Cibus, Inc. ((CBUS)) has held its Q1 earnings call. Read on for the main highlights of the call.
Cibus, Inc. Earnings Call: Achievements and Financial Concerns
The recent earnings call for Cibus, Inc. reflected a mixed sentiment, with notable achievements in regulatory milestones and commercial strategy validation, particularly in the realms of gene editing and sustainable ingredients. However, these positive strides were overshadowed by financial concerns, including an increased net loss and rising SG&A expenses, which have raised questions about the company’s cash burn and path to profitability.
Commercial Strategy Validation
Cibus, Inc. showcased a strong validation of its commercial strategy, emphasizing the transformative potential of its RTDS technology platform. This innovation has attracted significant commercial interest across key agricultural platforms, including rice, canola, and soybean. The company’s ability to draw interest in these areas underscores its strategic positioning in the market.
Regulatory Milestones
The company celebrated historic regulatory milestones, notably the California Rice Commission’s approval for gene-edited rice trials and a favorable USDA APHIS designation for canola disease resistance traits. These achievements mark significant progress in Cibus’s regulatory journey, paving the way for future developments and market entry.
Sustainable Ingredients Program Progress
Cibus reported advancements in its sustainable ingredients program, particularly in bio-based fermentation bio fragrance products. The successful first stage scale-up of these products sets the stage for anticipated commercialization agreements with consumer packaged goods partners later this year, highlighting the company’s commitment to sustainability.
Significant Financial Backing
In January 2025, Cibus secured $21.4 million in net proceeds from a registered direct offering. This financial backing, combined with existing cash reserves, is expected to fund the company’s planned operating expenses into the third quarter of 2025, providing a buffer against immediate financial pressures.
Increased Net Loss
The financial results revealed a net loss of $49.4 million for the first quarter of 2025, a significant increase from $27 million in the previous year. This was primarily attributed to a $21 million non-cash goodwill impairment, highlighting challenges in maintaining financial stability.
Increased SG&A Expenses
SG&A expenses rose to $9.9 million from $7 million in the previous year, driven mainly by a $3 million litigation accrual. This increase in operational costs adds to the financial strain on the company, necessitating careful management of expenses.
Cash Burn Concerns
Despite implementing cost-saving initiatives, Cibus continues to face concerns over its cash burn, projecting a net cash burn of around $4 million per quarter. This ongoing issue underscores the importance of strategic financial management to ensure long-term viability.
Forward-Looking Guidance
During the earnings call, Cibus provided forward-looking guidance that emphasized its commercial strategy and regulatory advancements. The company reported cash and cash equivalents of $23.6 million as of March 31, 2025, with a revenue increase to $1 million for the first quarter. Despite a net loss driven by a significant non-cash goodwill impairment, Cibus is focused on reducing its cash burn rate and anticipates nominal revenues from its sustainable ingredients program later in 2025. These efforts reflect the company’s ongoing commitment to optimizing operations and maximizing shareholder value.
In summary, the Cibus, Inc. earnings call painted a picture of a company at a crossroads, with significant achievements in regulatory and commercial strategy juxtaposed against financial challenges. While the company has made strides in technology and sustainability, its financial health remains a critical area of focus as it navigates the path forward.