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The call emphasized execution: material commercial progress in LATAM rice (LOI, import permit, delivery of edited materials), clear technical advances (order-of-magnitude improvement in editing efficiency; wheat single-cell regeneration), regulatory tailwinds, and tangible cost reductions that materially improved the P&L and extended runway after raising ~ $37M gross. Offsets include a limited cash runway into Q1 2027 absent stronger near-term revenue, a U.S. rice launch delay from 2028 to 2029 due to herbicide registration timing, continued sizable quarterly net losses and interest on royalty liabilities, and several commercial arrangements still at LOI or early stages. Overall, the positives (capital raise, execution on priority programs, technical and regulatory momentum, and meaningful expense reductions) outweigh the negatives, though the company's trajectory remains execution-dependent.
Management reiterated precise near‑term financial and commercial guidance: Cibus closed Q1 with $30.3M cash after raising roughly $37M in gross proceeds ($22.3M in January and ~ $15M in March; >$33M net), which it expects will fund operations into late Q1 2027 while targeting annual net cash usage of approximately $30M or less in 2026 (burn expected to decline Q1→Q2 and be near target in Q3–Q4). Q1 results included R&D expense of $8.7M (vs. $11.8M a year ago), SG&A of $5.1M (vs. $9.9M), operating expenses down nearly $8M YoY, royalty‑liability interest expense of $9.1M (vs. $8.4M), net loss of $21.2M (vs. $49.4M) and net loss per Class A share of $0.33 (vs. $1.34). Commercial milestones and timing guidance included 7 active rice seed‑company relationships, a planned LATAM rice launch in 2027 (the primary thrust of a ~$200M annual addressable royalty opportunity across ~5–7M peak acres), a U.S. rice launch now expected in 2029 (pushed from 2028 pending herbicide registration), anticipated biofragrance scale‑up orders in H2 2026 with the global fragrance market >$65B and potential biofragrance royalties of $20M–$40M annually, and regulatory progress including 17 positive USDA‑APHIS determinations and Ecuador/Peru equivalence determinations enabling LATAM deployment.
Raised approximately $37 million in gross proceeds across two public offerings ($22.3M in January and ~ $15M in March); cash and cash equivalents of $30.3M as of March 31, 2026. Management expects existing cash plus cost-savings to fund operations into late Q1 2027.
Combined operating expenses declined by nearly $8.0M year-over-year. R&D expense fell from $11.8M to $8.7M (down ~$3.1M, ~26% YoY) and SG&A fell from $9.9M to $5.1M (down ~$4.8M, ~49% YoY). Net loss improved from $49.4M to $21.2M (improvement of ~$28.2M, ~57% reduction); net loss per Class A share improved from $1.34 to $0.33 (down ~$1.01, ~75%). Management targets annual net cash usage of ~$30M or less for 2026.
Executed nonbinding LOI with Interoc establishing commercialization framework for herbicide-tolerant rice in LATAM (targeting Ecuador and Colombia in 2027 with phased expansion into Peru, Central America and Caribbean). Interoc received an import permit in March enabling transfers; completed delivery of gene-edited HT rice materials in May. Company reports 7 active rice seed company relationships across LATAM and U.S., and is on track for planned 2027 initial LATAM commercial launch.
Sustainable Ingredients program validated through pre-commercial pilot runs and prior customer payments; recognized a catch-up customer payment in Q1. Program in commercial ramp-up with expected additional scale-up orders of initial biofragrances in H2 2026. Company estimates global fragrance market > $65B and potential $20M–$40M annual royalty opportunity when fully commercialized.
Achieved an order-of-magnitude improvement in rice editing efficiency through optimization and AI/ML application, enabling higher throughput. Single-cell regeneration achieved in a wheat cultivar, opening wheat trait development. Continued progress on soybean HT2, DEFRA-funded canola Light Leaf Spot work underway (initial funding expected 2026), and Pod Shatter Reduction advancing to U.K. plantings under Precision Bred Organisms framework.
Regulatory tailwinds include 17 positive USDA-APHIS determinations in the U.S.; Ecuador and Peru determined HT1/HT3 rice traits equivalent to conventional breeding; EU New Genomic Techniques legislation advancing (ENVI and Commission support), improving commercial clarity across key jurisdictions.
Good afternoon, and welcome to the Cibus First Quarter 2026 Earnings Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the conference over to Carlo Broos, Interim Chief Financial Officer. Sir, please go ahead.
Thank you, and good afternoon. I would like to thank you for taking time to join us for Cibus First Quarter 2026 Financial Results and Business Update Conference Call and Webcast. Presenting with me today is Peter Beetham, Co-Founder, Interim Chief Executive Officer, President and COO; and Greg Gocal, Co-Founder and our Chief Scientific Officer. Before we begin the call, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results 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. This conference call is being webcast. The webcast link along with our press release and corporate presentation are available on the Investor Relations section of cibus.com to assist you in your analysis of our business. And with that, I would now like to turn the call over to Peter.
Thanks, Carlo, and good afternoon, everyone. I'm so pleased to report continued momentum toward our commercial goals across our priority programs during the first quarter of 2026. If I had to distill our message today into a single word, it would be execution. We...