Cibus, Inc. (Nasdaq: CBUS), a leading agricultural
technology company that develops and licenses plant traits to seed
companies, today announced its financial results for the quarter
ended June 30, 2023, and provided a business update.
“Since January, when Cibus Global, LLC and
Calyxt, Inc. signed an agreement to merge, the combined company has
made incredible progress hitting our established milestones,
including closing the merger transactions on May 31, 2023, and, in
so doing, beginning to establish Cibus’ high-throughput plant
breeding platform as a standard for plant based gene editing,”
stated Rory Riggs, Chairman and CEO of Cibus, Inc. “This year we
began commercializing our first three trait products by sending
customers initial transfers of their elite germplasm with Cibus
traits. We also made significant progress in the advancement of the
next three traits in our pipeline." Mr. Riggs continued, "In
addition, we opened the world’s first stand-alone
high-throughput trait development facility for editing plants to
support the commercial expansion of our trait business. Finally,
and most importantly, we are seeing customer demand for our
offerings, evidenced by the signing of multiple breeding
collaborations with major global seed companies.”
As part of our breeding collaboration programs,
Cibus is pleased to share that it has recently entered into a
collaboration agreement with Bayer Ag to evaluate Cibus’ Trait
Machine, its high-throughput (gene editing) breeding platform, and
capabilities. Cibus will leverage its Trait Machine process
anchored by its patented Rapid Trait Development System™,
RTDS®, to evaluate new techniques applicable to
Bayer Ag germplasm.
Stated Mr. Riggs, “Cibus’ RTDS is the set of
proprietary technologies used in the Trait Machine process to
integrate crop specific cell biology platforms with a series of
gene editing technologies to enable a system of end-to-end crop
specific precision breeding. Importantly, the traits from the Trait
Machine are indistinguishable from traits developed using
conventional breeding or from nature. Under the European
Commission's July 2023 proposed regulations, products from Cibus’
RTDS gene edited traits would be regulated as “conventional-like”
(breeding) traits, as they already are in the United States. Cibus
believes that RTDS and the Trait Machine process represents a
technological breakthrough in plant breeding that is the ultimate
promise of plant gene editing: high-throughput gene editing systems
operating as an extension of breeding programs.”
“The merger and the achievements of our 2023
milestones are important elements of our business plan. Together
they provide critical building blocks in establishing Cibus in the
trait business and in our position as a leader in high-throughput
(gene editing) plant breeding. Our recent collaboration agreements,
such as today’s announcement of our breeding collaboration with
Bayer Ag, move us closer to establishing our vision of
high-throughput plant breeding operating as a technological
extension of conventional breeding programs.” Added Mr. Riggs. “In
our vision, the goal is to establish crop-by-crop collaborations
with seed companies to develop a new era of plant traits that can
make farming more productive and profitable and address the
sustainability needs in each crop created by climate change.”
Major Milestones Achieved in
2023
- First transfers of Cibus' three developed traits to customers
in their elite germplasm. The first trait transfer was Cibus’ pod
shatter reduction trait in canola, which was transferred to Nuseed
in its elite germplasm. Following that transfer, in April 2023,
Cibus transferred its HT1 and HT3 traits in rice to Nutrien in its
elite germplasm.
- The opening of Cibus' 32,000 square foot Oberlin facility in
San Diego which houses its proprietary Trait Machine™ process. This
is the first semi-automated, high-throughput, end-to-end, trait
production system providing a time bound, predictable, and
reproducible breeding system for gene editing of commercial plants.
The facility provides Cibus with the gene editing production
capacity to support the commercial launch of its first three
developed traits across canola, winter oilseed rape, and rice. This
facility will also be central to Cibus' expected soybean trait
business.
- In addition to its three developed traits, Cibus has three
additional traits in development. Two of these traits, Sclerotinia
resistance and HT2, are progressing through the greenhouse and to
the field. Cibus announced that additional greenhouse test results
had demonstrated successful resistance against white mold,
Sclerotinia, in canola. These greenhouse tests showed both an
enhanced and an additional mode of action from previously noted
field trial results of the Cibus Sclerotinia resistance trait.
Together, these two different modes of action provide an increased
level of resistance against Sclerotinia than each alone. The
Sclerotinia resistance trait is expected to enable yield
improvement, cost reduction, and lower usage of fungicides.
- In July 2023, as part of its Farm to Fork initiative, the
European Union proposed new regulations for New Genomic Techniques
(NGTs). Under the proposed regulations, if adopted, Cibus’ traits
such as pod shatter reduction and Sclerotinia disease resistance,
would be regulated as “conventional-like” (breeding). If approved
by the EU Parliament and Council (Member States), this change would
be a watershed moment for the trait business. It would open up the
gene edited trait business to the 100 million plus acres of
farmland in the EU. In addition, it would be a critical point of
inflection for the progress globally to treat gene edited traits
like conventional breeding.
Future 2023 Milestones
In addition to the milestones that Cibus has
already accomplished this year, Cibus has several important
milestones that it expects to accomplish in the second half of
2023.
- Successfully validate its Trait Machine process in a customer’s
elite soybean germplasm. In addition, Cibus expects to begin
editing in its soybean platform in 2023.
- Transfer up to five additional seed company partners its pod
shatter reduction trait in the customers’ elite germplasm.
- Initiate field trials in the UK for winter oilseed rape.
- Release additional greenhouse and field data associated with
its Sclerotinia resistance trait and its HT2 trait.
- Initiate editing for its initial mode of action for
nitrogen-use efficiency in canola.
- Enter into additional breeding collaborations in North America
and South America for its HT1 and HT3 traits.
Second Quarter 2023 Financial
Results
- Cash position: Cash and cash
equivalents as of June 30, 2023, was $50.9 million. The
Company believes cash and cash equivalents will enable Cibus to
fund planned operating expenses and capital expenditure
requirements into the first quarter of 2024.
- Research and development (R&D)
Expense: R&D expense was $8.4 million for the quarter
ended June 30, 2023, compared to $3.2 million in the year-ago
period. The increase of $5.2 million is primarily related to
increased lab supply and facility expenses, an increase in employee
headcount, and an increase in stock-based compensation expense for
restricted stock award grants and the acceleration of share vesting
associated with stock award agreements due to the acquisition of
Cibus Global, LLC.
- Selling, general, and
administrative (SG&A) expense: SG&A expense was $11.1
million for the quarter ended June 30, 2023, compared to $3.6
million in the year-ago period. The increase of $7.5 million is
primarily related to an increase in headcount, increased consulting
and legal fees, and an increase in stock-based compensation expense
for restricted stock award grants and the acceleration of share
vesting associated with stock award agreements due to the
acquisition of Cibus Global, LLC.
- Non-operating income (expenses):
Non-operating income was $1.3 million for the quarter ended June
30, 2023, compared to $4.3 million in the year-ago period. The
decrease of $3.0 million in non-operating income is due to changes
in the fair value of the liability classified Class A common stock
warrants.
- Net loss: Net loss was $20.5
million for the quarter ended June 30, 2023, compared to $2.5
million in the year-ago period.
- Net loss per
share of Class A common stock was $(3.05) for the quarter ended
June 30, 2023, compared to $(2.66) in the year-ago
period.
Conference Call and Webcast
Information: Cibus will host a live webcast on
Thursday, August 10, 2023, at 8:00 a.m. Eastern Standard
Time to discuss its second quarter 2023 financial results and
provide a business update. To access the live webcast, go to the
investor relations section of Cibus’ website at
https://investor.cibus.com/news-events/events. Interested parties
participating by phone will need to register using this form:
https://register.vevent.com/register/BI6b5a9b78bcd44a15a38e13475fa10226.
After registering for dial-in details, all phone participants will
receive an auto-generated e-mail containing a link to the dial-in
number along with a personal PIN number to use to access the event
by phone. Following the event, a replay will be archived there for
30 days under the investor relations section of Cibus’ website at
https://investor.cibus.com/news-events/events.
About the Trait Machine Process (the Trait
Machine™)The Trait Machine is a dedicated semi-automated
end-to-end process for precision gene editing that delivers trait
products that integrate into our seed company customers' breeding
programs. It is a process of gene editing at scale and speed that
uses the world’s best crop genetics (a seed company’s elite
germplasm or seeds). The Trait Machine is based on Cibus’
proprietary Rapid Trait Development System™,
RTDS®. Under the recent European Commission's
proposal on regulation of plants obtained from new genomic
techniques, such as the traits from the Trait Machine would be
regulated as “conventional-like” (breeding).
Cibus believes that RTDS and the Trait Machine
represents a technological breakthrough in plant breeding that is
the ultimate promise of plant gene editing, a dedicated
“industrial” breeding process at scale whose trait products are
indistinguishable from conventional breeding or nature, and a
process that provides the ability to change the scale and range of
possible genetic solutions from breeding and with it, to develop
the desired characteristics or traits needed for greater farming
sustainability and food security with greater speed and
accuracy.
Cibus’ recently opened the Oberlin Facility which
is the first dedicated Trait Machine facility. It is modeled on
high quality biologics manufacturing processes from the
pharmaceutical industry. The Trait Machine process is crop
specific. It is currently operational for canola, winter oilseed
rape, and rice. Cibus plans to extend this to soybean, corn, and
wheat. Cibus expects the soybean platform Trait Machine process to
be operational in the second half of 2023. The promise is that, at
scale and with the additional Trait Machine crop platforms, Cibus
will be able to launch important multi-crop traits simultaneously
across multiple crops.
About CibusCibus is part of the
multi-billion-dollar plant seed industry. Cibus is the leader in
the new era of high-throughput gene editing technology that
can develop plant traits precisely and predictably at a
fraction of the time and cost of conventional breeding. Cibus is
not a seed company. It is a technology company that develops and
licenses traits to seed companies in exchange for royalties on seed
sales. Cibus’ target market is productivity traits that improve
yields, lower input costs such as chemicals, and increase the
sustainability and profitability of farming. It has a pipeline of
six productivity traits including important traits for pod shatter
reduction, disease resistance, and nitrogen-use efficiency. Cibus’
focus is scale, multi-crop traits that can impact greater than 100
MM acres.
Forward Looking StatementsThis
press release contains “forward-looking statements” within the
meaning of applicable securities laws, including The Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of present or historical fact included herein,
including statements regarding the benefits of the Merger, Cibus’
operational and financial performance, Cibus’ strategy, future
operations, prospects and plans, and the anticipated regulatory
environment are forward-looking statements. Forward-looking
statements may be identified by words such as “anticipate,”
“believe,” “intend”, “expect,” “plan,” “scheduled,” “could,”
“would” and “will,” or the negative of these and similar
expressions.
These forward-looking statements are based on
the current expectations and assumptions of Cibus’ management about
future events, which are based on currently available information.
These forward-looking statements are subject to numerous risks and
uncertainties, many of which are difficult to predict and beyond
the control of Cibus. Cibus’ actual results, level of activity,
performance, or achievements could be materially different than
those expressed, implied, or anticipated by forward-looking
statements due to a variety of factors, including, but not limited
to: risks associated with the possible failure to realize certain
anticipated benefits of the merger between Cibus Global, LLC and
Calyxt, Inc. (Merger Transactions); the effect of the completion of
the Merger Transactions on Cibus’ business relationships, operating
results, and business generally; the outcome of any litigation
related to the Merger Transactions; changes in expected or existing
competition; challenges to Cibus’ intellectual property protection
and unexpected costs associated with defending intellectual
property rights; increased or unanticipated time and resources
required for Cibus’ platform or trait product development efforts;
Cibus’ reliance on third parties in connection with its development
activities; challenges associated with Cibus’ ability to
effectively license its productivity traits and sustainable
ingredient products; the risk that farmers do not recognize the
value in germplasm containing Cibus’ traits or that farmers and
processors fail to work effectively with crops containing Cibus’
traits; challenges that arise in respect of Cibus’ production of
high-quality plants and seeds cost effectively on a large scale;
Cibus’ need for additional funding to finance its activities and
challenges in obtaining additional capital on acceptable terms, or
at all; Cibus’ dependence on distributions from Cibus Global, LLC
to pay taxes and cover its corporate and overhead expenses;
regulatory developments that disfavor or impose significant burdens
on gene-editing processes or products; Cibus’ ability to achieve
commercial success; commodity prices and other market risks facing
the agricultural sector; technological developments that could
render Cibus’ technologies obsolete; changes in macroeconomic and
market conditions, including inflation, supply chain constraints,
and rising interest rates; dislocations in the capital markets and
challenges in accessing liquidity and the impact of such liquidity
challenges on Cibus’ ability to execute on its business plan; and
other important factors discussed in “Risk Factors of Cibus, Inc.”
filed as Exhibit 99.3 with Cibus’ Current Report on Form 8-K, which
was filed with the Securities and Exchange Commission (the “SEC”)
on June 1, 2023, and any additional “Risk Factors” identified in
Cibus’ subsequent reports on Forms 10-Q and 8-K filed with the SEC.
Should one or more of these risks or uncertainties occur, or should
underlying assumptions prove incorrect, actual results and plans
could differ materially from those expressed in any forward-looking
statements. Cibus’ assessment of the period of time through which
its financial resources will be adequate to support its operations
is a forward-looking statement and involves such risks and
uncertainties. Accordingly, the Company could use its available
capital resources sooner than it currently expects.
In addition, the forward-looking statements
included in this press release represent Cibus’ views as of the
date hereof. Cibus specifically disclaims any obligation to update
such forward-looking statements in the future, except as required
under applicable law. These forward-looking statements should not
be relied upon as representing Cibus’ views as of any date
subsequent to the date hereof.
CIBUS CONTACTS:
INVESTOR RELATIONSKaren
Troeberktroeber@cibus.com858-450-2636
MEDIA RELATIONSTheodore
Lowentlowen@cibus.com914-343-6794
Colin Sanfordcolin@bioscribe.com203-918-4347
CIBUS, INC. |
CONSOLIDATED BALANCE SHEETS |
(Unaudited and in Thousands, Except Par Value and Share
Amounts) |
|
|
|
|
|
June 30,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
50,895 |
|
|
$ |
3,427 |
|
Restricted cash |
|
— |
|
|
|
99 |
|
Accounts receivable |
|
858 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
3,093 |
|
|
|
606 |
|
Total current assets |
|
54,846 |
|
|
|
4,132 |
|
Property, plant, and equipment, net |
|
14,989 |
|
|
|
4,516 |
|
Operating lease right-of-use assets |
|
22,550 |
|
|
|
13,615 |
|
Intangible assets, net |
|
135,379 |
|
|
|
158 |
|
Goodwill |
|
585,266 |
|
|
|
— |
|
Other non-current assets |
|
1,238 |
|
|
|
— |
|
Total assets |
$ |
814,268 |
|
|
$ |
22,421 |
|
Liabilities, redeemable noncontrolling interest, and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
3,960 |
|
|
$ |
340 |
|
Accrued expenses |
|
5,036 |
|
|
|
173 |
|
Accrued compensation |
|
4,378 |
|
|
|
107 |
|
Due to related parties |
|
— |
|
|
|
175 |
|
Deferred revenue |
|
1,547 |
|
|
|
107 |
|
Current portion of notes payable |
|
1,562 |
|
|
|
— |
|
Current portion of financing lease obligations |
|
164 |
|
|
|
97 |
|
Current portion of operating lease obligations |
|
5,102 |
|
|
|
367 |
|
Class A common stock warrants |
|
662 |
|
|
|
291 |
|
Other current liabilities |
|
34 |
|
|
|
5 |
|
Total current liabilities |
|
22,445 |
|
|
|
1,662 |
|
Notes payable, net of current portion |
|
719 |
|
|
|
— |
|
Operating lease obligations, net of current portion |
|
18,870 |
|
|
|
13,447 |
|
Royalty liability - related parties |
|
148,977 |
|
|
|
— |
|
Other non-current liabilities |
|
2,078 |
|
|
|
79 |
|
Total liabilities |
|
193,089 |
|
|
|
15,188 |
|
Redeemable noncontrolling interest |
|
136,866 |
|
|
|
— |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Class A common stock, $0.0001 par value; 210,000,000 shares
authorized; 16,639,045 shares issued and 16,606,401 shares
outstanding as of June 30, 2023, and 978,912 shares issued and
976,908 shares outstanding as of December 31, 2022 |
|
8 |
|
|
|
5 |
|
Class B common stock, $0.0001 par value; 90,000,000 shares
authorized; 4,642,636 shares issued and outstanding as of June 30,
2023, and no shares authorized; and no shares issued and
outstanding as of December 31, 2022 |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
722,327 |
|
|
|
220,422 |
|
Class A common stock in treasury, at cost; 32,647 shares as of June
30, 2023, and 2,007 shares as of December 31, 2022 |
|
(1,785 |
) |
|
|
(1,043 |
) |
Accumulated deficit |
|
(236,235 |
) |
|
|
(212,151 |
) |
Accumulated other comprehensive loss |
|
(2 |
) |
|
|
— |
|
Total stockholders’ equity |
|
484,313 |
|
|
|
7,233 |
|
Total liabilities, redeemable noncontrolling interest, and
stockholders' equity |
$ |
814,268 |
|
|
$ |
22,421 |
|
CIBUS, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited and in Thousands, Except Share and Per Share
Amounts) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenue: |
|
|
|
|
|
|
|
Revenue |
$ |
197 |
|
|
$ |
41 |
|
|
$ |
239 |
|
|
$ |
73 |
|
Total revenue |
|
197 |
|
|
|
41 |
|
|
|
239 |
|
|
|
73 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
8,429 |
|
|
|
3,250 |
|
|
|
10,638 |
|
|
|
6,191 |
|
Selling, general, and administrative |
|
11,079 |
|
|
|
3,556 |
|
|
|
13,375 |
|
|
|
6,736 |
|
Total operating expenses |
|
19,508 |
|
|
|
6,806 |
|
|
|
24,013 |
|
|
|
12,927 |
|
Loss from
operations |
|
(19,311 |
) |
|
|
(6,765 |
) |
|
|
(23,774 |
) |
|
|
(12,854 |
) |
Royalty liability interest
expense - related parties |
|
(2,617 |
) |
|
|
— |
|
|
|
(2,617 |
) |
|
|
— |
|
Interest, net |
|
99 |
|
|
|
(16 |
) |
|
|
78 |
|
|
|
(33 |
) |
Non-operating income (expenses) |
|
1,320 |
|
|
|
4,296 |
|
|
|
410 |
|
|
|
4,783 |
|
Loss before income taxes |
|
(20,509 |
) |
|
|
(2,485 |
) |
|
|
(25,903 |
) |
|
|
(8,104 |
) |
Income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
$ |
(20,509 |
) |
|
$ |
(2,485 |
) |
|
$ |
(25,903 |
) |
|
$ |
(8,104 |
) |
Net loss attributable
to redeemable noncontrolling interest |
|
(1,819 |
) |
|
|
— |
|
|
|
(1,819 |
) |
|
|
— |
|
Net loss attributable
to Cibus, Inc. |
$ |
(18,690 |
) |
|
$ |
(2,485 |
) |
|
$ |
(24,084 |
) |
|
$ |
(8,104 |
) |
Basic and diluted net
loss per share of Class A common stock |
$ |
(3.05 |
) |
|
$ |
(2.66 |
) |
|
$ |
(6.73 |
) |
|
$ |
(9.14 |
) |
Weighted average
shares of Class A common stock outstanding – basic and
diluted |
|
6,136,114 |
|
|
|
933,274 |
|
|
|
3,576,350 |
|
|
|
887,096 |
|
CIBUS, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited and in Thousands) |
|
|
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
Operating
activities |
|
|
|
Net loss |
$ |
(25,903 |
) |
|
$ |
(8,104 |
) |
Adjustments to reconcile net loss to net cash used by operating
activities: |
|
|
|
Royalty liability interest expense - related parties |
|
2,617 |
|
|
|
— |
|
Depreciation and amortization |
|
1,191 |
|
|
|
763 |
|
Stock-based compensation |
|
5,842 |
|
|
|
1,855 |
|
Change in fair value of liability classified Class A common stock
warrants |
|
371 |
|
|
|
(4,723 |
) |
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
Accounts receivable |
|
1,377 |
|
|
|
— |
|
Due to/from related parties |
|
(95 |
) |
|
|
(71 |
) |
Prepaid expenses and other current assets |
|
47 |
|
|
|
5 |
|
Accounts payable |
|
(2,270 |
) |
|
|
(114 |
) |
Accrued expenses |
|
1,296 |
|
|
|
(87 |
) |
Accrued compensation |
|
1,411 |
|
|
|
(250 |
) |
Deferred revenues |
|
251 |
|
|
|
(74 |
) |
Right-of-use assets and lease liabilities, net |
|
49 |
|
|
|
100 |
|
Other assets and liabilities, net |
|
(303 |
) |
|
|
(576 |
) |
Net cash used by operating activities |
|
(14,119 |
) |
|
|
(11,276 |
) |
Investing
activities |
|
|
|
Cash acquired from merger with Cibus Global, LLC |
|
59,381 |
|
|
|
— |
|
Purchases of property, plant, and equipment |
|
(560 |
) |
|
|
(1,289 |
) |
Net cash provided by (used) by investing
activities |
|
58,821 |
|
|
|
(1,289 |
) |
Financing
activities |
|
|
|
Proceeds from Class A common stock issuance |
|
— |
|
|
|
11,209 |
|
Costs incurred related to the issuance of Class A common stock |
|
— |
|
|
|
(961 |
) |
Proceeds from draws on revolving line of credit from Cibus Global,
LLC |
|
2,500 |
|
|
|
— |
|
Payment of taxes related to vested restricted stock units |
|
(742 |
) |
|
|
— |
|
Proceeds from issuance of notes payable |
|
1,287 |
|
|
|
— |
|
Repayments of financing lease obligations |
|
(110 |
) |
|
|
(190 |
) |
Repayments of notes payable |
|
(273 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
2,662 |
|
|
|
10,058 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
5 |
|
|
|
— |
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash |
|
47,369 |
|
|
|
(2,507 |
) |
Cash, cash equivalents, and
restricted cash – beginning of period |
|
3,526 |
|
|
|
14,421 |
|
Cash, cash
equivalents, and restricted cash – end of period |
$ |
50,895 |
|
|
$ |
11,914 |
|
Cibus (NASDAQ:CBUS)
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From May 2024 to Jun 2024
Cibus (NASDAQ:CBUS)
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From Jun 2023 to Jun 2024