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DATE

Thursday, November 13, 2025 at 4:30 p.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — Peter R. Beetham
  • Chief Scientific Officer — Gregory F. Gocal
  • Chief Financial Officer — Carlo Broos

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TAKEAWAYS

  • Revenue -- $616,000 for the quarter, down from $1.7 million, attributed to timing of partner-funded activities.
  • Net Loss -- $24.3 million, compared to $201.5 million, with the prior period including a $181.4 million noncash goodwill impairment.
  • Operating Expenses -- Nearly $5 million reduction year-to-date achieved through lower SG&A and R&D expenses.
  • Research and Development Expense -- $10.8 million, improved from $13 million, primarily due to cost-saving initiatives.
  • Selling, General, and Administrative Expense -- $5.2 million, down from $7.7 million, reflecting cost-cutting measures.
  • Cash Position -- $23.9 million in cash and equivalents, projected to fund operations into early 2026 before additional financing is required.
  • Cash Usage Guidance -- Annual net cash usage targeted at approximately $30 million for 2026.
  • Herbicide-Tolerant Trait Agreements -- Seven customer agreements signed, covering five to seven million addressable acres for HT1 and HT3 traits.
  • Potential Royalties -- Over $200 million annual opportunity tied to full commercial deployment of rights traits in targeted rice geographies.
  • Commercial Launch Timeline -- Initial commercial rice trait launch targeted for Latin America in 2027, United States in 2028, and Asia closer to 2030.
  • Biofragrance Milestone -- Completion of precommercial pilot runs for two products enables receipt of initial R&D offset payments starting in Q4 2025.
  • Biofragrance Revenue Ramp -- Initial single-digit million dollar revenue expected in 2026, remaining single digit in 2027, with longer-term scaling anticipated.
  • Technology Platform -- RTDS rapid trait development system delivers edited elite germplasm to customers in about twelve to fifteen months.
  • Regulatory Developments -- European Parliament’s regulatory process for new genomic techniques is advancing, with key legislative language agreed and final text pending in coming months.
  • Geographic Expansion -- Latin America and India highlighted as focus regions, with entry to Indian markets enabled by new AgVire collaboration initiative.
  • Operational Restructuring -- Oberlin facility consolidation completed in Q3, with Roseville transition proceeding on schedule.
  • Board Appointments -- Kimberly Box and Craig Wichner joined the board, bringing expertise in commercialization and sustainable agriculture investment.
  • Field Trial Pipeline -- Second year of pod shatter reduction field trials completed in winter oilseed rape; validation of sclerotinia resistance and HT2 herbicide traits in canola reported.
  • Royalty Liability Interest Expense -- $9 million for the quarter, stemming from recognition of interest expense owed on royalty liabilities.

SUMMARY

The call outlined continued rapid commercial progress, marked by expansion of the rights herbicide-tolerant customer base to seven agreements covering five to seven million acres, positioning Cibus (NASDAQ:CBUS) for potential annual royalties exceeding $200 million upon full commercialization. Management reported advancement in regulatory clarity within the European Union, Ecuador, and India, supporting the company's timeline for staged global trait launches and improved access to key rice-growing geographies. The precommercial scaling and imminent initial revenues from the biofragrance business represent a move toward product diversification and provide the first near-term cash inflow from this segment.

  • The consolidation of facilities and a reduction in force enabled a projected $30 million annual net cash usage, extending the cash runway while supporting priority programs.
  • Chief Scientific Officer Gocal stated, "the enhanced editing efficiency we've achieved is directly enabling the customer expansion Peter described," tying technological execution to business growth.
  • Agreements and field feedback demonstrate the company’s ability to deliver edited elite germplasm to partners on predictably short timelines, as enabled by the RTDS technology platform.
  • Indications of single-digit million dollar biofragrance revenues in both 2026 and 2027 provide initial validation but signal a measured near-term ramp ahead of anticipated scale-up.
  • Royalty liability interest expense represents a continuing cost, with $9 million recognized for the quarter.

INDUSTRY GLOSSARY

  • RTDS (Rapid Trait Development System): A proprietary Cibus gene editing platform enabling efficient insertion of specific traits into elite plant germplasm with streamlined delivery timelines for seed industry partners.
  • HT1, HT2, HT3: Designations for specific proprietary Cibus herbicide-tolerant gene-edited crop traits aimed at improving weed management in major row crops.
  • Sclerotinia Resistance: A genetically engineered plant trait aimed at increasing resistance to sclerotinia, a major fungal pathogen affecting oilseeds and legumes.
  • Pod Shatter Reduction: A gene-edited trait designed to minimize seed loss due to premature opening of pods in oilseed crops, supporting yield improvement and harvest efficiency.

Full Conference Call Transcript

Peter R. Beetham: Thanks, Carlo. And good afternoon, everyone. This past quarter has further focused our commercialization and production activities. I clearly see our company as a coiled spring ready to deliver gene-edited traits for years to come. Today, I am excited to share the significant commercialization momentum we've generated since implementing our streamlined strategic focus. The progress we have made in just the past few months validates our decision to focus on our highest value near-term revenue opportunities. As we've discussed previously, we are primarily focused on our weed management traits, bringing herbicide-tolerant crops to new markets and providing great options for farmers, while we also achieve early revenue to our biofragrance business.

The progress that our talented team has been able to make within our focused strategic framework is remarkable, and I believe the results speak for themselves. What you'll hear today demonstrates our drive toward our commercial goals. When we announced our streamlined focus in July, we committed to you that this would help solidify our path to our near-term revenue opportunities. Today, I'm pleased to report that we're delivering on that commitment.

Peter R. Beetham: But before diving into our results, I want to take a moment to emphasize some recent exciting news about our board. We strengthened our board with two appointments this quarter. In September, we welcomed Kimberly Box as a new board member. Kim brings exactly the kind of leadership we need as we move into this commercialization phase. She has deep experience in technology operations, strategic transformation, and scaling innovation into global markets, experience gained while employed at Hewlett Packard in executive roles over thirty years. And just last week, we appointed Craig Wichner.

Craig's deep expertise as a recognized leader in regenerative and sustainable agriculture, including farmland investment management as the founder and managing partner of Farmland LP, brings valuable perspective as we advance towards commercialization. Both directors will play a key role in supporting our commercialization efforts and long-term value creation.

Peter R. Beetham: Now let me start with the headline accomplishments for the quarter and year to date. We have now signed seven rights customer agreements in the USA and Latin America, now representing approximately five to seven million addressable acres for our rights herbicide-tolerant traits, HT1 and HT3. If fully developed, these represent an opportunity to capture over $200 million in potential annual royalties. The expansion of our customer base, including additional customers in Latin America and our recent positioning for entry into the massive Asian markets via India, showcases the commercial opportunities driven by our technology and the value proposition we can deliver to seed companies worldwide.

Peter R. Beetham: Now let me move to our priority pipeline traits and programs. I'll begin with an update on our right herbicide-tolerant traits HT1 and HT3. These two traits, as I mentioned, continue to represent over $200 million in potential annual royalty revenue across our initial target geographies. These traits are progressing on schedule toward targeted initial commercial launch in Latin America beginning in 2027, followed by expansion to the United States in 2028, and then Asia closer to 2030. Every quarter, we are moving closer to that pivotal revenue expansion inflection point. Our year-to-date commercialization progress in RISE has been exceptional. This is especially true within Latin America, where we now have five rights customer agreements signed.

Latin American markets have historically lacked access to advanced weed management solutions in rice, representing a transformative opportunity for Cibus, Inc. to deliver significant value to farmers while building our commercial foundation ahead of our US and Asia targeted launches.

Peter R. Beetham: Recent examples include our agreement signed in August expanding our Latin American customer base through a partnership with Centro Internationale de Agricultura Tropical, or CIAT, which works with the Latin American Fund for Irrigated Rice, or FLAR, and participates in the Hybrid Rice Consortium for Latin America, HIAL. Cutting through this web of acronyms, I want to emphasize that through this important collaboration, we have the opportunity to make our HC traits available to rice farmers across Latin America. FLAR will be a great partner and has a great track record that includes launching rice varieties in 17 countries.

Further, we signed a collaboration agreement in August with Semiano, then more recently with Samir Stehula, first of these are important Colombian rice seed companies, marking continued momentum in this strategically important geography.

Peter R. Beetham: Then just last month in October, we began collaborating with strategic growth advisory firm AgVire to develop a comprehensive strategy for establishing Cibus, Inc.'s access to seed companies in India. This is tremendously exciting because India is the world's second-largest rice producer and the world's largest exporter, with approximately 120 million acres under cultivation. This collaboration will focus on enabling joint development and commercialization relationships for advanced herbicide and sustainability traits, creating opportunities for Indian rice seed companies and public agencies to integrate our cutting-edge gene editing solutions. So when you step back and look at what we've accomplished just in 2025, the commercial traction is undeniable.

We've expanded our rights program to a global platform spanning three continents and targeting the world's most important rice-growing regions. We've built relationships with both large multinational seed and regional leaders, and we're on track to initiate our first field validation trials in Latin America by year-end, with delivery of initial Cibus, Inc. HT traits to our Latin American customers anticipated in Q4 2025.

Peter R. Beetham: What's enabling our customer momentum is our standardized rapid trade development system, or RTDS, that allows us to edit customers' elite germplasm and return it with specific traits in approximately twelve to fifteen months. RTDS represents a fundamental breakthrough in agricultural innovation, offering the industry a dependable time-bound model for trait development using gene editing that seed companies have never had access to before. Now RTDS is becoming recognized as an essential extension of seed company breeding programs, and that recognition is translating into expanding commercial partnerships.

Peter R. Beetham: I'll shift now to an update on our partner-funded and supported sustainable ingredients program. I'm pleased to share that we achieved critical milestones this quarter with the successful completion of precommercial pilot runs for two biofragrance products, validating our technology is ready to expand to full commercial scale. This positions us to receive initial payments offsetting related R&D expenses in Q4 2025, representing our first proceeds from this program. This is a monumental milestone for our entire team who have been working tirelessly, and this is yet another element supporting our conviction that our business represents a coiled spring showing great promise.

From there, we're positioned for targeted expansion throughout 2026 as we advance our rights traits toward full commercialization during the subsequent years in 2027, 2028, and beyond.

Peter R. Beetham: Our biofragrance program demonstrates the versatility of our capabilities in creating value beyond crop productivity traits. We're generating strong interest in the consumer packaged goods industry for bio-based fragrance products that can replace expensive natural extraction processes or less preferred synthetic alternatives. We believe the long-term opportunity in this area is immense.

Peter R. Beetham: Now let me move to regulatory, which we believe is a key catalyst for acceleration of the global growth of gene-edited products and continues to improve. The EU regulatory process for new genomic techniques remains active and on a path to completion. Key legislative language has now been agreed upon, with final text being refined across remaining amendment categories and anticipated to resolve within the next few months.

Peter R. Beetham: Beyond Europe, our positive determination in Ecuador, ongoing approvals across North and South America, and progressing regulatory clarity in India and parts of Asia are creating a foundation for global market access. The California Rights Commission's approval of our field research proposal marked the first time that gene-edited rice has been authorized for planting in California, another important validation of how our technology is synergizing with the broader regulatory environment.

Peter R. Beetham: So turning briefly to our operational progress, we've made significant progress on our commitment to disciplined capital allocation. We successfully completed the consolidation of our Oberlin facility into our San Diego location during Q3. These and other actions are driving us toward our target of approximately $30 million in annual net cash usage for 2026. This capital discipline extends our runway while ensuring we're resourced to capture the revenue opportunities ahead of us. We continue to allocate resources to our highest value programs while maintaining the development momentum required to hit our commercialization targets. And with that, I will now pass the call over to Greg to discuss our opportunity pipeline traits and programs. Greg?

Gregory F. Gocal: Thank you, Peter. I'll keep my remarks focused on the key technical milestones we achieved this quarter that support both our priority programs and our broader opportunity pipeline. On the Rice platform, I'd emphasize that the enhanced editing efficiency we've achieved is directly enabling the customer expansion Peter described. We're not only signing agreements, we're actually delivering edited elite germplasm back to customers on predictable timelines. That technical execution is what's driving the partner interest we're seeing, and it's validating our industrialized breeding approach. Using our RTDS, we are changing the way plant breeders think about the future of trait development.

The unprecedented speed of our technologies to edit elite genetics will only accelerate with our continued improvement and strategic use of AI/ML technologies.

Gregory F. Gocal: Turning briefly to our opportunity pipeline, I want to highlight two significant technical validations this quarter. First, in our North American field trials, our HT2 herbicide tolerance trait validates the path for developing not only for that chemistry but for any chemistry in this family. For sclerotinia resistance in canola, bioassays for plants bearing two of our modes of action demonstrate enhanced resistance. It's important to remember that both HT2 and sclerotinia resistance have broader potential application to crops like soybean. Further, these results position both traits well for potential partner development. Our HT2 trait is being offered to seed licensing partners for funded continued development opportunity.

Gregory F. Gocal: Second, we completed our second year of field trials for our pod shatter reduction trait in winter oilseed rape, showing promising performance in several customers' elite germplasm. For the 2026 field season, we're pleased to see the implementation of the UK legislation enabling our gene-edited trait germplasm to be grown like conventional germplasm as we seek funded partnerships for continued development. Finally, the soybean platform continues to generate partnership interest as we seek to access a 125 million acre opportunity. The key message I want to leave you with is this: Our RTDS platform is proving its value across multiple crops and increasingly complex traits.

Whether it's delivering rice traits to seven different customers, scaling up biofragrance production, or validating next-generation herbicide tolerance traits in canola, we're demonstrating the versatility and commercial potential of our technologies. This technical foundation, combined with our growing regulatory track record, positions us exceptionally well to advance high-value traits through partnerships while maintaining focused execution on our priority revenue drivers. And with that, I'll hand the call over to Carlo for a financial update. Carlo?

Carlo Broos: Thank you, Greg. Looking at our financials for the third quarter, our cash and cash equivalents as of September 30, 2025, were $23.9 million. Taking into account the impact of implemented cost-saving initiatives and without giving effect to potential financing transactions that Cibus, Inc. is pursuing, we expect that existing cash and cash equivalents are sufficient to fund planned operating expenses and capital expenditure requirements into early 2026. I'd note that our commercialization focus has enabled us to streamline our expenses and operations significantly. We have reduced operating expenses by almost $5 million in the first nine months of 2025 across our SG&A and R&D spending.

Carlo Broos: Moving to our operating results for the third quarter, revenue for Q3 was $616,000, compared to $1.7 million in the year-ago period. This decrease reflects the timing of partner-funded program activities. Research and development expense was $10.8 million for Q3, compared to $13 million in the year-ago period. This $2.2 million 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 $5.2 million for Q3, compared to $7.7 million in the year-ago period. The $2.5 million decrease is primarily due to cost reduction initiatives.

The royalty liability interest expense was $9 million for Q3, which is due to the recognition of interest expense on the royalty liability. Non-operating income net was nominal for Q3, compared to income of $7.7 million in the year-ago period. The decrease in income is driven by the fair value adjustment of the company's liability classified common warrants in 2024. Net loss was $24.3 million for Q3, compared to $201.5 million in the year-ago period. The significant year-over-year improvement reflects the $181.4 million noncash goodwill impairment charge taken in Q3 2024.

Carlo Broos: As Peter mentioned, we successfully completed the consolidation of our Oberlin facility during Q3 2025, and our Roseville facility consolidation remains on track. These actions, along with the reduction in force completed in July, demonstrate tangible progress toward our goal of reducing 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, 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.

Peter R. Beetham: Thank you, Carlo. Let me close with the key message I want you to take away today. The gene editing revolution in agriculture is happening now, and Cibus, Inc. is positioned like a coiled spring at the forefront of this transformation. As I've mentioned previously, crop seed genetics are the engine room of the world's food and feed production. The fact we are prioritizing rice is exciting, not only as an extraordinarily large potential annual royalty for shareholders but a much-needed advancement for helping to improve productivity of a major crop that helps to feed billions of people.

When we look at what we've accomplished just so far in 2025, seven rights customer agreements spanning three continents, successful biofragrance scale-up with an initial payment for our precommercial product, and we believe a clear path to approximately $200 million in potential annual royalty revenue from rice traits alone. Our commercial traction is tangible. We have traits moving into customer germplasm, and we continue to see positive field trial results. We're operating in an increasingly favorable global regulatory environment, and we have commercial launches beginning in 2027, with initial revenue starting in 2026 with biofragrances. This isn't a distant aspiration. This is the reality of our near-term commercial opportunity. Our streamlined business focus is working.

We remain laser-focused on executing our right commercialization timeline, scaling our sustainable ingredients revenues, and building the foundation for sustainable cash flow generation. We're displaying disciplined capital management, extending our runway, and positioning Cibus, Inc. to capture significant value as gene editing becomes one of the standards for agricultural innovation. I'd like to thank you for your support, and we look forward to updating you on our continued progress next quarter. Operator, we're now ready to take questions.

Operator: Certainly, Dr. Beetham. Thank you. Ladies and gentlemen, at this time, if you do have any questions, please press 1, and you can always remove yourself from the queue if your question has been addressed by pressing 2. We'll go first this afternoon to Laurence Alexander of Jefferies.

Kevin Estok: Hi. So this is Kevin Estok on for Laurence. Thank you for taking my questions. I guess my first question is around, I guess, what the chances were for potential R&D sharing or bespoke R&D projects in 2026?

Peter R. Beetham: Thanks for the question, Kevin. This is Peter. I'm going to start this answer to this question and then quickly hand it over to Greg because I think there's some wonderful opportunities in this space. I think the key message here is that, as I just mentioned in my closing remarks, gene editing is happening now. It's not about the technology coming of age. It's actually come of age, and what we're finding now is the real catalyst behind getting to commercial products is regulatory with tailwinds from the regulatory standpoint. And so we're seeing a lot of inbound interest regarding partnerships on expanding beyond our current focus, which is rice, canola, and soybean, and our productivity traits.

So I believe there is significant opportunity in 2026 to expand some of our R&D collaborations. Greg?

Gregory F. Gocal: Yep. Thanks, Peter. I think we have, as Peter said, a lot of opportunity. The opportunity is not only in the platforms that we're focused on today but also well beyond that. We developed really, I think, a unique approach within the industry of starting with single cells that we edit and regenerate whole plants. We have that capability for a broad variety of crops. And we've developed many platforms in our past. Further, we've also got multiple traits that we believe are primed for development. For instance, our HT2 trait, as well as various modes of action for sclerotinia resistance, that show really great promise in controlled environments, and we're working through validating those in the field.

So thanks for the question, Kevin.

Kevin Estok: Sure. Understood. Thank you. And I guess my second question, you guys, I read your commentary about sort of EU regulations, and I guess I was just wondering, obviously, we're kind of getting toward the end there, but have moved a little bit slower than originally expected. And I guess I was wondering what your thoughts were on sort of when you think that will finally be finalized?

Peter R. Beetham: Thank you, Kevin, for the question. This is Peter. I like the fact that you think it's a little bit slower because for people in the industry, this last year has been accelerated beyond what we expected. You know, it's exciting for us in the fact that Europe, for many years, for literally over two decades, has been recalcitrant to understanding how to get regulatory through for genetically modified organisms. What's been exciting for us on the gene editing front, which is different, is that from 2018, they've made a concerted effort to bring forward legislation.

And that legislation was voted on last year, in 2024, and this 2025 has been the year where they've been working on the final text, and we believe, based on our understanding through industry groups in Europe, there's also some of our seed company partners, that by the year-end, they'll have completed that text. And so that final text will start the process of implementation across Europe. And that's a really exciting moment, not just for us, but the whole industry.

Kevin Estok: Alright. Thank you very much.

Carlo Broos: Can I fill in, like, a few seconds, Peter? Kevin, sorry. This is Carlo. I'm from Europe, so I always like these questions, of course. I was not at Euroseeds this time, but we had a few colleagues over there. And it was quite remarkable. I think almost all the seed companies were realizing that new breeding technologies and gene editing is to come. So I think it was theme number one at Euroseeds this year, just a few months ago. So that makes me super excited just realizing what that will mean for us.

Peter R. Beetham: Thank you. Thank you.

Operator: We go next now to Matthew J Venezia of AGP Alliance Global Partners.

Matthew J Venezia: Hey, guys. Thanks for taking my questions. So firstly, when we look at the major rice markets that you guys are going to be selling in Latin America, US, and India, how should we be looking at the acres that you have access to, the total addressable market, and kind of what is put into the calculation of your total addressable market in these markets?

Peter R. Beetham: Matt, thank you for your question. This is Peter. Yeah. Look. We're super excited about the AgVire collaboration. I think that this is a group that has years of executive experience in large multinationals and building businesses in the seed and trait business in India. And I think we've been very fortunate to work with these guys to really map out our opportunity in India. India is over 120 million acres of rice. It is the second-largest exporter of rice in the world. It's a market that we believe we can access through this sort of collaboration with AgVire.

Again, you know, we're looking at this to build relationships with seed companies, bring in material, and get it back to them so that we can launch towards 2030, 2032. You know, as you understand, we do collect royalties. So our estimated trade fees around this will be in alignment with what we've seen and talked about in Asia, which can be, you know, $1 to $2 per acre or a little bit more. That's exciting for us because I think there's an opportunity to really expand that. I'm going to hand it to Greg because he's just actually come back from India where he talked to a number of seed companies.

Gregory F. Gocal: Yeah. Matt, I'm really, really excited about what we're on the beginning of a path with Indian seed companies. Working with AgVire, who's helping us with those relationships and helping us develop our presence within India. There is massive demand for rice, but also massive demand for potentially other crops there. In some areas of India, you're rotating rice twice a year, so it becomes like some of the markets within Latin America. So excellent question.

Matthew J Venezia: Yeah. Thanks, Matt. Thank you, guys. Yeah. And in Latin America and the US, how many acres are addressed through the current customers that you have right now?

Peter R. Beetham: Correct. So, Matt, thank you for the question. As we mentioned in our remarks, you know, this last quarter we've signed on some additional seed companies in Latin America. We're up to seven total, two in the US, and five now in Latin America. And, you know, that allows us to really address that market. What we're saying right now is between five to seven million, so we've increased it by a couple of million acres from where we were last quarter in Latin America, and that takes us again now over this $200 million annual royalty goal and objective we have.

Matthew J Venezia: Got it. And then lastly, from me, obviously, canola pod shatter reduction was not a trait that panned out right away the way that you thought. Why are HT traits different from PSR, and why are they easier to fit into breeding programs for seed distributors and seed companies?

Peter R. Beetham: Thanks, Matt. That's a great question. You know, what we've known in this industry for many years is that weed management or herbicide-tolerant traits are really like the operating system for many crops. So when a farmer plants seed, every year, they need to control their weeds. And they either use selective herbicides or nonselective herbicides. And what is really well known now is that business model is really well understood. In fact, on the GMO side of the business, they're still collecting about $4 billion of annual royalties on a trait that was developed in the nineties. What we're able to do is bring, you know, novel traits to the marketplace to give farmers options to control their weeds.

And so I believe that, you know, herbicide tolerance or weed management solutions have a lot of traction quickly into the market. And that is one of the reasons we're signing up, you know, a number of companies in both the US and Latin America. And, you know, as we mentioned in our remarks, HT2, another herbicide tolerance trait, we had great field trials this year. We reported on those early. And that's in Canola. And that is in North America. So, you know, they're a basis for planting crops. And I think that trait is, you know, not only multiple geographies but multiple crops.

A little different to pod shatter in that pod shatter reduction is more confined to smaller geographies. And the option now we are looking at is further in the UK and Europe for our pod shatter trait in 2028.

Gregory F. Gocal: And to add a little bit to Peter's comments on weed management, weed control systems are an operating system for farmers. It's an expectation in developed agriculture that you have a weed control package to enable cultivation, even on smaller acreages, like Latin America and India. Weeds take away water, nutrients, and sunlight away from plants that reduce yield. And so we, I mean, we are not a chemistry company. But over our history, we've been able to develop gene-edited weed control solutions for at least four groups of chemistry. And I believe there's even more potential beyond that. So we're excited with where we are.

And we believe that there's strong value for both seed companies, growers, and our shareholders in the weed control traits for development.

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

Operator: Thank you. We'll next now to Sameer Joshi with H. C. Wainwright.

Sameer Joshi: Hey. Good afternoon. Thanks for taking my question. It's good to see there has been some initial commercialization of biofragrances. Should we expect sort of ramp up quickly in 2026 on this and get to double-digit millions, or should we expect sort of single-digit million revenues from this in 2026?

Peter R. Beetham: Thank you, Sameer. This is Peter. Really appreciate your question. Biofragrance. You know, we're excited to run through our pre-commercialization scale-up this year, and it has been very successful. You know, we see opportunity beyond the two fragrances that we have scaled. And so, you know, we do see a ramp-up in 2026. You know, we see that the total opportunity in the, you know, in the $2,040,000,000 revenue range. But for early on, it will be in the single-digit millions. But it is just the tip of the iceberg in our minds. The fragrance market is over $65 billion, and, you know, this area is looking for alternatives, particularly for the natural fragrances out there.

So there's an opportunity, I think, that could expand beyond that.

Sameer Joshi: Understood. Thanks for that. And then as I understand, I mean, the cost-cutting efforts included focus on HT1 and HT3. But there are pipeline traits that you have available for partnership. And there was some announcement in October about the HT2. So I was just wondering, are there any money being spent still on these pipeline traits, and should we expect that to reflect in the R&D or some other line on the income statement?

Peter R. Beetham: Sameer, thank you for your question. I think that you've captured this fairly well. I think that, you know, with regards to our expanded pipeline traits and crops like HT2, we're excited with the field results this year. We are in discussions and looking for partners for this area. Right now, it's not a lot of resource for us. You know, we've developed that trait. We've been able to do the edits very efficiently. And we're excited to sort of think through next steps with, you know, again, this is a multi-crop, multi-geography trait. So I think this is exciting for 2026.

Sameer Joshi: Understood. And then last one from me. The AgVire relationship that is being developed, and I think Greg mentioned other crops as well. So it's a relationship with seed companies in India. But how about the regulatory environment and what kind of requirements do you have to meet in order to sell in India?

Gregory F. Gocal: Excellent question, Sameer. This is Greg. So one of the people who I had the opportunity of meeting was the former minister of agriculture in India. And as I think you realize from some press releases over the last six months or so, the first gene-edited rice has been planted in India, so there's a lot of appetite for traits in India. And because of that, we're excited with the acceptance, but also with the demand for, in the first instance, our HT1 and HT3 traits there.

Sameer Joshi: Got it. Thanks for all the color, and good luck.

Peter R. Beetham: Thank you. Thanks.

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

Austin Moeller: Hi. Good afternoon. So just my first question here on the biofragrance products. So will those be hitting store shelves in 2026 in a pilot capacity and then scaling up into 2027, and then how much should we think about the ramp in '27 being in terms of revenue?

Peter R. Beetham: Thanks, Austin. This is Peter. I'll answer the first part of this question and hand it off to Carlo. You know, we are working with the, as yet, undisclosed CPG with regards to fragrances and getting into products. So there's, you know, what our role is with regards to BioFragrance is the scale-up that we've already done on a pre-commercialization step this year and going through to a full commercial sale next year. They'll be included in various formulations, is our understanding. We don't know exactly which products it'll end up in next year. We have some guidance on that, which we've given the market, and we look forward to announcing when those products actually hit the shelves.

Carlo Broos: Peter, the only thing I would like to add then because you specifically asked about 27, that's still single digit. But then we take off.

Austin Moeller: Okay. And do you have any specific updates you can provide on the European Parliament?

Peter R. Beetham: Yeah. Thanks, Austin. Let me start. I'm going to dive into what's happened in the last couple of months because I think, you know, we've talked about the history of the EU regulatory, but what you know, the trialogue, as they call it, which is the discussion around the parliament, the council, and the commission, has gone very well with the Danish leading that just the council discussions. They are working on, you know, a number of areas, what they call the amendments to the legislation for the final text. And we've been very encouraged with where they've ended up, particularly on some of the detail around how many edits and how many genes within a plant genome are acceptable.

It all matches everything that we do internally here at Cibus, Inc. And beyond that, labeling and patent discussions have also gone well. So they're very close to, I believe, final text. The next four to six weeks are going to be very interesting to watch as they move through that. The next country who will take this on is Cyprus. If it does flow over into Q1 2026, which we don't expect today, they are also very supportive of completion based on the understanding of how the amendment should be changed.

Austin Moeller: Understood. Thanks for all the details.

Operator: Thank you. We go next now to Alexander Noah Hantman at Sidoti.

Alexander Noah Hantman: Good afternoon. Thanks for taking questions. Just given the current cash position and runway into early Q2 2026 that you mentioned, could you talk a little bit about the size and range of nondilutive, dilutive financing options you're exploring and what milestones you expect to achieve with an X-ray?

Peter R. Beetham: Thanks, Alex, for your question. This is Peter. I think that I'm going to let Carlo answer most of that question, but to start with, you know, we've made a lot of great progress with regards to our near-term revenue opportunities. You know, a combination of that with the catalyst of the tailwinds we believe from the regulatory front allows us to be well-positioned to look at strategic alternatives of financing the company. And, you know, at this stage, we don't have anything more to report on it after that.

Carlo Broos: Yeah. I think correct, Peter. I think all options are still on the table. Like in the past, right, it is not any different at the moment. I think most important is that we progress so well on our milestones, and I think that's what the investor wants to hear to continue to support us in the near term. And what you said on the burn, I think you've seen that very spot on. I think quite impressive. A couple of things we did. So we implemented a rip just after summer, we did much more than that. So it's also streamlining facilities. We shut down the Oberlin facility.

Some other cost-saving initiatives, all to get ready for that $30 million annualized net burn next year. But I think most important is that we continue strongly deliver on the milestones.

Alexander Noah Hantman: Great. Thanks for the color. And congrats again on the Biofragrance side initial payment. Had a question on the trade side. Can we get an update on, you know, automations and improvements on the real-time, you know, delivery system? I think we heard a little bit about AI and ML technologies from Greg, but just curious about, you know, from edit to stable trait line technology these days.

Gregory F. Gocal: Yeah. So excellent question, Alex. And really proud of what the team has been able to accomplish and is continuing to. I mean, in our facilities, we're always pushing to become more efficient. So efficiency is improving editing frequency, which I'm really impressed with for Rice over the last year. It's increased by an order of magnitude. The regeneration frequency for our key crops, really impressed by the improvements there. And to your point in terms of automation, so we're a semi-automated process.

But a lot of the really repetitive mundane tasks we're able to do with robotic assistance, which really enables our team of scientists to focus on the hard problems, and the more repetitive tasks are handled by robots both for some of our cell culture process but also for a lot of the liquid handling.

And then because we've been around for a quarter of a century, we have a lot of data in the editing space, in the what to edit space, and also with what you've seen generally for structural biology and intelligence there in terms of predicting and helping support some of the edits and accelerating the what to edit space so that we're making the right choices as we move edits into our production pipeline. So excellent question, Alex.

Alexander Noah Hantman: Thank you. That's all from us.

Operator: Thank you. And gentlemen, it appears we have no further questions this afternoon. Dr. Beetham, I'd like to turn things back to you, sir, for any closing comments.

Peter R. Beetham: Thank you. And thank you all for joining us on today's call. As I've said in the past, I continue to be so proud to be part of the Cibus, Inc. team. As you've just heard, we've made excellent progress this past quarter with a renewed focus and streamlined business. You know, what I hope you've heard is that gene editing is happening now, and it's delivering across multiple sectors. As Greg just mentioned, some of the incredible things that are going on in the company with regards to the understanding of what to edit with AI and ML as well as automation.

You know, for us to be time-bound and predictable for our seed company partners delivering back their elite genetics is really going to drive our near-term revenue. So we're excited to be leading this charge in the ag industry. And we do see these near-term revenue targets like herbicide tolerance in rice, a clear path to that market, which is fantastic. You know, you think about the focus with regards to the different geographies we're targeting. This is a huge commercial expansion of trade royalties. That's why we see ourselves as a coiled spring. And finally, we clearly see the seed industry also recognizing the global harmony of regulatory.

Carlo mentioned our team just coming back from Euroseeds, understanding that this is a tailwind behind our expanded business opportunities, and we really look forward to a great year in 2026 and beyond. So, again, thank you for joining. Thank you for your support and time today.

Operator: Thank you, Dr. Beetham. Again, ladies and gentlemen, this will conclude the Cibus, Inc. third quarter 2025 results conference call. Again, thanks so much for joining us, everyone, and we wish you all a great remainder of your day. Goodbye.