Cibus Inc (CBUS) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Cibus second-quarter 2023 financial results and corporate update conference call and webcast. (Operator Instructions) This conference is being recorded today, August 10, 2023.

早上好，女士們先生們，感謝你們的支持。歡迎參加 Cibus 2023 年第二季度財務業績和公司更新電話會議和網絡廣播。 （操作員說明）本次會議於今天（2023 年 8 月 10 日）進行錄製。

At this time, I would like to turn the conference over to Wade King, Cibus' Chief Financial Officer. Please go ahead, sir.

這次，我想把會議交給 Cibus 首席財務官 Wade King。請繼續，先生。

Thank you and good morning. This is Wade King, the Chief Financial Officer of Cibus. I would like to thank you for taking time to join us for Cibus' second-quarter 2023 financial results and corporate update conference call and webcast.

謝謝你，早上好。我是韋德·金 (Wade King)，Cibus 的首席財務官。我要感謝您抽出時間參加 Cibus 2023 年第二季度財務業績和公司更新電話會議和網絡廣播。

Presenting with me today is Rory Riggs, our Co-Founder, Chief Executive Officer, and Chairman; and Peter Beetham, Co-founder, President, and Chief Operating Officer. The press release detailing these results crossed the wire earlier this morning and is available on our company's website, cibus.com.

今天與我一起出席的是 Rory Riggs，我們的聯合創始人、首席執行官兼董事長；聯合創始人、總裁兼首席運營官 Peter Beetham。詳細介紹這些結果的新聞稿於今天上午早些時候發布，可在我們公司的網站 cibus.com 上獲取。

Before we begin the conference 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 they each subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please prefer to Cibus' SEC filings for a list of associated risks.

在我們開始電話會議之前，我想提醒大家，電話會議和網絡廣播中的聲明，包括有關未來財務業績、未來運營目標和行業前景的聲明都是前瞻性的，並且各自面臨一些風險以及可能導致實際結果與電話會議中描述的結果存在重大差異的不確定性。請參閱 Cibus 向 SEC 提交的文件，了解相關風險列表。

This conference call is being webcast. The webcast link is available in the Investor Relations section of cibus.com and will be accessible for 90 days.

本次電話會議正在網絡直播。網絡廣播鏈接可在 cibus.com 的投資者關係部分獲取，有效期為 90 天。

At this time, I'd like to turn the call over to Rory for his opening remarks. Rory?

現在，我想將電話轉給羅里，讓他致開幕詞。羅里？

Thanks, Wade. Welcome to our first-quarter release, which we're really excited about.

謝謝，韋德。歡迎來到我們的第一季度版本，我們對此感到非常興奮。

Financially this quarter, a little bit different from quarters going forward as our financial results for this quarter only reflects one quarter of the combined operations of Calyxt and Cibus as merger agreement became effective on June 1, 2023. That means the results reflect two months of [Calyxt] and one month of combined operations.

從本季度的財務狀況來看，與未來幾個季度略有不同，因為合併協議於2023 年6 月1 日生效，本季度的財務業績僅反映了Calyxt 和Cibus 合併業務的四分之一。這意味著結果反映了過去兩個月的業績。 [Calyxt] 和一個月的聯合行動。

I think the easiest way to understand this is have Wade go over our financial presentation. Wade?

我認為理解這一點的最簡單方法是讓韋德檢查一下我們的財務報告。韋德？

Thank you, Rory.

謝謝你，羅里。

Earlier today, we issued a press release describing our second-quarter 2023 results. We are also filing our Form 10-Q for the quarter today. For additional details about our financials for second quarter of 2023, please refer to our press release or filings with the SEC.

今天早些時候，我們發布了一份新聞稿，描述了 2023 年第二季度的業績。我們今天還提交了本季度的 10-Q 表格。有關我們 2023 年第二季度財務狀況的更多詳細信息，請參閱我們的新聞稿或向 SEC 提交的文件。

As Wade described, we are excited to bring the two leaders in gene editing and agriculture together in our recent merger. Today, we are reporting financials as part of this transition from the legacy Calyxt business alongside the combined company business. Now for our second-quarter 2023 financial results.

正如韋德所描述的，我們很高興能夠在最近的合併中將基因編輯和農業領域的兩位領導者聚集在一起。今天，我們將報告財務數據，作為從傳統 Calyxt 業務到合併後的公司業務轉型的一部分。現在是我們 2023 年第二季度的財務業績。

Cash and cash equivalents as of June 30, 2023, was $50.9 million. The company believes our cash and cash equivalents will enable Cibus to fund planned operating expenses and capital expenditure requirements into the first quarter of 2024.

截至 2023 年 6 月 30 日，現金和現金等價物為 5,090 萬美元。該公司相信，我們的現金和現金等價物將使 Cibus 能夠為 2024 年第一季度的計劃運營費用和資本支出需求提供資金。

R&D expense was $8.4 million for the quarter ended June 30, 2023, compared to $3.2 million in the year ago period. The increase of $5.2 million is primarily related to increased plant supply and facility expenses and increase in employee headcount and an increase in stock-based compensation expense for restricted stock award grants and the acceleration of share vesting associated with stock award agreements due to the acquisition of Cibus Global, LLC.

截至 2023 年 6 月 30 日的季度研發費用為 840 萬美元，而去年同期為 320 萬美元。增加 520 萬美元主要與工廠供應和設施費用增加、員工人數增加、限制性股票獎勵授予的股票補償費用增加以及由於收購Cibus 全球有限責任公司。

SG&A expense was $11.1 million for the quarter ended June 30, 2023, compared to $3.6 million in the year ago period. The increase of $7.5 million is primarily related to an increase in headcount, increased consulting and legal fees, and an increase in stock-based compensation expense for RSA grants, and the acceleration of share vesting associated with stock award agreements due to the acquisition of Cibus Global, LLC.

截至 2023 年 6 月 30 日的季度，SG&A 費用為 1110 萬美元，而去年同期為 360 萬美元。增加 750 萬美元主要與員工人數的增加、諮詢和法律費用的增加、RSA 贈款的股票補償費用的增加以及由於收購 Cibus 而加速與股票獎勵協議相關的股票歸屬有關全球有限責任公司。

Non-operating income was $1.3 million for the quarter ended June 30, 2023 compared to $4.3 million in the year ago period. A decrease of $3 million in non-operating income is due to changes in the fair value of the liability classified Class A common stock warrants.

截至 2023 年 6 月 30 日的季度的非營業收入為 130 萬美元，而去年同期為 430 萬美元。非營業收入減少 300 萬美元是由於 A 類普通股認股權證負債的公允價值變化。

Net loss was $20.5 million for the quarter ended June 30, 2023, compared to net loss of $2.5 million in the year-ago period. Net loss per share of Class A common stock was $2.74 for the quarter ended June 30, 2023, compared to net loss per share of $2.66 in the year ago period.

截至 2023 年 6 月 30 日的季度淨虧損為 2050 萬美元，而去年同期淨虧損為 250 萬美元。截至 2023 年 6 月 30 日的季度，A 類普通股每股淨虧損為 2.74 美元，而去年同期每股淨虧損為 2.66 美元。

Now I'll turn the call back to Rory for his further remarks.

現在我將把電話轉回給羅里，聽取他的進一步評論。

Thanks, Wade.

謝謝，韋德。

In addition to the financials, this quarter will also be a little different as we look at this quarter's release of the inaugural call for Cibus as a public company. Because of this, the format will be a little different than a typical call. Our goal today is to begin to develop an understanding of who Cibus is, our business, goals, strategy, and milestones. From here, the plan would be to do quarterly calls to review our finances and provide updates on our commercial progress as we launch our developed traits.

除了財務數據外，本季度也將略有不同，因為我們將看到本季度發布的 Cibus 作為上市公司的首次呼籲。因此，格式將與典型的調用略有不同。我們今天的目標是開始了解 Cibus 是誰、我們的業務、目標、戰略和里程碑。從這裡開始，計劃將是每季度進行一次電話審查我們的財務狀況，並在我們推出我們開發的特性時提供有關我們商業進展的最新信息。

The merger between Calyxt and Cibus was a great one-time opportunity to merge the two pioneers in gene editing. The union is significant because in the early days of gene editing, Cibus, Cellectis, Calyxt as agricultural subsidiary in University of Minnesota. One of the founders of Calyxt was the leader for developing the field of agricultural gene editing.

Calyxt 和 Cibus 之間的合併是合併這兩個基因編輯領域先驅的絕佳機會。這個聯盟意義重大，因為在基因編輯的早期，Cibus、Cellectis、Calyxt 都是明尼蘇達大學的農業子公司。 Calyxt的創始人之一是農業基因編輯領域發展的領導者。

All this essential agricultural gene-editing technology from this period now resides in Cibus. We're really excited to be working with our colleagues from Calyxt and take advantage of all this great intellectual property.

這一時期所有重要的農業基因編輯技術現在都掌握在 Cibus 中。我們非常高興能夠與 Calyxt 的同事合作並利用所有這些偉大的知識產權。

The merger also allowed us to become a public company. We believe 2023 was a good year for us to go public as it is the point of inflection year for us as we transition from R&D to a commercial company. As part of this transition, we laid out a list of 2023 milestones that were critical to this transition. We were really excited because we have already accomplished many of our 2023 milestones and are on target for our remaining ones.

此次合併還使我們成為一家上市公司。我們相信 2023 年對我們來說是上市的好一年，因為這是我們從研發公司向商業公司轉型的拐點年。作為這一過渡的一部分，我們列出了對這一過渡至關重要的 2023 年里程碑清單。我們非常興奮，因為我們已經完成了 2023 年的許多里程碑，並且正在實現剩餘里程碑的目標。

The key milestones that we have accomplished are multifold. We first successfully made the initial transfer of our initial trait products. We have three develop traits: pod shatter reduction in canola and winter oilseed grape; and two for herbicide tolerance in rice. Our business involves editing our traits in the elite germplasm customers and returning or transferring back to the customer their elite germplasm or traits.

我們已實現的關鍵里程碑是多方面的。我們首先成功地完成了我們初始性狀產品的初始轉移。我們開發了三個特性：減少油菜和冬油葡萄的落莢；兩個用於水稻的除草劑耐受性。我們的業務包括在優良種質客戶中編輯我們的性狀，並將其優良種質或性狀返還或轉移給客戶。

Since our merger was announced in January, we have successfully returned our first three traits to a canola customer and to herbicide tolerant traits to raise customer. In addition, we expect five more canola transfers in 2023.

自從我們一月份宣布合併以來，我們已成功地將前三個性狀返還給油菜客戶，並恢復了耐除草劑性狀以吸引客戶。此外，我們預計 2023 年還會有 5 次油菜籽轉運。

In addition, we opened the Oberlin Facility, the industry's first gene editing production facility. This system is critical to our commercial model that involves editing customer's elite germplasm. It enables us to perform these edits at a commercial scale.

此外，我們還開設了歐柏林工廠，這是業界第一個基因編輯生產工廠。該系統對於我們涉及編輯客戶精英種質的商業模式至關重要。它使我們能夠以商業規模執行這些編輯。

Finally, we have three traits in development. Two of these traits are in advanced stages of development going through greenhouse and field validation. One of the traits per sclerotinia resistance. This is an important trait for canola and soybean. We've already released very encouraged greenhouse results for this trait in Q2 '23. We expect more data on this important trait in the second half of '23.

最後，我們的發展具有三個特徵。其中兩個性狀正處於開發的後期階段，正在通過溫室和田間驗證。每個核盤菌抗性的特徵之一。這是油菜和大豆的重要性狀。我們已經在 23 年第二季度發布了該性狀的非常令人鼓舞的溫室結果。我們預計在 23 年下半年將獲得有關這一重要特徵的更多數據。

The last part of our business, which has been helpful to discuss, is our ability to get major seed companies to work with us in breeding collaborations to develop our current traits, but also develop new traits with customers. And so we are really excited to announce today that we have entered into a breeding collaboration with Bayer to test and validate our Trait Machine process and our ability to add elite germplasm and return back to customers their plants with edits in them.

我們業務的最後一部分有助於討論，那就是我們有能力讓主要種子公司與我們進行育種合作，以開發我們現有的性狀，同時也與客戶一起開發新的性狀。因此，我們今天非常高興地宣布，我們已與拜耳建立育種合作，以測試和驗證我們的性狀機器流程以及我們添加精英種質並將其經過編輯的植物返回給客戶的能力。

And then we have others following that, but this is a really big moment for us as we start to develop this whole new industry where we can put advanced trace indices in a fraction of the time and cost of traditional breeding.

然後我們還有其他人緊隨其後，但這對我們來說是一個非常重要的時刻，因為我們開始開發這個全新的行業，我們可以在傳統育種的時間和成本的一小部分中加入先進的追踪指數。

These milestones are what we mean when we say that 2023 is an inflection year for our business and its path to a fully virtual company. Accordingly, these milestones help frame this new industry of high throughput gene editing that we are building. Our goal in the call is to use these milestones. So from a base from which to report our progress in building the company in this new industry.

當我們說 2023 年是我們業務及其通往完全虛擬公司之路的轉折年時，這些里程碑就是我們所指的。因此，這些里程碑有助於構建我們正在建立的高通量基因編輯新行業。我們在電話會議中的目標是利用這些里程碑。因此，以此為基礎來報告我們在這個新行業中建設公司的進展。

In 2023, we started transferring trait products in customers elite germplasm. We started production runs in the industry's first high throughput trait production facility. We signed important collaboration with the leading seed companies to develop this industry further. And we had major regulatory milestones, anything with traits from high throughput gene editing on our path to be regulated similarly to traits [of conventional seed].

2023年，我們開始轉移客戶優良種質中的性狀產品。我們開始在業界第一個高通量性狀生產設施中進行生產。我們與領先的種子公司簽署了重要合作協議，以進一步發展該行業。我們有重要的監管里程碑，任何具有高通量基因編輯特徵的東西都將受到與[傳統種子]特徵類似的監管。

And to us, 2023 so far has been quite a year. I'm sorry, I'm going to break, and we've put a couple of slides together to walk you through our business, our goals, and our prospects, and give you a framework so that as we quarter to quarter start educating you on our progress and our pipeline, you'll have a better position for which to understand this.

對我們來說，2023 年迄今為止是不平凡的一年。抱歉，我要休息了，我們整理了幾張幻燈片來引導您了解我們的業務、我們的目標和我們的前景，並為您提供一個框架，以便我們每個季度開始教育如果您了解我們的進展和管道，您將有一個更好的位置來了解這一點。

I'd like to start this section with this slide. We use every presentation, which is a slide of my senior management team. What's really exciting about this company is as a Co-Founder, so I have been a partner with Peter and Greg for over 20 years now. Wade is my analyst at Biomatrix. I've been there for over 20 years. That's really exciting to come back and work with them again.

我想用這張幻燈片開始本節。我們使用每一個演示文稿，這是我的高級管理團隊的幻燈片。這家公司真正令人興奮的是作為聯合創始人，所以我與 Peter 和 Greg 的合作夥伴已經有 20 多年了。韋德是我在 Biomatrix 的分析師。我在那裡已經 20 多年了。能夠再次回來與他們合作真是令人興奮。

And then we're very excited that we recently hired the former general counsel of Syngenta and he ran our licensing. It's really important for us as we start to build our business and create development business.

然後我們非常興奮的是，我們最近聘請了先正達的前總法律顧問，他負責我們的許可工作。當我們開始建立我們的業務並創建開發業務時，這對我們來說非常重要。

A little background on who we are. Cibus is in the productivity trait business. As such, when we create products, we look at this line you see here. It's the slope of the productivity increases in the seed industry over the last 50 years. Our job is to help maintain or grow the slope of this line. That's what people in the seed industry do, work in the seed industry.

關於我們是誰的一些背景知識。 Cibus 從事生產力特質業務。因此，當我們創建產品時，我們會關注您在這裡看到的這條線。這是過去 50 年種子行業生產力增長的斜率。我們的工作是幫助維持或增加這條線的坡度。這就是種子行業的人所做的，在種子行業工作。

This is what ending does. It changes existing genes within a plant so that the plant can protect itself from things like the environment or disease. Importantly, our products directly impact the yield and cost of farming. None of our products impact the slope of this line.

這就是結局的作用。它改變植物內現有的基因，使植物能夠保護自己免受環境或疾病等因素的影響。重要的是，我們的產品直接影響農業的產量和成本。我們的產品都不會影響這條線的斜率。

We are paid for our products based on seed sales with our traits. Our royalties are based on scientific economics or value from our trait to a crop. This is essentially the same basis that Apple pays Qualcomm. For components of Apple, Qualcomm supplies to your iPhone; or an ingredient in a business and were paid for the value we bring to that product.

我們根據具有我們性狀的種子銷售情況獲得產品報酬。我們的特許權使用費基於科學經濟學或我們的特性對作物的價值。這與蘋果向高通支付費用的基礎基本相同。對於 Apple 的組件，高通為您的 iPhone 提供；或企業中的一個成分，並根據我們為該產品帶來的價值而獲得報酬。

In the seed industry, there are essentially three principal tools that are used to improve yields for the major crops versus improvements in the germplasm. That's the genetics of the seed itself. Then there's improvement in new traits. And these are the traits that allow you to better manage the environment. And third, there's chemicals, crop protection chemicals.

在種子工業中，基本上有三種主要工具用於提高主要作物的產量與改進種質。這就是種子本身的遺傳學。然後是新特性的改進。這些特徵可以讓您更好地管理環境。第三是化學品，農作物保護化學品。

With the impacts of climate change coming and the pressure of decreased chemical usage, germplasm and trait improvements are the center of focus today to improve productivity at scale. This is our business.

隨著氣候變化的影響和化學品使用量減少的壓力，種質和性狀改良成為當今大規模提高生產力的焦點。這是我們的事。

The licensing of intellectual property associated with traits is an integral part of agriculture. The royalties paid for productivity traits for the major crops is estimated to exceed $10 billion. This is roughly equivalent to the operating profit for the global crop protection chemicals business. That target market for productivity trait business that is roughly the same as the target market for agricultural chemistry industry, disease, tests, weeds, and the climate. We're all focused on the same general targets.

與性狀相關的知識產權許可是農業的一個組成部分。為主要作物的生產力性狀支付的特許權使用費估計超過 100 億美元。這大致相當於全球作物保護化學品業務的營業利潤。生產力性狀業務的目標市場與農業化學工業、疾病、測試、雜草和氣候的目標市場大致相同。我們都專注於相同的總體目標。

The economics are very straightforward for each crops, but always two principal drivers of productivity [create royalties]. First, the number of acres and a crop impacted by specific traits; and two, the trait acres per pay for specific trait.

每種作物的經濟學都非常簡單，但始終是生產力的兩個主要驅動因素[創造特許權使用費]。首先，受特定性狀影響的英畝數和作物；第二，特定性狀的每筆報酬的性狀英畝數。

A great example of this is our first disease trait for sclerotinia resistance. The number of soybean acres impacted by sclerotinia is approximately 25% of the total soybean acres or roughly 50 million acres. The estimated trait range is approximately $7 to $10 per acre, which is estimated to be roughly one-third of the cost to manage sclerotinia using fungicides. This equates to a [$350 to $400 million] market for sclerotinia resistance in soybean.

一個很好的例子是我們的第一個抗核病性狀。受菌核病影響的大豆麵積約佔大豆總面積的 25%，即約 5000 萬英畝。估計性狀範圍約為每英畝 7 至 10 美元，估計約為使用殺菌劑管理菌核病成本的三分之一。這相當於大豆菌核病抗性的市場[350至4億美元]。

The trait royalty market for this trait is much larger if you include canola and winter oilseed trait. But also importantly, these calculations are great example of how to look at trait markets and determine the values for virtually every productivity trait. The Bt trait is an excellent example of our productivity traits work. And the slide we're seeing here is an illustrative slide. These are real numbers, but Bt is not our trait. Bt is a very important trait in the industry.

如果包括油菜籽和冬季油籽性狀，則該性狀的性狀特許權市場要大得多。但同樣重要的是，這些計算是如何看待特質市場並確定幾乎每個生產力特質的價值的很好例子。 Bt 特質是我們生產力特質工作的一個很好的例子。我們在這裡看到的幻燈片是一張說明性幻燈片。這些是實數，但 Bt 不是我們的特徵。 Bt是該行業的一個非常重要的特徵。

For corn and cotton, this trait revolutionized worm management. It's currently used on over 90% of acres grown for each crop, demonstrating the pervasiveness of this trait. Trait fees range between $10 and $15 per acre. The total royalty paid for this period across all crops is estimated to be over $4 billion a year. The math is pretty simple. Total acres grown with this trait on them by the trait fee or royalty paid per acre.

對於玉米和棉花來說，這一特性徹底改變了蠕蟲管理。目前每種作物 90% 以上的種植面積都使用了這種技術，這證明了這一特性的普遍性。性狀費用每英畝 10 至 15 美元不等。在此期間，所有作物每年支付的特許權使用費總額估計超過 40 億美元。數學很簡單。按每英畝支付的性狀費或特許權使用費計算，具有該性狀的種植總面積。

This industry is a lot like the movie industry. The end of every season, the company's total up for revenues and calculate number of people, actors; or companies that have earned royalties. That happens every season in agriculture.

這個行業很像電影業。每季結束時，公司統計總收入併計算人數、演員數；或已賺取特許權使用費的公司。在農業中每個季節都會發生這種情況。

New slide. This picture is meant to depict the process of conventional farming. Although other technologies such as selective breeding have impacted this industry, it's still a slow, random, and expensive process that has existed for centuries, if not, millennia. GMO technologies are giving us amazingly impactful traits like the Bt trait, but these technologies are still very lengthy and expensive.

新幻燈片。這張照片旨在描繪傳統農業的過程。儘管選擇性育種等其他技術已經影響了這個行業，但它仍然是一個緩慢、隨機且昂貴的過程，已經存在了幾個世紀甚至幾千年。轉基因技術給我們帶來了驚人的影響力性狀，例如 Bt 性狀，但這些技術仍然非常漫長且昂貴。

The most recent study estimated GMO trait requires on average 16.5 years and $115 million from ideation through localization. The promise of gene editing is it can be the digital moment in agriculture. These technologies can materially change the time and cost of freight development, and we believe it will restart the productivity book started with GMO technologies.

最近的研究估計，轉基因特性從構思到本地化平均需要 16.5 年和 1.15 億美元。基因編輯的前景是它可以成為農業的數字化時刻。這些技術可以極大地改變貨運開發的時間和成本，我們相信它將重新啟動以轉基因技術為基礎的生產力手冊。

I'd like to move to Peter Beetham to further explain this technology. He understand really what we do. You really have to understand what is the big picture that Peter and Greg have accomplished. Peter?

我想請 Peter Beetham 來進一步解釋這項技術。他真正了解我們所做的事情。你真的必須了解彼得和格雷格已經完成的大局是什麼。彼得？

Thanks, Rory, and good morning, everyone. See this is high throughput breeding or as we call it, the Trait Machine, changes the game. What separates Cibus in the plant gene editing industry is its trade machine process. It is built using Cibus's patented rapid trait development system for RTDS. The process from ideation, molecular discovery for what I call the, what to edit, then editing to the field validation, can take as little as five years.

謝謝羅里，大家早上好。這是高通量育種，或者我們稱之為特徵機器，改變了遊戲規則。 Cibus 在植物基因編輯行業中的獨特之處在於其貿易機器流程。它是使用 Cibus 的 RTDS 專利快速性狀開發系統構建的。從構思、我所說的分子發現、編輯內容、然後編輯到現場驗證的過程可能只需要短短五年的時間。

The Trait Machine process is a crop specific, standardized, end-to-end gene editing breeding system that edits a single cell from an elite germplasm and generates the cell into the same elite germplasm with that edit. It is the first time bound and reproducible breeding system in a plant gene editing industry. It is the breeding system used at our Oberlin location. As we recently reported, we are excited to now have Cibus's new standalone gene editing production facility.

Trait Machine 流程是一種作物特異性、標準化、端到端的基因編輯育種系統，可編輯優良種質中的單個細胞，並通過該編輯將細胞生成相同的優良種質。這是植物基因編輯行業中首次綁定且可重複的育種系統。這是我們歐柏林工廠使用的育種系統。正如我們最近報導的那樣，我們很高興現在擁有 Cibus 的新獨立基因編輯生產設施。

Cibus believe that RTDS and the Trait Machine process represent the technological breakthrough in plant breeding that is the ultimate promise of plant gene editing, high throughput gene editing systems that are able to work as an extension of customers breeding programs. The Trait Machine enables the standardized reproducible system that develops traits in a fraction of the time and cost of conventional breeding or GMO processes.

Cibus 相信 RTDS 和 Trait Machine 流程代表了植物育種領域的技術突破，這是植物基因編輯、高通量基因編輯系統的最終承諾，能夠作為客戶育種計劃的延伸。性狀機器實現了標準化的可重複系統，該系統開發性狀所需的時間和成本僅為傳統育種或轉基因過程的一小部分。

There is another aspect of the Trait Machine that has an equally important benefits of this new era, the ability to develop prototypes and to accelerate commercialization once the trait is developed. Prototypes validate specific edits in a crop that lead to a validated trait. Cibus is focused on complex traits that involve multiple edits. And in some cases, multiple genes. In many cases, such as disease or nitrogen use efficiency traits, the ultimate product will consist of multiple modes of action.

特質機器的另一個方面在這個新時代具有同樣重要的好處，即一旦特質開發出來，就能夠開發原型並加速商業化。原型驗證作物中的特定編輯，從而產生經過驗證的性狀。 Cibus 專注於涉及多次編輯的複雜特徵。在某些情況下，是多個基因。在許多情況下，例如疾病或氮利用效率性狀，最終產品將由多種作用模式組成。

Prototyping multiple modes of action is difficult, but it's impossible in conventional breeding. This is a core attribute of the Trait Machine. It is why we believe that we will be able to develop traits for many of the critically important traits like disease resistance that have been elusive using conventional breeding or GMOs. To us, these benefits are integral to our vision for the future of breeding.

製作多種作用模式的原型很困難，但這在傳統育種中是不可能的。這是特質機器的核心屬性。這就是為什麼我們相信我們將能夠開發許多至關重要的性狀，例如抗病性，而這些性狀是使用傳統育種或轉基因生物難以實現的。對我們來說，這些好處是我們對育種未來願景不可或缺的一部分。

Back to you, Rory.

回到你身邊，羅里。

Our best example of what Peter was talking about regarding the timeline for development of new traits, given the technologies help develop is the sclerotinia trait. Sclerotinia is a really important trait in both canola and soybean. It had million losses. And we believe that this royalty change to crops as well over half $0.5 billion year of royalty.

考慮到有助於開發的技術，我們關於彼得所談論的關於新性狀開發時間表的最好例子是菌核病性狀。菌核病是油菜和大豆的一個非常重要的性狀。它有百萬美元的損失。我們認為，農作物的特許權使用費將發生變化，每年的特許權使用費將超過 5 億美元。

But we're most excited for a portion of this discussion is to see on this chart the timeline for development. And the timeline for development for this thing fits exactly in line with our proposition of four to six years development timeline for given trait from the time you do it for seven. And you can watch us manage this trait and see how well we are managing this because it is a excellent benchmark for you to think about how we do new traits.

但我們最興奮的部分討論是在這張圖表上看到開發時間表。這個東西的開發時間表完全符合我們的提議，即從你做七年開始，給定特徵需要四到六年的開發時間表。您可以觀看我們管理此特徵並了解我們管理得如何，因為這是您思考我們如何處理新特徵的絕佳基準。

When we started Cibus, we blindly assume that we would not be considered GMO. Our dream was that we could start developing technology that resulted in traits that were indistinguishable from conventional breeding. We'd be regulated like conventional breeding. While we have seen that this video was taken a long time.

當我們創辦 Cibus 時，我們盲目地認為我們不會被視為轉基因生物。我們的夢想是我們可以開始開發能夠產生與傳統育種沒有區別的性狀的技術。我們會像傳統育種一樣受到監管。雖然我們看到這個視頻拍攝了很長時間。

However, over the last few years, virtually all major markets have either passed legislation or on the road to pass legislation to regulate traits from our technology similar to the traits from conventional breeding.

然而，在過去幾年中，幾乎所有主要市場都已通過立法或正在通過立法來規範我們技術中類似於傳統育種的性狀。

The last holdout in the most critical GMO is the European Union in July proposed new legislation was something called new genomic techniques or NGT. If passed, the EU will regulate traits from our technologies as conventional-like. If the EU Parliament passes this bill, we believe the remaining holdouts `will quickly complete their process. In the meantime, the US, the UK, and most of Latin American countries have already passed legislation.

對最關鍵的轉基因生物的最後抵制是歐盟在 7 月份提出的新立法，即所謂的新基因組技術或 NGT。如果通過，歐盟將像傳統技術一樣對我們的技術特徵進行監管。如果歐盟議會通過這項法案，我們相信剩餘的抵制者“將很快完成他們的進程”。與此同時，美國、英國和大多數拉丁美洲國家已經通過了立法。

2023 has been a watershed year for genetic regulations in agriculture.

2023年是農業基因調控的分水嶺年。

New slide, as I mentioned we're in the productivity trait business. The technologies are the forefront of gene editing and agriculture. One of the key benefits of merging with Calyxt is that the combined company now own many of the core original patents for gene editing and agriculture. The merger establishes a strong technology platform and leadership position as we move forward.

新幻燈片，正如我提到的，我們處於生產力特質行業。這些技術是基因編輯和農業的前沿技術。與 Calyxt 合併的主要好處之一是，合併後的公司現在擁​​有基因編輯和農業的許多核心原始專利。此次合併為我們的前進奠定了強大的技術平台和領導地位。

Our goal in this section is provide an overview of our business today and the progress we've made in trait development for the Trait Machine and the progress we've made in commercializing our initial developed traits.

我們在本節中的目標是概述我們今天的業務，以及我們在特徵機器的性狀開發方面取得的進展，以及我們在將最初開發的性狀商業化方面取得的進展。

New slide, 12. The best evidence we have of the efficiency of the Trait Machine process is that we currently have a pipeline of six traits. Three of these traits are fully developed and shipping. One is a canola trait for pod shatter reduction. The other two are for herbicide tolerance increase in rice. We have strong demand for each of these traits. For pod shatter trait, we already have 10 customers that have entered into pod shatter breeding collaboration.

新幻燈片，12。我們擁有的特徵機器流程效率的最佳證據是，我們目前擁有六個特徵的管道。其中三個性狀已完全開發並發貨。其一是雙低油菜籽的減少豆莢破碎的特性。另外兩個是為了提高水稻對除草劑的耐受性。我們對這些特徵都有強烈的需求。對於碎莢性狀，我們已經有 10 個客戶進入了碎莢育種合作。

Importantly, we made our first transfer to new seed in Q1 this year. We expect to make five more transfers by year end 2023 of this trait in our customers' elite germplasms. Two of these traits are in advanced stages of development. One is for sclerotinia resistance and canola, the others, tolerance trait for a novel herbicide in canola. Both traits are important traits for both canola and soybean.

重要的是，我們在今年第一季度首次轉移到新種子。我們預計到 2023 年底，將在客戶的優良種質中再進行五次這一性狀的轉移。其中兩個性狀正處於發展的後期階段。一個是針對菌核病和雙低油菜籽的抗性，另一個是針對雙低油菜籽中新型除草劑的耐受性。這兩個性狀對於油菜和大豆來說都是重要的性狀。

Sclerotinia resistant comprises three modes of action. We had previously recorded positive results for the first mode of action and recently reported encouraging results for the second mode of action. We expect to release an additional greenhouse and field data by the end of the year to 2023 for sclerotinia resistance.

抗核盤菌包括三種作用模式。我們之前已經記錄了第一種行動模式的積極結果，最近報告了第二種行動模式的令人鼓舞的結果。我們預計在 2023 年年底之前發布更多關於菌核病抗性的溫室和田間數據。

The last trait for nitrogen use efficiency. This is a critically important trait for most crops. This immensely kind of develop plants that can maintain or improve productivity with less fertilizer. We're just initiating the straight in canola and in rice.

最後一個性狀是氮利用效率。對於大多數作物來說，這是一個至關重要的性狀。這種巨大的植物生長可以用更少的肥料維持或提高生產力。我們剛剛啟動雙低油菜籽和大米的直接生產。

For each of our trait products, we will regularly be reporting our progress in the greenhouse and into the field and will be a regular part of our quarterly calls going forward.

對於我們的每種特性產品，我們將定期報告我們在溫室和實地的進展，並將成為我們未來季度電話會議的常規部分。

New slide. The trait business is a crop-by-crop business. Although traits are important in many crops, each trait in each crop can vary on many levels as traits were affected by different geographies and environmental conditions. Our customer is always the specific crop team in each seed company. In this way, you can think of a crop and see this as a business unit.

新幻燈片。性狀業務是逐個作物的業務。儘管性狀對許多作物都很重要，但每種作物的每種性狀都可能在很多層面上有所不同，因為性狀受到不同地理位置和環境條件的影響。我們的客戶始終是每個種子公司的特定作物團隊。通過這種方式，您可以將作物視為一個業務單位。

As part of this slide, you can see that we have a canola business unit and rice slippage unit. And we'll have a soybean unit that potentially work with these companies to try and develop our initial trade and a pipeline of traits that go with it.

作為這張幻燈片的一部分，您可以看到我們有一個油菜籽業務部門和水稻滑移部門。我們將設立一個大豆部門，該部門可能會與這些公司合作，嘗試開發我們的初始貿易以及與之相關的一系列性狀。

Soybean is important because it makes our Trait Machine operational in 200 million additional acres. Importantly, soybean farmers have been a leader in adopting new traits, especially GMO traits, so we're really excited about moving into that marketplace. We already have two traits, which we already have demand for that were first launching canola. And so the event of actually having a soybean platform is a really, really big thing for us that we expect to happen in the second half of 2023.

大豆很重要，因為它使我們的性狀機器在另外 2 億英畝的土地上運行。重要的是，大豆種植者一直是採用新性狀（尤其是轉基因性狀）的領導者，因此我們對進入該市場感到非常興奮。我們已經有兩個特性，我們在首次推出油菜籽時就已經對此有需求。因此，真正擁有大豆平台的事件對我們來說是一件非常非常大的事情，我們預計將在 2023 年下半年發生。

New slide. As we have discussed, crop-specific Trait Machine breeding processes are the key to our business. The Trait Machine enables us to enter directly into customers' elite germplasm and return that germplasm to customer along with it. It also lets us build high throughput breeding collaborations with seed companies in a crop, where we could work with them to help them develop some of their own traits.

新幻燈片。正如我們所討論的，針對特定作物的性狀機器育種流程是我們業務的關鍵。性狀機器使我們能夠直接進入客戶的精英種質並將該種質連同其一起返回給客戶。它還使我們能夠與種子公司在農作物上建立高通量育種合作，我們可以與他們合作，幫助他們發展一些自己的性狀。

This is our vision. Crop-by-crop breeding partner shows the seed companies where we operate as an extension of their crop-specific breeding operations. Currently, we are Trait Machine operational in two crops, canola and rice. This means we're in traits in those crops. By year end, we expect to be a Trait Machine operational in soybean, thus in the trait business in soybean. By year end 2025, we expect to be in the Trait Machine business in both wheat and corn.

這是我們的願景。逐個作物育種合作夥伴向種子公司展示我們運營的種子公司，作為其特定作物育種業務的延伸。目前，我們的性狀機器在油菜和水稻這兩種作物上運行。這意味著我們具有這些作物的特徵。到年底，我們預計將在大豆上運行性狀機器，從而在大豆性狀業務中發揮作用。到 2025 年底，我們預計將涉足小麥和玉米的性狀機器業務。

We've already built crop-specific Trait Machine breeding collaborations with the seed companies in canola, rice, and soybean.

我們已經與油菜籽、水稻和大豆種子公司建立了針對特定作物的性狀機器育種合作。

New slide. Our business plan is pretty straightforward. We have a technology platform that enables us to develop more traits more quickly and with a faster speed to market. Using this technology, we have a pipeline of six traits, of which three are development and launching and two are in advanced stages of development, and the six is just initiating editing process.

新幻燈片。我們的商業計劃非常簡單。我們擁有一個技術平台，使我們能夠更快地開發更多性狀並以更快的速度上市。利用這項技術，我們擁有六個特徵的管道，其中三個正在開發和啟動，兩個處於開發高級階段，六個剛剛啟動編輯過程。

We're currently Trait Machine operational in two crops, canola and rice. In addition, we are close to being Trait Machine operational in soybean. Together, we estimate the royalty potential of these crops for three developed traits and two advanced rates to be $1.6 billion. And what's really interesting if you see this slide is you realize that over on the canola side, we are validating and launching sclerotinia and for herbicide reduction traits in canola.

我們目前正在對兩種作物（油菜籽和水稻）使用性狀機器。此外，我們即將在大豆中投入使用性狀機器。我們綜合估計這些作物的三個已開發性狀和兩個高級費率的特許權使用費潛力為 16 億美元。如果您看到這張幻燈片，真正有趣的是您會意識到，在雙低油菜籽方面，我們正在驗證和啟動雙低油菜籽中的菌核病和除草劑減少特性。

Those are the exact same traits that when we validate our business model for soybean, we're going to be able to go over, introducing the soybean. So it's not going to take developing a whole set of new trait development. It's transferring a trait from one crop to another crop, which is really powerful.

當我們驗證大豆的商業模式時，這些特徵與我們將能夠介紹的大豆的特徵完全相同。因此，不需要開發一整套新的特質。它將一種性狀從一種作物轉移到另一種作物，這非常強大。

Our goal right now is to get these five traits commercial in these three crops. And that's we'd like you to grade us on. If we can, there's a huge opportunity for us and that we're all really excited about. These are targets for which we expect to update shareholders in the quarters to come.

我們現在的目標是在這三種作物中實現這五個性狀的商業化。這就是我們希望您對我們進行評分的原因。如果可以的話，這對我們來說是一個巨大的機會，我們都對此感到非常興奮。我們預計將在未來幾個季度向股東通報這些目標。

New slide. To be self-evident by now, we're pretty excited about the milestones we've accomplished since we signed our merger agreement with Calyxt. Our remaining 2023 milestones are also foundational to our business plan. Our guidance in soybeans is obviously critically important. It's one of two mega crops for trait development. We believe we will have a Trait Machine process completed for soybean by year end.

新幻燈片。不言而喻，自從我們與 Calyxt 簽署合併協議以來，我們所取得的里程碑讓我們感到非常興奮。我們剩下的 2023 年里程碑也是我們業務計劃的基礎。我們對大豆的指導顯然至關重要。它是性狀開發的兩種大型作物之一。我們相信，我們將在年底前完成大豆性狀機器流程。

Finishing soybean ties into our other key milestones for 2023. We expect to announce additional greenhouse and field data for our sclerotinia resistant traits and our HT2 trait in canola. These are cornerstones for our advanced traits. They're huge traits for canola, but also a huge trait for soybean. It's our intention as our edging of soybeans decreased as soon as our soybean platform is operational.

完成大豆與我們 2023 年的其他關鍵里程碑有關。我們預計將公佈有關我們的油菜菌核病抗性性狀和 HT2 性狀的更多溫室和田間數據。這些是我們先進特徵的基石。它們是油菜籽的重要性狀，也是大豆的重要性狀。這是我們的意圖，因為一旦我們的大豆平台投入運營，我們的大豆邊緣就會減少。

Together, these milestones successfully move us from R&D to commercial with over 250 million acres, operational, a pipeline of six traits, and major seed company partner with all the crops. We've signed trait collaboration agreements and have transferred their germplasm to seeds.

總之，這些里程碑成功地將我們從研發轉向商業化，擁有超過 2.5 億英畝的運營面積、六種性狀的產品線，以及主要種子公司與所有作物的合作夥伴。我們簽署了性狀合作協議，並將其種質轉移到種子中。

Together, they complete important milestones that make 2023 the huge point of inflection for Cibus, and we believe for gene editing in plants in general. The slide is particularly important because this is our milestone, this is our first guidance with our first quarter, and we hope you'll grade us on it.

他們共同完成了重要的里程碑，使 2023 年成為 Cibus 的巨大轉折點，我們相信植物基因編輯的總體前景。這張幻燈片特別重要，因為這是我們的里程碑，這是我們第一季度的第一份指導，我們希望您能給我們評分。

So next quarter, we hope to tell you how far we've moved in moving things forward. And in general, this is how we take these quarterly calls off, and we'll try to get you excited about some of the stuff we're doing anyways. We'll show you how this new industry moves.

因此，下個季度，我們希望告訴您我們在推動事情向前發展方面取得了多大進展。總的來說，這就是我們取消這些季度電話的方式，無論如何，我們都會盡力讓您對我們正在做的一些事情感到興奮。我們將向您展示這個新行業如何發展。

Thanks for listening to our business overview. As is evident, our business currently is driven by our execution to get to develop traits launch commercially and to get our developing traits developed. The relative potential in just these six traits in the three crops is immense. The material increases as we had wheat and corn. And these activities are really consistent with being a commercially driven company.

感謝您聆聽我們的業務概況。顯而易見，我們的業務目前是由我們的執行力推動的，以開發商業化的性狀並開發我們正在開發的性狀。這三種作物的這六個性狀的相對潛力是巨大的。當我們有小麥和玉米時，材料就會增加。這些活動確實符合商業驅動型公司的定位。

We're going to show the industry how gene editing traits work. In our subsequent calls, we'll focus on tracking our progress and hitting its milestones for each of these products and keep you posted on new trait development.

我們將向業界展示基因編輯性狀如何發揮作用。在隨後的電話會議中，我們將重點關注跟踪我們的進展並達到每個產品的里程碑，並向您通報新特性的開發情況。

And with that, let's go to Q&A. We'd love to take some questions.

接下來，讓我們進入問答環節。我們很樂意回答一些問題。

(Operator Instructions) Laurence Alexander, Jefferies.

（操作員說明）勞倫斯·亞歷山大，杰弗里斯。

So good morning. So I guess just first of all, with the cash burn, can you just characterize whether it is expected to be steady front-end loaded, back-end loaded, and how much of what you've sketched out as your initial cash burn is tied to products that are not the first three commercial products?

早上好。所以我想首先，對於現金消耗，你能否描述一下它是否預計會穩定地前端加載、後端加載，以及你所勾勒出的初始現金消耗有多少？與前三個商業產品以外的產品相關嗎？

Thanks, Laurence. Can I say one note as we start? We actually thought our slides were going to match up the language. We apologize for the people on the call, and I'll let Wade walk through the cash. We expect it to be even. I think the question of cash burn and where we are and how we manage it is a critically important question for all shareholders. So, Wade, do you want to take a shot?

謝謝，勞倫斯。我們開始時我可以說一點嗎？我們實際上認為我們的幻燈片將與語言相匹配。我們對電話中的人表示歉意，我會讓韋德來處理現金。我們希望它是均勻的。我認為現金消耗問題、我們所處的位置以及我們如何管理它對所有股東來說都是一個至關重要的問題。那麼，韋德，你想嘗試一下嗎？

Sure. Hey, Laurence. It's Wade. So our operating burn currently is about $6.5 million per month. We expect that to trend up at the end of this year towards $7 million per month. That obviously supports all of our facilities. It includes the new Oberlin's facility, which is our dedicated Trait Machine facility in San Diego; of course, our headquarters in Nancy Ridge. It includes also the Roseville facility associated with the old Calyxt, and that's 43,000 square feet.

當然。嘿，勞倫斯。是韋德。因此，我們目前每月的運營消耗約為 650 萬美元。我們預計今年年底這一數字將上升至每月 700 萬美元。這顯然支持我們所有的設施。它包括新的 Oberlin 設施，這是我們在聖地亞哥的專用 Trait Machine 設施；當然，我們的總部位於南希里奇。它還包括與舊 Calyxt 相關的羅斯維爾工廠，面積為 43,000 平方英尺。

So it takes into account, obviously both our operating needs and also our capital expenditures associated with making all those facilities fully operational from a Trait Machine standpoint. We added 80 people last year to the company and we've moderated the increase head count since then. So we expect, frankly, the operating capital needs for the company to be steady from here, incremental increases associated with adding individuals and CapEx requirements to those facilities on an ongoing basis.

因此，從特質機器的角度來看，它顯然既考慮了我們的運營需求，也考慮了與使所有這些設施全面運營相關的資本支出。去年我們為公司增加了 80 名員工，此後我們已經放緩了員工數量的增長。因此，坦率地說，我們預計公司的運營資本需求從現在開始將保持穩定，與持續增加個人和這些設施的資本支出要求相關的增量增加。

So hopefully that addresses your question. Once again, $6.5 million per month trending up to $7 million per month and then steady from there.

希望這能解決您的問題。每月 650 萬美元再次上升至每月 700 萬美元，然後保持穩定。

Okay, great. And then just secondly, can you unpack the difference between a trait going into the breeding collaboration versus the transfer stage? And once it gets into the transfer stage, what the timeline is for cash revenues to hit your P&L and cash flow statement? Just if you walk through kind of the cadence, particularly for the three products that you already commercialized.

好的，太好了。其次，你能解釋一下進入育種合作與轉移階段的性狀之間的區別嗎？一旦進入轉移階段，現金收入達到您的損益表和現金流量表的時間表是什麼？只要你經歷一下這種節奏，特別是對於你已經商業化的三種產品。

So, that's a good question. So we're starting to transfer trait to develop to our customers. And guidance we've given, Laurence, is that we think it will take two to three years for them to do the things made necessary to validate register, buildup of seed inventory, and get launched. And so we expect two to three years after we transfer to a customer that we did start to see revenues.

所以，這是一個好問題。因此，我們開始將發展特徵轉移給我們的客戶。勞倫斯，我們給出的指導是，我們認為他們需要兩到三年的時間來完成驗證註冊、建立種子庫存和啟動所需的工作。因此，我們預計在我們轉移給客戶兩到三年後，我們確實開始看到收入。

We think that that could be a little bit faster in rice because of the nature of the rice market works. But in the canola market, we think that those are really solid numbers. And the rice market we're going to learn, but because of the nature of the rice transfer work, I think that it could be faster.

我們認為，由於大米市場運作的性質，大米的增長速度可能會更快一些。但在油菜籽市場，我們認為這些數字確實可靠。還有我們要了解的大米市場，但由於大米轉運工作的性質，我認為可能會更快。

And then just one last clarification and I'll hop back in the queue is once the product is launched, can you give a sense for the lag, if any, for you to be paid? Do you get paid at the end of those planting season, the end of the harvest? Can you just walk through kind of what how the model should work in terms of getting the royalty payments to start flowing through to you?

最後一個澄清是，一旦產品推出，我會跳回到隊列中，您能否解釋一下付款時的滯後情況（如果有的話）？在種植季節結束、收穫季節結束時，您會得到報酬嗎？您能否簡單介紹一下該模型應該如何運作才能讓特許權使用費開始流向您？

Laurence, this is Peter Beetham. Thanks for that question. I think that with regards to canola and our relationships with all our customers, it will be basically at the end of what they call counting bags at the season they plant and then when they get all their returns in. So around midyear, they'll come back to us with an analysis of exactly how many bags were sold. And then the royalties per acre will be sent back to us.

勞倫斯，這是彼得·比瑟姆。謝謝你提出這個問題。我認為，關於雙低油菜籽以及我們與所有客戶的關係，基本上是在他們種植季節的清點袋子結束時，然後當他們收到所有回報時。所以在年中左右，他們會回來給我們分析一下到底售出了多少包包。然後每英畝的特許權使用費將退還給我們。

And I'll just add, Lawrence, this is Wade, that sums up to the fact that our expectations, we like giving ranges shared or to have royalties showing up on the P&L from customer shipments in the range of 2025 to 2026 first royalties. And then obviously, free cash flow generated in the range of 2026 to 2027. First free cash flow generation. So hopefully that gives you a range of metrics as it relates to model expectations.

我只想補充一點，勞倫斯，這是韋德，這總結了我們的期望，我們喜歡提供共享的範圍，或者讓特許權使用費顯示在客戶發貨的損益表上，範圍為2025 年至2026 年第一特許權使用費。顯然，自由現金流在 2026 年至 2027 年範圍內產生。第一次自由現金流產生。因此，希望這能為您提供一系列與模型期望相關的指標。

Can I get one more? You've heard me, Laurence, say that I look at this a lot like the movie business. The end of the season suddenly look at all the players and figure out who you have to pay royalties to. And so when Peter explained it, it is from our understanding exactly what happens in the ag business. At that point, they look at all the customers, they pay a lot of royalties out, and they look at all of their people they owe royalties to. And I think the whole industry reflects our royalties essentially at the same time.

我可以再要一份嗎？勞倫斯，你聽我說過，我對這個行業的看法很像電影業。賽季結束時突然看看所有球員並弄清楚你必須向誰支付版稅。因此，當彼得解釋這一點時，這是我們對農業行業中發生的情況的準確理解。那時，他們會關注所有的客戶，支付大量的版稅，並關注所有欠他們版稅的人。我認為整個行業基本上同時反映了我們的版稅。

Steve Byrne, Bank of America.

史蒂夫·伯恩，美國銀行。

Yes, good morning to you. I have a couple of questions about the potential to put HT2 and sclerotinia in soybeans. First, can you highlight what is HT2? Does that represent a different mode of action from the multitude of herbicide tolerance transgenic traits that are in soybeans right now? So is that different?

是的，早上好。我有幾個關於將 HT2 和菌核菌放入大豆中的可能性的問題。首先，您能強調一下什麼是 HT2 嗎？這是否代表了與目前大豆中多種除草劑耐受性轉基因特性不同的作用方式？那麼這有什麼不同嗎？

Perhaps you could highlight whether there's any difficulty putting your gene-edited traits into soybeans that are full of transgenic trait. There's some talk out there that if there's a transgenic herbicide trait in there, it makes it pretty difficult to do gene editing in there. Can you comment on that?

也許您可以強調將您的基因編輯性狀放入充滿轉基因性狀的大豆中是否存在任何困難。有人說，如果其中存在轉基因除草劑特性，那麼在那裡進行基因編輯就變得非常困難。你能對此發表評論嗎？

And then with respect to putting a gene-edited trait into a crop that like soybeans that gets exported, does that require European import approval for the gene-edited trait, which obviously now is essentially precluded; but as you highlighted that, that regulatory operation is set for streamlining. So do you need that European regulatory change in order for you to put these gene-edited traits in soybeans that are going to be exported?

然後，關於將基因編輯性狀放入出口的大豆等作物中，是否需要歐洲對基因編輯性狀進行進口批准，而這顯然現在基本上是不可能的；但正如您所強調的那樣，監管運作是為了精簡。那麼，您是否需要歐洲監管方面的變化才能將這些基因編輯的性狀植入即將出口的大豆中？

And then sorry, but one last one on this and that is you put your gene-edited trait in soybeans. In some parts of the world, those seeds are saved. Do you have any concern about being able to collect royalties on your gene-edit- traits given the grain handler can't detect it?

然後抱歉，最後一個就是你將基因編輯的特性放入大豆中。在世界的某些地方，這些種子被保存下來。由於穀物處理者無法檢測到基因編輯特性，您是否擔心能否收取基因編輯特性的版稅？

Thanks, Dave. This is Peter. I think I've got most of your questions. So first of all, we are so excited about the abilities of what we have in front of us with soybean. I think the, as you mentioned, HT2 and sclerotinia tolerance are two traits that are really going to change how people think about traits in soybean. Not just here in the US but in South America as well.

謝謝，戴夫。這是彼得。我想我已經回答了你的大部分問題。首先，我們對我們面前的大豆的能力感到非常興奮。我認為，正如您提到的，HT2 和菌核病耐受性這兩個性狀確實會改變人們對大豆性狀的看法。不僅在美國，在南美洲也是如此。

So I think the HT2 I can tell you it is a new mode of action. And with our partners, we'll be looking to add those stacked, potentially, in soybean that allows farmers to have a much broader weed control system. So in some cases where they may need some additional herbicide tolerance that allows them to control really tough weeds. So it gives you a really great opportunity to think through the product lineup adding HT2.

所以我認為HT2我可以告訴你它是一種新的行動模式。我們將與我們的合作夥伴一起，尋求在大豆中添加這些潛在的成分，使農民能夠擁有更廣泛的雜草控制系統。因此，在某些情況下，他們可能需要一些額外的除草劑耐受性，使他們能夠控制真正頑固的雜草。因此，它為您提供了一個非常好的機會來思考添加 HT2 的產品陣容。

This is something that a number of our partners have talked to us about. And as you know, we have a relationship with GDM in Latin America, and that is one of the areas that we'll be working with them on.

這是我們的一些合作夥伴與我們談論過的事情。如您所知，我們與拉丁美洲的 GDM 建立了合作關係，這是我們將與他們合作的領域之一。

The other area is also sclerotinia. So white mold in soybean is a really important trait. We do see the potential to stack this on with other approved event transgenics. I think the other question you mentioned was EU import. And the way we understand it right now is that again, that we approved events that you'll be able to work -- that already are imported into Europe.

另一個區域也是菌核病。因此，大豆中的白黴病是一個非常重要的性狀。我們確實看到了將其與其他批准的事件轉基因技術疊加的潛力。我認為你提到的另一個問題是歐盟進口。我們現在的理解是，我們再次批准了您可以參與的活動——這些活動已經被引入歐洲。

But the gene-edited addition, understanding that the proposal that they just approved in July, will also not only planting in Europe, but also pave the way for imports and exports. And so we're excited about that.

但基因編輯公司了解到，他們7月份剛剛批准的提案，不僅會在歐洲種植，還會為進出口鋪平道路。所以我們對此感到興奮。

And then the last question I think you had was saved seeds. (technical difficulty) we work with our customers to provide traits. The customers will be managing how that goes to market. And with regard to saved seeds, they deal with that on a yearly basis. And I think they managed that very well and understand that there are some areas of the world that our partners will save seeds. So we have no concerns about taking the trait to market and having saved seeds.

我認為你提出的最後一個問題是保存種子。 （技術難度）我們與客戶合作提供特徵。客戶將管理產品如何進入市場。至於保存的種子，他們每年都會處理一次。我認為他們做得很好，並且明白我們的合作夥伴將在世界上的某些地區保存種子。因此，我們不擔心將該性狀推向市場並保存種子。

Well, thanks for answering that one question, Peter. One real quick one for you, and that is the sclerotinia, would you have any interest in expanding into fruits and vegetables? I can imagine there could be interest there.

好吧，謝謝你回答這個問題，彼得。對你來說，一種真正快速的細菌就是菌核菌，你有興趣擴展到水果和蔬菜嗎？我可以想像那裡可能會有興趣。

So Steve, that's a great question. I think the way I look at sclerotinia, it is one of our blockbuster traits. The beauty of our technology that we're bringing to the marketplace is it goes across crops. And so you have this understanding of disease resistance you can take from canola to soybean, and then into other crops that have white mold problems. So that's something we'd love to do in the future.

史蒂夫，這是一個很好的問題。我認為我對菌核病的看法是我們的​​重磅特徵之一。我們推向市場的技術的優點在於它適用於農作物。因此，您對抗病性有了這樣的了解，可以從油菜籽到大豆，再到其他有白黴病問題的作物。所以這是我們將來很樂意做的事情。

Right now as a company, we're really focused on, as Rory mentioned in the script of the deck, we are really focused on our first two crops with the three traits, expanding to three crops and six traits. But in the future, the ability to take that technology across crops and then also across different traits is really exciting for us.

現在作為一家公司，我們真正關注的是，正如羅里在套牌腳本中提到的那樣，我們真正關注的是具有三種性狀的前兩種作物，擴展到三種作物和六種性狀。但在未來，能夠將該技術應用於多種作物，然後應用於不同的性狀，這對我們來說確實令人興奮。

And you should know, the [ADVEX], there's exporting of such an important topic within the new European legislation. It's our understanding as they proposed that problem will be solved for us, which is a really big event for us.

您應該知道，[ADVEX]，在新的歐洲立法中導出瞭如此重要的主題。這是我們的理解，因為他們提出問題將為我們解決，這對我們來說是一個非常大的事件。

Bobby Burleson, Canaccord Genuity.

鮑比·伯勒森 (Bobby Burleson)，Canaccord Genuity。

Thanks for taking my questions. I'm sorry about any background noise here at our growth conference. So I guess my first one kind of I guess, touches on the end of your last answer. When we start thinking about the learnings from crop to crop or even traits to trade. Are there synergies that starts to gather in terms of customer overlap with the germplasm from where it eases maybe the pathway to additional collaborations and kind of key risks, things are going forward once you get some momentum?

感謝您回答我的問題。對於我們的成長會議上出現的任何背景噪音，我深表歉意。所以我想我的第一個想法涉及到你最後一個答案的結尾。當我們開始思考從作物到作物甚至性狀的貿易經驗時。在客戶與種質重疊方面是否開始聚集協同效應，從那裡它可能會緩解額外合作的途徑和某種關鍵風險，一旦你獲得一些動力，事情就會向前發展？

So Bobby, this is Peter again. Again, that's a part of -- from a technology standpoint, we're so excited. We understand that what to edit probably better than most companies. We have a really strong history of understanding edits' complex traits like disease resistance. So understanding those what to need to edit allows you to think more broadly and there are synergies associated with that.

鮑比，這又是彼得。再說一遍，從技術的角度來看，這是我們非常興奮的一部分。我們可能比大多數公司更了解要編輯的內容。我們在理解編輯的複雜特徵（如抗病性）方面有著悠久的歷史。因此，了解需要編輯的內容可以讓您更廣泛地思考，並且與此相關的協同作用。

So when I say broadly, it means that not only sclerotinia but other diseases that are caused by pathogens like fusaria as well as rust and other diseases that are really important constraints on agriculture broadly. So you're absolutely right. This is an opportunity to use that synergy to go across a number of different diseases.

因此，當我廣義地說時，這意味著不僅是菌核病，還有由鐮刀菌等病原體引起的其他疾病以及銹病和其他疾病，這些疾病對農業來說都是非常重要的限制。所以你是完全正確的。這是利用這種協同作用來治療多種不同疾病的機會。

Great. And then maybe just understanding the technology moat outside of patents. Your Trait Machine process and how you've created something that's time bound and reproducible, what aspect of the different stages that you guys outline there is perhaps outside of ideation, maybe the most difficult for some of your partners to replicate on their own in terms of doing this in-house?

偉大的。然後也許只是了解專利之外的技術護城河。你的特質機器過程以及你如何創造出有時間限制和可重複的東西，你們所概述的不同階段的哪些方面可能超出了構思，也許對於你的一些合作夥伴來說最難自己複製在內部做這件事？

Thanks, Bobby. It's Peter again. I would say that the time bound and reproducible Trait Machine is one of the most exciting things I've seen in the company in my history. As you saw on the slides, it's a three- to five-year process. What's been most exciting for me is to see the ability of the team to take single cells through the whole regenerated plant. This is something that is not standard in any cell biology around the world.

謝謝，鮑比。又是彼得。我想說，有時間限制且可複制的特質機器是我在公司歷史上見過的最令人興奮的事情之一。正如您在幻燈片上看到的，這是一個三到五年的過程。最讓我興奮的是看到團隊有能力將單個細胞帶入整個再生植物。這在世界上任何細胞生物學中都不是標準的。

And so I think our abilities in that area is not just getting one or two cells to divide and go into regenerated, we're talking about millions. So an efficiency rate that is beyond what you can even -- what even I imagined a few years ago. So I think that for us, that allows us -- really talking about the secret sauce that is central to what we're doing in our cell biology team.

所以我認為我們在這方面的能力不僅僅是讓一兩個細胞分裂並再生，我們談論的是數以百萬計的細胞。因此，效率超出了你的想像——甚至超出了我幾年前的想像。所以我認為對我們來說，這讓我們能夠真正談論我們細胞生物學團隊所做工作的核心秘密。

And I'll just add, it's on point too that from ideation without having the ability, one, to be able to do complex edits; and secondarily, have this regeneration model, which we call it scrap-specific Trait Machine process. It's really hard to think through how to, after you ideate, how to do a complex trade.

我只想補充一點，這也是很重要的，即從構思開始，但​​沒有能力，一，能夠進行複雜的編輯；其次，有這個再生模型，我們稱之為廢料特定特徵機器過程。在你構思出如何進行複雜的交易之後，真的很難思考如何進行。

And really, it's because of that that we now have this three to five years and you can see it in the sclerotinia results that we're pretty confident that it's just -- you laughing now call my factory maternity ward because we grow the cells up and have a crop at the end. It is pretty well times in that. So I appreciate the question.

事實上，正因為如此，我們現在有三到五年的時間，你可以在菌核菌結果中看到這一點，我們非常有信心，你現在笑著打電話給我工廠的產科病房，因為我們讓細胞長大了最後有收穫。現在正是這樣的好時機。所以我很欣賞這個問題。

Great. Thank you for that. And then maybe one last quick one here on the nitrogen use sufficiency, I'm curious whether or not any traits that you introduced there are compatible with engineered microbial solutions that might be applied around the plants, around the root structure, is this symbiotic with other solutions that are externally applied? I know it's early stages in terms of what you're exploring there.

偉大的。謝謝你。然後也許是關於氮利用充足性的最後一個快速問題，我很好奇您在那裡引入的任何特性是否與可能應用於植物周圍、根部結構周圍的工程微生物解決方案兼容，這是否與外部應用的其他解決方案？我知道就您在那裡探索的內容而言，現在還處於早期階段。

So Bobby, this is Peter again. Another great question. When you think about nitrogen use efficiency or we often call of nutrient efficiency, there will be synergies and symbiosis with microbes in the soil. We have a number of different targets. We've studied and looked at on nitrogen use in plants, and it is a lot of the interaction does happen within the soil, it also happens within the plant.

鮑比，這又是彼得。另一個很好的問題。當您考慮氮肥利用效率或我們通常所說的養分效率時，就會與土壤中的微生物產生協同作用和共生作用。我們有許多不同的目標。我們研究並觀察了植物對氮的利用，很多相互作用確實發生在土壤內，也發生在植物內。

So we're looking at a number of different targets, primarily because we have a technology that does target multiple genes and multiple edits. So it really does open the opportunities for us to look at what is out there on the biological side and how we might actually have some synergies and interactions on that front. So yeah, it's exciting opportunity.

因此，我們正在研究許多不同的目標，主要是因為我們擁有針對多個基因和多個編輯的技術。因此，它確實為我們提供了機會，讓我們了解生物學方面的情況，以及我們如何在這方面實際上產生一些協同作用和相互作用。是的，這是一個令人興奮的機會。

And you framed it well. When you look at nitrogen use efficiency, it's above the soil and below the soil traits. And our first one is a below the soil trait , but you'll learn as we go forward how they divide.

而且你把它構圖得很好。當你觀察氮的利用效率時，它高於土壤，低於土壤性狀。我們的第一個特徵是在土壤下方的特徵，但是當我們繼續前進時你會了解到它們是如何分裂的。

Laurence Alexander, Jefferies.

勞倫斯·亞歷山大，杰弗里斯。

Sorry, just a couple of follow-ups. First, with the collaboration evaluation with Bayer or if you want to speak more generally. First, are you prohibited from entering into similar evaluations with other seed companies? And second, can you give some sense of what the kind of -- the holy grail here is, what the blue sky, kind of what the efficient targeted efficiency gain that you want to deliver, that would then be split between you and them in terms of a value sharing. And what's the goal with the collaboration? Can you just try and quantify it?

抱歉，只有幾個後續行動。首先，與拜耳的合作評估或者如果您想更籠統地說一下。第一，你們是否被禁止與其他種子公司進行類似的評估？其次，你能否說明一下，這裡的聖杯是什麼，藍天是什麼，你想要實現的高效目標效率增益是什麼，然後在你和他們之間分配價值共享的條件。合作的目標是什麼？你能嘗試量化一下嗎？

It's a great question because it goes to the core of our business model. And we now have customers in all the crops. We said we have 12 customers. In each one, it's the same model. They send us their elite germplasm. With that elite germplasm, try to work with initial traits. And so in canola, for example, it really starts with the pod shatter collaboration agreement or we tried to put pod shatter into their elite germplasm.

這是一個很好的問題，因為它涉及我們商業模式的核心。現在我們在所有作物領域都有客戶。我們說我們有 12 個客戶。每一件都是相同的型號。他們向我們發送了他們的精英種質。有了精英種質，嘗試利用初始性狀。例如，在雙低油菜籽中，它實際上是從豆莢粉碎合作協議開始的，或者我們試圖將豆莢粉碎放入他們的精英種質中。

And our goals of business is that once people see how that works, then we will then that turn that into broader collaboration agreements, and we expect you to hear of us signing into broader collaboration agreements.

我們的業務目標是，一旦人們看到其運作方式，我們就會將其轉化為更廣泛的合作協議，我們希望您聽到我們簽署更廣泛的合作協議。

And in those broader collaboration agreements, we expect to do two things. One, be able to advance our pipeline of traits. So if you're in sclerotinia, it's not a secret that -- if you're in canola, if we have sclerotinia to develop, that they all really indicated that they would love to have that traded in our germplasm. So that's how you extend to a broader.

在這些更廣泛的合作協議中，我們希望做兩件事。第一，能夠推進我們的特質管道。因此，如果您處於菌核病中，那麼如果您處於雙低油菜籽中，如果我們有菌核病要發展，那麼他們都確實表明他們願意在我們的種質中進行交易。這就是你如何擴展到更廣泛的領域。

Secondarily, everybody seems to have ideas that they understand what our processes to be able to evaluate new ideas. And I think the way we look at Bayer in that agreement is just to understand like a lot of our customers, how does their process works, how efficient is it, and how to think about it with respect to our current traits or future traits.

其次，每個人似乎都有自己的想法，他們了解我們能夠評估新想法的流程。我認為我們在該協議中看待拜耳的方式只是像我們的許多客戶一樣了解他們的流程如何運作，效率如何，以及如何根據我們當前的特徵或未來的特徵來思考它。

And I think that everybody needs to go through that sort of evaluation before they can sign on and go, all right, I'm ready to put you into my system. And this is sort of Bayer putting themselves in that process and working those.

我認為每個人都需要經過這樣的評估，然後才能註冊並離開，好吧，我準備好將您放入我的系統中。這就是拜耳將自己投入到這個過程中並進行工作。

And then you mentioned kind of everybody in the industry cross licenses technology. With your royalties, how much of a drop through to EBITDA you expect to see? I mean, will you be having any technology licenses or leakage that we should be taking into consideration?

然後您提到行業中的每個人都交叉許可技術。考慮到您的特許權使用費，您預計 EBITDA 會下降多少？我的意思是，你們是否擁有我們應該考慮的任何技術許可或洩漏？

Could you rephrase that? I'm not sure I totally understood. I apologize.

你能重新表述一下嗎？我不確定我是否完全理解了。我道歉。

So when you receive royalties -- some companies in this sector, when they receive royalties, they then have to pay IP payments to other companies. Is there amount of leakage? I'm just curious as to what you think if you get a certain royalty amount, what the contribution to EBITDA should be?

因此，當你收到特許權使用費時——這個行業的一些公司，當他們收到特許權使用費時，他們必須向其他公司支付知識產權費用。是否有洩漏量？我只是好奇你認為如果你獲得一定的特許權使用費，對 EBITDA 的貢獻應該是多少？

I'm glad you asked the question. Thanks very, very much. First, you should know also with our collaborations so far, everything we're doing is non-exclusive. We're working with people generally across all these crops, and we'd like to kind of be a utility that we could be non-exclusive.

我很高興你問了這個問題。非常非常感謝。首先，您還應該知道，到目前為止，我們所做的一切都是非排他性的。我們正在與所有這些作物的人們合作，我們希望成為一種非排他性的公用事業。

As far as the traits, we don't have any other technology royalties that are due. We have a 10% royalty that's due to early on in our financing. We did a royalty financing where the investors got a 10% royalty on our revenues. And so that would be a deduction of our revenues.

就這些特性而言，我們沒有任何其他應得的技術使用費。我們在融資初期需要支付 10% 的特許權使用費。我們進行了特許權使用費融資，投資者獲得了我們收入的 10% 的特許權使用費。因此這將扣除我們的收入。

And secondarily, we have created a foundation for investing in sustainable agriculture and developing countries, and that's a -- after we get $50 million of royalties, there will be a 2% deduction to this non-profit to start doing developmental work in agriculture. But no, there's no other deductions.

其次，我們創建了一個投資可持續農業和發展中國家的基金會，在我們獲得 5000 萬美元的特許權使用費後，這個非營利組織將獲得 2% 的扣除，以開始從事農業發展工作。但不，沒有其他扣除。

And then just lastly, probably predictable answer on this one, but what's your bandwidth or appetite for M&A if other early-stage biotech assets become available the way Calyxt was?

最後，這個問題的答案可能是可以預見的，但如果其他早期生物技術資產像 Calyxt 那樣可用，您對併購的帶寬或興趣有多大？

That's a great question. The next year and a half, we're so focused on getting our five products out there. I want you at the end of 2025, just say, you've got your three platform going, your traits are running, we have our customers. At that point, we really would love to be able to start thinking through how the industry shapes and how we can be a real participant in the industry, and we'd be open to it.

這是一個很好的問題。接下來的一年半，我們將重點放在推出五種產品上。我希望你在 2025 年底，只是說，你的三個平台已經運行，你的特徵正在運行，我們有我們的客戶。到那時，我們真的很希望能夠開始思考這個行業如何形成以及我們如何成為這個行業的真正參與者，並且我們對此持開放態度。

I think for the moment, we're really focused on what we're doing, but we're promising.

我認為目前我們確實專注於我們正在做的事情，但我們充滿希望。

Thank you. This concludes our question-and-answer session. I would now like to turn the call back over to Rory Riggs.

謝謝。我們的問答環節到此結束。我現在想把電話轉回羅里·里格斯。

Thanks for joining us. For all of us, this is sort of we now realize we're public. This is kind of cool. Without their public offering, we've put our documents together. We really are focused and we really are excited about where we are with our traits and where we are with this process. So thanks for following us. And I hope to be able to show you really how the progress works in this new industry.

感謝您加入我們。對於我們所有人來說，這就是我們現在意識到我們是公眾的。這有點酷。沒有他們的公開募股，我們就已經將我們的文件放在一起了。我們真的很專注，我們真的對我們的特質和這個過程的進展感到興奮。感謝您關注我們。我希望能夠向您真正展示這個新行業的進展如何。

The idea of having independent trait producer is a new concept for agriculture. And I think that the reception we're getting from customers and the quality of the traits we're developing is helping us get to that point. But the [carry] still helped us. So thanks very much for listening, and we look forward to talking to you in future calls.

擁有獨立的性狀生產者的想法是農業的一個新概念。我認為客戶對我們的歡迎以及我們正在開發的品質特徵正在幫助我們達到這一目標。但[carry]仍然幫助了我們。非常感謝您的聆聽，我們期待在以後的電話中與您交談。

This concludes today's conference call. Thank you for your participation.

今天的電話會議到此結束。感謝您的參與。