CBUS · Cibus, Inc.

Management Discussion and Analysis

Cibus’ Q1 FY2026 results reflect continued execution against early-stage commercial objectives and structural cost discipline, though the business remains pre-revenue scale and dependent on external financing. Revenue increased 62.6% year-over-year to $1.7M, consistent with modest commercial traction observed in prior quarters. This growth does not signal inflection into scalable commercialization but rather reflects incremental progress within existing development and licensing pathways.

Net income improved to -$21.2M from -$46.9M, a 54.7% YoY improvement. Diluted EPS improved to -$0.33 from -$1.34 — a 75.4% improvement — attributable to both the narrower net loss and stability in the weighted-average diluted share count, with no material equity issuances or conversions during the quarter.

Cash flow from operations remained negative at -$11.5M, essentially unchanged from -$11.8M in Q1 FY2025. This underscores that core operations are not yet generating positive cash flow, even after cost actions. Capital expenditures declined meaningfully to $115K from $291K, reflecting deliberate deprioritization of physical asset investment in favor of preserving liquidity and focusing resources on near-term value drivers.

The Company’s liquidity position remains constrained. As explicitly disclosed in the filing, management concludes it will need to raise additional capital within one year after the date these financial statements are issued to continue as a going concern. This is not forward-looking guidance but a required assessment under GAAP, grounded in current cash balances, burn rate, and absence of committed funding sources. Without additional capital, the Company may be required to implement more stringent cost reduction measures or significantly delay, scale back, or cease operations — a material risk reiterated across multiple sections of the filing.