Cibus, Inc 10-Q for FY2023 Q3

Cibus, Inc. (CBUS)

10-Q 2023-11-09 For: 2023-09-30

Added on April 09, 2026

About this 10-Q

Cibus, Inc filed this 10-Q on November 9, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $475K; up 1031.0% from $42K a year earlier
Net loss: $26.43M; compared with a net loss of $5.95M a year earlier
Diluted EPS: -$1.59; compared with -$6.36 a year earlier

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Delaware						27-1967997
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

6455 Nancy Ridge Drive San Diego, CA						92121
(Address of principal executive offices)						(Zip Code)


PART I. FINANCIAL INFORMATION			3
Item 1. Condensed Consolidated Financial Statements			3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			33
Item 4. Controls and Procedures			44
PART II. OTHER INFORMATION			45
Item 1. Legal Proceedings			45
Item 1A. Risk Factors			45
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities			45
Item 5. Other Information			45
Item 6. Exhibits			46
SIGNATURE			47


	September 30, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	31,883	$	3,427
Restricted cash	—		99
Accounts receivable	560		—
Prepaid expenses and other current assets	2,029		606
Total current assets	34,472		4,132
Property, plant, and equipment, net	17,197		4,516
Operating lease right-of-use assets	22,935		13,615
Intangible assets, net	134,921		158
Goodwill	585,266		—
Other non-current assets	1,444		—
Total assets	$	796,235	$	22,421
Liabilities, redeemable noncontrolling interest, and stockholders’ equity
Current liabilities:
Accounts payable	$	6,281	$	340
Accrued expenses	5,092		173
Accrued compensation	3,704		107
Due to related parties	—		175
Deferred revenue	1,637		107
Current portion of notes payable	1,165		—
Current portion of financing lease obligations	235		97
Current portion of operating lease obligations	5,436		367
Class A common stock warrants	1,512		291
Other current liabilities	17		5
Total current liabilities	25,079		1,662
Notes payable, net of current portion	629		—
Financing lease obligations, net of current portion	102		—
Operating lease obligations, net of current portion	18,844		13,447
Royalty liability - related parties	157,113		—
Other non-current liabilities	1,974		79
Total liabilities	203,741		15,188
Commitments and contingencies (See Note 10)
Redeemable noncontrolling interest	129,104		—
Stockholders’ equity:
Class A common stock, $0.0001 par value; 210,000,000 shares authorized; 17,656,831 shares issued and 16,659,996 shares outstanding as of September 30, 2023, and 275,000,000 shares authorized; 978,915 shares issued and 976,908 shares outstanding as of December 31, 2022	8		5
Class B common stock, $0.0001 par value; 90,000,000 shares authorized; 4,642,636 shares issued and outstanding as of September 30, 2023, and no shares authorized; no shares issued and outstanding as of December 31, 2022	—		—
Additional paid-in capital	727,821		220,422
Class A common stock in treasury, at cost; 32,660 shares as of September 30, 2023, and 2,007 shares as of December 31, 2022	(1,785)		(1,043)
Accumulated deficit	(262,664)		(212,151)
Accumulated other comprehensive income	10		—
Total stockholders’ equity	463,390		7,233
Total liabilities, redeemable noncontrolling interest, and stockholders' equity	$	796,235	$	22,421


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue:
Revenue	$	475	$	42	$	714	$	115
Total revenue	475		42		714		115
Operating expenses:
Research and development	17,521		3,016		28,159		9,207
Selling, general, and administrative	8,751		3,229		22,126		9,965
Total operating expenses	26,272		6,245		50,285		19,172
Loss from operations	(25,797)		(6,203)		(49,571)		(19,057)
Royalty liability interest expense - related parties	(8,136)		—		(10,753)		—
Other interest income (expense), net	281		(47)		359		(80)
Non-operating income (expenses)	(876)		300		(466)		5,083
Loss before income taxes	(34,528)		(5,950)		(60,431)		(14,054)
Income taxes	—		—		—		—
Net loss	$	(34,528)	$	(5,950)	$	(60,431)	$	(14,054)
Net loss attributable to redeemable noncontrolling interest	(8,099)		—		(9,918)		—
Net loss attributable to Cibus, Inc.	$	(26,429)	$	(5,950)	$	(50,513)	$	(14,054)
Basic and diluted net loss per share of Class A common stock	$	(1.59)	$	(6.36)	$	(6.33)	$	(15.56)
Weighted average shares of Class A common stock outstanding – basic and diluted	16,641,127		935,702		7,979,132		903,476


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net loss	$	(34,528)	$	(5,950)	$	(60,431)	$	(14,054)
Foreign currency translation adjustments	15		—		13		—
Comprehensive loss	(34,513)		(5,950)		(60,418)		(14,054)
Comprehensive loss attributable to redeemable noncontrolling interest	(8,096)		—		(9,915)		—
Comprehensive loss attributable to Cibus, Inc.	$	(26,417)	$	(5,950)	$	(50,503)	$	(14,054)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			Class A Common Stock			Class B Common Stock
Three Months Ended September 30, 2023	Redeemable Noncontrolling Interest		Shares	Amount		Shares	Amount		Additional Paid-In Capital		Shares in Treasury		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
Balance at June 30, 2023	$	136,866	16,606,401	$	8	4,642,636	$	—	$	722,327	$	(1,785)	$	(236,235)	$	(2)	$	484,313
Net loss	(8,099)		—	—		—	—		—		—		(26,429)		—		(26,429)
Stock-based compensation	—		—	—		—	—		5,828		—		—		—		5,828
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units	—		53,608	—		—	—		—		—		—		—		—
Shares withheld for net share settlement	—		(13)	—		—	—		—		—		—		—		—
Change in value of redeemable noncontrolling interest	334								(334)								(334)
Foreign currency translation adjustments	3		—	—		—	—		—		—		—		12		12
Balance at September 30, 2023	$	129,104	16,659,996	$	8	4,642,636	$	—	$	727,821	$	(1,785)	$	(262,664)	$	10	$	463,390


Three Months Ended September 30, 2022	Class A Shares Outstanding	Class A Common Stock		Additional Paid-In Capital		Shares in Treasury		Accumulated Deficit		Total Stockholders’ Equity
Balance at June 30, 2022	934,327	$	5	$	218,161	$	(1,043)	$	(203,364)	$	13,759
Net loss	—	—		—		—		(5,950)		(5,950)
Stock-based compensation	—	—		1,035		—		—		1,035
Issuance of Class A common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units	1,871	—		—		—		—		—
Balance at September 30, 2022	936,198	$	5	$	219,196	$	(1,043)	$	(209,314)	$	8,844


			Class A Common Stock			Class B Common Stock
Nine Months Ended September 30, 2023	Redeemable Noncontrolling Interest		Shares	Amount		Shares	Amount		Additional Paid-In Capital		Shares in Treasury		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
Balance at December 31, 2022	$	—	976,908	$	5	—	$	—	$	220,422	$	(1,043)	$	(212,151)	$	—	$	7,233
Net loss	(9,918)		—	—		—	—		—		—		(50,513)		—		(50,513)
Stock-based compensation	—		—	—		—	—		11,670		—		—		—		11,670
Issuance of common stock resulting from merger with Cibus Global, LLC	—		15,508,202	3		4,642,636	—		634,748		—		—		—		634,751
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units	—		207,546	—		—	—		—		—		—		—		—
Shares withheld for net share settlement	—		(32,660)	—		—	—		—		(742)		—		—		(742)
Redeemable noncontrolling interest resulting from merger with Cibus Global, LLC	138,685		—	—		—	—		(138,685)		—		—		—		(138,685)
Change in value of redeemable noncontrolling interest	334								(334)								(334)
Foreign currency translation adjustments	3		—	—		—	—		—		—		—		10		10
Balance at September 30, 2023	$	129,104	16,659,996	$	8	4,642,636	$	—	$	727,821	$	(1,785)	$	(262,664)	$	10	$	463,390


Nine Months Ended September 30, 2022	Class A Shares Outstanding	Class A Common Stock		Additional Paid-In Capital		Shares in Treasury		Accumulated Deficit		Total Stockholders’ Equity
Balance at December 31, 2021	775,480	$	4	$	211,263	$	(1,043)	$	(196,092)	$	14,132
Net loss	—	—		—		—		(14,054)		(14,054)
Stock-based compensation	—	—		2,890		—		—		2,890
Issuance of Class A common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units	5,518	—		—		—		—		—
Issuance of Class A common stock from ATM facility, net of offering expenses	—	—		(7)		—		—		(7)
Issuance of Class A common stock and pre-funded warrants in registered offering, net of $0.5 million of offering costs	77,600	1		5,050		—		—		5,051
Issuance of Class A common stock upon exercise of pre-funded warrants	77,600	—		—		—		—		—
Cumulative effect of adoption of lease accounting standard	—	—		—		—		832		832
Balance at September 30, 2022	936,198	$	5	$	219,196	$	(1,043)	$	(209,314)	$	8,844


	Class A Common Stock	Class B Common Stock	Total Common Stock
Authorized	210,000,000	90,000,000	300,000,000
Issued	17,656,831	4,642,636	22,299,467
Outstanding	16,659,996	4,642,636	21,302,632


In Thousands	Deferred Revenue
Balance as of December 31, 2022	$	107
Acquired from merger with Cibus Global, LLC	1,186
Consideration earned	(714)
Consideration received	1,058
Balance as of September 30, 2023	$	1,637


	As of September 30,
	2023	2022
Stock options outstanding	109,551	116,936
Unvested restricted stock units	198,199	25,210
Unvested performance stock units	—	22,600
Unvested restricted stock awards	945,780	—
Common Warrants	158,483	158,483
Total	1,412,013	323,229


Number of shares of Common Stock received by Cibus Global, LLC equityholders as merger consideration (1)	20,150,838
Multiplied by the fair value per share of Cibus, Inc. Class A Common Stock (2)	$	31.50
Purchase price	$	634,751,397


In Thousands, except useful life	May 31, 2023		Estimated Average Useful Life (Years)
In-process research and development	$	99,051	Indefinite
Developed technology	14,148		20
Trade name	22,230		20
Total	$	135,429


	As of September 30, 2023			As of December 31, 2022
Estimated fair value of Common Warrants	$	9.54		$	1.87
Assumptions:
Risk-free interest rate	4.7		%	4.0		%
Expected volatility	107.1		%	85.0		%
Expected term to liquidation (in years)	3.9			4.6


In Thousands, except useful life	Useful Life (Years)	As of September 30, 2023		As of December 31, 2022
Property, plant, and equipment, net:
Buildings	10 - 20	$	900	$	900
Leasehold improvements	shorter of lease term or - 15	3,879		364
Office furniture and equipment	5 - 10	13,570		7,803
Office furniture and equipment under financing leases	4 - 20	373		414
Computer equipment and software	3 - 5	3,264		912
Assets in progress	N/A	3,272		—
Total property, plant, and equipment		25,258		10,393
Less accumulated depreciation and amortization		(8,061)		(5,877)
Total		$	17,197	$	4,516


In Thousands	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
In-process research and development	$	99,051	$	—	$	99,051
Developed technology	14,148		236		13,912
Trade name	22,230		370		21,860
Other	150		52		98
Total	$	135,579	$	658	$	134,921


	Three Months Ended September 30,				Nine Months Ended September 30,
Unaudited and in Thousands	2023		2022		2023		2022
Pro forma revenues	$	475	$	307	$	1,154	$	992
Pro forma net loss	(34,528)		(20,365)		(88,474)		(61,603)
Pro forma net loss attributable to controlling interest	(24,575)		(17,301)		(70,855)		(53,178)
Pro forma net loss attributable to redeemable noncontrolling interest	$	(9,953)	$	(3,064)	$	(17,619)	$	(8,425)


	September 30, 2023								December 31, 2022
	Fair Value of Assets								Fair Value of Assets
In Thousands	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds (1)	$	7,389	$	—	$	—	$	7,389	$	—	$	—	$	—	$	—
Total	$	7,389	$	—	$	—	$	7,389	$	—	$	—	$	—	$	—


	September 30, 2023								December 31, 2022
	Fair Value of Liabilities								Fair Value of Liabilities
In Thousands	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Common Warrants	$	—	$	—	$	1,512	$	1,512	$	—	$	—	$	291	$	291
Total	$	—	$	—	$	1,512	$	1,512	$	—	$	—	$	291	$	291


						Level 3 Fair Value of Liabilities
Balance as of December 31, 2022						291
Mark to market adjustment						1,221
Balance as of September 30, 2023						1,512


In Thousands	Asset Retirement Obligations
Balance as of December 31, 2022	$	—
Acquired from merger with Cibus Global, LLC	264
Obligations incurred	—
Accretion expense	5
Balance as of September 30, 2023	$	269


In Thousands	Amortization Expense
Remainder of 2023	$	458
2024	1,833
2025	1,833
2026	1,833
2027	1,833
2028	1,833


In Thousands	Annual Licenses		Financed Equipment		Insurance		Total Notes Payable
Remainder of 2023	$	93	$	137	$	290	$	520
2024	216		450		194		860
2025	—		351		—		351
2026	—		151		—		151
2027	—		89		—		89
2028	—		15		—		15
	309		1,193		484		1,986
Less: interest	(15)		(168)		(9)		(192)
Total	$	294	$	1,025	$	475	$	1,794
Current portion	294		396		475		1,165
Noncurrent portion	$	—	$	629	$	—	$	629


	Common Warrants	Weighted Average Exercise Price Per Share
Outstanding as of December 31, 2022	158,483	$	69.04
Issued	—	—
Forfeited/canceled	—	—
Exercised	—	—
Outstanding as of September 30, 2023	158,483	$	69.04
Exercisable as of September 30, 2023	158,483	$	69.04


	Options Exercisable	Weighted Average Exercise Price Per Share		Options Outstanding	Weighted Average Exercise Price Per Share
Balance as of December 31, 2022	67,978	$	496.83	116,860	$	367.58
Granted	—	—		—	—
Vested	42,195	154.28		—	—
Exercised	—	—		—	—
Forfeited or expired	(1,530)	441.63		(7,309)	369.43
Balance as of September 30, 2023	108,643	$	364.57	109,551	$	367.46


	Restricted Stock Awards	Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2022	—	$	—
Granted	1,019,282	31.50
Vested	(71,969)	31.50
Forfeited	(1,533)	31.50
Unvested balance as of September 30, 2023	945,780	$	31.50


	Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2022	24,575	$	99.36
Granted	272,885	19.02
Vested	(96,730)	38.27
Forfeited	(2,531)	127.84
Unvested balance as of September 30, 2023	198,199	$	18.19


			Performance Stock Units
Outstanding as of December 31, 2022			22,600
Issued			24,800
Forfeited/canceled			(9,333)
Exercised			(38,067)
Outstanding as of September 30, 2023			—


	As of September 30, 2023			As of December 31, 2022
In Thousands, except remaining term	Remaining Term (years)	Right-of-Use-Asset		Remaining Term (years)	Right-of-Use-Asset
Roseville, Minnesota lease	14.6	$	13,244	15.3	$	13,613
San Diego, California laboratory lease	1.9	3,848		—	—
San Diego, California headquarters lease	1.7	3,710		—	—
San Diego, California greenhouse lease	4.9	1,541		—	—
Other leases	< 1.0 - 3.0	592		< 1.0	2
Total		$	22,935		$	13,615


	Three Months Ended September 30,				Nine Months Ended September 30,
In Thousands, except for lease term and discount rate	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows (operating leases)	$	1,297	$	70	$	1,848	$	205
Financing cash flows (finance leases)	$	132	$	163	$	242	$	353


	As of September 30, 2023				As of December 31, 2022
	Operating		Financing		Operating		Financing
Weighted average remaining lease term (years)	10.5		1.4		15.3		0.4
Weighted average discount rate	7.5	%	9.5	%	7.9	%	8.1	%


	Three Months Ended September 30,
In Thousands, except per share and percentage values	2023		2022		$ Change		% Change
Revenue	$	475	$	42	$	433	1,031	%
Research and development	17,521		3,016		14,505		481	%
Selling, general, and administrative	8,751		3,229		5,522		171	%
Loss from operations	(25,797)		(6,203)		(19,594)		(316)	%
Royalty liability interest expense - related parties	(8,136)		—		(8,136)		NM
Other interest income (expense), net	281		(47)		328		698	%
Non-operating income (expenses)	(876)		300		(1,176)		(392)	%
Net loss	$	(34,528)	$	(5,950)	$	(28,578)	(480)	%
Net loss attributable to redeemable noncontrolling interest	(8,099)		—		(8,099)		NM
Net loss attributable to Cibus, Inc.	$	(26,429)	$	(5,950)	$	(20,479)	(344)	%
Basic and diluted net loss per share of Class A common stock	$	(1.59)	$	(6.36)	$	4.77	75	%


	Nine Months Ended September 30,
In Thousands, except percentage values	2023		2022		$ Change		% Change
Net loss	$	(60,431)	$	(14,054)	$	(46,377)	(330)	%
Royalty liability interest expense - related parties	10,753		—		10,753		NM
Depreciation and amortization	2,875		1,158		1,717		148	%
Stock-based compensation	11,670		2,890		8,780		304	%
Change in fair value of liability classified Class A common stock warrants	1,221		(5,009)		6,230		124	%
Other	17		—		17		NM
Changes in operating assets and liabilities	4,702		(586)		5,288		902	%
Net cash used by operating activities	$	(29,193)	$	(15,601)	$	(13,592)	(87)	%


In Thousands	Operating Lease Obligations		Financing Lease Obligations		Notes Payable		Total
Remainder of 2023	$	1,758	$	40	$	520	$	2,318
2024	7,132		210		860		8,202
2025	4,797		120		351		5,268
2026	1,993		—		151		2,144
2027	1,920		—		89		2,009
2028	1,863		—		15		1,878
Thereafter	15,438		—		—		15,438
	34,901		370		1,986		37,257
Less: interest	(10,621)		(33)		(192)		(10,846)
Total	$	24,280	$	337	$	1,794	$	26,411
Current portion	5,436		235		1,165		6,836
Noncurrent portion	$	18,844	$	102	$	629	$	19,575


Exhibit Number						Description

2.1						Agreement and Plan of Merger, dated January 13, 2023, by and among Calyxt, Inc., Calypso Merger Subsidiary, LLC, Cibus Global, LLC and the other parties thereto (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 17, 2023).

2.2						First Amendment to Agreement and Plan of Merger, dated as of April 14, 2023, by and among Calyxt, Inc. and Cibus Global, LLC (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on April 14, 2023)

3.1						Second Amended and Restated Certificate of Incorporation of Cibus, Inc., dated May 31, 2023 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on June 1, 2023)

3.2						Amended and Restated Bylaws of Cibus, Inc., dated May 31, 2023 (incorporated by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K filed on June 1, 2023)

10.1						Binding Term Sheet (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 25, 2023)

31.1*						Certification of the Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act

31.2*						Certification of the Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act

32*						Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*						Inline XBRL Instance Document

101.SCH*						Inline XBRL Taxonomy Extension Schema Document

101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document

104*						The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, has been formatted in Inline XBRL


			CIBUS, INC.

			By:						/s/ Rory Riggs
			Name:						Rory Riggs
			Title:						Chief Executive Officer and Chairman (Principal Executive Officer)

			By:						/s/ Wade King
			Name:						Wade King
			Title:						Chief Financial Officer (Principal Financial and Accounting Officer)