[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) Cadiz Inc. saw revenues rise to **$2.95 million** in Q1 2025, but net loss widened to **$9.6 million** due to higher costs, despite increased assets and cash from an equity offering [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 revenues grew **163%** to **$2.95 million**, but operating loss increased to **$7.53 million** and net loss widened to **$10.86 million** due to higher costs Q1 2025 vs. Q1 2024 Statement of Operations Highlights | Metric ($ in thousands, except per share data) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total revenues | $2,954 | $1,121 | +163.5% | | Operating loss | $(7,533) | $(4,908) | +53.5% | | Net loss | $(9,593) | $(6,850) | +40.0% | | Net loss applicable to common stock | $(10,858) | $(8,115) | +33.8% | | Basic and diluted net loss per common share | $(0.14) | $(0.12) | +16.7% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$145.6 million** by March 31, 2025, driven by higher cash and equity from a stock issuance Balance Sheet Summary | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,569 | $17,292 | | Total current assets | $30,589 | $25,786 | | Total assets | $145,576 | $134,494 | | Total current liabilities | $13,988 | $14,406 | | Total liabilities | $101,541 | $100,533 | | Total stockholders' equity | $44,035 | $33,961 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw increased cash use in operations (**$3.6 million**) and investing (**$6.3 million**), offset by **$16.8 million** from financing activities Cash Flow Summary (Three Months Ended March 31) | Metric ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,644) | $(2,873) | | Net cash used in investing activities | $(6,289) | $(186) | | Net cash provided by financing activities | $16,835 | $17,769 | | Net increase in cash, cash equivalents and restricted cash | $6,902 | $14,710 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail liquidity bolstered by an **$18.3 million** equity offering, segment performance, and debt amendments extending maturities to 2027 - The company incurred a net loss of **$9.6 million** for Q1 2025, up from **$6.9 million** in Q1 2024, primarily due to increased professional fees for the Mojave Groundwater Bank development and higher stock-based compensation[19](index=19&type=chunk) - In March 2025, the company raised approximately **$18.3 million** in net proceeds from a registered direct offering of 5,715,000 shares of common stock at **$3.50 per share**[24](index=24&type=chunk) Segment Performance (Three Months Ended March 31, 2025) | Segment ($ in thousands) | Revenues | Operating (Loss) / Income | | :--- | :--- | :--- | | Land and Water Resources | $565 | $(7,626) | | Water Filtration Technology | $2,389 | $93 | - In March 2024, the company amended its credit agreement, securing a new **$20 million** senior secured convertible term loan and extending the maturity date for existing convertible and non-convertible loans to **June 30, 2027**[42](index=42&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Cadiz's water solutions business, Q1 2025 revenue growth to **$3.0 million**, wider net loss, and liquidity bolstered by an **$18.3 million** equity offering [Business Overview and Strategy](index=23&type=section&id=Business%20Overview%20and%20Strategy) Cadiz, a water solutions provider, is advancing its Mojave Groundwater Bank project, securing **85%** of pipeline capacity and seeking **$401 million** in equity capital - The company's asset portfolio includes **2.5 million acre-feet** of water supply, **1 million acre-feet** of groundwater storage capacity, **220 miles** of existing pipeline, and water filtration technology[90](index=90&type=chunk) - In 2024, the company entered into agreements with multiple public water systems for the purchase of **21,275 AFY** of annual water supply, representing **85%** of the Northern Pipeline's full capacity[98](index=98&type=chunk) - The company estimates an **$800 million** cost to complete the Mojave Groundwater Bank and has established Mojave Water Infrastructure Company, LLC to raise up to **$401 million** in equity capital from partners to fund these costs[100](index=100&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 2025 revenue rose to **$3.0 million**, driven by ATEC sales, but net loss widened to **$9.6 million** due to higher G&A and stock-based compensation - Revenue for Q1 2025 increased to **$3.0 million** from **$1.1 million** in Q1 2024, primarily due to ATEC sales increasing from **$0.5 million** to **$2.4 million**[110](index=110&type=chunk) - General and administrative expenses (excluding stock compensation) increased to **$5.3 million** in Q1 2025 from **$3.5 million** in Q1 2024, mainly from higher legal and consulting fees related to the Mojave Groundwater Bank[112](index=112&type=chunk) - Stock-based compensation expense increased to **$2.8 million** in Q1 2025 from **$1.3 million** in Q1 2024 due to more awards to employees and consultants[113](index=113&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity was boosted by an **$18.3 million** equity offering in March 2025 and debt maturities extended to 2027, but long-term project funding requires additional capital - Completed a registered direct offering in March 2025, raising approximately **$18.3 million** in net proceeds[117](index=117&type=chunk) - In March 2024, the company entered into a Third Amended Credit Agreement which provided a new **$20 million** tranche of senior secured convertible term loans and extended the maturity date of existing loans to **June 30, 2027**[123](index=123&type=chunk) - Management states that proceeds from the March 2025 offering, together with cash on hand, provide sufficient funds for short-term working capital needs, but additional capital will be required for long-term project development[131](index=131&type=chunk)[132](index=132&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Cadiz Inc. is exempt from providing market risk disclosures - As a smaller reporting company, Cadiz Inc. is not required to provide quantitative and qualitative disclosures about market risk[136](index=136&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[137](index=137&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[138](index=138&type=chunk) [PART II – OTHER INFORMATION](index=32&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) No material changes to legal proceedings have occurred since the 2024 Annual Report on Form 10-K filing - No material changes to legal proceedings have occurred since the filing of the 2024 Annual Report on Form 10-K[141](index=141&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the 2024 Annual Report on Form 10-K filing - No material changes to risk factors have occurred since the filing of the 2024 Annual Report on Form 10-K[142](index=142&type=chunk) [Item 5. Other Information](index=32&type=section&id=ITEM%205.%20Other%20Information) No Form 8-K information, nomination process modifications, or Rule 10b5-1 trading arrangement changes reported in Q1 2025 - During Q1 2025, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[147](index=147&type=chunk) [Item 6. Exhibits](index=33&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements, officer certifications, and XBRL data files

Company Overview - Cadiz (CDZI) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended March 2025, with a consensus outlook indicating a quarterly loss of $0.11 per share, representing an 8.3% improvement from the previous year [1][3] - Revenues are projected to reach $4.49 million, reflecting a significant increase of 300.9% compared to the same quarter last year [3] Earnings Estimates and Trends - The consensus EPS estimate for Cadiz has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent changes in analyst views [10] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [7][8] - Cadiz currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Cadiz was expected to post a loss of $0.08 per share but instead reported a loss of $0.14, resulting in a surprise of -75% [12] - The company has not surpassed consensus EPS estimates in any of the last four quarters [13] Industry Context - Another company in the Zacks Agriculture - Operations industry, Cibus (CBUS), is also expected to report a loss of $0.70 per share for the same quarter, with revenues anticipated at $1.18 million, up 114.6% year-over-year [17] - Cibus has a Zacks Rank of 2 (Buy) but has seen a 1.5% downward revision in its consensus EPS estimate over the last 30 days, resulting in an Earnings ESP of -5.04% [18]

Core Viewpoint - The company is on track with project development and has experienced strong tailwinds in Q1 2025, despite external challenges [1][19]. Project Development and Financing - The company aims to complete construction of the Northern Pipeline by the end of 2026 and the Southern Pipeline by the end of 2027, with an aggressive schedule in place [2]. - Key objectives in Q1 included establishing new companies for project development and securing a lead project investor to raise capital and fund construction [3]. - A $20 million equity raise was closed in Q1 to cover capital costs and development expenses, ensuring the company remains on schedule [9]. Strategic Decisions and Market Positioning - The company secured a deal to purchase 180 miles of steel pipe from the Keystone XL project, which is not subject to the 25% tariffs on imported steel announced by President Trump, thus mitigating project cost risks [4]. - The company delayed permit applications until the new administration was in place, anticipating a more efficient review process under the Trump Administration, which is expected to provide a tailwind for project development [5]. - The company locked in linear generation technology that qualifies for a 50% Investment Tax Credit (ITC) on approximately $120 million in expected costs, which is crucial for securing project investors [6]. Joint Powers Authority and Municipal Financing - The Victor Valley Wastewater Reclamation Authority voted to form a Joint Powers Authority (JPA) to support municipal financing for the project, allowing access to municipal debt for construction financing [11]. ATEC Operations and Market Growth - ATEC completed delivery on the 60MGD Central Utah treatment project and opened a new building to double its production capacity, indicating growth in operations [12]. - The groundwater remediation market in the U.S. is projected to grow at a CAGR of 8.4% to $163.4 billion by 2027, with ATEC's opportunities in various stages of project development increasing significantly in Q1 [13]. Cadiz Ranch Developments - The company is building out wellfield infrastructure at Cadiz Ranch and assisting in the permit process for a hydrogen production facility, with interest from other developers for additional facilities [17][18].

Group 1 - The equity market serves as a significant mechanism for wealth creation or destruction over the long term through daily price fluctuations [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - The utilities sector is experiencing significant overselling, presenting potential investment opportunities in undervalued companies [1][2] Company Summaries - **Sunnova Energy International Inc (NOVA)**: The company appointed Robyn Liska as interim CFO, who is expected to drive financial transformation. The stock has decreased approximately 44% over the past month, with a 52-week low of $0.25. The RSI value is 26.3, and shares closed at $0.33 after a drop of 11.3% [7] - **Cadiz Inc (CDZI)**: Announced a $20 million registered direct offering, selling 5,715,000 shares at $3.50 each, with proceeds aimed at the Mojave Groundwater Bank project. The stock has fallen around 28% in the last month, reaching a 52-week low of $2.12. The RSI value is 29, and shares closed at $2.95 after a slight gain of 0.7% [7] - **Spruce Power Holding Corp (SPRU)**: Reported a quarterly loss of $0.29 per share, an improvement from a loss of $1.60 per share a year ago. The stock has decreased about 20% over the past five days, with a 52-week low of $2.08. The RSI value is 25.4, and shares closed at $2.12 after a decline of 12% [7]

Core Viewpoint - Cadiz (CDZI) reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, indicating a significant earnings surprise of -75% [1][2] Financial Performance - The company posted revenues of $4.75 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 43.72%, compared to revenues of $0.68 million in the same quarter last year [2] - Over the last four quarters, Cadiz has consistently failed to surpass consensus EPS and revenue estimates [2] Stock Performance - Cadiz shares have declined approximately 38.3% since the beginning of the year, contrasting with the S&P 500's decline of -3.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $4.57 million, and for the current fiscal year, it is -$0.33 on revenues of $16.98 million [7] Industry Outlook - The Agriculture - Operations industry, to which Cadiz belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting a challenging environment for the stock [8]

Financial Performance - Total revenue for the year ended December 31, 2024, was $9.6 million, a significant increase from $2.0 million in 2023, primarily driven by ATEC sales of $7.9 million [141]. - The company incurred a net loss of $31.1 million for the year ended December 31, 2024, compared to a net loss of $31.4 million in 2023, indicating a relatively stable loss year-over-year [138]. - ATEC's gross margin for 2024 was 45.5%, contributing to the overall revenue growth despite ongoing challenges in the alfalfa market [142]. Expenses and Costs - General and administrative expenses increased to $19.7 million in 2024 from $17.3 million in 2023, primarily due to higher professional fees and marketing activities [143]. - Interest expense rose to $7.9 million in 2024 from $4.9 million in 2023, largely due to increased borrowing under the Third Amended Credit Agreement [145]. - Cash used for operating activities totaled $21.5 million for the year ended December 31, 2024, compared to $20.9 million for 2023, primarily for general and administrative expenses [162]. Financing and Capital - The company completed several equity offerings, raising approximately $40.32 million in January 2023 and $23.4 million in November 2024, to support its development projects [149][151]. - The company established Mojave Groundwater Storage Company LLC to finance the construction of a facility with an estimated cost of $800 million, aiming to raise up to $425 million from investors [134]. - The company expects to meet short-term working capital needs with approximately $18.3 million from the March 2025 Direct Offering and existing cash [166]. - Long-term capital needs will depend on the development of the Mojave Groundwater Bank and the expected receipt of $51 million for asset transfers [167]. - The company plans to evaluate cash requirements continuously and may raise funds through equity or debt placements as necessary [168]. Debt and Agreements - The company entered into a $50 million Credit Agreement in July 2021, which was used to repay approximately $77.6 million in senior secured debt and fund dividend payments [154]. - The First Amended Credit Agreement allows lenders to convert up to $15 million of outstanding principal into common stock at a conversion price of $4.80 per share [155]. - The annual interest rate on the remaining principal amount of $21.2 million is 7.00%, with interest on new secured convertible debt paid in kind quarterly [159]. Water Supply and Infrastructure - The company has secured agreements with multiple public water systems for the purchase of 21,275 acre-feet per year (AFY) of water supply, representing 85% of the Northern Pipeline's capacity [132]. - The company has not yet received significant revenues from its water supply, storage, or conveyance assets, relying on ATEC sales and agricultural operations for current revenue [140]. - The company secured an exclusive option to purchase up to 180 miles of steel pipe for the Mojave Groundwater Bank, utilizing $5 million from the November 2024 Direct Offering [153]. Acquisitions and Goodwill - The company completed the acquisition of ATEC in 2022, enhancing its portfolio with innovative water filtration solutions for contaminated groundwater [130]. - The goodwill of all reporting units was assessed and determined to be more-likely-than-not greater than their carrying values, indicating no impairment [176].

Core Viewpoint - Cadiz, Inc. has declared a cash dividend for its Series A Cumulative Perpetual Preferred Stock, reflecting the company's commitment to returning value to its shareholders [1][2]. Company Overview - Cadiz, Inc. is a California-based water solutions company founded in 1983, focused on providing access to clean, reliable, and affordable water through various solutions including water supply, storage, pipeline, and treatment [3]. - The company manages 45,000 acres of land in California and has a water supply capacity of 2.5 million acre-feet, along with 220 miles of pipeline assets [3]. - Cadiz utilizes cost-effective water treatment filtration technology, positioning itself to address the impacts of climate change on clean water access [3]. Dividend Details - Holders of Series A Preferred Stock will receive a cash dividend of $550.00 per whole share, while depositary share holders will receive $0.55 per depositary share [2]. - The dividend payment is scheduled for April 15, 2025, to shareholders on record as of April 4, 2025 [2].

Core Points - Cadiz, Inc. will participate in the 37th Annual ROTH Conference from March 16 to March 18, 2025, in Dana Point, California [1][3] - Chairman and CEO Susan Kennedy will be part of a Water Infrastructure Panel on March 17 at 3:00 PM PT, moderated by Gerard Sweeney [2] - The ROTH Conference features approximately 450 private and public companies across various growth sectors, including sustainability and technology [3] Company Overview - Cadiz, Inc. is a California water solutions company founded in 1983, focused on providing access to clean, reliable, and affordable water [4] - The company manages 45,000 acres of land in California and has a water supply capacity of 2.5 million acre-feet, along with 220 miles of pipeline assets [4] - Cadiz utilizes cost-effective water treatment filtration technology to address the impacts of climate change on clean water access [4]

Core Viewpoint - Cadiz Inc. has announced a registered direct offering of 5,715,000 shares of common stock at a price of $3.50 per share, aiming to raise approximately $20 million in gross proceeds for various projects, particularly the Mojave Groundwater Bank [1][3]. Group 1: Offering Details - The offering is expected to close with institutional investors around March 10, 2025, pending customary closing conditions [2]. - Roth Capital Partners, LLC is acting as the exclusive placement agent for this offering [4]. - The shares are being offered under a shelf registration statement filed with the SEC, which became effective on August 22, 2024 [5]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for capital and other expenses related to the development and construction of the Mojave Groundwater Bank, including equipment and materials for pipeline construction [3]. - Additional uses for the proceeds may include wellfield infrastructure, business development activities, working capital, and general corporate purposes [3]. - The company anticipates reimbursement for expenses related to the Mojave Groundwater Bank upon the closing of project financing through a newly established entity, Mojave Groundwater Storage Company, LLC [3]. Group 3: Company Background - Cadiz Inc. is a California water solutions company founded in 1983, focusing on providing access to clean and reliable water through various solutions [8]. - The company manages 45,000 acres of land in California and has a water supply capacity of 2.5 million acre-feet, along with 220 miles of pipeline assets [8].