Arcadia Biosciences (RKDA) Q1 2025 Earnings Call May 08, 2025 02:00 PM ET Company Participants Mark Kawakami - Chief Financial OfficerT.J. Schaefer - President & CEO Conference Call Participants Ben Klieve - Senior Equity Research Analyst Operator Hello, and welcome to Arcadia Biosciences First Quarter twenty twenty five Financial Results and Business Highlights Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer se ...

Arcadia Biosciences (RKDA) Q1 2025 Earnings Call May 08, 2025 02:00 PM ET Speaker0 Hello, and welcome to Arcadia Biosciences First Quarter twenty twenty five Financial Results and Business Highlights Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Mark Kawakami, Chief Financial Officer at Arcadia ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37383 Arcadia Biosciences, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 81-0571538 (State or other jurisd ...

Financial Performance - Total revenues for Q1 2025 were $1,200,000, an increase of 21.5% compared to $987,000 in Q1 2024[4] - Net income attributable to common stockholders for Q1 2025 was $2,599,000, compared to a net loss of $2,423,000 in Q1 2024[4] - Basic net income per share from continuing operations was $1.90 in Q1 2025, a significant improvement from a loss of $0.70 in Q1 2024[4] - Operating expenses for Q1 2025 were $670,000, a decrease of 74% from $2,575,000 in Q1 2024[4] - The company reported a gain on the sale of intangible assets of $750,000 in Q1 2025[4] Assets and Liabilities - Total current assets decreased to $8,846,000 as of March 31, 2025, down from $9,242,000 as of December 31, 2024[2] - Total liabilities decreased to $4,085,000 as of March 31, 2025, compared to $7,294,000 as of December 31, 2024[2] Cash Flow - Cash and cash equivalents at the end of Q1 2025 were $3,159,000, down from $4,242,000 at the beginning of the period[5] - The company experienced a net cash used in operating activities of $1,588,000 in Q1 2025, an improvement from $3,210,000 in Q1 2024[6] Research and Development - Research and development expenses were $0 in Q1 2025, down from $6,000 in Q1 2024[4]

-- Revenues increase 22% year over year driven by 90% growth in Zola® ---- Arcadia sells patents for $750K and eliminates $1M in liabilities ---- Roosevelt agreement amended to provide greater certainty regarding exchange ratio -- DALLAS, May 08, 2025 (GLOBE NEWSWIRE) -- Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a producer and marketer of innovative, plant-based health and wellness products, today released its financial and business results for the first quarter of 2025. The company has scheduled a confere ...

DALLAS, April 29, 2025 (GLOBE NEWSWIRE) -- Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a producer and marketer of innovative, plant-based health and wellness products, today announced that it will release its financial and business results for the first quarter of 2025 on May 8, 2025. The company has scheduled a conference call for 2:00 p.m. Eastern time (11:00 a.m. Pacific time) to discuss first-quarter results and key strategic achievements. Interested participants can join the conference call using the fo ...

Financial Performance - Total revenues for the year ended December 31, 2024, were $5,045,000, an increase of 13.3% compared to $4,454,000 in 2023[184] - Product revenues increased to $5,012,000 in 2024 from $4,437,000 in 2023, reflecting a growth of 12.9%[184] - The company reported a net loss of $7,038,000 for 2024, a decrease in loss compared to $13,986,000 in 2023, representing a 49.7% improvement[184] - Basic and diluted net loss per share attributable to common stockholders was $5.17 for 2024, compared to $11.29 for 2023, indicating a significant reduction in loss per share[184] - Net loss for the year ended December 31, 2024, was $7,038 thousand, compared to a net loss of $13,986 thousand for 2023, representing a 49% improvement[189] - The net loss from discontinued operations for GoodWheat was $2.721 million in 2024, down from $7.836 million in 2023[248] - The net loss from continuing operations for 2024 was $4,317,000, an improvement from a net loss of $5,329,000 in 2023[339] Assets and Liabilities - Total current assets decreased to $9,242,000 as of December 31, 2024, down from $14,972,000 in 2023, a decline of 38.4%[182] - Cash and cash equivalents decreased to $4,242,000 in 2024 from $6,518,000 in 2023, a decline of 34.9%[182] - The company has an accumulated deficit of $278,878,000 as of December 31, 2024, compared to $271,840,000 in 2023[182] - Total cash and cash equivalents at the end of the period for 2024 was $4,242 thousand, down from $6,518 thousand at the end of 2023[189] - Total assets at fair value as of December 31, 2024, were $2.757 million, a decrease from $10.049 million in 2023[259] - Total accounts payable and accrued expenses increased from $1,910,000 in 2023 to $2,108,000 in 2024, reflecting higher trade accounts payable and payroll[278] Operating Expenses - Operating expenses for 2024 totaled $8,693,000, a decrease of 17.5% from $10,556,000 in 2023[184] - Cash used in operating activities for 2024 was $9,627 thousand, down from $15,294 thousand in 2023, indicating a 37% reduction[189] - Stock-based compensation expenses for 2024 were $512 thousand, compared to $717 thousand in 2023, showing a 29% decrease[189] - The Company recorded a write-down of $154,000 related to hemp and GoodWheat seed during the year ended December 31, 2024, compared to $444,000 in 2023[251] - The Company recorded a net lease cost of $316,000 for the year ended December 31, 2024, compared to $326,000 in 2023[321] Revenue Recognition - The company recognized revenue from product sales when control of the product is transferred to customers, with revenues fluctuating based on shipment timing[232] - License revenues consist of up-front, nonrefundable license fees, annual license fees, and milestone payments, with significant fluctuations expected due to the nature of agricultural milestones[233][234] - Royalty revenues are recognized on a straight-line basis and can fluctuate based on the timing of product shipments by third parties[237] Going Concern - The company is facing substantial doubt about its ability to continue as a going concern due to recurring net losses and insufficient resources to meet anticipated cash requirements[172] - The company anticipates that its existing cash and cash equivalents will not be sufficient to meet its cash requirements for at least the next 12 months, raising substantial doubt about its ability to continue as a going concern[201] Equity and Financing - The company issued 1,285,337 shares of common stock as of December 31, 2023, up from 616,079 shares at the end of 2022, reflecting a significant increase in equity[186] - The Company raised $6.0 million in gross proceeds from the March 2023 Private Placement, issuing 165,500 shares of common stock and various warrants[283] - The Company may seek to raise additional funds through debt or equity financings, which could result in dilution to stockholders or impose additional operating restrictions[202] Tax and Deferred Tax Assets - The Company has a full valuation allowance against its net deferred tax asset due to expected future operating losses[328] - The net deferred tax assets have been offset by a valuation allowance, which increased by $2.1 million in 2024 and $3.7 million in 2023[326] - The Company had unrecognized tax benefits of $16,000 as of December 31, 2024, unchanged from the previous year[331] - The total income tax provision for the years ended December 31, 2024 and 2023 was an expense of $8,000 each year[324] Customer Concentration - Significant customers representing greater than 10% of total revenues for the year ended December 31, 2024 included Customer C at 18% and Customer F at 10%[225] Research and Development - Research and development expenses may fluctuate and primarily consist of fees paid to product formulation consultants, with significant milestone payments required for third-party technologies[240] Stock Options and Compensation - The Company has a total of 338,310 shares reserved for issuance under the 2015 Plan, with 133,074 shares available for future grant as of December 31, 2024[302] - The Company recognized $512,000 and $717,000 of compensation expense for stock options awards for the years ended December 31, 2024 and 2023, respectively[308] - The fair value of employee stock options granted in 2024 was estimated at $2.33, compared to $5.72 in 2023, indicating a decrease of 59%[308] - The expected volatility for stock options in 2024 was 101%, a decrease from 124% in 2023[308]

Financial Data and Key Metrics Changes - For full year 2024, total revenues increased to just over $5 million, a 13% increase compared to 2023, driven by a 46% increase in Zola sales despite a 49% decline in GLA oil sales [8][24] - Q4 total revenues were approximately $1.2 million, representing a 56% increase year-over-year, with Zola revenues increasing by 124% in Q4 [23][24] - Gross margin rate declined from 51% in 2023 to 41% in 2024, with Q4 gross margin at 32% [24][25] Business Line Data and Key Metrics Changes - Zola sales increased by 46% for the full year 2024, with a significant 80% growth in the second half of the year [11][13] - GLA sales for the full year were $756,000, with Q4 sales at $55,000, and the company is completely sold out of GLA inventory as of December 31, 2024 [38] Market Data and Key Metrics Changes - The shelf-stable coconut water category grew 28.7% in the four weeks ending December 28, 2024, while Zola increased by 73.7% [14] - For the full year, the coconut water category grew 18.5%, while Zola's growth was 38.5% [15] Company Strategy and Development Direction - The company has focused on simplifying its business by exiting underperforming Body Care brands and concentrating on Zola coconut water products [6][7] - The strategy has resulted in a leaner company with reduced operating expenses and a focus on profitable growth [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Zola's momentum entering 2025, supported by new distribution gains from the second half of 2024 [17][45] - The company aims to maintain tight cost controls while expanding revenues, achieving gross margins above 30% for eight consecutive quarters [45] Other Important Information - The company ended 2024 with $4.2 million in cash, down from $11.6 million at the start of the year, but managed to reduce operating cash consumption in the second half [28][31] - A pending transaction with Roosevelt Resources is expected to be completed towards the end of Q2 2025 [20][19] Q&A Session Summary Question: Expectations for continued Zola distribution growth in 2025 - Management indicated a healthy pipeline for distribution growth in 2025, benefiting from full-year impact of new distribution established in 2024 [36] Question: Full year GLA revenue and confirmation of inventory status - Full year GLA revenue was $756,000, with Q4 revenue at $55,000, confirming complete sell-out of GLA inventory as of December 31, 2024 [38] Question: Status of monetizing legacy IP from prior business model - Management is in advanced discussions to monetize the wheat patent portfolio, expecting to complete transactions in the first half of the year [40][42]

Arcadia Biosciences, Inc (NASDAQ:RKDA) Q4 2024 Results Conference Call March 20, 2025 4:30 PM ET Company Participants Mark Kawakami - Chief Financial Officer T.J. Schaefer - President & Chief Executive Officer Conference Call Participants Ben Klieve - Lake Street Capital Markets Operator Good afternoon, and welcome to Arcadia Biosciences Fourth Quarter and Full Year 2024 Financial Results and Business Highlights Conference Call. [Operator Instructions] Please be advised that today's conference is being reco ...

Revenue Growth - Total revenues for 2024 increased to $5,045,000, representing a 13.3% growth from $4,454,000 in 2023[4] - Product revenues rose to $5,012,000, up from $4,437,000, indicating a 12.9% increase year-over-year[4] Net Loss and Improvement - The net loss for 2024 was $7,038,000, a reduction from the net loss of $13,986,000 in 2023, reflecting a 49.7% improvement[6] - The company reported a comprehensive loss of $7,139,000 for 2024, compared to a comprehensive loss of $13,880,000 in 2023, showing a 48.6% improvement[4] Cash and Assets - Cash and cash equivalents decreased to $4,242,000 from $6,518,000, a decline of 34.9%[5] - Total assets decreased to $13,517,000 in 2024, down from $19,705,000 in 2023, a reduction of 31.4%[2] Liabilities and Expenses - Total liabilities increased slightly to $7,294,000 in 2024 from $7,002,000 in 2023, an increase of 4.2%[2] - Operating expenses decreased to $8,693,000 in 2024 from $10,555,000 in 2023, a reduction of 17.6%[4] Share Information - The weighted-average number of shares used in per share calculations increased to 1,363,303 in 2024 from 1,236,934 in 2023[4] Gains from Sales - The company recognized a gain of $4,000,000 from the sale of RS durum wheat trait in 2024[6]