Cibus, Inc 10-Q for FY2024 Q3

Cibus, Inc. (CBUS)

10-Q 2024-11-07 For: 2024-09-30

Added on April 09, 2026

About this 10-Q

Cibus, Inc filed this 10-Q on November 7, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.67M; up 250.9% from $475K a year earlier
Net loss: $179.97M; compared with a net loss of $26.43M a year earlier
Diluted EPS: -$7.63; compared with -$1.59 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)


Table of Contents
PART I. FINANCIAL INFORMATION			4
Item 1. Condensed Consolidated Financial Statements			4
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			32
Item 4. Controls and Procedures			40
PART II. OTHER INFORMATION			41
Item 1. Legal Proceedings			41
Item 1A. Risk Factors			41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			41
Item 5. Other Information			41
Item 6. Exhibits			42
SIGNATURES			43


	September 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	28,805	$	32,699
Accounts receivable	1,190		530
Prepaid expenses and other current assets	1,578		1,991
Total current assets	31,573		35,220
Property, plant, and equipment, net	12,910		15,775
Operating lease right-of-use assets	34,432		21,685
Intangible assets, net	34,036		35,411
Goodwill	253,466		434,898
Other non-current assets	1,457		1,422
Total assets	$	367,874	$	544,411
Liabilities, redeemable noncontrolling interest, and stockholders’ equity
Current liabilities:
Accounts payable	$	7,023	$	6,127
Accrued expenses	3,323		1,747
Accrued compensation	3,229		3,858

Deferred revenue	1,082		1,210
Current portion of notes payable	337		833
Current portion of financing lease obligations	110		187
Current portion of operating lease obligations	4,150		5,927
Class A common stock warrants	2,661		1,418
Other current liabilities	3		16
Total current liabilities	21,918		21,323
Notes payable, net of current portion	291		536
Financing lease obligations, net of current portion	—		113
Operating lease obligations, net of current portion	31,851		17,025
Royalty liability - related parties	191,205		165,252
Other non-current liabilities	1,728		1,868
Total liabilities	246,993		206,117
Commitments and contingencies (See Note 9)
Redeemable noncontrolling interest	12,741		44,824
Stockholders’ equity:
Class A common stock, $0.0001 par value; 210,000,000 shares authorized; 26,866,904 shares issued and 26,429,630 shares outstanding as of September 30, 2024; 21,240,379 shares issued and 20,567,656 shares outstanding as of December 31, 2023	8		8
Class B common stock, $0.0001 par value; 90,000,000 shares authorized; 3,112,516 shares issued and outstanding as of September 30, 2024, and 3,142,636 shares issued and outstanding as of December 31, 2023	—		—
Additional paid-in capital	818,210		775,017
Class A common stock in treasury, at cost; 45,177 shares as of September 30, 2024, and 32,663 shares as of December 31, 2023	(1,999)		(1,785)
Accumulated deficit	(708,064)		(479,778)
Accumulated other comprehensive income (loss)	(15)		8
Total stockholders’ equity	108,140		293,470
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity	$	367,874	$	544,411


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue:
Revenue	$	1,667	$	475	$	3,050	$	714
Total revenue	1,667		475		3,050		714
Operating expenses:
Research and development	12,990		17,521		37,996		28,159
Selling, general, and administrative	7,682		8,751		23,994		22,126
Goodwill impairment	181,432		—		181,432		—
Total operating expenses	202,104		26,272		243,422		50,285
Loss from operations	(200,437)		(25,797)		(240,372)		(49,571)
Royalty liability interest expense - related parties	(8,875)		(8,136)		(25,953)		(10,753)
Other interest income, net	160		281		522		359
Non-operating income (expense), net	7,706		(876)		8,917		(466)
Loss before income taxes	(201,446)		(34,528)		(256,886)		(60,431)
Income tax expense	(13)		—		(23)		—
Net loss	$	(201,459)	$	(34,528)	$	(256,909)	$	(60,431)
Net loss attributable to redeemable noncontrolling interest	(21,491)		(8,099)		(28,623)		(9,918)
Net loss attributable to Cibus, Inc.	$	(179,968)	$	(26,429)	$	(228,286)	$	(50,513)
Basic and diluted net loss per share of Class A common stock	$	(7.63)	$	(1.59)	$	(10.33)	$	(6.33)
Weighted average shares of Class A common stock outstanding – basic and diluted	23,586,746		16,641,127		22,105,979		7,979,132


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net loss	$	(201,459)	$	(34,528)	$	(256,909)	$	(60,431)
Foreign currency translation adjustments	6		15		(27)		13
Comprehensive loss	(201,453)		(34,513)		(256,936)		(60,418)
Comprehensive loss attributable to redeemable noncontrolling interest	(21,491)		(8,096)		(28,627)		(9,915)
Comprehensive loss attributable to Cibus, Inc.	$	(179,962)	$	(26,417)	$	(228,309)	$	(50,503)


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, 2024	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, 2024	$	36,572	23,015,417	$	8	3,112,516	$	—	$	800,606	$	(1,999)	$	(528,096)	$	(21)	$	270,498
Net loss	(21,491)		—	—		—	—		—		—		(179,968)		—		(179,968)
Stock-based compensation	—		—	—		—	—		2,687		—		—		—		2,687
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units	—		76,859	—		—	—		—		—		—		—		—
Issuance of common stock from the ATM facility, net of offering expenses	—		47,401	—		—	—		429		—		—		—		429
Issuance of common stock in registered offering, net	—		3,289,953	—		—	—		12,148		—		—		—		12,148

Change in value of redeemable noncontrolling interest including issuance of common stock upon exchange of common units	(2,340)		—	—		—	—		2,340		—		—		—		2,340
Foreign currency translation adjustments	—		—	—		—	—		—		—		—		6		6
Balance at September 30, 2024	$	12,741	26,429,630	$	8	3,112,516	$	—	$	818,210	$	(1,999)	$	(708,064)	$	(15)	$	108,140


			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


			Class A Common Stock			Class B Common Stock
Nine Months Ended September 30, 2024	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 December 31, 2023	$	44,824	20,567,656	$	8	3,142,636	$	—	$	775,017	$	(1,785)	$	(479,778)	$	8	$	293,470
Net loss	(28,623)		—	—		—	—		—		—		(228,286)		—		(228,286)
Stock-based compensation	—		—	—		—	—		8,030		—		—		—		8,030
Issuance of common stock and payment of minimum employee taxes withheld upon net share settlement of restricted stock units	—		281,648	—		—	—		—		—		—		—		—
Issuance of common stock from the ATM facility, net of offering expenses	—		974,727	—		—	—		16,921		—		—		—		16,921
Issuance of common stock in registered offering, net	—		4,587,993	—		—	—		14,786		—		—		—		14,786
Payment of taxes related to vested restricted stock units	—		(12,514)	—		—	—		—		(214)		—		—		(214)

Change in value of redeemable noncontrolling interest including issuance of common stock upon exchange of common units	(3,456)		30,120	—		(30,120)	—		3,456		—		—		—		3,456
Foreign currency translation adjustments	(4)		—	—		—	—		—		—		—		(23)		(23)
Balance at September 30, 2024	$	12,741	26,429,630	$	8	3,112,516	$	—	$	818,210	$	(1,999)	$	(708,064)	$	(15)	$	108,140


			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


	Class A Common Stock	Class B Common Stock	Total Common Stock
Authorized	210,000,000	90,000,000	300,000,000
Issued	26,866,904	3,112,516	29,979,420
Outstanding	26,429,630	3,112,516	29,542,146


In Thousands	Deferred Revenue
Balance as of December 31, 2023	$	1,210
Consideration earned	(3,050)
Consideration received	2,922
Balance as of September 30, 2024	$	1,082


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


	Three Months Ended September 30,				Nine Months Ended September 30,
In Thousands, Except Share and Per Share Amounts	2024		2023		2024		2023
Numerator:
Net loss attributable to Cibus, Inc.	$	(179,968)	$	(26,429)	$	(228,286)	$	(50,513)
Denominator:
Weighted average shares of Class A common stock outstanding	23,536,746		16,641,127		22,055,979		7,979,132
Effect of pre-funded warrants	50,000		—		50,000		—
Weighted average shares of Class A common stock outstanding – basic and diluted	23,586,746		16,641,127		22,105,979		7,979,132
Basic and diluted net loss per share of Class A common stock	$	(7.63)	$	(1.59)	$	(10.33)	$	(6.33)


	As of September 30,
	2024	2023
Stock options outstanding	150,899	109,551
Unvested restricted stock units	115,541	198,199

Unvested restricted stock awards	392,097	945,780
Common warrants	1,456,523	158,483
Total	2,115,060	1,412,013


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


	September 30, 2024								December 31, 2023
	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)	$	1,051	$	—	$	—	$	1,051	$	7,015	$	—	$	—	$	7,015
Total	$	1,051	$	—	$	—	$	1,051	$	7,015	$	—	$	—	$	7,015


	As of September 30, 2024	As of December 31, 2023
Estimated fair value of common warrants per share	$0.49 - $1.99	$	8.95
Assumptions:
Risk-free interest rate	3.5% - 3.6%	3.9		%
Expected volatility	105.1% - 110.4%	100.7		%
Expected term to liquidation (in years)	2.9 - 4.7	3.6


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


	Three Months Ended		Nine Months Ended
Unaudited and in Thousands	September 30, 2023		September 30, 2023
Pro forma revenues	$	475	$	1,154
Pro forma net loss	(34,528)		(88,474)
Pro forma net loss attributable to controlling interest	(24,575)		(70,855)
Pro forma net loss attributable to redeemable noncontrolling interest	$	(9,953)	$	(17,619)


	September 30, 2024								December 31, 2023
	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	$	—	$	—	$	2,661	$	2,661	$	—	$	—	$	1,418	$	1,418
Total	$	—	$	—	$	2,661	$	2,661	$	—	$	—	$	1,418	$	1,418


In Thousands	Level 3 Fair Value of Liabilities
Balance as of December 31, 2023	$	1,418
Issued	10,151
Change in fair value	(8,908)
Balance as of September 30, 2024	$	2,661


In Thousands, except useful life	Useful Life (Years)	As of September 30, 2024		As of December 31, 2023
Property, plant, and equipment, net:
Buildings	10 - 20	$	900	$	900
Leasehold improvements	shorter of lease term or useful life	4,284		3,912
Office furniture and equipment	5 - 10	15,574		15,102
Office furniture and equipment under financing leases	3 - 7	—		373
Computer equipment and software	3 - 5	4,357		3,761
Assets in progress	N/A	521		704
Total property, plant, and equipment		25,636		24,752
Less accumulated depreciation and amortization		(12,726)		(8,977)
Total		$	12,910	$	15,775


In Thousands	Amortization Expense
Remainder of 2024	$	458
2025	$	1,833
2026	$	1,833
2027	$	1,833
2028	$	1,833
2029	$	1,833


	Pre-Funded Warrants	Weighted Average Exercise Price Per Share		Common Warrants	Weighted Average Exercise Price Per Share
Outstanding as of December 31, 2023	50,000	$	0.01	158,483	$	69.04
Issued	—	—		1,298,040	10.01
Forfeited/canceled	—	—		—	—
Exercised	—	—		—	—
Outstanding as of September 30, 2024	50,000	$	0.01	1,456,523	$	16.43
Exercisable as of September 30, 2024	50,000	$	0.01	1,456,523	$	16.43


	Options Exercisable	Weighted Average Exercise Price Per Share		Options Outstanding	Weighted Average Exercise Price Per Share
Balance as of December 31, 2023	108,781	$	365.07	109,521	$	367.35
Granted	—	—		41,396	14.82
Vested	18,726	31.59		—	—
Exercised	—	—		—	—
Forfeited	—	—		(18)	227.00
Balance as of September 30, 2024	127,507	$	316.09	150,899	$	270.66


	Restricted Stock Awards	Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2023	640,060	$	31.50
Granted	—	—
Vested	(245,172)	31.50
Forfeited	(2,791)	31.50
Unvested balance as of September 30, 2024	392,097	$	31.50


	Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2023	147,222	$	18.21
Granted	65,019	18.60
Vested	(36,476)	18.46
Forfeited	(60,224)	18.15
Unvested balance as of September 30, 2024	115,541	$	18.38


	As of September 30, 2024			As of December 31, 2023
In Thousands, except remaining term	Remaining Term (years)	Right-of-Use-Asset		Remaining Term (years)	Right-of-Use-Asset
Roseville, Minnesota lease	13.6	$	12,724	14.3	$	13,117
San Diego, California laboratory lease	0.9	1,909		1.7	3,377
San Diego, California headquarters lease	8.5	18,126		1.4	3,178
San Diego, California greenhouse lease	3.9	1,274		4.7	1,475
Other leases	< 1.0 - 3.0	399		< 1.0 - 3.0	538
Total		$	34,432		$	21,685


	As of September 30, 2024				As of December 31, 2023
	Operating		Financing		Operating		Financing
Weighted average remaining lease term (years)	10.1		1.0		10.6		1.3
Weighted average discount rate	7.5	%	10.6	%	7.5	%	9.8	%


	Three Months Ended September 30,
In Thousands, except per share and percentage values	2024		2023		$ Change		% Change
Revenue	$	1,667	$	475	$	1,192	251	%
Research and development	12,990		17,521		(4,531)		(26)	%
Selling, general, and administrative	7,682		8,751		(1,069)		(12)	%
Goodwill impairment	181,432		—		181,432		NM
Loss from operations	(200,437)		(25,797)		(174,640)		(677)	%
Royalty liability interest expense - related parties	(8,875)		(8,136)		(739)		(9)	%
Other interest income, net	160		281		(121)		(43)	%
Non-operating income (expense), net	7,706		(876)		8,582		980	%
Loss before income taxes	(201,446)		(34,528)		(166,918)		(483)	%
Income tax expense	(13)		—		(13)		NM
Net loss	$	(201,459)	$	(34,528)	$	(166,931)	(483)	%
Net loss attributable to redeemable noncontrolling interest	(21,491)		(8,099)		(13,392)		(165)	%
Net loss attributable to Cibus, Inc.	$	(179,968)	$	(26,429)	$	(153,539)	(581)	%
Basic and diluted net loss per share of Class A common stock	$	(7.63)	$	(1.59)	$	(6.04)	(380)	%


	Nine Months Ended September 30,
In Thousands, except percentage values	2024		2023		$ Change		% Change
Net loss	$	(256,909)	$	(60,431)	$	(196,478)	(325)	%
Royalty liability interest expense - related parties	25,953		10,753		15,200		141	%
Goodwill impairment	181,432		—		181,432		NM
Depreciation and amortization	5,211		2,875		2,336		81	%
Stock-based compensation	8,030		11,670		(3,640)		(31)	%

Change in fair value of liability classified Class A common stock warrants	(8,908)		1,221		(10,129)		(830)	%
Other	(16)		17		(33)		(194)	%
Changes in operating assets and liabilities	1,159		4,702		(3,543)		(75)	%
Net cash used by operating activities	$	(44,048)	$	(29,193)	$	(14,855)	(51)	%


Exhibit Number						Description

2.1						Agreement and Plan of Merger, dated January 13, 2023, by and among Cibus, Inc. (f/k/a 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 Cibus, Inc. (f/k/a 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)

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, 2024, 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/ Cornelis (Carlo) Broos
			Name:						Cornelis (Carlo) Broos
			Title:						Interim Chief Financial Officer (Principal Financial and Accounting Officer)


Date: November 7, 2024

/s/ Rory Riggs
Rory Riggs
Chief Executive Officer and Chairman