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DATE

Thursday, Aug. 13, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Interim Chief Financial Officer - Cornelis Broos
• Chief Executive Officer - Craig Wichner
• President and Chief Operating Officer - Peter Beetham
• Chief Scientific Officer - Gregory Gocal

TAKEAWAYS

• Revenue -- $1 million, compared to $900,000 in the second quarter of 2025.
• Six-Month Revenue -- $2.7 million for the first half of 2026, representing a 35% increase year over year driven by the sustainable ingredients program.
• Net Loss -- $22.1 million for the quarter, compared to $26.6 million in the prior-year period.
• Net Loss Per Share -- $0.29, compared to $0.61 last year, reflecting cost-reduction initiatives and an increase in weighted average shares outstanding.
• Cash and Cash Equivalents -- $20.4 million as of June 30, 2026.
• Research and Development Expense -- $8.5 million, a decrease of $3.7 million from the year-ago period due to cost savings.
• Selling, General, and Administrative Expense -- $5.4 million, down from $6.6 million in the prior-year period.
• Quarterly Cash Usage -- Declined 19% sequentially and 31% year over year.
• Annual Net Cash Usage Run Rate -- Approximately $35 million or less exiting 2026.
• Biofragrance Annual Revenue Opportunity -- $20 million to $40 million at full commercialization.
• Rice Royalty Opportunity -- Over $200 million annually across the Americas.
• Peak Addressable Rice Acreage -- 5 million to 7 million acres.
• Intellectual Property Portfolio -- More than 500 patents and patent applications.
• Non-Cash Royalty Liability Interest Expense -- $9.5 million, compared to $8.7 million in the prior-year period.
• Latin American Rice Launch Target -- 2028 for the first commercial launch, with customer Fedearroz on track.
• United States Rice Launch Target -- 2029, following the herbicide-registration timeline of partner Albaugh.
• Consolidated Operating Expenses -- Declined by nearly $5 million year over year.

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RISKS

• CFO Broos stated, "existing cash and cash equivalents are sufficient to fund planned operating expenses and capital expenditure requirements into early in the first quarter of 2027," indicating the company will require additional funding within months.
• Management noted the company will "need to spend a little bit more on technology and on people" to support growth initiatives, which may partially offset ongoing cost-reduction efforts.

SUMMARY

Management at Cibus, Inc. (CBUS +0.00%) detailed a strategic transition toward a royalty-based business model, prioritizing its rice and sustainable ingredients programs. The company reported that recent regulatory approvals in the European Union and Latin America have established a framework for gene-edited traits developed without foreign DNA to be treated as conventionally bred. Management stated that the company is implementing rigorous cost discipline to extend its cash runway while simultaneously investing in artificial intelligence and personnel to accelerate commercialization. The leadership team confirmed that the company is moving from a platform-development phase into a commercial-execution phase focused on recurring royalty streams.

• CEO Wichner stated, "I accepted the job of CEO because I believe we can generate revenue at scale."
• Management expanded its framework with rice customer Interoc from two traits to five, aimed at building a multi-trait pipeline for the Latin American market.
• President Beetham reported that the company expects to send edited canola material for its nutrient use efficiency program to the John Innes Centre in the third quarter of 2026.
• The company has demonstrated regeneration from single cells in eight crops, including wheat, peanut, potato, and sugar beet.
• CFO Broos noted that despite generating small amounts of revenue today, "the trajectory is the point" as collaboration agreements ramp up.
• Management reported that the European Union finalized rules in June 2026 to treat gene-edited crops similarly to conventionally bred ones, which is expected to support the company's disease-resistance and pod-shatter programs.

INDUSTRY GLOSSARY

• RTDS: Rapid Trait Development System, the company's patented gene-editing platform used to make precise changes to plant genomes.
• Trait Machine: The company's scalable, high-throughput system for automated gene editing.
• Pod Shatter Reduction: A trait designed to prevent seed pods from splitting open before harvest, reducing crop loss for farmers.
• Lauric Oils: Specialty oils used in consumer products that the company is developing using engineered yeast and soybeans.
• HT1 and HT3: Specific herbicide tolerance traits developed by the company for use in rice crops.

Full Conference Call Transcript

Operator: Thank you. Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0, and a member of our team will be happy to help you. Thank you for your continued patience. Your meeting will begin shortly. And a member of our team will be happy to help you. Please stand by. Your meeting is about to begin. Afternoon. And welcome to the Cibus Second Quarter 2026 Earnings Call. All participants will be in a listen-only mode. After today's presentation, Please also note, today's event is being recorded. At this time, I would like to turn the conference call over to Cornelis Broos, Interim Chief Financial Officer. Sir, please go ahead.

Cornelis Broos: Thank you, and good afternoon. I would like to thank you for taking the time to join us for Cibus second quarter 2026 financial results and business update conference call and Webcast. Presenting with me today is Craig Wichner, our chief executive officer and Peter Beetham, Cibus Founder, President and Chief Operating Officer. Gregory Gocal, Chief Scientific Officer is available to participate during the Q&A portion of the call. Before we begin the call, I would like to remind everyone that statements made on the call on our webcast.

Including those regarding future financial results, and future operational goals and industry prospects are forward looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to Cibus' SEC filings for a list of associated risks The 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 to assist you in your analysis of our business. And with that, I would like to turn the call now over to Craig.

Craig Wichner: Thank you, Cornelis, and good afternoon, everyone. This is my first earnings call as CEO. And I want to start with why I am here. Cibus has built something rare over 25 years. I joined the Cibus board because the technology and the people are world class. And I accepted the job of CEO because I believe we can generate revenue at scale. That is my mission. I studied biochemistry and molecular biology at UC San Diego, the city where our labs are today, I have spent more than 30 years building technology companies and managing investments.

For the last 17 of those years, I have managed organic and regenerative farmland on behalf of investors where we drove higher returns on assets through the implementation of technology and smarter farming practices. And we now have over $400 million of pristine cropland in Washington state, California, and Oregon. I know firsthand the pressures that growers are under. Fertilizer costs more than it used to, every grower I know is looking for a way to get more out of what they can afford. That is who Cibus serves. A grower works with what is in front of them. Equipment, water, chemistry, better practices in the field. The seed is at the top of that list.

It is the first decision of the season and the 1 you cannot take back. And it sets the ceiling that everything else is working towards. Seed innovation has been remarkable in corn and soybeans. For most other crops, it has been far slower because breeding takes years and is unpredictable. Every crop in the world is the product of plant breeding, And at Cibus, we make that part fast and precise. Cibus is a technology company, We have an IP protected platform that lets us make precise improvements to seeds and do it in a fraction of the time conventional breeding takes. Think of the genome as information.

And think of our platform as the way we turn that information into better outcomes for farmers. Quickly and precisely. That speed is what our partners pay for. It lowers their development costs and puts their products in the market sooner. What we have built is an iterative and scalable platform. The work we do and the tools and the know how behind it carry from 1 program to the next. When we develop a trade in 1 crop, we are not starting from scratch the next time. We are building on what we already know and each program costs less than the last 1 did.

For our partners, that advantage compounds too, It can put them a generation or 2 ahead of their competition within a decade. This capability is what informs our path ahead. Because the platform is scalable, it allows us to be nimble as we assess market and customer needs. That is the most important idea I wanna leave with you today. Because it is how I want you to understand Cibus going forward. The same platform, the same foundational work, creates value across our business in 3 ways. The first is the revenue we are generating today. Through platform programs where we make edits for partners and share in the value created. Our sustainable ingredients work is the clearest example.

And while it is still in the scaling phase, it drove a 35% increase in our revenue year to date. The 2nd is our trait royalty business. This is what we are pursuing with Rice. For example, where we earn a royalty on every acre planted with our traits. It begins to scale with our commercial launches, starting in Latin America, and it compounds over time as adoption grows. The third is deepening those same partnerships over time. What we offer a partner is a pipeline of traits. Higher yields, resistance to disease, better quality crops for their own customers, Not 1 edit in 1 crop, but a steady of improvements across their portfolio.

As those relationships mature, we become an extension of their breeding program, and the trust we earn in the first 2 tiers is what makes that reachable for us. This framework for how we think about and operate our business provides us with the optionality and allows us to match the right model to each market opportunity. In row crops, where a small number of large seed companies dominate, the rational approach is to license our traits to that industry and earn royalties on every acre planted. We become a technology partner that accelerates their pipeline. For partners who are set up to work with us directly, we contract for platform access.

As those relationships mature, and partners open up their product development road maps to Cibus, that partnership deepens. That is what the scalability of our platform gives us. The flexibility to leverage a single project into a broader opportunity set that may cover an entire crop or ingredient strategy in a time bound, predictable, and resource efficient manner. Again, I joined the Cibus board 9 months ago, so I came in knowing the company. Over the past 2 months as CEO, my conviction has grown.

I have spent most of my time with our teams, and what I found is traits and programs built up over 25 years across many crops much of it closer to product than most people would expect. Peter will take you through where those stand. I am reviewing every program, every expense, and every opportunity with a simple lens. What drives near term revenue, What strengthens the balance sheet? And what unlocks the value we have already built. We will run this company with capital discipline, We are prioritizing resource allocation and increasing our investment in AI to make our team more productive.

Before I hand it over, I want to thank Peter for welcoming me to the team and for the capabilities he continues to add to it as president and chief operating officer. Peter is a cofounder of this company, and he has led it through phases of growth. My plan builds directly on the foundation that he and many other members of the team created. With that, let me hand it to Peter to walk through our commercial progress. Peter?

Peter Beetham: Thanks, Craig and good afternoon, everyone. It is great to have Craig step in to lead Cibus as our new CEO. We are really fortunate here to have a farming industry leader a scientist, and a financier to lead Cibus to the next level. I want to spend my time building on what Craig said by showing you how his vision supports our near term commercial interests. This quarter and how those approaches can translate to the amazing opportunities ahead of us as we work to deepen our industry partnerships. If I distill the quarter into 1 idea, it is that the conversations we described earlier this year are converting into commercial steps.

Seed companies are coming to us not for a single edit in a single crop. But for an ongoing relationship where we send customers' canola and winter oilseed rape lines with 6 returns. We have transferred our herbicide tolerance traits into elite rice germplasm. We have delivered 3 improved rice lines to a United States customer. And we have edited rice material and delivered it back to our first Latin American customer Interoc. Every 1 of those represents the building blocks of value, and our goal is to confirm the 12-month turnaround of edits for all crops. that is as we have done in canola. So let me go deeper into our 2 priority near term programs.

Sustainable ingredients and rice. In Craig's framing, these are the first 2 tiers. Sustainable ingredients is generating platform program revenue today. And rice is a trait royalty business that scales when our customer launches in the field. Starting with sustainable ingredients, which continues to generate R&D revenue this program includes gene-engineered yeast to produce oils that consumer product companies need. For instance, take fragrance ingredients, the molecules that give a product its scent. These are made in a fermenter, rather than pumped from petroleum or extracted from harvested plants. This program is generating revenue, and it is a proof point for the platform model. We received our first customer payment from this program in the fourth quarter of 2025.

It is now in a commercial ramp up phase with our consumer product partner. Revenue steps up when 4 things happen in order. First, our partner confirms the ingredient performs in their product. Second, we produce it at full commercial scale. Third, we agree supply terms and pricing. And fourth, our partner places commercial production orders. We are past the first, We continue to expect additional scale up orders of our initial biofragrances in the second half of 2026. We are also developing additional fragrance ingredients using a similar edited yeast and the same process that produced the first biofragrances. Each 1 starts from work we have already done, so it reaches the partner faster than the preceding product did.

The opportunity here is meaningful. When fully commercialized, we believe our biofragrance partnership could represent up to a $20 to $40 million annual revenue opportunity to Cibus. Just as important, this revenue is a near term bridge that builds while our expected rice royalty ramps. And it demonstrates something I think is underappreciated The same core capability that develops herbicide tolerance in rice is creating commercial value in the consumer products industry. 1 platform multiple markets. We also continue to advance our lauric oils program in soybean, funded by our consumer packaged goods partner. It is a 2nd partner funded program inside sustainable ingredients running on the same soybean platform we are building for other traits.

Turning to rice, Latin America is the primary thrust of our near term rice efforts. And it represents the bulk of the roughly $200 million annual addressable royalty opportunity across The Americas. Over a combined 5 to 7 million peak addressable acres. As we have shared previously, we have 7 rice seed company customers across Latin America and The United States. And we continue to advance discussions with additional C companies in Latin America and India. We are updating our guidance on initial commercial launch timing for rice in Latin America from late 2027 to 2020.

With our customer Federarroz on track and our customer Interoc strategically focusing on hybrid varieties, with the potential for a limited launch in 2028 as well. During the quarter, we advanced development on both of our rice herbicide tolerance traits, including field trials of an improved first generation trait and work to identify the specific genetic changes responsible for dramatically increasing herbicide tolerance and seed fertility in that trait. Importantly, testing of the traits. We transferred to Interoc rice seed is in May, is underway. In August, we expanded our framework with Interoc from 2 rice traits to 5 That changes the shape of the relationship as we continue toward a definitive commercial agreement.

Instead of licensing 1 trait into a customer's variety, we are working toward being a trait pipeline powering their varieties. That is the model we intend to build with seed companies. And it is why we say speed is our product. In The United States, our launch is paired with our partner Albaugh's herbicide registration timeline, and our current planning targets a 2029 launch. That work towards this launch remains on track. Beyond our 2 priority programs, the same platform is generating interest across a broader set of crops and traits. Cibus has demonstrated regeneration from single cells towards enabling crop platforms in 8 crops.

Rice, canola, wheat, flax, peanut, potato, sugar beet, and cassava, and additional crop platforms, including soybean, are in development. This is where Craig's third tier begins to take shape. Taking this work and the operational platforms we have built, to existing partnerships to determine where we can accelerate their innovations. These conversations are developing in part because of a harmonizing regulatory environment, which has put the whole industry back into focus. Nutrient use efficiency is our program with the John Innes Centre, a leading plant science institute in The United Kingdom. The work is focused on how the roots of a plant take up the nutrients in its environment. And it targets the whole fertilizer package rather than nitrogen alone.

We expect to send them edited canola material in the third quarter of this year. And to reinforce our single trait multi crop approach this trait has potential application across rice, wheat, and canola. We have 2 canola programs in The United Kingdom, The 1st is resistance to the light leaf spot, a fungal disease that erodes canola yields in Europe. And that work is funded by a UK government research program run by DEFRA the British Agricultural Department. The 2nd is also a yield enhancer that targets Pod Shatter Reduction. Which keeps seed pods from splitting open and dropping their seed before harvest.

Following 2 years of encouraging field trials in England, in our customers' own varieties, Pod Shatter Reduction is moving to expanded trialing there. It will be planted under Britain's new precision breeding rules. Which apply in England to treat gene edited crops the same as a conventional 1. 1 more result from our canola work. Our second generation herbicide tolerance trait has progressed and this year's trials are repeating the level of tolerance to the HT2 herbicide we would expect for a novel weed management solution. Solutions for managing hard to control weeds in canola provide farmers with important options that can help to reduce the total herbicide package needed, which in turn reduces cost and chemical usage.

The takeaway is that our platform is performing across multiple crops and increasingly complex traits. And every 1 of these programs is available for partnership. Together, they represent the optionality Craig described. Finally, the regulatory environment continues to work in our favor at a moment when it matters. In June, the European Union finalized new rules that generally treat most crops, improved without adding foreign DNA the same as conventionally bred crop. Rather than as GMOs. Those rules entered into force in July, and now enter a 2-year implementation period. This is a milestone for our industry, and the recognition comes from 1 of the world's largest and most stringent agricultural markets.

Trades like disease resistance and our Pod Shatter Reduction work in canola and oilseed rape are expected to qualify under the same conventional breeding treatment. Our first planned submission under the new framework is pod shatter reduction in winter oilseed rape. Within Latin America, Ecuador, and Peru, have both confirmed that our first and second generation herbicide tolerant rice traits are equivalent to those developed through conventional breeding. Separately, the United States Food and Drug Administration has completed its review of our altered lignin alfalfa trait and issued a letter stating it has no further questions. In The United States, USDA APHIS has determined that our traits are not regulated articles. Subject to its biotechnology regulations.

Those decisions span now 3 continents, and they underpin the launch timelines I have described today. And with that, let me hand it back to Cornelis for the financial review. Cornelis?

Cornelis Broos: Thank you, Peter. Looking at our financials for the second quarter, cash and cash equivalents as of June 30, 2026 was $20.4 million We were pleased that our quarterly cash usage declined approximately 19% on a sequential basis and 31% on a year over year basis. Taking into account the impact of implemented cost saving initiatives, and without giving effect to potential financing transactions that Cibus may pursue from time to time, we expect that existing cash and cash equivalents are sufficient to fund planned operating expenses and capital expenditure requirements into early in the first quarter of 2027.

Moving to our operating results for the second quarter, Revenue was $1 million for the quarter, compared to $900 thousand in the year ago period. For the 6 months, revenue was $2.7 million against $2 million an increase of 35% earned under our collaboration agreements with the sustainable ingredients program. The figures are small today, and the trajectory is the point. Research and development was $8.5 million compared to $12.2 million in the year ago period. The decrease of $3.7 million is primarily due to the cost reduction initiatives. SG&A expense was $5.4 million compared to $6.6 million in the year ago period. The decrease of $1.2 million is primarily due to the same cost reductions.

Combined R&D and SG&A operating expenses declined by nearly $5 million year over year, it is also worth noting what sits below the operating lines. Non cash royalty liability interest expense to related parties was $9.5 million for the quarter, compared to $8.7 million in the year ago period. Reflecting interest accruing on the royalty liability balance. That is the largest single driver of the gap between our operating loss and our net loss. These reductions reflect the cost discipline that is now central to how we run the company. As Craig noted, the team is conducting a thorough review of our cost structure and capital allocation, and we will plan to share more on our next call.

Non operating income, net, was income of $0.2 million. Compared to a nominal expense in the year ago period. The increase is driven by partner funding for work Cibus performed and the fair value adjustment of the company's liability classified common warrants. Net loss was $22.1 million for the quarter, compared to $26.6 million in the year ago period. Net loss per share of Class A common stock was $0.29 compared to $0.61 in the year ago period. The improvement of $0.32 primarily driven by the cost reductions I described. As well as a year over year increase in weighted average shares outstanding.

With respect to our net cash usage, we are now targeting a net cash usage run rate exiting 2026 of approximately $35 million, reflecting continued cost discipline while making additional investments geared toward growth initiatives such as technology and personnel. Now I would like to give you some added color on how we expect the right royalty streams to build. Royalties scale with acres planted, so the ramp follows our commercial launch. As our Latin American seed partners bring traited rice to the market, we expect royalties to start flowing in 2028 and to build further to 2029 as adoption expands into additional acres and additional customers.

To put that in context, at peak volumes across our combined rice acreage opportunity, we have described a royalty opportunity of over $200 million annually, getting from the first acres planted in 2028 to that scale is a multiyear ramp and we will continue to update you on our progress in our quarterly updates. The bigger picture is straightforward. Our cost discipline is showing up in the numbers. Our near term revenue is building in the first 2 tiers Craig described. The platform programs we have in place today and the potential of the rice royalty business as it scales in the coming years we are all oriented towards Craig's vision of strengthening our financial foundation with sound strategy.

And with that, let me now turn it back to Craig for his closing remarks.

Craig Wichner: Thank you, Cornelis. Cibus is a rare technology protected by more than 500 patents and patent applications and validated through demanding regulatory pathways with a clear path to value across the 3 tiers I described. 8 platform programs, a royalty business that scales with Rice, and deepening partnerships. Our job is to execute against that framework, and that is exactly what this team is focused on. I took this job because I believe this platform can generate revenue at scale. That belief has not changed. With that, operator, let's take some questions.

Operator: Thank you. If you would like to ask a question, please press 1 on your keypad. Press 2. Once again, that is * and 1. To ask a question. I will pause for a moment to allow everyone a chance to join the queue. Will take our first question from Matthew Venezia with AGP Alliance Global Partners. Please go ahead. Your line is open.

Matthew Venezia: Hey, guys. Thanks for taking our questions and congrats on the progress this quarter. Was wondering if you could speak a little bit more on the model of becoming sort of a trait machine for specific seed companies rather than licensing your traits to big agricultural conglomerates. What are the economics and moat you guys have there are.

Craig Wichner: Great. Matthew. Thanks so much for joining. Thanks for your question. This is Craig Wichner here. The question was the trait machine pushing forward with the trait machine. On a more focused basis rather than just broadly across the enterprise. We are certainly continuing to provide our technology and our solutions across the industry. What we are adding here is the ability to really provide a competitive advantage for specific key partners in specific geographies by crop. So, a partner like Interoc, for example, in rice, we have a nice broad platform of, on the technology. We have a number of partners in the market and in the crop.

And, what Interoc is excited about, is the opportunity to, have a pipeline of traits. Going into rice. To really give them a strong competitive advantage. For that. That allows us to really focus our efforts and give a lot of value to specific partners. it is our belief is that this will both accelerate the deployment and the partnerships with our company, as well as broaden the market opportunity as well. Really creating a closer relationship with the key companies.

Matthew Venezia: Great. Thanks, Craig. And then just 1 more if I could. What is the prevalence of hybrid rice in Latin America? I know this is a much more stable source of recurring revenue. How many acres are out there that you guys model in the geographies that you are looking to enter in 2028?

Peter Beetham: Thanks, Matthew. This is Peter. Let me take that question because I think, you know, 26 has been a really exciting year for us to see how clethodim tolerance rice in the field again and our partners getting a chance to see it in multiple geographies. And the excitement around that trait because it is working so well. And that is been great to see. And I think that they are looking and when you look at the Latin American market, that is primarily been inbred or conventional varieties is moving and they would love to move even faster, to a hybrid seed production.

So, you know, you put that together with an expansion of what we are doing in deepening our relationships as part of Craig's vision. With Interoc and others but also the ability to sort of look at the trait and go, wow. This is great. We wanna get this on as many acres and market penetrate that market really well. So you know, right now, if you look at major crops around the world, they are all heading in the direction of hybrids. So, you know, corn has corn has led the way. Wheat is coming right now. Canola has always been there. And now we are seeing rice, you know, globally have the same impact.

So you know, when we model acres, we see the growth acreage in that 5 to 7 million acres coming forward with hybrids penetrating that marketplace. So, you know, we are working with other partners like Federarroz that are more on the inbred side or variety side. So it will advance our model greatly.

Matthew Venezia: Great. Thank you, Peter. And thanks, guys, for taking my questions.

Craig Wichner: Thanks, Matthew.

Operator: Thank you. And once again, that is star and 1 on your telephone. We will move next with Sameer Joshi with H. C. Wainwright. Please go ahead. Your line is open.

Sameer Joshi: Hey. Good afternoon. Thanks for taking my call. So Craig, Peter, Cornelis. Congrats on all the progress. And congrats especially on the EU opportunity that is opening up. You mentioned, I think, in your prepared remarks, a 2-year implementation period Question is, do you have people on the ground to influence that process, or how is it being managed so that you will be prepared when things are ready to go?

Peter Beetham: Let me let me take that question. This is Peter. Because it is such an important question. And as you know, we have as a company, we have been following the EU legislation for many years and very closely. A number of industry groups like Euroseeds and the American Seed Trade Association have, you know, been great advocacy groups for that legislation. And I can tell you already, you know, since the vote we have had a number of interactions already on the discussion. Points around the implementation.

So there is you know, I have been to Brussels already and given presentations We are invited to a number of other conferences in the next few months And this is helping the DG SANTE, which is the group that will drive the administration as part of the commission, And for the interruption, this is the operator.

Operator: We are experiencing technical difficulties. Please remain on the And for the interruption, this is the operator. We are experiencing technical difficulties. Please remain on the line. And pardon interruptions. This is the operator We are currently experiencing technical difficulties. Please remain on the line. Your meeting will resume shortly. And for the interruption, we are currently experiencing technical difficulties Please remain on the line. Meeting will resume shortly. Thank you for your patience. We are currently experiencing technical difficulties Please remain on the line. Your meeting will resume shortly. And your line has reconnected. Please proceed with the program.

Unidentified Speaker: We want to know where we dropped off. Yeah. Can you help us understand where we dropped off?

Operator: I apologize.

Sameer Joshi: Yeah. This is Samir. I think you were explaining the your progress in the European countries, how you are positioned there.

Unidentified Speaker: Did you get the answer from Craig on understanding that we have people on the ground? I do not think we reached. I think, Peter, you were speaking. Alright. So just 1 of you continue.

Peter Beetham: So let me continue on that. I apologize, everybody. No. I am sure you heard my excitement over the European but I think 1 of the things the question was asking how we are gonna influence implementation phase. I can assure you that we actually have people on the ground there in Europe. I am going to let Cornelis talk to that too, but I think that it is important to understand that we do have clear input from our own team in Europe and experience. So, Cornelis, why do not you add to that?

Cornelis Broos: Yeah. Thank you for the question. And being from Europe, I want to confirm, and I think important to realize that we have a handful of people working in Europe, business development people, and all of them have worked for the seed companies in Europe for decades. So we are super close to our European seed partners.

Craig Wichner: And I will just add regarding that for example, we have a partnership with John Innes regarding the institute, regarding the use efficiency, which is, really to me a poster child of the opportunity in within the European Union. This trait helps plants create a better, healthier soil environment for them, increases nitrogen use efficiency, other nutrient use efficiency, a healthier soil biology environment. This is the kind of trait that we can extend into multiple crops across all of our platforms, and to me, it really represents the promise of regenerative agriculture and Cibus' technology. So we already have a footprint in there. We have great relationships in place. Board members with great experience in the European seed industry.

So it really feels we are really on the fast track with the regulatory changes and the relationships that we already have in place.

Sameer Joshi: Thanks, everyone, for that. And we are tracking the John Innes progress with you guys. Just 1 more from me. For the sustainable ingredients, and biofragrances, I think you characterized the market or your peak opportunity as $20 to $40 million in revenues. Are there other non bio fragrance specialty, sustainable ingredients that are being targeted, or is that only going to be limited to bio fragrances right now?

Craig Wichner: So the sustainable ingredients is very much of a broad platform. And I think about it basically scaling from 1 microbe to 100 million acres. And it really crosses from across the species to a unique microbe that we are working with at on the biofragrance side. Up to being able to deploy this in plants And it is specifically around making unique compounds within these crops using the plant's own mechanisms basically for producing oils, for example. The initial commercialized, applications are biofragrance now. it is validated commercially, and we are generating revenues and moving forward, with that. That will expand rapidly.

We are working with partners on other uses, on the palm kernel oil as a great platform for sustainable ingredients. We will be talking more about that as well. There are other opportunities in that sector that are in those sectors. it is a deep opportunity that we are looking forward to. We will be rolling out more about that in the coming quarters. it is very interesting. And, congrats again on all the progress. I will sit back in the queue. Thanks for your questions.

Operator: Thank you. At this time, there are no further questions in the queue. I will now turn the meeting back to management. Actually, we do have a follow-up from Sameer Joshi. Please go ahead. Your line is open.

Sameer Joshi: Hey. I, because no 1 else is there. I thought I could ask this cash burn question. I think in the previous quarter, it was to be less than $30 million over the next 12 months. It is now around $35 million, and I do understand there is additional technology and personnel being added, but can you just give us, like, qualitatively some description of what these changes are?

Cornelis Broos: Thank you for the question. This is a super important subject for me, so appreciate. So I bet you have heard that we have been improving right? So we have declined quarter over quarter, year over year on our net cash usage. So I am I am happy with that. So as we speak, as we speak, we are moving forward as planned to approximately $9 million cash usage for the quarter. With that, to exit 2026, on an approximately $35 million or less net annualized cash usage. And that was exactly what you said. Still a few things need to happen, like finishing off the consolidation of our facilities.

And that is just to confirm that we are trying to save on expenses where we can. So that is still main priority, save where we can. But at the same time, also recognize that we need to spend a little bit more on technology and on people. And that is all geared towards our priority programs as we have talked about before, but also to bolster the opportunities we see in our pipeline. And with that, I refer to what Craig said, that there is a lot available for the They are just spending a little bit more just to enable that, if that makes sense.

Sameer Joshi: Yeah. Go ahead. Do you want to follow up? No. I was just going to say that it meaning, rather than spend, I would characterize it as an investment. So it is actually a good thing. Thanks.

Cornelis Broos: Yes.

Craig Wichner: So that is exactly right. We are continuing to focus on driving noncore costs down, you will see some additional cost savings that happen in the coming quarters as well. And at the same time, we are identifying those areas that we can put some capital into that delivers significant long term value and help drive growth. For less than the cost of an FTE, for example, we rolled out AI to everyone in the company here, and that is already delivering very significant results on a qualitative basis and will be quantifying those values going forward. But there is a lot of basically transformation that is happening in the company.

We have a very clear drive towards commercialization and generating revenues This is a real growth opportunity. The sector and the opportunity is extraordinary. The potential that Cibus has is very significant, and we wanna capture that opportunity. We are gonna do it in a very smart way, in a very cost efficient way. We are focused on driving near term revenues into the company and managing costs and taking advantage full advantage of this opportunity. So again, we will be talking more about that going forward. This is I think I have been here 66 days. So we are I think we made a good start, but there is there is still a bit more to go.

Sameer Joshi: Yeah. No. Thanks for that color, and congrats on your first quarterly call, and good luck.

Craig Wichner: Thanks.

Operator: Thank you. Thank you. And at this time, we have reached our allotted time for questions. I will turn the call back over to management for closing comments.

Craig Wichner: Great. Well, I just want to thank the management team here for welcoming me, for having built a really extraordinary company This is an honor and a privilege, and tremendously fun. it is been an incredible to actually join the company and see everything that we are doing here, is amazing, and I wanna share that with the investors who have, followed the company and supported the company all this time because what is under the covers is really interesting, and we will be rolling that out more in the coming quarter. I think you will see that the management team is transparent.

We are excited, and we are all committed towards really unlocking the power of Cibus in agriculture, and we really appreciate your support. So Thank you. With that, thank you very much. And we look forward to talking with you soon.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.