Risk Factors Update Summary

• Patent protection sought on a country-by-country basis, costly and time-consuming process with uncertain outcomes. This could limit revenue opportunities.
• Public understanding and acceptance of gene editing technologies may impact sales and operations.
• Cibus may issue preferred stock without stockholder approval, potentially diluting ownership and affecting stock price.
• Regulatory changes, especially in the EU, could significantly impact Cibus' ability to develop and commercialize products.
• The company expects to incur significant losses for several years, with a net loss of $16.9 million in 2022.
• Cibus does not have revenue-generating commercial contracts with seed companies, impacting potential stock price decline.
• Negative perceptions about gene editing could affect the commercial success of trait candidates.
• Cibus has approximately $239 million of net operating losses, with potential for additional NOLs.
• Fluctuations in agricultural commodity prices could impact the commercialization of seed products.
• Failure to protect intellectual property rights adequately may harm Cibus' competitive position and commercialization efforts.
• Efforts to enforce intellectual property rights globally may be inadequate, diminishing commercial advantage.
• Cibus relies on third parties for field trials, with any performance issues potentially affecting commercialization efforts.
• Cibus may face challenges in obtaining additional capital, impacting its ability to continue as a going concern.
• Cibus faces risks related to its organizational structure and governance, particularly its dependency on Cibus Global for cash flow.
• Failure to comply with licensing agreements may result in termination, preventing marketing of covered products.
• Cibus may experience delays or disruptions in seed production, impacting operations and profitability.
• Cibus anticipates substantial expenses related to R&D activities, scaling gene editing systems, and expanding operations.
• Adverse weather conditions and natural disasters may impact trait royalties and seed sales.
• Estimates and forecasts related to total acres, trait fees, and market share may prove inaccurate.
• Cibus faces intense competition in improving plant genetics and sustainable ingredients, impacting market position.
• Royalty liability may contribute to net losses, affecting securities value. Fluctuations could limit investors' ability to sell.
• Cibus has a significant ownership concentration among executive officers, directors, and principal stockholders.
• Cibus may experience limitations in utilizing its net operating losses due to potential ownership changes.
• Dependence on key management personnel; loss could adversely affect operations and business.
• Cibus faces risks related to its Tax Receivable Agreement, potential tax inefficiencies, and payments under the agreement.
• Disputes may arise over intellectual property rights, impacting licensing agreements and business operations.
• Market price volatility due to various factors, including quarterly results, analyst reports, and economic conditions.
• Cibus may face challenges if it is deemed an investment company under the Investment Company Act of 1940.