questions.

Operator, we're now ready to take questions.

Thank you at this time, if you would like to ask a question. Please press star one on your telephone keypad, you may remove yourself from the queue at any time by pressing star tail.

Operator: Thank you. At this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. We will go first to Matthew Venezia with AGP.

Speaker #4: And with that, a small look into the future. Thank you all for your attention and interest, and we look forward to updating you on our continued progress next quarter.

We will go first to Matthew Venetia with AGP.

Hey, guys. Thank you for taking my questions.

Matthew Venezia: Hey, guys. Thank you for taking my questions. First I wanted to ask about the germplasm transfer that occurred this quarter. Is this a customer that has already initiated field trials in rice HT3 on their own, or would this provide a new set of company-specific field trials? I have a couple follow-ups.

First I wanted to ask about the germ plasm transfer that occurred this quarter.

Speaker #4: Operator, we're now ready to take questions.

So is this.

Speaker #1: Thank you. At this time, if you would like to ask a question, please press *1 on your telephone keypad. You may remove yourself from the queue at any time by pressing *2.

Operator: Thank you. At this time, if you would like to ask your question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. We will go first to Matthew Venezia with AGP.

Customer that has already initiated field trials and rice HG three on their own or with this provide a new set of company specific field trials and then I have a couple of follow ups.

Speaker #1: We will go first to Matthew Venezia with AGP.

Thanks, Matt This is Peter.

I really appreciate your question.

Speaker #6: Hey, guys. Thank you for taking my questions. first, I wanted to ask about the germplasm transfer that occurred this quarter. so is this a customer that has already initiated field trials, in RICE HT3 on their own?

Peter Beetham: Thanks, Matt. This is Peter. I really appreciate your question. You know, to put this into context, I think this is a great example of why we're so excited about rice. I think that, you know, we're on the commercial path now, with, you know, six customers. You know, our ability to do edits and get material back to customers is something we're really proud of, and I think that is really gonna set us up for the future. More specifically, around your question, I think this is something I'm gonna hand off to Greg, 'cause he's been intimately involved in the delivery of these lines back to one of our existing rice customers.

Matthew Venezia: Hey, guys. Thank you for taking my questions. first, I wanted to ask about the germplasm transfer that occurred this quarter. so is this a customer that has already initiated field trials in rice HT3 on their own, or would this provide a new set of company-specific field trials? And then I have a couple of follow-ups.

Just to put this into context I think this is a great example of why we're so excited about a lot I think that.

On the commercial path now.

Six customers.

And our ability to.

Speaker #6: Or would this provide a new set of company-specific field trials? And then I have a couple of follow-ups.

Do edits and get material back to customers.

Speaker #7: Thanks, Matt. this is Peter. I really appreciate your question. you know, I, I just as a, to put this into context, I think this is a great example of why we're so excited about RICE.

Peter Beetham: Thanks, Matt. This is Peter. I really appreciate your question. You know, just to put this into context, I think this is a great example of why we're so excited about rice. I think that, you know, we're on the commercial path now with, you know, six customers. And, you know, our ability to do edits and get material back to customers is something we're really proud of, and I think that is really going to set us up for the future. But more specifically around your question, I think this is something I'm going to hand off to Greg because he's been intimately involved in the delivery of these lines back to one of our existing rice companies.

Is something we're really proud of and I think that is really going to set us up for the future.

But more specifically around your question I think this is let me know.

I'm going to hand off to Greg because he's been intimately involved in it.

Speaker #7: I think that, you know, we're on the commercial path now, with, you know, six customers, and, you know, our ability to, do edits, and get material back to customers, is, is something we're really proud of.

The delivery of these lines back to one of our existing customers.

Thanks, Peter and thanks, Matt for the question. So this is this is a new customer that we're delivering back to for the U S. So we're delivering back multiple.

Greg Gocal: Yes. Thanks, Peter, and thanks, Matt, for the question. This is a new customer that we're delivering back to for the US, and we're delivering back multiple lines with our HT3 trait. We're really excited because of their ability then to use that in field trials going forward.

Speaker #7: And I think that is really going to set us up for the future. But more specifically, around your question, I think this is something I'm going to hand off to Greg, because he's been intimately involved in the delivery of these lines back to one of our existing RICE customers.

Multiple lines with our with our HQ to retreat. So we're really excited because of their ability then to use that in field trials going forward.

Great. Okay. Thank you Greg that answers my question.

Speaker #8: Yeah. Thanks, Peter, and thanks, Matt, for the question. So, this is, this is a new customer that we're delivering back to for, for the US, and we're delivering back multiple, multiple lines with our, with our HT3 traits.

Matthew Venezia: Great. Okay. Thank you, Greg. That answers my question. I heard at the beginning of the call you had mentioned initial revenue in 2026. Is this reflecting the biofragrance moving from Q4 2025 into Q1 2026 for those first nominal revenues?

Greg Gotcho: Yeah. Thanks, Peter, and thanks, Matt, for the question. So this is a new customer that we're delivering back to for the US, and we're delivering back multiple lines with our HT3 trait. So we're really excited because of their ability then to use that in field trials going forward.

And then I heard at the beginning of the call you had.

<unk> initial revenue in 2026.

Is this reflecting the bio fragrance moving from <unk> 25, <unk> 26 for those first nominal revenues.

Speaker #8: So we're really excited because of their ability to use that in field trials going forward.

Thanks, Matt let me expand on that a little bit because I think this is an area of our business that.

Speaker #6: Great. Okay. Thank you, Greg. That answers my question. And then, I heard at the beginning of the call you had mentioned initial revenue in 2026.

Peter Beetham: Thanks, Matt. Let me expand on that a little bit because I think this is an area of our business that, you know, is, again, really looking forward to getting our first revenues, and what we've been really focused on, as you'll hear more and more around Cibus, is that we're so laser-focused on that near-term revenue. With regards to the biofragrances, you know, as you've heard, we've had, you know, a lot of success over the last quarter of starting to scale up. Everything we've done, we've met our milestones on scale up. We're really excited about the, where we're at now and where we're going to be towards the end of this year.

Matthew Venezia: Great. Okay. Thank you, Greg. That answers my question. And then I heard at the beginning of the call you had mentioned initial revenue in 2026. Is this reflecting the biofragrance moving from 4Q25 into 1Q26 for those first nominal revenues?

Again.

Really looking forward to getting out.

Revenues.

And what we've been really focused on as you'll hear more and more.

Speaker #6: is this, reflecting the bio fragrance moving from 4Q25 into 1Q26 for those first nominal revenues?

Around services that we are so laser focused on that near term movies. So with regards to the bio fragrances.

As you've heard we've had a lot of success over the last quarter.

Speaker #7: Thanks, Matt. let me expand on that a little bit, because I think this is an area of our business that, you know, is, again, really looking forward to getting our first, revenues, and what we've been really focused on, as you'll hear more and more, around Cibus, is that we're so laser-focused on that near-term revenue.

Peter Beetham: Thanks, Matt. Let me expand on that a little bit because I think this is an area of our business that, you know, is again, really looking forward to getting our first revenues. And what we've been really focused on, as you'll hear more and more around CBIS, is that we're so laser-focused on that near-term revenue. So with regards to the biofragrances, you know, as you've heard, we've had a lot of success over the last quarter of starting to scale up. And everything we've done, we've met our milestones on scale-up. We're really excited about where we're at now and where we're going to be towards the end of this year. We still see some nominal revenues this year as we scale up, as some of the early product is delivered back to a customer.

Starting to scale up and everything we've done with met our milestones on scale up.

We're really excited about where we're at now I lay with guy to be towards the end of this year.

We still see some novel revenues this year.

Peter Beetham: We still see some nominal revenues this year, as we scale up, as some of the early product is delivered back to a customer. Then in 2026 is when we really start to do full commercial runs with regards to the biofragrances that we have in our pipeline. From there it really ramps beyond that.

Speaker #7: So with regards to the bio fragrances, you know, as you've heard, we've had a lot of success over the last quarter of starting to scale up.

As we scale up some of the.

Ali.

Product is delivered back to.

Our customer.

Then in 2006 is when we really start to do full commercial runs with regards to the by fragrances that we have in our pipeline and from that there.

Speaker #7: And everything we've done, we've bet our milestones on scale-up. We're really excited about where we're at now and where we're going to be towards the end of this year.

Really ramps beyond that.

Speaker #7: we still see some nominal revenues this year. as we scale up, as some of the, the early, product is delivered back to, a customer.

Great. Thank you and those bio fragrance revenues are all royalty in the same way your other revenue potential revenues would be correct.

Matthew Venezia: Great. Thank you. Those biofragrance revenues are all royalty in the same way your other potential revenues would be. Correct?

Correct I mean, the nominal revenues to start with we're handing off.

Speaker #7: And then in 26 is when we really start to do full commercial runs with regards to the bio fragrances that we have in our pipeline.

Peter Beetham: And then in '26 is when we really start to do full commercial runs with regards to the biofragrances that we have in our pipeline. And from there, there are really ramps beyond that.

Peter Beetham: Correct. I mean, the nominal revenues to start with, we're handing off, you know, some of the scale-up material, which is great. That's not essentially a royalty, but next year we'll be moving to the royalty business model.

Some of the scale up materials.

Which is great.

It's not essentially a royalty, but next year, we will be moving to the royalty.

Speaker #7: And from there, they're really ramps beyond that.

This model.

Speaker #6: Great. Thank you. And those bio fragrance revenues are, all royalty in the same way, your other potential revenues, would be. Correct?

Matthew Venezia: Great. Thank you. And those biofragrance revenues are all royalty in the same way your other potential revenues would be, correct?

Great. Okay. Thank you guys for taking my questions I'll hop back in the queue.

Matthew Venezia: Great. Okay. Thank you guys for taking my questions. I'll hop back in the queue.

Thanks, Matt.

We'll go next to Austin Muller with Canaccord.

Peter Beetham: Thanks, Matt.

Speaker #7: Correct. The, I mean, the nominal revenues to start with, we're handing off, you know, some of the scale-up material. which is great. so that's not essentially a royalty, but next year we'll, we'll be moving to the royalty, business model.

Peter Beetham: Correct. I mean, the nominal revenues to start with, we're handing off some of the scale-up material, which is great. So that's not essentially a royalty, but next year, we'll be moving to the royalty business model.

Operator: We'll go next to Austin Moeller with Canaccord.

Hi, Good afternoon, just my first question here.

Austin Moeller: Hi, good afternoon. Just my first question here. What have the Danish officials in European Parliament told you are the next steps or hurdles in the negotiations for approving gene editing in the EU?

The Danish officials in European Paul and told you are the next steps or hurdles in the negotiations for approving gene editing in the ER.

Speaker #6: Great. Okay. Thank you, guys, for taking my questions. I'll hop back in the queue.

Matthew Venezia: Great. Okay. Thank you, guys, for taking my questions. I'll hop back in the queue.

Austin. Thank you for the question. This is Peter I'll Miss that often.

Peter Beetham: Austin, thank you for your question. This is Peter. I'm gonna start off and I'll let Greg chime in as well. I think, you know, as I said in our prepared remarks, the EU regulatory acceptance is something that is part of the harmonizing globally. You know, that really has turned what, you know, has been some headwinds into tailwinds. I can't stress that enough. It is really why, you know, gene editing is happening now and a clear path for our commercialization of many traits. You know, obviously, we follow this closely and, you know, as the trialogue goes forward, it is a highly iterative process. There's a number of detailed committee work streams, you know, based on the council, the parliament, and the commission.

I'll, let Greg chime in as well, but I think.

Speaker #7: Thanks, Matt.

Peter Beetham: Thanks, Matt.

Speaker #1: We'll go next to Austin Muller with Canaccord.

Operator: We'll go next to Austin Moeller with Canaccord.

No as I said in our prepared remarks.

Speaker #8: Hi. Good afternoon. just my first question here. What have the Danish officials and European Parliament told you are the next steps or hurdles in the negotiations for approving gene-editing in the EU?

Austin Moeller: Hi. Good afternoon. Just my first question here. What have the Danish officials in European Parliament told you are the next steps or hurdles in the negotiations for approving gene editing in the EU?

The EU regulatory acceptance.

It is something that is part of the harmonizing globally.

<unk>.

That really has turned what has been some headwinds into <unk> I can't stress that enough. It is it is really why.

Speaker #7: Austin, thank you for the question. This is Peter. I'm going to start off, and I'll let Greg chime in as well. I think, you know, as I said in the prepared remarks, the EU regulatory acceptance is something that is part of the harmonizing globally.

Peter Beetham: Austin, thank you for your question. This is Peter. I'm going to start off, and I'll let Greg chime in as well. But I think, you know, as I said in our prepared remarks, the EU regulatory acceptance is something that is part of the harmonizing globally. And you know, that really has turned what, you know, has been some headwinds into tailwinds. And I can't stress that enough. It is really why gene editing is happening now and a clear path for our commercialization of many traits. So, you know, obviously, we follow this closely. And you know, as the trilog goes forward, it is a highly iterative process. There's a number of detailed committee work streams, you know, based on the Council, the Parliament, and the Commission.

Gene editing is happening now and a clear path throughout commercialization of many trades.

So.

Obviously, we follow this closely and.

As the Trilogue goes forward it is a highly iterative process.

Speaker #7: And, you know, that's, that really has turned what, you know, has been some headwinds into tailwinds. I can't stress that enough. It is, it is really, why, you know, gene-editing is happening now and a clear path for our commercialization of many traits.

There is a number of details too many work streams.

Based on the on the council the polymer and the commission and to your question around the Danish.

Peter Beetham: To your question around the Danish, what we've heard from both the Polish and the Danish is that they're really working on the important amendments that were tabled last year in parliament. You know, what they're looking at is how to implement the legislation and get to the final text. Some of that is around understanding how to execute that in all the different countries. Some of the questions that have been brought up and the visibility around that is with regards to labeling and patenting, two of the key issues that they have discussed. I think that the good news for all of us in the technology space is that that's really being handled very carefully and linked with the European Patent Office.

We've heard from.

The Polish and the guidance is that they're really working on the.

Speaker #7: So, you know, obviously we follow this closely. And, you know, as the trilog goes forward, it is a highly iterative process. There's a number of detailed committee workstreams, you know, based on the Council, the Parliament, and the Commission.

Important amendments that were tabled last year in Parliament.

And.

What they are looking at is how to implement that.

The legislation then get to the final text. So some of that is around understanding.

Speaker #7: And to your question around the Danish, what we've heard from both the Polish and the Danish is that they're really working on the important amendments that were tabled last year in Parliament.

Peter Beetham: And to your question around the Danish, what we've heard from both the Polish and the Danish is that they're really working on the important amendments that were tabled last year in Parliament. And you know, what they're looking at is how to implement the legislation and get to the final text. So some of that is around understanding how to execute that in all the different countries. And so some of the questions that have been brought up and the visibility around that is with regards to labeling and patenting, two of the key issues that they've discussed. And I think that the good news for all of us in the technology space is that that's really being handled very carefully and linked with the European Patent Office.

How to execute that in all the different countries and so some of the questions that have been bought up the visibility around that.

With regards to labeling and patent team two of the key issues that they have discussed.

Speaker #7: And, you know, this, what they're looking at is how to implement the, the, the legislation and get to the final text. So some of that is around understanding, how to do execute that in all the different countries.

<unk>.

And I think that.

The good news for all of US in the technology space is that that's really been handled very.

Carefully and linked with the European patent office.

That's in the next six months.

Speaker #7: And so some of the questions that have been brought up, and the visibility around that, is with regards to labeling and patenting, are two of the key issues that they've discussed.

Peter Beetham: We're confident that in the next 6 months, these will come to a good resolution, and we'll have a final text by the end of this year.

These will come to a good resolution and we will have the final text by the end of this year.

Okay.

Yes.

And just to add a little bit Peter.

Speaker #7: And I think that the good news for all of us in the technology space is that that's really being handled very carefully and linked with the European Patent Office.

Austin Moeller: Okay. Just a follow-up.

Peter's remarks, so remember that we've been in field trials in the U K with our pod shutter.

Greg Gocal: If Peter can just add a little bit. Just add a little bit to Peter's remarks. Remember that we've been in field trials in the UK with our Pod Shatter resistance trait for the last 2 years. What you've seen in the UK is a move from approved legislation to implementing that legislation over the last 2 years to get to the point where you'll shortly be able to plant and grow edited crops without any restriction in the UK. That's our expectation going forward once you have final text in the EU and it's implemented across all of the, all of the 27 countries. Thanks. Thanks for the question, Austin.

Straight after the last two years and what you've seen in the U K is a move from approved legislation to import implementing that legislation over the last couple of years to get to the point where.

Speaker #7: So we're, we're confident that in the next six months, these, these will come to a good resolution and we'll have a final text by the end of this year.

Peter Beetham: So we're confident that in the next six months, these will come to a good resolution and we'll have a final text by the end of this year.

Speaker #8: Okay. And just a follow-up.

Youll.

Greg Gotcho: Okay. And just to add a little bit.

Shortly be able to plant.

Speaker #3: And just to add a little bit, to Peter's, remarks. So remember that we've been, in field trials in the UK with our pod shutter, resistance trait.

Austin Moeller: And just to add a little bit to Peter's remarks, so remember that we've been in field trials in the UK with our pod shadow resistance trait for the last two years. And what you've seen in the UK is a move from approved legislation to implementing that legislation over the last couple of years to get to the point where you'll shortly be able to plant and grow edited crops without any restriction in the UK. And that's our expectation going forward once you have final text in the EU and it's implemented across all of the 27 countries. So thanks for the question, Austin. Thanks. And just to follow up, what stage are we at in the winter oil seed rate field trials in the UK, and what is the timeline for evaluation of the results?

And grow edited crops without any restriction in in the UK and that's our expectation going forward. Once you have final text in in the EU when its implemented all across.

Speaker #3: For the last two years, what you've seen in the UK is a move from approved legislation to implementing that legislation. Over the last couple of years, we've gotten to the point where you'll shortly be able to plant and grow edited crops without any restriction in the UK.

Across all of the all of the 27 countries.

So thanks, Thanks for the question also.

Thanks, and just a follow up.

What stage are we at in the winter Oilseed rape field trials in the U K and what is the timeline for a valuation of the results.

Austin Moeller: Thanks. Just to follow up, what stage are we at in the winter oilseed rape field trials in the UK, and what is the timeline for evaluation of the results?

Speaker #3: And that's our expectation going forward, once you have final text in, in the EU and it's implemented, across all the, all of the 27 countries.

So we're towards the end of the second field season, So our harvest harvest will happen likely in August.

Greg Gocal: We're towards the end of the second field season, so, harvest will happen likely in August. That, that's where we'll know what the efficacy of the traits this year is. We're, we're excited from what we saw last year, that those results are similar this year for the material that was planted.

Speaker #3: So thanks, thanks for the question, Austin.

And that's where we'll know what the efficacy of the of the trades. This year is but we're we're excited from what we saw last year are that those results are similar this year for the material that was planted.

Speaker #8: Thanks. and just to follow up, what stage are we at in the winter oil seed rape field trials in the UK? And what is the timeline for evaluation of the results?

Great. Thanks for the additional details.

Speaker #3: So So we're towards the end of the second field season. So, harvest will happen likely in August. and that, that's where we'll know what the efficacy of the, of the traits this year is.

Greg Gotcho: So we're towards the end of the second field season. So our harvest will happen likely in August. And that's where we'll know what the efficacy of the traits this year is. But we're excited from what we saw last year that those results are similar this year for the material that was planted.

Austin Moeller: Great. Thanks for the additional details.

Thanks Rafi.

We will go next to Sameer Joshi with H C Wainwright.

Greg Gocal: Thanks, Austin.

Operator: We'll connect to Sameer Joshi with H.C. Wainwright.

Yeah.

Yeah, good afternoon, and thanks for taking my questions I just have a quick couple ones.

Sameer Joshi: Yeah, good afternoon, thanks for taking my questions. I just have a quick couple ones. mostly focused on 2026 cash burn. So I think you are on track to reduce your OpEx to $13 million by the end of next year. When should we start seeing that like drop in expense? Part two of that question is, are you assuming any net proceeds from the biofragrances business that you expect to commercialize next year?

Speaker #3: But we're, we're excited from what we saw last year, that those results are similar this year for the material that was planted.

Mostly focused on 2026 of cash burn.

So I. Thank you.

Are on track to do you see your Opex to 13 million.

Speaker #8: Great. Thanks for the additional details.

Austin Moeller: Great. Thanks for the additional details.

Speaker #3: Thanks, Austin.

But by the end of next year.

Greg Gotcho: Thanks, Austin.

Speaker #1: We'll go next to Samir Joshi with HC Wainwright.

Operator: We'll go next to Samir Joshi with HC Wainwright.

When should we start seeing that.

Like drop in expense and part two of that question is.

Speaker #9: Yeah. Good afternoon. And thanks for taking my questions. I just have a, a quick couple of ones, mostly, focused on, 2026, cash burn. so I think you, are on track to, reduce your OPEX to 13 million, by, by 20 by the end of next year.

Carlo Broos: Yeah. Good afternoon, and thanks for taking my questions. I just have a quick couple of ones, mostly focused on 2026 cash burn. So I think you are on track to reduce your OPEX to $13 million by the end of next year. When should we start seeing that drop in expense? And part two of that question is, are you assuming any net proceeds from the biofragrances business that you expect to commercialize next year?

Are you assuming any net proceeds from the bio fragrances business that you expect to commercialize next year.

So thanks EMEA. This is Peter I'll start out and hand off to Tyler, but I think.

Peter Beetham: Thanks, Sameer. This is Peter. I'll start out and hand off to Carlo. I think, you know, what we said in our prepared remarks, too, is that, you know, we're very much focused on a disciplined and strategic approach to our capital allocation. Excuse me. This is a natural evolution of how the business has evolved. You know, as we move and see a clear path to commercialization, we're really about maximizing our near-term opportunities. I think, you know, both biofragrances and the rice traits, there's Every day we see a clearer path, which is fantastic. What we've also recognized is that to focus on that, our business models is changing.

What we said in our prepared remarks too is that.

Speaker #9: when should we start seeing that, like drop, in expense? And part two of that question is, would the, are you assuming any, net proceeds from the bio fragrances business that you expect to commercialize next year?

We are very much focused on a disciplined and strategic approach.

Capital allocation.

Excuse me this is a natural.

The evolution of how the business is.

His evolves.

As we move and see a clear path to commercialization.

Speaker #7: So, thanks, Samir. This is Peter. I'll start out and hand off to Carlo. But I think, you know, what we said in our prepared remarks too is that we're very much focused on a disciplined and strategic approach to our capital allocation.

Peter Beetham: So thanks, Samir. This is Peter. I'll start out and hand off to Carlo. But I think, you know, what we said in our prepared remarks too is that, you know, we're very much focused on a disciplined and strategic approach to our capital allocation. And excuse me. And this is a natural evolution of how the business is evolved. And as we move and see a clear path to commercialization, we're really about maximizing our near-term opportunities. And I think, you know, both biofragrances and the rice traits, there's some every day we see a clearer path, which is fantastic. What we've also recognized is that to focus on that, our business model is changing.

About maximizing our near term opportunities and I think.

Both by fragrances, and the right raw stripes.

Some every day, we see a clear path, which is fantastic.

Speaker #7: And, excuse me, and this, this is a natural evolution of how the business, is evolved. You know, as we move, and see a clear path to commercialization, we're really about maximizing our near-term, opportunities.

What we've also recognized is that to focus on that.

Our business model is changing.

And this is a really important point so everybody to he has that.

Peter Beetham: This is a really important point for everybody to hear, is that, you know, our ability to do things time bound and predictably with editing and to be able to hand back to customers earlier has really changed the way we think about the business and what we do. Part of that is, you know, handing off earlier to customers, like we talked about, with regards to our rice customers in HT3, allows us to really sort of be more strategic and disciplined about our capital allocation. Over the next 2 months, we've already seen a reduction in spend. We had a reduction in force subsequent to the quarter end.

Our ability to do things time bound and predictably with editing and to be able to hand back to customers earlier has really changed the way we think about the.

Speaker #7: And I think, you know, both bio fragrances, and the RICE traits, there's, some, every day we see a clearer path, which is fantastic. what we've also recognized is that to focus on that, our business models are changing.

The business and what we do.

And part of that is <unk>.

Handing off earlier to customers.

We talked about.

With regards to Ross customers in ice tea three.

Speaker #7: and, and this is a really important point for everybody to hear, is that, you know, our ability to do things time-bound and predictably, with editing, and to be able to hand back to customers earlier, has really changed the way we think about, the business and what we do.

Peter Beetham: And this is a really important point for everybody to hear is that, you know, our ability to do things time-bound and predictably with editing and to be able to hand back to customers earlier has really changed the way we think about the business and what we do. And part of that is, you know, handing off earlier to customers, like we talked about with regards to our rice customers in HT3, allows us to really sort of be more strategic and disciplined about our capital allocation. So, you know, over the next couple of months, we've already seen a reduction in spend. You know, we had a reduction in FORCE subsequent to the quarter end. And we're on track to reduce our annual net cash usage, as you mentioned, in 2026 to a net $30 million.

Allows us to really sort of.

Be more strategic and disciplined about now.

On capital allocation.

And over the next couple of months, which already seen a reduction in spend.

We had a reduction in force.

Speaker #7: And, and part of that is, you know, handing off earlier, to customers, like we talked about, with regards to our RICE customers in HT3, allows us to really sort of be more strategic and disciplined about our, our capital allocation.

Subsequent to quarter end.

And we're on track to reduce our annual net cash usage as you mentioned in 2000 $26 million to $30 million.

Peter Beetham: We're on track to reduce our annual net cash usage, as you mentioned, in 2026 to a net $30 million. You know, this is part of the natural evolution of the business and it also is part of our laser focus. I'll hand it to Carlo Broos to see if you wanted to add anything.

This is part of the natural evolution of the business.

And it also is part of that laser focus and I'll hand, it to Carlos if you wanted to add.

Speaker #7: So, you know, over the next couple of months, we've already seen a reduction in spend, you know, we had, a reduction in force, subsequent to the quarter end.

Thank you Peter you're fully nailed it.

Carlo Broos: No, thank you, Peter. No, you fully nailed it. The RIF, as you have heard and as you can read, was in July. The focus we talk about is absolutely also on expenses. It takes now a bit of time, but we're focused to be ready early 2026 with the number you mentioned. The $30 million is a net number, and that is our target for 2026, and we'll get there. Thanks, Sameer.

The FX U S S third.

As you can be more.

Speaker #7: And we're on track to reduce our annual net cash usage, as you mentioned, in 2026 to a net $30 million. You know, this is part of the natural evolution of the business, and it also reflects our laser focus.

In July and the focus we talk about this is absolutely also on expenses I think now a bit of time, but the focus will be around 2006 with the number you mentioned sort of $30 million is a net number and that is our target for 2026, and we get there.

Peter Beetham: You know, this is part of the natural evolution of the business, and it also is part of our laser focus. And I'll hand it to Carlo to see if you wanted to add anything.

Speaker #7: And I'll hand it to Carlo to see if you wanted to add anything.

Thanks, Amit.

Speaker #9: Yeah. Thank you, Peter. Now, you fully nailed it. the, the, the rift, as you have, have heard, and as you can read, was in July.

Greg Gotcho: Yeah. Thank you, Peter. No, you fully nailed it. The RIF, as you have heard and as you can read, was in July. And the focus we talk about is absolutely also on expenses. It takes now a bit of time, but the focus to be ready early '26 in the number you mentioned. So the $30 million is a net number, and that is our target for 2026, and we'll get there. Thanks, Samir.

Understood.

And my second question relates to <unk>.

Sameer Joshi: Understood. My second question relates to sort of the scale-up and scale of sustainable ingredients. Like when do we see, meaning apart from the biofragrances, the sustainable ingredients and maybe also consumer packaged goods start to at least see some commercial or customer interaction? When should we see the scale-up in revenues from those?

Sort of.

The scale up and scale of sustainable ingredients.

Speaker #9: And, and the focus we talk about is, is, is absolutely also on expenses. That takes now a bit of time, but, we're focused to be ready early 26 with the number you mentioned.

When do we see.

Uh huh.

Meaning apart from the bio fragrances.

Speaker #9: So the 30 million is a net number. And that is our target, for 2026. And we get there. Thanks, Samir.

This sustainable ingredients.

Maybe you also consumer packaged goods.

Start to at least see some commercial our customer interaction.

Speaker #6: Understood. and in my second question, relates to, sort of, the, the scale-up and scale. Of, of, sustainable ingredients, like when should we see, meaning apart from the bio fragrances, the sustainable ingredients and, maybe also consumer packaged goods, start to at least, see some commercial or, or customer interaction?

Carlo Broos: Understood. And my second question relates to sort of the scale-up and scale of sustainable ingredients. Like, when should we see, meaning apart from the biofragrances, the sustainable ingredients and maybe also consumer packaged goods, start to at least see some commercial or customer interaction? And when should we see the scale-up in revenues from those?

And when should we see the scale up.

And revenues from those.

Yeah.

Thank you for the question.

Let me I'll I'll start out on this one and then hand off to Greg, but I think the.

Peter Beetham: Thank you for the question. Let me I'll start out on this one and then hand off to Greg. I think There are two parts to your question. There's the fragrances, and this is definitely where we see the scale-up from 2026 through the next 18 months on that. I think that's exciting for us because it really helps to, you know, work through to revenues that are meaningful very quickly. That's the beauty of that particular revenue stream. With regards to sustainable ingredients, we are in the process of working with a funding partner, and we've made a lot of progress in that area. We're excited to see that come, but probably not for 2 years.

There's two parts to your question.

The fragrances.

And this is definitely where we see the scale up.

From 2006.

Through the next 18 months on that and I think that Thats.

Speaker #6: And when should we see the scale-up in revenues from those?

That's exciting for us because it really helps to.

Speaker #7: Thank you for the question. let me, I'll, I'll start out on this one, and then, hand off to Greg. But I think the, there's two parts to your question.

Peter Beetham: Thank you for the question. Let me, I'll start out on this one and then hand off to Greg. But I think there's two parts to your question. There's the fragrances, and this is definitely where we see the scale-up from '26 through the next 18 months on that. And I think that that's exciting for us because it really helps to work through revenues that are meaningful very quickly. And that's the beauty of that particular revenue stream. With regards to sustainable ingredients, we are in the process of working with a funding partner, and we've made a lot of progress in that area. We're excited to see that come, but probably not for a couple of years. And so I think that'll be towards the end of the late '20s is the best I could say today.

Through.

Two revenues that are meaningful very quickly.

The beauty.

That particular revenue stream with regards to sustainable ingredients, we are in the process of working with.

Speaker #7: There's the, the fragrances, es, and this is, definitely where we see the scale-up, from 26, through the next 18 months on that. And I think that that's, that's exciting for us because it really helps to, you know, work through, to revenues that are meaningful very quickly.

<unk> funding partner.

And we've made a lot of progress in that area, we're excited to see that come.

But probably not for a couple of years.

And so I think that'll be towards.

The end of.

Peter Beetham: I think that'll be towards the end of the late 20s is the best I could say today. The good news is, in the sustainable ingredients area, this is an expanding space. Bio-based products, whether it's fragrances or other bio-based products, is an area that has really garnered a lot of interest in agriculture, and it continues to. It's not just fuels anymore. There's lots of other sustainable ingredients that people are fascinated to apply new technologies to. Gene editing is one of the technologies that allows you to think through really interesting products that are all different oil profiles, for example, I mentioned in some of the summary remarks about non-allergenic crops as well, non-allergenic peanuts, non-allergenic wheat.

2000, and the late twenties.

Speaker #7: And that's the, the beauty of, that particular revenue stream. With regards to sustainable ingredients, we, in the process of working with, you know, a funding partner, and we've made a lot of progress in that area, we're excited to, to see that come up.

So I could say today, but the good news is in the sustainable ingredients area is this is an expanding space biobased products, whether its fragrances or other bio based products is an area that has really done is a lot of interest.

Speaker #7: But probably not for a couple of years. and so I think that'll be towards, you know, the end of, you know, 20 in the late 20s.

In agriculture, and it continues to so it's not just feels any law theres lots of other sustainable ingredients of the paper.

Speaker #7: Is the best I could, say today. But the good news is, in the sustainable ingredients area, this is an expanding space. Bio-based products, whether it's fragrances or other bio-based products, is an area that has really garnered a lot of interest in agriculture.

And I did too to apply new technologies.

Peter Beetham: But the good news in the sustainable ingredients area is this is an expanding space. Bio-based products, whether it's fragrances or other bio-based products, is an area that has really garnered a lot of interest in agriculture, and it continues to. So it's not just fuels anymore. There's lots of other sustainable ingredients that people are fascinated to apply new technologies to. And gene editing is one of the technologies that allows you to think through really interesting products that are different oil profiles, for example. And I mentioned in some of the summary remarks about non-allergenic crops as well, non-allergenic peanuts, non-allergenic wheat. These are opportunities that are really important sustainable ingredients as we go forward. And Greg.

And gene editing is one of the technologies that allows you to think through really interesting products.

Or a different oil profiles for example, and I mentioned in some of the summary remarks about non allergenic crops as well.

Speaker #7: And it continues to. So it's not just fuels anymore. There's lots of other sustainable ingredients that are people, are fascinated to, to apply new technologies to.

Was any pain us not allogeneic right these are opportunities.

But a really important sustainable ingredients as we go forward.

Peter Beetham: These are opportunities, that are really important sustainable ingredients, as we go forward. And Greg?

Speaker #7: And gene editing is one of the technologies that allows you to think through really interesting, products, that are all different oil profiles, for example, and I mentioned in, some of the summary remarks about non-allergic crops as well.

Yes, so Peter I think you I think you've covered most of it.

Greg Gocal: Yeah. Peter, I think you've covered most of it. I think the bottom line is we're leveraging the platforms that we have and really we have a lot of opportunities in platforms that we've developed in the past, even as Peter says, with opportunities potentially in wheat and peanut, but also an ability to really understand the what to edit for a vast number of traits. Where on more of the output side of the traits, what we would see is those are done mainly with partnerships.

I think the bottom line is we're leveraging the platforms that we have.

And really we have a lot of opportunities in platforms that we've developed in the past even as Peter says with opportunities.

Speaker #7: Non-allergic peanuts, non-allergic wheat. These are opportunities, that are really important sustainable ingredients, as we go forward. And Greg,

Opportunities potentially in wheat, and peanuts, but also an ability to really understand what to edit four of <unk>.

Speaker #3: Yeah. So Peter, I, I think you've, I think you've covered most of it. so I think the bottom line is we're leveraging, the platforms that we have and, and, and really we have a lot of opportunities in platforms that we developed in the past even as, as Peter says with, opportunities potentially in, in wheat and peanut, but also an ability to really understand the what to edit for a, a vast number of, of traits, where on the, on more of the output side of the traits, what we would see is those are done mainly with, with partnerships.

Greg Gotcho: Yeah. So, Peter, I think you've covered most of it. I think the bottom line is we're leveraging the platforms that we have. And really, we have a lot of opportunities in platforms that we developed in the past, even as Peter says, with opportunities potentially in wheat and peanut, but also an ability to really understand the what to edit for a vast number of traits. Where on more of the output side of the traits, what we would see is those are done mainly with partnerships. And even as we move forward with our sclerotinia program and our HT2 program, we see those as partner activities where we've made a huge amount of progress that we can really quickly deploy with managing our cash into potential products in the future. So thank you for your question.

<unk> number of traits.

We're on.

More of the output side of the trade what we would see as those are done mainly with partnerships and even as we move forward with our squad our 10 year program.

Greg Gocal: Even as we move forward with our Sclerotinia program and our HT2 program, we see those as partnered activities where we've made a huge amount of progress that we can really quickly deploy with managing our cash into potential products in the future. Thank you for your question.

Our Ht two programs, we see those as partner activities, where we've made a huge amount of progress that all that that we can really quickly.

Quickly deploy.

With managing our cash into potential products in the future.

So thank you for your question.

Speaker #3: And even, as we move forward with, our, our sclerotinia program and, and our HT2 program, we see those as partnered activities where we've made a huge amount of progress that, that, that we can really, quickly deploy, with, with, with managing our cash into potential products in the future.

Yes, no. Thank you thanks for that color decorative areas well, thanks for taking my questions.

Sameer Joshi: Yeah, no, thank you. Thanks for that color. That was very useful. Thanks for taking my questions.

We will go next to Laurence Alexander with Jefferies.

Operator: We will go next to Laurence Alexander with Jefferies.

Hey, guys. This is Kevin on for Laurence Thank you for taking my questions.

Kevin: Hey, guys. This is Kevin on for Laurence. Thank you for taking my questions. Just on the EU regulatory discussions, I mean, I guess how long do you think it could be until companies are either selling into the EU or selling to third-party customers that then sell into the EU via trade? I guess, have you sort of quantified what you think the opportunity, I guess, for the EU could represent to you guys? Just really quick last on that, what do you think could be the larger opportunity? Would it be domestic cultivation in EU or trade of gene-edited crops into the EU?

So just on the EU regulatory discussions I mean, I guess, how long do you think it could be until companies are either selling into the EU are going to third party.

Speaker #3: So thank you for your question.

Customers that then sell into the EU via trade and I guess have you sort of quantify what you think the opportunity I guess for the EU could represent to you guys and just really quick last on that what do you think could be a larger opportunity would it be domestic cultivation in EU are our trade of gene editing crops in the EU.

Speaker #9: Yeah. No. Thank you. Thanks for that, Carlo. That was very useful. Thanks for taking my questions.

Peter Beetham: Yeah. No, thank you. Thanks for that, Peter. That was very useful. Thanks for taking my questions.

Speaker #1: We'll go next to Lawrence Alexander with Jeffries.

Operator: We will go next to Lawrence Alexander with Jefferies.

Speaker #10: Hey, guys. this is Kevin on for Lawrence. Thank you for taking my questions. so just on the, EU regulatory discussions, I mean, I guess how long do you think it could be until companies are either selling into the EU or selling to third-party customers that then sell into the EU via trade?

Matthew Venezia: Hey, guys. This is Kevin on for Lawrence. Thank you for taking my questions. So just on the EU regulatory discussions, I mean, I guess how long do you think it could be until companies are either selling into the EU or selling to third-party customers that then sell into the EU via trade? And I guess have you sort of quantified what you think the opportunity, I guess, for the EU could represent to you guys? And just really quick last on that, what do you think could be the larger opportunity? Would it be domestic cultivation in the EU or trade of gene-edited crops into the EU?

Thanks, Kevin This is Peter I'll start out.

Peter Beetham: Thanks, Kevin. This is Peter. I'll start out. I think that the EU, as I mentioned on the regulatory front, you know, again, it's something we follow so closely. You know, if it goes, you know, and it's we've been doing this for a number of years, so we understand that literally in the next six months, there will be legislation and final text. There's no doubt in our minds that that is the likely outcome of where the Danish are. What that triggers is the implementation side of it. The just as what has happened in the UK, if you go back and look at what happened with the UK, they went through the primary legislation and then the secondary legislation, which is essentially to implement that law.

I think that.

The EU as I.

<unk> on the regulatory front.

Again, it's something we follow so closely.

Speaker #10: And I guess have you sort of quantified what you think the opportunity I guess for the EU could represent to you guys? And just really quick last on that, what do you think could be the larger opportunity?

If it goes in it.

<unk>.

We've been doing this for a number of years. So we understand that literally in the next six months.

Speaker #10: Would it be domestic cultivation in the EU or, or trade of gene-edited crops into the EU?

There will be legislation and final text.

Speaker #7: Thanks, Kevin. this is Peter. I'll start out. I think that the EU, as I mentioned on the regulatory front, you know, again, it, it's something we follow so closely.

Peter Beetham: Thanks, Kevin. This is Peter. I'll start out. I think that the EU, as I mentioned on the regulatory front, you know, again, it's something we follow so closely. You know, if it goes, you know, and we've been doing this for a number of years. So we understand that literally in the next six months, there will be legislation and final text. There's no doubt in our minds that that is the likely outcome of where the Danish are. What that triggers is the implementation side of it. And so just as what has happened in the UK, if you go back and look at what happened with the UK, they went through the primary legislation and then the secondary legislation, which is essentially to implement that law.

Theres no doubt in our mind that that is the likely outcome of where the dining shop.

What that triggers is.

The implementation side of it and so.

Just as what has happened in the UK. If you go back and look at what happened with you tell you. They went through the primary legislation legislation and then the secondary legislation which is essentially.

Speaker #7: You know, if it goes, you know, and it's, we've been doing this for a number of years. So we understand that literally in the next six months, there will be legislation and final text.

Implement.

That low.

Speaker #7: There's no doubt in our minds that that is the likely outcome of where the Danish are. what that triggers is, the implementation side of it.

And we see that probably two years after the the final text and so that'll be.

Peter Beetham: We see that, probably 2 years after the final text, that'll be heading towards the end of 2027, is when you'll start to see products that can be commercialized in that marketplace. Primarily it's to do with seed variety registration work that'll be done in the EU. More importantly is what you'll see is, as you saw in the UK, and what you've already seen in parts of Italy, is gene-edited field trials will start to occur next year with some partners. As well as mock cultivation, as field trials will start happening, that'll pave the way for full commercialization. Remember, Europe is literally in crops. There's a 100 million acres opportunity, greenfield opportunity when it comes to traits.

Heading towards the end of 2007.

Speaker #7: And so, just as what has happened in the UK, if you go back and look at what happened with the UK, they went through the primary legislation, and then the secondary legislation, which is essentially to implement.

When you'll start to see products that can be.

Commercialized in that marketplace, primarily has to do with seed variety registration work that'll be done in the EU.

But more importantly is what youll see is as you saw in the U K and what you've already seen in parts of Italy is gene editing field trials will start to occur next you with partners.

Speaker #7: And we see that probably two years after the final text, and so that'll be heading towards the end of 2027, is when you'll start to see products that can be commercialized in that marketplace.

Peter Beetham: And we see that probably two years after the final text, and so that'll be heading towards the end of '27, is when you'll start to see products that can be commercialized in that marketplace. Primarily, it's to do with seed variety registration work that'll be done in the EU. But more importantly, what you'll see is, as you saw in the UK and what you've already seen in parts of Italy, is gene-edited field trials will start to occur next year with some partners. And so as well as cultivation and field trials will start happening, that'll pave the way for full commercialization. And remember, Europe is literally in crops. There's a 100 million-acre opportunity, greenfield opportunity when it comes to traits. You know, they missed out on traits because they essentially banned GMOs, and so they haven't had the ability to take any traits into that marketplace.

Partners.

As well as.

Cultivation.

Field trials will start happening.

Speaker #7: Primarily it's to do with seed variety registration, work. That'll be done in the EU. But more importantly is what you'll see is, as you saw in the UK, and what you've already seen in parts of Italy, is gene-edited field trials will start to occur next year with some, partners.

That will pave the way to full commercialization and remember Europe.

Is literally in crops is a 100 million acre opportunity greenfield opportunity when it comes to <unk>.

They missed out on sites because they banned essentially banned gmos.

Peter Beetham: You know, they missed out on traits because, they banned, essentially banned GMOs, and so they've haven't had the ability to take any traits into that marketplace. I think, you know, not only does EU drive a lot of positivity around global regulatory harmonization for trade and for cultivation, but it also opens up this enormous marketplace for traits, as we move forward. We're really excited about, you know, not only just for our near-term revenue opportunities, but also the longer term where we can access that market.

Speaker #7: And so as well as, cultivation, as field trials, we'll start happening. that'll pave the way for full commercialization. And remember, Europe is literally in crops.

And so.

Haven't had the ability to take any trades into that marketplace.

I think not only does.

Drive a lot of positivity around global regulatory harmonization could trade in some cultivation, but it also opens up this enormous marketplace.

Speaker #7: There's a 100 million acre opportunity—a greenfield opportunity—when it comes to traits. They missed out on traits because they essentially banned GMOs, and as a result, they haven't had the ability to take any traits into that marketplace.

Rights.

As we move forward. So we're really excited about.

Not only just for our near term revenue opportunities, but also the longer term, where we can access that market.

Speaker #7: So I think, you know, not only does EU drive a lot of positivity around global regulatory harmonization for trade and for cultivation, but it also opens up this enormous marketplace for traits, as, as we move forward.

Peter Beetham: So I think, you know, not only does EU drive a lot of positivity around global regulatory harmonization for trade and for cultivation, but it also opens up this enormous marketplace for traits as we move forward. So we're really excited about, you know, not only just for our near-term revenue opportunities, but also the longer term where we can access that market.

Understood. Okay. Thank you and then just on the on.

Kevin: Understood. Okay. Thank you. Just on RTDS, I guess just more generally, I guess how is Cibus differentiating its technology amid the rising competition in gene editing in general?

Our GDS I guess just more generally.

How is differentiating its technology amid the rising competition in gene editing in general.

Speaker #7: So we're really excited about, you know, not only just for our, our near-term revenue, opportunities, but also the longer term where we can access that market.

Yes, so Kevin I think yes, so excellent question.

Greg Gocal: Yeah. So Kevin, I think that's an excellent question. I mean, we're really excited. In terms of the RTDS system, we're starting with single cells and editing those single cells in a process and to generate a product that is non-transgenic. That is our approach and having built gene editing from the ground up. Even beyond that, it's the complex edits. Both numbers of loci. We had a paper published at the end of 2023 talking about eight different loci. We continue to push the limits of how many loci we can edit in a single cell at the same time.

We're really we're really excited in terms of the Rts system.

We're starting with single cells and editing those single cells.

Speaker #6: Understood. Okay. Thank you. And then just on RTDS, I guess just more generally, how is Cibus differentiating its technology amid the rising competition in gene editing and, in general?

Matthew Venezia: Understood. Okay. Thank you. And then just on RTDS, I guess just more generally, I guess how is CBIS differentiating its technology amid the rising competition in gene editing in general?

Process and to generate a product that is non transgenic. So all of that that is.

That is our approach and built.

Having built gene editing from the ground up but even beyond that.

Speaker #3: Yeah. So Kevin, I, I think, yeah, so excellent question. I mean, we're, we're really, we're really excited. In terms of the RTDS system, we're starting with single cells and editing those single cells, in a, in a process and to generate a product that is non-transgenic.

Greg Gotcho: Yeah. So, Kevin, I think that's an excellent question. I mean, we're really excited. In terms of the RTDS system, we're starting with single cells and editing those single cells in a process and to generate a product that is non-transgenic. So that is our approach and having built gene editing from the ground up. But even beyond.That

Complex settled so bowls.

Numbers have low Si so we had a paper.

<unk> at the end of 'twenty three talking about eight different low side, we continue to push the limits of how many low side, we can add it in.

Speaker #3: So, that, that is the, that, that is our approach and, and build the, having built gene-editing from the ground up. But even beyond that, it's the complex edit.

Single cell at the same time and you'll understand that was a process, where you don't need an all segregate you keep your genetic configuration intact as you move that forward.

Greg Gocal: You'll understand that with a process where you don't need a null segregant, you keep your genetic configuration intact as you move that forward. The second part is continuing to increase the number of edits collinear in a locus. I think for what's possible in plants, I think we're in the best place from what I see out in the peer review literature, conferences, and et cetera. We're excited for the complexity of the edits that we can make and the single-cell system that enables us to keep those edits together in the right genetic configuration in elite germplasm.

Operator: it's the complex edit. So both numbers of loci, so we had a paper, published at the end of '23, talking about eight different loci. We continue to push the limits of how many loci we can edit in a single cell at the same time. And you'll understand that with a process where you don't need a null segregate, you keep your your genetic configuration intact as you move that forward. the second part is continuing to increase the number of edits collinear in a in a locus. And I I think for what's possible in plants, I think we're, we're in the best place, from from what I see out in the peer-reviewed literature and and at conferences, et cetera.

Speaker #3: So both numbers of loci, so we had a paper, published at the end of 23 talking about eight different loci. We continue to push the limits of how many loci we can edit, in a single cell at the same time.

The second part is continuing to increase the number of edits co linear in a in a locus and I think for what's possible implants I think we're all.

We're in the best place some from what I see out in the peer reviewed literature and at conferences et cetera. So we're we're excited for the complexity of the edits that we can make and the single cell system that enables us to keep those edits together in the right genetic configuration in elite germplasm.

Speaker #3: And you'll understand that with a process where you don't need a null segregant, you keep your, your genetic configuration, intact as you move that forward.

Speaker #3: the second part is continuing to increase the number of edits collinear in a, in a locus. And I, I think for what's possible in plants, I think we're, we're in the best place from, from what I see out in the peer-reviewed literature and, and at conferences, etc.

Awesome.

But let me just address a little bit correct, Kevin because I think it's such an important question and I'm going to maybe.

Peter Beetham: Let me just add a little bit to that, Kevin, 'cause I think it's such an important question, and I'm gonna maybe simplify it a little bit. No one else does what we do. And using the single-cell system has huge advantages for complex traits, but also from a regulatory front. It's, you know, it's something that, just as Greg said, we've built this from the ground up as a gene editing company, not really changing a GMO pipeline into an editing pipeline. We are very different to anybody else and creates a lot of opportunities that no one else can get to.

Simplified a little bit no one else does what we do.

Operator: So we're we're excited for the complexity of the edits that we can make and the single-cell system that enables us to keep those edits together in the right genetic configuration in a lead germplasm.

And using the single cell system has huge.

Vantages for complex type, but also from a regulatory front.

It's something that just as Greg said, we built this from the ground up as a gene editing company not really changing a GMO.

Peter Beetham: Let me just add a little bit to that, Kevin, because I think it's such an important question. And I'm going to maybe simplify it a little bit. No one else does what we do. And using the single-cell system has huge advantages for complex traits, but also from a regulatory front. So it's, you know, it's something that, just as Greg said, we've built this from the ground up as a gene editing company, not really changing a GMO pipeline into an editing pipeline. So there's a we are very different to anybody else and creates a lot of opportunities that no one else can get to.

Pipeline into an editing pipeline.

We are very different to anybody else and creates a lot of opportunities that no one else can get to.

Okay. Thank you very much I appreciate it.

Kevin: Okay. Thank you very much. I appreciate it.

We will go next to Alexander <unk> with Sidoti.

Peter Beetham: Thanks, Kevin.

Operator: We will go next to Alex Hantman with Sidoti.

Good afternoon. Thanks for taking questions just a couple from me firstly just to follow up on that.

Alex Hantman: Good afternoon. Thanks for taking questions. Just a couple from me. Firstly, just to follow up on the 2026 commercial ramp for biofragrance, could we just talk a little bit about whether that comes from expanding your relationship, you know, with your current client, or is that really from selling into new customers and that might take a little longer?

26 commercial ramp for bio fragrance.

Could we just talk a little bit about whether that comes from expanding your relationship.

David Brown: Okay. Thank you very much. I appreciate it.

With your current client or is that really from selling into new customers and so that might take a little longer.

Carlo Broos: We will go next to Alex Hammond with Sadoty.

Oh. Thanks, Alex This is Peter that's a great question because it really is a big driver.

Peter Beetham: Good afternoon. Thanks for taking questions. Just a couple from me. Firstly, just to follow up on the '26 commercial ramp for Biofragrance, could we just talk a little bit about whether that comes from expanding your relationship, you know, with your current client, or is that really from selling into new customers and so that might take a little longer?

Peter Beetham: Thanks, Alex. This is Peter. That's such a great question because it's, you know, it really is a big driver. We are very much focused on a single customer right now for 2026. Having said that, you know, there is other opportunities out there. Fragrances are used in so many different products, from personal care to packaging, to a lot of, you know, household goods. That size of market continues to grow when you can provide something that's bio-based and not necessarily, you know, through very expensive natural processes or synthetic processes. You've got an opportunity that we see potentially expanding. To your specific question, in 2026 it is really around one customer. We'd like to see that expand even within that customer's opportunity, and take on others as well.

We are very much focused on a single customer right now for 2026, having said that we.

There is other opportunities out there.

And fragrances I used in so many different products and personal care to packaging to a.

Peter Beetham: Thanks, Alex. This is Peter. That's such a great question because it's, you know, it really is a big driver. We are very much focused on a single customer right now for 2026. Having said that, you know, there are other opportunities out there. And fragrances are used in so many different products, from personal care to packaging to a lot of, you know, household goods. And that size of market continues to grow when you can provide something that's bio-based and not necessarily, you know, through very expensive natural processes or synthetic processes. So you've got an opportunity that we see potentially expanding. But to your specific question, in '26, it is really around one customer. We'd like to see that expand even within that customer's opportunity and take on others as well.

A lot of.

Household goods and that size of market continues to grow.

When you can provide some means biobased and not necessarily so.

They're very expensive natural processes.

Or synthetic process, so you've got a opportunity we see.

See potentially expanding but to your specific question in 2006, it is really around one customer.

We'd like to see that expand even within that customers opportunity.

And and take on others as well.

Yeah.

Great context, thank you.

And then one more from me just on something you brought up a couple of times. So I think you gave a sense of.

Alex Hantman: Great context. Thank you. One more from me, just on something you've brought up a couple times. I think you gave a sense of royalty scale for alfalfa relative to rice, but maybe you could do the same for, you know, non-allergenic crops and nutrient use efficiency.

Royalty scale, perhaps also relative to rice, but maybe you could do the same for you.

Non allergenic crops and nitrogen use efficiency.

Okay.

Thanks, Alex.

Xactly I think when you think about service and the commercialization side.

Peter Beetham: Thanks, Alex. Yeah, exactly. You know, I think that when you think about Cibus from a commercialization company, we're all about licensing technology for royalties. We're also very much focused on productivity traits. Every productivity trait we think about is what the money that we are going to save the farmer at the farm gate. That's, you know, where our, you know, annualized royalty pricing comes from. I think that when you start to do complex traits or you start to combine traits and bring traits together, the pricing model, you know, increases.

Peter Beetham: Great context. Thank you. And then one more from me, just on something you've brought up a couple of times. So I think you gave a sense of royalty scale for alfalfa relative to rice, but maybe you could do the same for, you know, non-allergenic crops and nitrogen use efficiency.

Company, we're all about.

Licensing technology for royalties.

So.

We're also very much focused on productivity choice. So every productivity try it we think about is the money that we are going to say the farmer at the farm gate.

Peter Beetham: Thanks, Alex. Yeah, exactly. You know, I think that when you think about Cibus from a commercialization company, we're all about licensing technology for royalties. And so we're also very much focused on productivity traits. So every productivity trait we think about is what the money that we are going to save the farmer at the farm gate. So that's, you know, where our, you know, annualized royalty pricing comes from. I think that when you start to do complex traits or you start to combine traits and bring traits together, the pricing model, you know, increases. And it's exciting to see the sorts of numbers you might get to when you think about what Greg mentioned earlier about the $10 to $15 per acre net to Cibus on a trait in soybean, you know, that we think can access 125 million acres.

That's where our annualized royalty pricing Samsung.

When you start to do complex trades.

Two combined sites and bring <unk> together.

The pricing model.

Increases.

And it's exciting to say the sorts of numbers you might get to when you think about what Greg mentioned earlier about the 10% to $15 per acre next to save us.

Peter Beetham: It's exciting to see the sorts of numbers you might get to when you think about what Greg mentioned earlier about the $10 to $15 per acre net to Cibus on a trait in soybean, you know, that we think can access 125 million acres. When it comes to non-allergenic crops, the pricing as a royalty can be considerably more than that because you end up with a quality trait that garners a much higher premium, not only at the farm gate, but when they deliver it to silos or they deliver it to a food company. I think that, you know, we are yet to sort of talk about any pricing in those sorts of areas that we have in our productivity traits.

On a trait in soybean.

We think can access of 125 million items.

When it comes to non allergenic crops.

The pricing is.

The royalty is can be considerably more than that because you end up with a quality trait that Don has a much higher premiums.

Not only at the farm gate, but when they're delivered two silos or they deliver it to a food company. So I think the.

<unk>, yet to sort of talk about any crossing and those sorts of areas that we have and that productivity choice, but suffice to say I think some of the quality sites are going to have a much higher price point.

Peter Beetham: When it comes to non-allergenic crops, the pricing as a royalty can be considerably more than that because you end up with a quality trait that is garnered at a much higher premium, not only at the farm gate, but when they deliver it to silos or they deliver it to a food company. So I think that, you know, we are yet to sort of talk about any pricing in those sorts of areas, but we have in our productivity traits. But suffice to say, I think some of the quality traits are going to have a much higher price point from a royalty standpoint.

Peter Beetham: Suffice to say, I think some of the quality traits are going to have a much higher price point from a royalty standpoint.

From a royalty standpoint.

Understood. Thank you.

Alex Hantman: Understood. Thank you.

Peter Beetham: Well, thank you.

Thank you and we have no further questions holding at this time I will now turn the conference back to Peter <unk> for any additional or closing remarks.

Operator: Thank you. We have no further questions holding at this time. I will now turn the conference back to Peter Beetham for any additional or closing remarks.

Yeah.

Sure.

So thank you.

For everybody to join the call today are really.

Peter Beetham: Thank you for everybody to join the call today. I really, you know, do appreciate that. I've just got a few closing remarks because I think we've covered a lot today. I wanted to say how proud I was of the team in the last quarter. This is, you know, a time where the business is evolving, I couldn't be prouder of what we've been able to achieve, also positioning us for commercial success. Implementing changes to maximize our path to that near-term revenue is something that everyone in this company has been laser-focused on. I couldn't be prouder about that. What I've said before, I'll say it again, is gene editing has a clear path to industrialized breeding. It's not for the future. It's actually happening now, which is very exciting.

I do appreciate that.

I've just got a few closing remarks, because I think we've covered a lot today.

David Brown: Understood. Thank you.

But I wanted to say how proud I was of the team in the last quarter.

Carlo Broos: Thank you. And we have no further questions holding at this time. I will now turn the conference back to Peter Beetham for any additional or closing remarks.

But this is no.

Time with the business is evolving.

And I couldnt be proud of what we've been able to achieve.

Peter Beetham: So thank you for everybody to join the call today. I really, you know, do appreciate that. I've just got a few closing remarks because I think we've covered a lot today. But I wanted to say how proud I was of the team in the last quarter. This is, you know, a time where the business is evolving. And I couldn't be prouder of what we've been able to achieve, but also positioning us as for commercial success. Implementing changes to maximize our path to that near-term revenue is something that everyone in this company has been laser-focused on. I couldn't be prouder of that. What I've said before, and I'll say it again, is gene editing has a clear path to industrialized breeding. And it's not for the future. It's actually happening now, which is very exciting.

But also positioning up.

So commercial success.

<unk> changes to maximize our path.

To that near term revenue is something that everyone. In this company has been laser focused on I couldnt be proud about that.

What I've said before and I'll say it again as gene editing.

Has a clear path to industrialize Brady.

And it's not for the future is actually happening now which is very exciting.

So.

Hopefully we've covered a good.

Peter Beetham: Hopefully we've covered a good summary of our pipeline, where we are laser-focused with rice and beyond. I think Greg's done a great job of sharing out our portfolio. As a group, we look forward to updating you all on the next earnings call next quarter. I'd like to thank you for your interest and thank you for your continued support. With that, we'd like to close the call. Thank you.

Summary of our pipeline.

Where we are laser focused with Ross and beyond.

I think Greg has done a great job of sharing out our portfolio.

And.

As a group we look forward to updating you all on our next earnings call next quarter. So I'd like to thank you for it.

Peter Beetham: So hopefully, we've covered a good summary of our pipeline, where we are laser-focused with rice and beyond. I think Greg's done a great job of sharing out our portfolio. And as a group, we look forward to updating you all on the next earnings call next quarter. So I'd like to thank you for your interest and thank you for your continued support. And with that, we'd like to close the call. Thank you.

Your interest and thank you for your continued support.

And with that we'd like to close the call. Thank you.

Thank you Sir this does conclude today's program. We thank you for your participation you may disconnect at any time.

Operator: Thank you, sir. This does conclude today's program. We thank you for your participation. You may disconnect at any time.

Carlo Broos: Thank you, sir. This does conclude today's program. We thank you for your participation. You may disconnect at any time.

Q2 2025 Cibus Inc Earnings Call

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