Financial Performance - Arcadia reported product revenues of $1,302,000 for the three months ended September 30, 2025, a decrease of 15% compared to $1,537,000 in the same period of 2024[133]. - The company recorded a net income of $856,000 from continuing operations for Q3 2025, a significant improvement compared to a net loss of $1,182,000 in Q3 2024[133]. - Arcadia's other income surged to $1,698,000 in Q3 2025, compared to only $15,000 in Q3 2024, marking a 11220% increase[133]. - Product revenues decreased by $235,000, or 15%, during the three months ended September 30, 2025, compared to the same period in 2024[134]. - Product revenues increased by $128,000, or 3%, during the nine months ended September 30, 2025, driven entirely by Zola coconut water sales[145]. Operating Expenses - Total operating expenses decreased by 26% to $2,454,000 in Q3 2025 from $3,297,000 in Q3 2024, driven by a 30% reduction in selling, general and administrative expenses[133]. - Research and development expenses were eliminated in Q3 2025, down from $24,000 in Q3 2024, reflecting a strategic shift in focus[133]. - Selling, general, and administrative expenses decreased by $671,000 during the three months ended September 30, 2025, primarily due to operating costs that were absent in 2025[137]. - Selling, general, and administrative expenses decreased by $1.6 million during the nine months ended September 30, 2025, compared to the same period in 2024[151]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $1.1 million, with a net loss of $1.0 million for the nine months ended September 30, 2025[159]. - Cash used in operating activities for the nine months ended September 30, 2025, was $3,878,000, compared to $7,418,000 for the same period in 2024[165][167]. - The company reported a net decrease in cash of $3,122,000 for the nine months ended September 30, 2025, compared to a decrease of $2,582,000 in 2024[165]. - Cash provided by investing activities for the nine months ended September 30, 2025, consisted of proceeds from the sale of intangible assets amounting to $750,000[168]. - Current assets as of September 30, 2025, were $8,387,000, while current liabilities were $2,285,000, resulting in a working capital surplus of $6,102,000[164]. Discontinued Operations - The company experienced a 100% increase in net loss from discontinued operations, reporting no loss in Q3 2025 compared to a loss of $430,000 in Q3 2024[133]. Strategic Transactions - Arcadia sold its non-GMO Resistant Starch durum wheat trait to Corteva for $4.0 million, retaining certain rights to use the trait[111]. - The company sold the GoodWheat™ brand to Above Food Corp. for net consideration of $3.7 million, resulting in a loss of $1,500 during Q2 2024[112]. - Arcadia entered into a Securities Exchange Agreement to issue shares of common stock to the limited partners of Roosevelt, resulting in a 90% ownership for the partners post-transaction[113]. Risks and Future Outlook - The company may seek additional funding through debt or equity financings, which could result in dilution for existing shareholders[162]. - If the company cannot secure adequate funding, it may be forced to reduce spending, extend payment terms, liquidate assets, or initiate bankruptcy proceedings[163]. - The market price of AFII common stock is very volatile, and there are no assurances regarding the net proceeds from potential sales of AFII shares[162]. Accounting and Estimates - Critical accounting estimates include revenue recognition, provision for income taxes, and net realizable value of inventory[172].

Revenue and Income - Total revenues for the three months ended September 30, 2025, were $1,302,000, a decrease of 15.3% compared to $1,537,000 for the same period in 2024[4] - The net income attributable to common stockholders for the three months ended September 30, 2025, was $856,000, compared to a net loss of $1,612,000 for the same period in 2024[4] Cash and Assets - Cash and cash equivalents decreased to $1,120,000 as of September 30, 2025, from $4,242,000 at the end of 2024, representing a decline of 73.7%[2] - Total assets decreased to $8,584,000 as of September 30, 2025, down from $13,517,000 as of December 31, 2024, a reduction of 36.7%[2] Liabilities - Total liabilities decreased to $3,141,000 as of September 30, 2025, from $7,294,000 at the end of 2024, a decrease of 56.9%[2] Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $2,454,000, down from $3,297,000 in the same period of 2024, a reduction of 25.6%[4] Cash Flow and Activities - The company reported a net cash used in operating activities of $3,878,000 for the nine months ended September 30, 2025, compared to $7,418,000 for the same period in 2024, indicating an improvement of 47.7%[6] - The company recognized a gain on the sale of intangible assets amounting to $750,000 during the nine months ended September 30, 2025[6] Research and Development - Research and development expenses were minimal at $9,000 for the nine months ended September 30, 2025, compared to $40,000 for the same period in 2024[4] Shares Information - The weighted-average number of shares used in per share calculations for basic shares was 1,367,192 for the three months ended September 30, 2025[4]

Core Insights - Arcadia Biosciences reported a 26% year-over-year increase in Zola coconut water revenues for the first nine months of 2025, despite flat revenues in the third quarter due to a comparison with a strong prior year [3][10][11] - The company achieved gross profit margins exceeding 30% for eleven consecutive quarters, with SG&A expenses at an all-time low [3][4] - Arcadia's cash balance slightly declined by $257,000 to $1.1 million, indicating effective cash management [3] Financial Performance - Total revenues for the third quarter of 2025 decreased by $235,000, or 15%, compared to the same period in 2024, primarily due to the absence of GLA oil sales [6][9] - For the first nine months of 2025, total revenues increased by $128,000, or 3%, driven entirely by Zola coconut water sales [6][10] - Operating expenses decreased by 26% in the third quarter and by 2% in the first nine months of 2025 compared to the same periods in 2024 [6][14] Net Income and Loss - Net income attributable to common stockholders for the third quarter of 2025 was $856,000, a significant improvement from a net loss of $1.6 million in the same quarter of 2024 [6][18] - The net loss attributable to common stockholders for the first nine months of 2025 was $1.0 million, improving from a loss of $3.0 million in the same period of 2024 [6][19] Business Developments - Arcadia continues to hold 2.7 million shares of Above Food Ingredients Inc. stock as part of a repayment related to the sale of GoodWheat assets [4][16] - The pending business combination with Roosevelt Resources is ongoing, but the timing remains uncertain due to external factors such as the federal government shutdown [5][20]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - rYojbaba Co., Ltd. (RYOJ) increased by 134% to $5.09 - Linkage Global Inc (LGCB) rose by 101% to $3.33 - MIRA Pharmaceuticals, Inc. (MIRA) gained 87% to $2.46 - Auddia Inc. (AUUD) went up by 23% to $2.54 - SOPHiA GENETICS SA (SOPH) increased by 16% to $4.99 - J.B. Hunt Transport Services, Inc. (JBHT) rose by 13% to $157.44 - AlphaVest Acquisition Corp (ATMV) increased by 11% to $13.09 - New Era Energy & Digital, Inc. (NUAI) went up by 10% to $3.71 - Critical Metals Corp. (CRML) rose by 9% to $24.80 - Blaize Holdings, Inc. (BZAI) increased by 9% to $6.90 [3] Premarket Losers - Fossil Group, Inc. (FOSL) decreased by 40% to $2.23 - Pinnacle Food Group Limited (PFAI) fell by 25% to $3.41 - American Battery Technology Company (ABAT) declined by 22% to $6.91 - Sadot Group Inc. (SDOT) dropped by 20% to $6.15 - TechCreate Group Ltd. (TCGL) decreased by 14% to $4.14 - PMGC Holdings Inc. (ELAB) fell by 13% to $6.43 - Arcadia Biosciences, Inc. (RKDA) decreased by 13% to $4.73 - ATIF Holdings Limited (ZBAI) dropped by 11% to $9.28 - Roma Green Finance Limited (ROMA) fell by 7% to $2.62 - Australian Oilseeds Holdings Limited (COOT) decreased by 6% to $2.46 [4]

Core Insights - Soybean-related stocks surged significantly following President Trump's comments regarding trade tensions with China, particularly affecting small-cap oilseed and agricultural biotech stocks [1][2]. Trade Tensions - Trump accused China of an "Economically Hostile Act" for not purchasing U.S. soybeans, which he claimed was harming American soybean farmers [2]. - He suggested the U.S. might terminate business with China related to cooking oil and other trade elements, asserting that the U.S. could produce cooking oil independently [2]. Soybean Short Squeeze - Australian Oilseeds Holdings Limited (NASDAQ:COOT) experienced a dramatic increase of nearly 350% in stock price due to the short squeeze triggered by Trump's remarks [3]. - The stock had previously faced pressure from trade tensions and compliance issues, but the combination of high short interest and Trump's comments created ideal conditions for a short squeeze [3]. Stock Performance - Origin Agritech Limited (NASDAQ:SEED) saw a 63% increase, while Arcadia Biosciences, Inc. (NASDAQ:RKDA) rose by 46% in early trading on the same day [4]. - The rally in soybean-related stocks exemplified a textbook short squeeze, where low-priced stocks with significant short interest surged due to news, forcing short sellers to buy back shares at higher prices [4].

Company Overview - Veritone Inc (NASDAQ:VERI) experienced a significant increase in share price, rising 48.2% to $8.09 in pre-market trading following contract wins and preliminary third-quarter results [1][2]. Contract Wins - The company announced contract wins to deploy its Veritone Data Refinery product with leading hyperscalers and venture-backed model developers [1]. Financial Performance - Veritone reported preliminary, unaudited third-quarter revenue between $28.5 million and $28.7 million, indicating a 30.5% increase at the midpoint compared to the third quarter of 2024 [1].

Core Viewpoint - President Trump's comments about U.S. cooking oil production in response to China's soybean purchasing decisions triggered a significant decline in equity markets, erasing $450 billion in value within minutes [1][2][3]. Market Reaction - The equity markets experienced a rapid pullback, with a loss of $450 billion in just 7 minutes following Trump's trade threat [2][3]. - Despite the initial downturn, major indices futures showed recovery in the evening, with S&P 500 futures up 0.17%, Nasdaq futures up 0.22%, and Dow Futures up 0.11% [3]. Political and Economic Analysis - Experts criticized Trump's threats as weak, suggesting that the real economic hostilities lie elsewhere, such as in rare earth licensing [4][5]. - Political scientist Rush Doshi indicated that Beijing might interpret Trump's actions as a sign of weakness [5]. - Entrepreneur Arnaud Bertrand noted that Trump's threats regarding cooking oil were inconsequential, as the product in question is primarily used cooking oil, or "gutter oil," which China has a high domestic demand for [5][6]. Industry Impact - Following Trump's comments, Australian Oilseeds Holdings Ltd. saw a dramatic increase in stock price, soaring by 46.21% during regular trading and an additional 248.19% in after-hours trading [7]. - Other agricultural biotech stocks also experienced significant gains, with Origin Agritech Ltd. rising 92.33% and Arcadia Biosciences Inc. increasing by 53.28% after hours [7]. Export Data - In 2024, China exported 2.951 million metric tons of used cooking oil, with the U.S. being the largest importer at 1.267 million metric tons [6].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - PMGC Holdings Inc. (ELAB) increased by 115% to $11.25 [3] - Greenwave Technology Solutions, Inc. (GWAV) rose by 104% to $17.40 [3] - Aqua Metals, Inc. (AQMS) saw an increase of 81% to $18.00 [3] - Critical Metals Corp. (CRML) gained 38% reaching $32.27 [3] - a.k.a. Brands Holding Corp. (AKA) was up 36% at $14.20 [3] - Navitas Semiconductor Corporation (NVTS) increased by 23% to $12.35 [3] - American Resources Corporation (AREC) rose by 20% to $6.00 [3] - Westwater Resources, Inc. (WWR) gained 19% to $3.04 [3] - Binah Capital Group, Inc. (BCG) increased by 8% to $2.16 [3] - Arcadia Biosciences, Inc. (RKDA) was up 7% at $3.59 [3] Premarket Losers - Powell Max Limited (PMAX) decreased by 21% to $2.94 [4] - Orion S.A. (OEC) fell by 18% to $5.60 [4] - ENDRA Life Sciences Inc. (NDRA) saw a decline of 17% to $6.72 [4] - Safe & Green Holdings Corp. (SGBX) dropped by 14% to $4.30 [4] - PS International Group Ltd. (PSIG) decreased by 14% to $4.05 [4] - Aclarion, Inc. (ACON) fell by 12% to $8.50 [4] - Kentucky First Federal Bancorp (KFFB) decreased by 12% to $3.25 [4] - Lucas GC Limited (LGCL) saw a decline of 11% to $3.55 [4] - Solidion Technology, Inc. (STI) dropped by 10% to $19.33 [4] - Chanson International Holding (CHSN) decreased by 10% to $2.30 [4]

[FORM 10-Q](index=1&type=section&id=FORM%2010-Q) - Filing Type: Quarterly Report (10-Q) for the period ended **June 30, 2025**[2](index=2&type=chunk) - Registrant: Arcadia Biosciences, Inc[2](index=2&type=chunk) - Trading Symbol: RKDA (NASDAQ CAPITAL MARKET)[3](index=3&type=chunk) - Filer Status: Non-accelerated filer and Smaller reporting company[4](index=4&type=chunk) - Shares Outstanding: **1,367,040 shares** of common stock as of **August 7, 2025**[4](index=4&type=chunk) [INDEX](index=2&type=section&id=INDEX) [Part I — Financial Information (Unaudited)](index=3&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information%20(Unaudited)) [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Arcadia Biosciences, Inc.'s unaudited condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive income (loss), statements of stockholders' equity, and statements of cash flows, along with their accompanying notes, for the period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | **Assets** | | | | | Cash and cash equivalents | $1,376 | $4,242 | $(2,866) | | Short-term investments | $3,067 | — | $3,067 | | Total current assets | $7,579 | $9,242 | $(1,663) | | Total assets | $7,788 | $13,517 | $(5,729) | | **Liabilities** | | | | | Total current liabilities | $1,839 | $2,563 | $(724) | | Common stock warrant and option liabilities | $1,416 | $2,731 | $(1,315) | | Total liabilities | $3,255 | $7,294 | $(4,039) | | **Stockholders' Equity** | | | | | Total stockholders' equity | $4,533 | $6,223 | $(1,690) | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Product Revenues | $1,455 | $1,306 | $2,655 | $2,293 |\n| Cost of Revenues | $824 | $633 | $1,506 | $1,104 |\n| Research and development | $9 | $10 | $9 | $16 |\n| Gain on sale of intangible assets | — | $(4,000) | $(750) | $(4,000) |\n| Change in fair value of contingent consideration | $(1,000) | — | $(2,000) | — |\n| Selling, general and administrative | $2,123 | $2,683 | $3,861 | $4,745 |\n| (Loss) income from operations | $(501) | $1,980 | $29 | $392 |\n| Interest income | $9 | $150 | $216 | $195 |\n| Credit loss | $(4,489) | — | $(4,489) | — |\n| Other income | $1,071 | $150 | $1,071 | $153 |\n| Change in fair value of common stock warrant and option liabilities | $(548) | $(430) | $1,314 | $163 |\n| Net (loss) income from continuing operations | $(4,458) | $1,850 | $(1,859) | $903 |\n| Net loss from discontinued operations | — | $(789) | — | $(2,265) |\n| Net (loss) income attributable to common stockholders | $(4,458) | $1,061 | $(1,859) | $(1,362) |\n| Basic and diluted EPS from continuing operations | $(3.26) | $1.36 | $(1.36) | $0.66 |\n| Basic and diluted EPS from discontinued operations | — | $(0.58) | — | $(1.66) |\n| Net (loss) income per basic share | $(3.26) | $0.78 | $(1.36) | $(1.00) | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) | Metric (in thousands) | Balance at December 31, 2024 | Balance at June 30, 2025 | | :-------------------- | :--------------------------- | :----------------------- | | Common Stock (Amount) | $65 | $65 |\n| Additional Paid-In Capital | $285,036 | $285,205 |\n| Accumulated Deficit | $(278,878) | $(280,737) |\n| Total Stockholders' Equity | $6,223 | $4,533 | - **Net loss of $4,458 thousand** for the three months ended **June 30, 2025**, contributing to an increased accumulated deficit[16](index=16&type=chunk) - Stock-based compensation for the six months ended **June 30, 2025**, totaled **$164 thousand**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(3,621) | $(5,666) |\n| Net cash provided by investing activities | $750 | $4,647 |\n| Net cash provided by financing activities | $5 | $5 |\n| Net decrease in cash and cash equivalents | $(2,866) | $(1,014) |\n| Cash and cash equivalents — end of period | $1,376 | $5,504 | - Noncash investing activity included the fair value of Above Food Ingredients, Inc. common stock received, totaling **$3,067 thousand** in **2025**[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations and breakdowns of the figures presented in the condensed consolidated financial statements, covering business operations, significant transactions, accounting policies, and financial instrument valuations [Note 1. Description of Business and Basis of Presentation](index=7&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) Arcadia Biosciences, Inc. (the "Company") was incorporated in Arizona in 2002 and reincorporated in Delaware in 2015, with headquarters in Dallas, Texas. The Company has transitioned from developing wheat products to focusing on consumer goods, primarily Zola coconut water, since acquiring Zola assets in May 2021. Recent significant transactions include the termination of a license agreement with Bioseed, an agreement with Bioceres Crop Solutions Corp. for soy traits and patent transfers, and a business combination agreement with Roosevelt Resources LP. The Company also sold its GoodWheat brand and RS durum wheat trait in 2024. The financial statements are prepared on a going concern basis, but the Company faces substantial doubt about its ability to continue as a going concern due to an accumulated deficit and insufficient cash - Company's primary focus shifted to Zola coconut water products after acquiring Zola assets in **May 2021**[23](index=23&type=chunk)[108](index=108&type=chunk) - Entered into a License Termination and Patent Non-Assert Agreement with Bioseed on **May 26, 2025**, eliminating a **$1.0 million contingent liability**[24](index=24&type=chunk) - Entered an agreement with Bioceres Crop Solutions Corp. on **March 28, 2025**, transferring soy traits to the Company and reduced gluten/oxidative stability patents to BIOX, resulting in a **$750,000 gain** for Arcadia[25](index=25&type=chunk) - Entered a Securities Exchange Agreement with Roosevelt Resources LP on **December 4, 2024**, amended on **April 30, 2025**, where Roosevelt's limited partners will own **90% of Arcadia's common stock** post-closing[26](index=26&type=chunk)[27](index=27&type=chunk) - Sold the GoodWheat™ brand to Above Food Corp. on **May 16, 2024**, for **$3.7 million**, resulting in a **$1,500 loss** in **Q2 2024** and reclassification as discontinued operations[28](index=28&type=chunk) - Sold non-GMO Resistant Starch (RS) durum wheat trait to Corteva Agriscience on **May 14, 2024**, for **$4.0 million cash**, recognizing a gain[29](index=29&type=chunk) - As of **June 30, 2025**, the Company had an **accumulated deficit of $280.7 million** and **cash and cash equivalents of $1.4 million**, raising substantial doubt about its ability to continue as a going concern for at least the next **12 months**[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [Note 2. Recent Accounting Pronouncements](index=11&type=section&id=Note%202.%20Recent%20Accounting%20Pronouncements) The Company is evaluating the impact of recently issued accounting standards updates (ASUs) from the FASB. ASU No. 2023-09 (Income Taxes) is effective for fiscal years beginning after December 15, 2024, and ASU No. 2024-03 (Expense Disaggregation Disclosures) is effective for annual reporting periods beginning after December 15, 2026 - Evaluating ASU No. 2023-09 (Income Taxes) for additional income tax disclosures, effective for fiscal years beginning after **December 15, 2024**[40](index=40&type=chunk) - Evaluating ASU No. 2024-03 (Expense Disaggregation Disclosures) for quantitative disclosures on employee compensation, selling expenses, and inventory purchases, effective for annual reporting periods beginning after **December 15, 2026**[41](index=41&type=chunk) [Note 3. Discontinued Operations](index=11&type=section&id=Note%203.%20Discontinued%20Operations) Arcadia sold the GoodWheat brand to Above Food on May 16, 2024, ceasing its operations. The financial results of GoodWheat are reported as discontinued operations for all periods presented, reflecting a strategic shift - GoodWheat brand sold to Above Food on **May 16, 2024**, and operations ceased in **Q2 2024**[42](index=42&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Product revenue | $— | $179 | $— | $447 |\n| Net loss from discontinued operations | $— | $(789) | $— | $(2,265) | - As of **June 30, 2025**, there were **no assets** from discontinued operations, down from **$96 thousand** at **December 31, 2024**[44](index=44&type=chunk) [Note 4. Inventory](index=12&type=section&id=Note%204.%20Inventory) Inventories are valued at the lower of cost or net realizable value, with adjustments made for deterioration, obsolescence, or slow-moving items. The Company's inventory primarily consists of raw materials and finished goods | Inventory (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Raw materials | $333 | $289 |\n| Finished goods | $1,156 | $615 |\n| Total Inventories | $1,489 | $904 | - Total inventories increased by **$585 thousand** from **December 31, 2024**, to **June 30, 2025**[47](index=47&type=chunk) [Note 5. Property and Equipment, Net](index=12&type=section&id=Note%205.%20Property%20and%20Equipment,%20Net) Property and equipment, net, primarily includes software, computer equipment, furniture, fixtures, and leasehold improvements, reported net of accumulated depreciation. The Company recorded an impairment related to Archipelago property and equipment in Q1 2024, which was subsequently sold | Property and Equipment (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Property and equipment, gross | $1,907 | $1,907 |\n| Less: accumulated depreciation and amortization | $(1,895) | $(1,866) |\n| Property and equipment, net | $12 | $41 | - Depreciation expense was **$28 thousand** for the six months ended **June 30, 2025**, down from **$48 thousand** in the same period of **2024**[48](index=48&type=chunk) - An impairment of **$36 thousand** related to Archipelago property and equipment was recorded in **Q1 2024**, with all such assets sold in **Q2 2024**[49](index=49&type=chunk) [Note 6. Investments and Fair Value Instruments](index=13&type=section&id=Note%206.%20Investments%20and%20Fair%20Value%20Instruments) The Company classifies investments in corporate securities of Above Food Ingredients, Inc. (AFII) as short-term investments, carried at fair value. As of June 30, 2025, the fair value of AFII common stock was $3.1 million. The Company also measures Level 3 liabilities, such as preferred investment options, using the Black-Scholes Model, with volatility being a significant input - **Fair value of AFII common stock** (short-term investment) was **$3.1 million** as of **June 30, 2025**[50](index=50&type=chunk)[52](index=52&type=chunk) | Level 3 Liabilities (in thousands) | Balance as of December 31, 2024 | Change in fair value | Balance as of June 30, 2025 | | :--------------------------------- | :------------------------------ | :------------------- | :-------------------------- | | March 2023 Options - Series A | $2,285 | $(1,100) | $1,185 |\n| March 2023 Placement Agent Options | $90 | $(38) | $52 |\n| August 2022 Options | $349 | $(172) | $177 |\n| August 2022 Placement Agent Options | $7 | $(5) | $2 |\n| Note Receivable Bifurcated Derivatives | $250 | $(250) | $— |\n| Contingent Liabilities | $2,000 | $(2,000) | $— |\n| Total | $4,981 | $(3,565) | $1,416 | - The change in fair value of Level 3 liabilities resulted in a **decrease of $3,565 thousand** for the six months ended **June 30, 2025**[54](index=54&type=chunk) [Note 7. Note Receivable and Embedded Derivatives](index=15&type=section&id=Note%207.%20Note%20Receivable%20and%20Embedded%20Derivatives) In May 2024, Arcadia sold the GoodWheat brand to Above Food for $3.7 million, receiving a $6.0 million promissory note. Above Food defaulted on the first principal payment due May 14, 2025, leading Arcadia to record a full reserve of $4.0 million principal plus accrued interest ($421,000) as of June 30, 2025, due to uncertainties regarding recovery. The contingent features of the promissory note were bifurcated as embedded derivatives, with an estimated fair value of $0 as of June 30, 2025 - Above Food defaulted on the first **$2.0 million principal payment** and accrued interest (approx. **$421,000**) on the **$6.0 million promissory note** due **May 14, 2025**[60](index=60&type=chunk) - Company recorded a **full reserve of $4.0 million principal** plus accrued interest (**$421,000**) for the Above Food note receivable as of **June 30, 2025**, due to unlikelihood of cash payments[61](index=61&type=chunk) - Approximately **2.7 million Prepayment Shares** of AFII common stock were issued to Arcadia, with an additional **800,000 shares** believed to be issuable[59](index=59&type=chunk) - Embedded derivatives related to the promissory note had an estimated **fair value of $0** as of **June 30, 2025**, down from **$250,000** at the transaction date[62](index=62&type=chunk) [Note 8. Consolidated Joint Venture](index=16&type=section&id=Note%208.%20Consolidated%20Joint%20Venture) Arcadia formed Archipelago Ventures Hawaii, LLC with Legacy Ventures Hawaii, LLC in 2019 to develop hemp-derived products. Due to regulatory challenges and market saturation, the cultivation activities of Archipelago were mutually agreed to be wound down in October 2021 - Archipelago Ventures Hawaii, LLC, a joint venture for hemp-derived products, was wound down in **October 2021** due to regulatory challenges and market saturation[64](index=64&type=chunk) [Note 9. Collaborative Arrangements](index=16&type=section&id=Note%209.%20Collaborative%20Arrangements) The Company previously had a collaborative arrangement with Corteva Agriscience for the research, development, and commercialization of its non-GMO RS durum wheat trait. This trait was sold to Corteva on May 14, 2024, for $4.0 million cash, with Arcadia retaining certain usage rights and recognizing a gain - Sold non-GMO RS durum wheat trait to Corteva on **May 14, 2024**, for **$4.0 million cash**, recognizing a gain[67](index=67&type=chunk) - Arcadia retained certain rights to use the RS durum wheat trait after the sale[67](index=67&type=chunk) [Note 10. Leases](index=17&type=section&id=Note%2010.%20Leases) The Company leases office space in Dallas, TX, and Sacramento, CA, and previously leased a facility in American Falls, Idaho, which was terminated in July 2024. Lease liabilities and right-of-use assets are recognized for leases with terms over 12 months | Leases (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Right of use asset | $10 | $137 |\n| Operating lease liability — current | $11 | $155 | - Operating lease cost decreased from **$507 thousand** (six months ended **June 30, 2024**) to **$129 thousand** (six months ended **June 30, 2025**)[70](index=70&type=chunk) - The facility lease in American Falls, Idaho, was terminated effective **July 2024**[69](index=69&type=chunk) [Note 11. Warrants and Options](index=18&type=section&id=Note%2011.%20Warrants%20and%20Options) The Company has both equity-classified common stock warrants and liability-classified preferred investment options outstanding. Equity warrants are exercisable at the holder's option until expiration, while liability options are adjusted to fair value at each balance sheet date due to early settlement provisions | Warrants/Options | Outstanding at December 31, 2024 | Outstanding at June 30, 2025 | | :--------------- | :------------------------------- | :--------------------------- | | Equity Classified Common Stock Warrants | 259,817 | 195,885 |\n| Liability Classified Preferred Investment Options | 823,618 | 823,618 | - Certain **May 2020** and **September 2019** equity warrants expired during the six months ended **June 30, 2025**[73](index=73&type=chunk) - The change in fair value of liability-classified preferred investment options resulted in a **loss of $548 thousand** for the three months ended **June 30, 2025**, and a **gain of $1.3 million** for the six months ended **June 30, 2025**[13](index=13&type=chunk)[141](index=141&type=chunk)[155](index=155&type=chunk) [Note 12. Stock-Based Compensation and Employee Stock Purchase Program](index=19&type=section&id=Note%2012.%20Stock-Based%20Compensation%20and%20Employee%20Stock%20Purchase%20Program) The Company operates under the 2015 Omnibus Equity Incentive Plan and an Employee Stock Purchase Plan (ESPP). The 2015 Plan terminated for future awards in May 2025, but 338,341 shares were reserved for issuance. Stock-based compensation is valued using the Black-Scholes model - The 2015 Omnibus Equity Incentive Plan terminated for future awards in **May 2025**, with **338,341 shares** reserved for issuance[77](index=77&type=chunk) - Unrecognized compensation cost related to unvested stock-based compensation grants was **$249 thousand** as of **June 30, 2025**, to be recognized over **0.9 years**[79](index=79&type=chunk) | Compensation Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock options awards | $86 | $102 | $164 | $240 |\n| ESPP related compensation | $4 | $2 | $7 | $4 | [Note 13. Income Taxes](index=22&type=section&id=Note%2013.%20Income%20Taxes) The Company's effective tax rate was 0.00% for the three and six months ended June 30, 2025 and 2024, primarily due to a full valuation allowance on net deferred tax assets. The Archipelago joint venture underwent an IRS audit for the 2021 tax year, with adjustments pushed out to partners - Effective tax rate was **0.00%** for the three and six months ended **June 30, 2025** and **2024**, due to a full valuation allowance on net deferred tax assets[86](index=86&type=chunk) - IRS audit adjustments for the Archipelago joint venture's **2021 tax year** were accepted and pushed out to partners in **Q1 2025**, with **no expected penalties or interest** for Arcadia[88](index=88&type=chunk) [Note 14. Commitments and Contingencies](index=22&type=section&id=Note%2014.%20Commitments%20and%20Contingencies) The Company is subject to legal proceedings, including a Proposition 65 complaint regarding BPA in coconut water containers, which it intends to vigorously defend. It also faces demand letters from purported stockholders concerning the Roosevelt Exchange Agreement. A contingent liability related to the 2005 Anawah acquisition, initially $5.0 million, was eliminated as of June 30, 2025, due to abandonment and transfer of remaining programs - Facing a Proposition 65 complaint alleging BPA exposure in coconut water containers, which the Company intends to vigorously defend[92](index=92&type=chunk) - Received demand letters from purported stockholders alleging deficiencies in the preliminary proxy statement for the Roosevelt Exchange Agreement[93](index=93&type=chunk) - The remaining **$2.0 million contingent liability** from the **2005 Anawah acquisition** was eliminated as of **June 30, 2025**, following the abandonment and transfer of the last two programs[95](index=95&type=chunk) [Note 15. Segment Reporting](index=25&type=section&id=Note%2015.%20Segment%20Reporting) The Company operates as one reportable segment, deriving revenue primarily from Zola coconut water sales. The Chief Executive Officer, as CODM, evaluates performance based on consolidated net (loss) income from continuing operations - Operates as a **single reportable segment**, with revenue primarily from Zola coconut water sales[98](index=98&type=chunk) - Net (loss) income from continuing operations was **$(4,458) thousand** for the three months ended **June 30, 2025**, compared to **$1,850 thousand** for the same period in **2024**[99](index=99&type=chunk) [Note 16. Net (Loss) Income per Share](index=25&type=section&id=Note%2016.%20Net%20(Loss)%20Income%20per%20Share) Basic and diluted net (loss) income per share are calculated based on net (loss) income attributable to common stockholders and weighted-average common shares outstanding, considering potentially dilutive securities | EPS Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic and diluted from continuing operations | $(3.26) | $1.36 | $(1.36) | $0.66 |\n| Net (loss) income per basic share | $(3.26) | $0.78 | $(1.36) | $(1.00) | | Potentially Dilutive Securities | June 30, 2025 | June 30, 2024 | | :------------------------------ | :------------ | :------------ | | Options to purchase common stock | 213,950 | 64,174 |\n| Warrants to purchase common stock | 195,885 | 261,466 |\n| Preferred investment options | 823,618 | 1,489,952 |\n| Total | 1,233,453 | 1,815,592 | [Note 17. Related-Party Transactions](index=26&type=section&id=Note%2017.%20Related-Party%20Transactions) The Company has related-party transactions with the John Sperling Foundation (JSF), which receives royalties from product sales or license payments involving intellectual property developed under research funding from Blue Horse Labs, Inc. Royalty fees due to JSF were $0 as of June 30, 2025, as product sales related to this IP ceased by December 31, 2024 - Royalty fees due to John Sperling Foundation (JSF) were **$0** as of **June 30, 2025**, down from **$30,000** at **December 31, 2024**[103](index=103&type=chunk) - Product sales related to intellectual property funded by Blue Horse Labs, Inc. ceased as of **December 31, 2024**, with no future royalty fees expected for JSF[104](index=104&type=chunk) [Note 18. Subsequent Events](index=26&type=section&id=Note%2018.%20Subsequent%20Events) Management has evaluated subsequent events through August 14, 2025, the date the financial statements were available for issuance, and no material subsequent events were disclosed beyond those already incorporated - Subsequent events evaluated through **August 14, 2025**, the financial statement issuance date[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, highlighting key business developments, financial performance drivers, liquidity, and critical accounting estimates for the periods presented [Special Note Regarding Forward-Looking Statements](index=27&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) - Report contains forward-looking statements identified by words like "anticipate," "believe," "expect," etc., subject to risks and uncertainties[106](index=106&type=chunk) [Overview](index=27&type=section&id=Overview) Arcadia Biosciences, Inc. has transitioned its focus from wheat product development to consumer goods, primarily Zola coconut water, since 2021. Recent strategic activities include the sale of the GoodWheat brand and RS durum wheat trait in 2024, an agreement with Bioceres Crop Solutions Corp. for soy traits, and a significant business combination agreement with Roosevelt Resources LP, which will result in Roosevelt's limited partners owning 90% of Arcadia's common stock - Company's core business shifted to Zola coconut water products after acquiring Zola assets in **May 2021**[108](index=108&type=chunk) - Sold non-GMO Resistant Starch (RS) durum wheat trait to Corteva for **$4.0 million cash** on **May 14, 2024**[109](index=109&type=chunk) - Sold GoodWheat™ brand to Above Food Corp. for **$3.7 million** on **May 16, 2024**, reclassifying it as discontinued operations[110](index=110&type=chunk) - Entered a Securities Exchange Agreement with Roosevelt Resources LP on **December 4, 2024**, amended on **April 30, 2025**, where Roosevelt's limited partners will own **90% of Arcadia's common stock** post-closing[111](index=111&type=chunk) - Entered an agreement with Bioceres Crop Solutions Corp. on **March 28, 2025**, transferring soy traits to the Company and reduced gluten/oxidative stability patents to BIOX, resulting in a **$750,000 gain**[112](index=112&type=chunk) - Terminated a license agreement with Bioseed on **May 26, 2025**, eliminating a **$1.0 million contingent liability**[113](index=113&type=chunk) [Tariffs](index=28&type=section&id=Tariffs) Baseline tariffs imposed by the U.S. government went into effect on April 9, 2025, with additional country-specific tariffs delayed until August 2025. The Company is monitoring the situation and discussing mitigation strategies with partners due to the uncertain impact on its business - U.S. government baseline tariffs effective **April 9, 2025**; country-specific tariffs delayed until **August 2025**[114](index=114&type=chunk) - Company is monitoring tariff landscape and exploring mitigation strategies with business partners due to uncertain impact[114](index=114&type=chunk) [Our Products](index=29&type=section&id=Our%20Products) The Company's current product focus is Zola coconut water. It no longer retains effective commercialization rights or expects future royalties from its wheat-based intellectual property, including reduced gluten, oxidative stability, and resistant starch patents, following various agreements and transactions [Zola Coconut Water](index=29&type=section&id=Zola%20Coconut%20Water) - Zola coconut water is the Company's primary product, acquired in **May 2021**[115](index=115&type=chunk) - Zola is Non-GMO Project Verified, naturally hydrating, rich in electrolytes, and available in multiple flavors[115](index=115&type=chunk) [Agronomic Wheat Traits](index=29&type=section&id=Agronomic%20Wheat%20Traits) - Arcadia no longer retains effective commercialization rights or expects future license/royalty fees from its wheat-based intellectual property (reduced gluten, oxidative stability, resistant starch patents)[116](index=116&type=chunk) [Discontinued Operations](index=29&type=section&id=Discontinued%20Operations) The GoodWheat brand was exited and sold to Above Food, with its financial results now reported separately as discontinued operations in accordance with ASC 205-20 - GoodWheat brand exited and sold, with financial results reported as discontinued operations[117](index=117&type=chunk) [Components of Our Statements of Operations Data](index=29&type=section&id=Components%20of%20Our%20Statements%20of%20Operations%20Data) This section defines the key revenue and expense categories reported in the Company's statements of operations, including product revenues, various operating expenses, interest income, credit loss, other income, and changes in fair value of financial instruments [Revenues](index=29&type=section&id=Revenues) - Product revenues primarily from Zola coconut water sales; GLA oil sales ceased end of **2024**[118](index=118&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20Expenses) [Cost of revenues](index=29&type=section&id=Cost%20of%20revenues) - Primarily consists of Zola product and freight costs, and inventory adjustments[119](index=119&type=chunk) [Research and development expenses ("R&D")](index=29&type=section&id=Research%20and%20development%20expenses%20(%22R%26D%22)) - Consists of fees to product formulation consultants and milestone payments for in-licensed technologies, expensed as incurred[120](index=120&type=chunk) [Gain on sale of intangible assets](index=29&type=section&id=Gain%20on%20sale%20of%20intangible%20assets) - Represents gain from the sale of reduced gluten and oxidative stability patent portfolios in **March 2025**[121](index=121&type=chunk) [Impairment of property and equipment](index=30&type=section&id=Impairment%20of%20property%20and%20equipment) - Includes losses from tangible assets due to impairment or recoverability test charges[122](index=122&type=chunk) [Change in fair value of contingent consideration](index=30&type=section&id=Change%20in%20fair%20value%20of%20contingent%20consideration) - Gain from reduction of contingent liability due to abandonment, assignment, or transfer of previously accrued programs[123](index=123&type=chunk) [Selling, general and administrative expenses](index=30&type=section&id=Selling,%20general%20and%20administrative%20expenses) - Primarily includes employee costs, professional service fees, broker/sales commissions, and overhead costs[124](index=124&type=chunk) [Interest income](index=30&type=section&id=Interest%20income) - Derived from cash, cash equivalents, investments, and note receivable[125](index=125&type=chunk) [Credit loss](index=30&type=section&id=Credit%20loss) - Reserve established for the Above Food note receivable[126](index=126&type=chunk) [Other income](index=30&type=section&id=Other%20income) - Primarily gain from receipt of AFII common stock[127](index=127&type=chunk) [Change in the estimated fair value of common stock warrant and option liabilities](index=30&type=section&id=Change%20in%20the%20estimated%20fair%20value%20of%20common%20stock%20warrant%20and%20option%20liabilities) - Fair value remeasurement of liability-classified preferred investment options from financing transactions[128](index=128&type=chunk) [Net loss from discontinued operations](index=30&type=section&id=Net%20loss%20from%20discontinued%20operations) - Results of operations for the discontinued GoodWheat brand[129](index=129&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section provides a detailed comparison of the Company's financial performance for the three and six months ended June 30, 2025, versus the same periods in 2024, explaining the drivers behind changes in revenues, operating expenses, and net income/loss [Comparison of the Three Months Ended June 30, 2025 and 2024](index=31&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Product Revenues | $1,455 | $1,306 | $149 | 11% |\n| Cost of Revenues | $824 | $633 | $191 | 30% |\n| Gain on sale of intangible assets | — | $(4,000) | $4,000 | (100)% |\n| Change in fair value of contingent consideration | $(1,000) | — | $(1,000) | 100% |\n| Selling, general and administrative | $2,123 | $2,683 | $(560) | (21)% |\n| Credit loss | $(4,489) | — | $(4,489) | (100)% |\n| Net (loss) income from continuing operations | $(4,458) | $1,850 | $(6,308) | (341)% |\n| Net (loss) income attributable to common stockholders | $(4,458) | $1,061 | $(5,519) | (520)% | - Zola revenues increased by **$280 thousand (24%)** due to increased distribution and sales volume[132](index=132&type=chunk) - **Credit loss of $4.5 million** recognized due to a reserve for the Above Food note receivable[139](index=139&type=chunk) - Other income increased by **$921 thousand (614%)** primarily from a gain on receipt of AFII common stock[140](index=140&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=33&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Product Revenues | $2,655 | $2,293 | $362 | 16% |\n| Cost of Revenues | $1,506 | $1,104 | $402 | 36% |\n| Gain on sale of intangible assets | $(750) | $(4,000) | $3,250 | (81)% |\n| Change in fair value of contingent consideration | $(2,000) | — | $(2,000) | 100% |\n| Selling, general and administrative | $3,861 | $4,745 | $(884) | (19)% |\n| Credit loss | $(4,489) | — | $(4,489) | (100)% |\n| Net (loss) income from continuing operations | $(1,859) | $903 | $(2,762) | (306)% |\n| Net (loss) income attributable to common stockholders | $(1,859) | $(1,362) | $(497) | 36% | - Zola revenues increased by **$846 thousand (47%)** due to increased distribution and sales volume[145](index=145&type=chunk) - Gain on sale of intangible assets was **$750 thousand** in **2025** (reduced gluten/oxidative stability patents) compared to **$4.0 million** in **2024** (RS durum wheat trait)[148](index=148&type=chunk) - Change in fair value of common stock warrant and option liabilities resulted in a **gain of $1.3 million** in **2025**, up from **$163 thousand** in **2024**[155](index=155&type=chunk) [Seasonality](index=34&type=section&id=Seasonality) The coconut water category, like other beverages, experiences seasonality, with sales volumes typically peaking during the second and third fiscal quarters due to warmer weather - Coconut water sales are seasonal, with highest volumes in **Q2 and Q3** due to warmer weather[157](index=157&type=chunk) [Liquidity & Capital Resources](index=34&type=section&id=Liquidity%20%26%20Capital%20Resources) The Company primarily funds operations through equity financings, product sales, and license agreements. As of June 30, 2025, cash and cash equivalents were $1.4 million. The default on the Above Food promissory note has materially impacted near-term cash resources, and substantial doubt exists regarding the Company's ability to continue as a going concern - Cash and cash equivalents were **$1.4 million** as of **June 30, 2025**[158](index=158&type=chunk) - Net cash used in operations was **$3.6 million** for the six months ended **June 30, 2025**, and **$9.6 million** for the twelve months ended **December 31, 2024**[158](index=158&type=chunk) - Above Food's default on the **$2.0 million principal payment** of the promissory note has materially impacted the Company's near-term cash resources[159](index=159&type=chunk) [Going Concern; Material Cash Requirements](index=36&type=section&id=Going%20Concern%3B%20Material%20Cash%20Requirements) The Company's existing cash and cash equivalents are insufficient to meet anticipated cash requirements for the next 12 months, raising substantial doubt about its ability to continue as a going concern. Additional funding is required, which may involve debt or equity financings, asset sales, or partner arrangements, with potential risks of dilution or operational restrictions. Failure to secure funding could lead to reduced spending, asset liquidation, or bankruptcy - Existing cash is insufficient for the next **12 months**, raising substantial doubt about the Company's ability to continue as a going concern[160](index=160&type=chunk) - Company will require additional funding in the near term; potential options include debt/equity financings, asset sales, or partner arrangements[161](index=161&type=chunk) - Failure to secure adequate funding could force reduced spending, asset liquidation, or dissolution/bankruptcy proceedings, potentially rendering common stock valueless[161](index=161&type=chunk)[162](index=162&type=chunk) [Liquidity](index=36&type=section&id=Liquidity) The Company's working capital surplus decreased from $6.68 million at December 31, 2024, to $5.74 million at June 30, 2025, reflecting a decrease in current assets and liabilities | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Current assets | $7,579 | $9,242 |\n| Current liabilities | $1,839 | $2,563 |\n| Working capital surplus | $5,740 | $6,679 | [Cash Flows](index=37&type=section&id=Cash%20Flows) The Company experienced a net decrease in cash and cash equivalents of $2.87 million for the six months ended June 30, 2025, primarily due to cash used in operating activities, partially offset by investing activities [Cash flows from operating activities](index=37&type=section&id=Cash%20flows%20from%20operating%20activities) - Net cash used in operating activities decreased to **$3.62 million** for the six months ended **June 30, 2025**, from **$5.67 million** in the same period of **2024**[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Non-cash charges in **2025** included a **$1.3 million change** in fair value of common stock warrant and option liabilities, a **$2.0 million change** in fair value of contingent consideration, and a **$4.5 million credit loss**[165](index=165&type=chunk) [Cash flows from investing activities](index=37&type=section&id=Cash%20flows%20from%20investing%20activities) - Cash provided by investing activities was **$750 thousand** in **2025**, solely from the sale of intangible assets[167](index=167&type=chunk) - In **2024**, investing activities provided **$4.65 million**, including **$2.5 million** from investment sales and **$4.0 million** from the sale of the RS durum wheat trait[168](index=168&type=chunk) [Cash flows from financing activities](index=37&type=section&id=Cash%20flows%20from%20financing%20activities) - Cash provided by financing activities was **$5 thousand** for both six-month periods, entirely from ESPP purchases[169](index=169&type=chunk) [Off-Balance Sheet Arrangements](index=37&type=section&id=Off-Balance%20Sheet%20Arrangements) The Company has not engaged in any off-balance sheet arrangements since its inception, other than Verdeca, which was disposed of in November 2020 - No off-balance sheet arrangements, except for Verdeca (disposed of in **November 2020**)[170](index=170&type=chunk) [Critical Accounting Estimates](index=37&type=section&id=Critical%20Accounting%20Estimates) Management's discussion and analysis relies on critical accounting estimates, including revenue recognition, determination of the provision for income taxes, and net realizable value of inventory, which involve significant judgment and assumptions - Critical accounting estimates include revenue recognition, income tax provision, and net realizable value of inventory[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is marked as "Not Required" in the report, indicating that the Company does not have material market risk disclosures to provide in this quarterly filing - **Not required for this filing**[173](index=173&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the Company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=39&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Disclosure controls and procedures were effective at the reasonable assurance level as of **June 30, 2025**[175](index=175&type=chunk) [Changes in Internal Control over Financial Reporting](index=39&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - **No material changes** in internal control over financial reporting during the quarter ended **June 30, 2025**[176](index=176&type=chunk) [Part II — Other Information](index=40&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The Company is subject to various legal proceedings in the ordinary course of business. For specific details, refer to Note 14 of the Condensed Consolidated Financial Statements - Refer to Note 14 for details on legal proceedings[177](index=177&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) Readers should carefully consider the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as additional unknown or immaterial risks, which could materially affect the business, financial condition, liquidity, or future results - Refer to Part I, "Item 1A. Risk Factors" in the Annual Report on Form 10-K for **December 31, 2024**, for a comprehensive discussion of risks[178](index=178&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the quarter ended June 30, 2025 - **None reported**[179](index=179&type=chunk) [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported for the quarter ended June 30, 2025 - **None reported**[180](index=180&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - **Not applicable**[181](index=181&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025 - **No director or officer adopted or terminated** Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in **Q2 2025**[182](index=182&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to agreements, certifications, and XBRL documents - Includes First Amendment to Securities Exchange Agreement, Principal Executive/Financial Officer's Certifications (Sections 302 and 906), and Inline XBRL documents[184](index=184&type=chunk) [SIGNATURES](index=42&type=section&id=SIGNATURES) - Report signed by President and CEO Thomas J. Schaefer and CFO Mark Kawakami on **August 14, 2025**[188](index=188&type=chunk)

[Consolidated Balance Sheets](index=1&type=section&id=Consolidated%20Balance%20Sheets) Arcadia Biosciences, Inc. experienced a decrease in total assets and stockholders' equity by June 30, 2025, primarily due to reduced cash and noncurrent notes Key Balance Sheet Figures (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------ | :---------------- | :----- | :------- | | Total Assets | $7,788 | $13,517 | $(5,729) | -42.38% | | Current Assets | $7,579 | $9,242 | $(1,663) | -18.00% | | Cash and cash equivalents | $1,376 | $4,242 | $(2,866) | -67.56% | | Short-term investments | $3,067 | — | $3,067 | N/A | | Note receivable — noncurrent, net | — | $3,966 | $(3,966) | -100.00% | | Total Liabilities | $3,255 | $7,294 | $(4,039) | -55.37% | | Common stock warrant and option liabilities | $1,416 | $2,731 | $(1,315) | -48.15% | | Total Stockholders' Equity | $4,533 | $6,223 | $(1,690) | -27.16% | | Accumulated deficit | $(280,737) | $(278,878) | $(1,859) | 0.67% | - The company's cash and cash equivalents significantly decreased by **67.56%** from **$4,242 thousand** at December 31, 2024, to **$1,376 thousand** at June 30, 2025[2](index=2&type=chunk) - A new line item, Short-term investments, appeared with **$3,067 thousand** as of June 30, 2025, which was not present at December 31, 2024[2](index=2&type=chunk) - The noncurrent note receivable, net of allowance for credit losses, was fully eliminated by June 30, 2025, from **$3,966 thousand** at December 31, 2024[2](index=2&type=chunk) [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=2&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Arcadia Biosciences, Inc. reported a net loss for Q2 and H1 2025, primarily due to a significant credit loss and reduced gain on asset sales Key Operating Results (in thousands, except per share data): 3 Months Ended June 30, 2025 | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :----- | :------- | | Product Revenues | $1,455 | $1,306 | $149 | 11.41% | | Total Revenues | $1,455 | $1,306 | $149 | 11.41% | | Cost of Revenues | $824 | $633 | $191 | 30.17% | | Gain on sale of intangible assets | — | $(4,000) | $4,000 | -100.00% | | Change in fair value of contingent consideration | $(1,000) | — | $(1,000) | N/A | | Selling, general and administrative | $2,123 | $2,683 | $(560) | -20.87% | | (Loss) income from operations | $(501) | $1,980 | $(2,481) | -125.30% | | Credit loss | $(4,489) | — | $(4,489) | N/A | | Net (loss) income from continuing operations | $(4,458) | $1,850 | $(6,308) | -341.00% | | Net (loss) income attributable to common stockholders | $(4,458) | $1,061 | $(5,519) | -519.98% | | Basic and diluted EPS from continuing operations | $(3.26) | $1.36 | $(4.62) | -339.71% | Key Operating Results (in thousands, except per share data): 6 Months Ended June 30, 2025 | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :----- | :------- | | Product Revenues | $2,655 | $2,293 | $362 | 15.79% | | Total Revenues | $2,655 | $2,293 | $362 | 15.79% | | Cost of Revenues | $1,506 | $1,104 | $402 | 36.41% | | Gain on sale of intangible assets | $(750) | $(4,000) | $3,250 | -81.25% | | Change in fair value of contingent consideration | $(2,000) | — | $(2,000) | N/A | | Selling, general and administrative | $3,861 | $4,745 | $(884) | -18.63% | | (Loss) income from operations | $29 | $392 | $(363) | -92.60% | | Credit loss | $(4,489) | — | $(4,489) | N/A | | Net (loss) income from continuing operations | $(1,859) | $903 | $(2,762) | -305.87% | | Net (loss) income attributable to common stockholders | $(1,859) | $(1,362) | $(497) | 36.49% | | Basic and diluted EPS from continuing operations | $(1.36) | $0.66 | $(2.02) | -306.06% | - A significant credit loss of **$4,489 thousand** was recognized in both the three and six months ended June 30, 2025, which was not present in the prior year periods, contributing heavily to the net loss[4](index=4&type=chunk) - The gain on sale of intangible assets decreased substantially from **$(4,000) thousand** in Q2 2024 to zero in Q2 2025, and from **$(4,000) thousand** to **$(750) thousand** for the six-month period, indicating fewer large asset sales[4](index=4&type=chunk) - Selling, general and administrative expenses decreased by **20.87%** for the three-month period and **18.63%** for the six-month period, indicating cost control efforts[4](index=4&type=chunk) [Consolidated Statements of Cash Flows](index=3&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Arcadia Biosciences, Inc. experienced a net decrease in cash for H1 2025, driven by operating activities and reduced investing proceeds Key Cash Flow Figures (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :----- | :------- | | Net cash used in operating activities | $(3,621) | $(5,666) | $2,045 | -36.09% | | Net cash provided by investing activities | $750 | $4,647 | $(3,897) | -83.87% | | Net cash provided by financing activities | $5 | $5 | $0 | 0.00% | | Net decrease in cash and cash equivalents | $(2,866) | $(1,014) | $(1,852) | 182.64% | | Cash and cash equivalents — end of period | $1,376 | $5,504 | $(4,128) | -75.00% | - Net cash used in operating activities decreased by **36.09%** to **$(3,621) thousand** for the six months ended June 30, 2025, compared to **$(5,666) thousand** in the prior year, despite a higher net loss[6](index=6&type=chunk) - Investing activities provided significantly less cash, dropping by **83.87%** from **$4,647 thousand** in 2024 to **$750 thousand** in 2025, mainly due to lower proceeds from the sale of intangible assets and investments[6](index=6&type=chunk) - Noncash investing activities included the receipt of Above Food Ingredients, Inc. common stock with a fair value of **$3,067 thousand** in 2025[6](index=6&type=chunk)