[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)

Financial Performance - Arcadia Biosciences reported an 11% increase in total revenues for the second quarter of 2025, amounting to $1.455 million compared to $1.306 million in the same period of 2024 [3][5][7] - Zola® coconut water sales drove this revenue growth, with a 24% increase, contributing $280,000 to the total revenue in Q2 2025 [3][8] - For the first half of 2025, total revenues increased by 16% to $2.655 million, with Zola revenues rising by 47% [9] Operating Expenses - Total operating expenses for Q2 2025 were $1.956 million, a significant increase compared to the previous year, primarily due to higher costs associated with Zola coconut water [5][10] - Cost of revenues for Zola increased by 30% in Q2 2025, reflecting a $191,000 rise [10] - SG&A expenses decreased by $560,000 in Q2 2025 compared to the same period in 2024, indicating improved operational efficiency [12] Net Income and Loss - The net loss attributable to common stockholders for Q2 2025 was $4.458 million, a significant decline from a net income of $1.061 million in Q2 2024, largely due to a $4.5 million credit loss related to a note receivable [17][19] - For the first half of 2025, the net loss attributable to common stockholders was $1.9 million, compared to a loss of $1.4 million in the same period of 2024 [19] Strategic Developments - Arcadia received 2.7 million shares of stock in Above Food Ingredients Inc. as part of a repayment related to the sale of GoodWheat™ assets [4][15] - The company has eliminated $1 million in contingent liabilities, contributing to a total of $2 million in liabilities removed year-to-date [4] Business Combination - The pending business combination with Roosevelt Resources is progressing, with an amendment filed to the initial Form S-4 registration statement to address SEC comments and provide updated financial information [5][20]

Group 1: HilleVax, Inc. - HilleVax will be acquired by XOMA Royalty Corporation for $1.95 in cash per share plus one non-transferable contingent value right (CVR) [2] - The investigation focuses on whether the HilleVax Board breached its fiduciary duties by failing to conduct a fair process and whether the consideration provides fair value to shareholders [2] Group 2: Steelcase Inc. - Steelcase will be acquired by HNI Corporation for $7.20 in cash and 0.2192 shares of HNI common stock for each share of Steelcase [4] - The implied per share purchase price is $18.30 based on HNI's closing share price of $50.62 on August 1, 2025 [4] - The investigation concerns whether the Steelcase Board breached its fiduciary duties by failing to conduct a fair process and whether the consideration provides fair value to shareholders [4] Group 3: LAVA Therapeutics N.V. - LAVA will be acquired by XOMA Royalty Corporation for between $1.16 and $1.24 per share in cash, plus a non-transferable CVR [6] - The cash amount consists of a base price of $1.16 per share and an additional amount of up to $0.08 per share [6] - The investigation focuses on whether the LAVA Board breached its fiduciary duties by failing to conduct a fair process and whether the consideration provides fair value to shareholders [6] Group 4: Arcadia Biosciences, Inc. - Arcadia will be acquired by Roosevelt Resources LP, with current equity owners of Roosevelt and Arcadia shareholders expected to own approximately 90% and 10% of the combined company, respectively [8] - The investigation concerns whether the Arcadia Board breached its fiduciary duties by failing to conduct a fair process and the potential dilution of shareholders in the combined company [8]

Financial Data and Key Metrics Changes - In Q1 2025, total revenues were approximately $1,200,000, representing a 22% increase compared to the same period last year [16] - Zola revenues increased 90% year over year, driven by new distribution gains [4][17] - The cost of revenues in Q1 was approximately $680,000, a 45% increase compared to the same period last year, with a gross margin rate of 43% [17] - Selling, general and administrative costs were $1,700,000, down from $2,100,000 in Q1 2024 [19] Business Line Data and Key Metrics Changes - Zola coconut water sales increased 90% year over year, with a 70% increase in new distribution [4][5] - Sell-through data for Zola increased 76% during the thirteen weeks ended March 29, 2025, compared to a 24% growth in the coconut water category [6] - The company has successfully launched new flavors, with pineapple sales exceeding last year's total in the first four months of 2025 [7] Market Data and Key Metrics Changes - Coconut water continues to outpace the growth of many beverage categories, driven by consumer preferences for healthier options [6] - The company has replenished inventory ahead of the beverage season, mitigating potential impacts from recently announced tariffs [9] Company Strategy and Development Direction - The company is focused on expanding Zola's market presence and monetizing its intellectual property [5][10] - Arcadia is exiting its legacy ag tech business and has made significant progress in this area, including the return of certain patents [10][12] - The pending business combination with Roosevelt Resources is on track to be completed by the end of summer 2025 [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued momentum from 2024 into 2025, with strong sales growth and a healthy pipeline of opportunities [35] - The company anticipates that the impact of tariffs will be minimal due to identified cost-saving opportunities [9] - Management highlighted the importance of maintaining gross margins above 30% for nine consecutive quarters [35] Other Important Information - The company ended Q1 with $3,200,000 in cash, down from $4,200,000 at the start of the year, reflecting ongoing M&A expenses [20] - The company expects to receive approximately $2,500,000 in cash as the first repayment of principal and interest from a note receivable [21] Q&A Session Summary Question: Can you quantify any successes in expanding the Zola distribution pipeline? - Management indicated that the pipeline is about half of the current distribution, which is approximately 3,500 stores [27] Question: Will the momentum in new accounts impact 2025 financials or be more of a 2026 event? - Management expects that most awards will have an impact on 2025 [28] Question: Is there any commercial value in the remaining patent from the legacy ag biotech business? - Management noted that while there is potential commercial value, it is licensed to a third party who is two years away from commercialization [30] Question: Confirmation on the $2,500,000 initial payment for the note receivable? - Management confirmed that the payment is scheduled for receipt in Q2 [31]

Financial Data and Key Metrics Changes - In Q1 2025, total revenues were approximately $1.2 million, representing a 22% increase year over year [16] - Zola revenues increased 90% compared to the same period last year, driven by a 70% increase in new distribution [4][17] - The cost of revenues in Q1 was approximately $680,000, a 45% increase year over year, with a gross margin rate of 43% compared to 52% in Q1 2024 [17] - Selling, general and administrative costs were $1.7 million, down from $2.1 million in Q1 2024 [19] Business Line Data and Key Metrics Changes - Zola coconut water sales increased 90% year over year, with sell-through data showing a 76% increase [4][6] - The company has successfully launched new flavors, with pineapple sales in the first four months of 2025 surpassing total sales from the previous year [7] - The company has a healthy pipeline and is in discussions with new customers and distributors representing over 50% of its current customer base [8] Market Data and Key Metrics Changes - The coconut water category grew 24% during the same period, indicating Zola's growth is significantly outpacing the overall market [6] - Zola's market presence is expected to expand, with new customer accounts already won in Q2 [8] Company Strategy and Development Direction - The company is focused on monetizing its intellectual property and exiting its legacy ag tech business [10][12] - A pending business combination with Roosevelt Resources is on track to be completed by the end of summer 2025, with a fixed equity share ratio established [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued momentum from 2024 into 2025, with strong sales growth and a robust pipeline of opportunities [35] - The company does not anticipate significant impacts from recently announced tariffs due to proactive inventory management and cost-saving measures [9] Other Important Information - The company completed a transaction to regain rights to certain patents, eliminating a $1 million contingent liability from its balance sheet [12][19] - Cash at the end of Q1 was $3.2 million, down from $4.2 million at the start of the year, reflecting ongoing M&A expenses [20] Q&A Session Summary Question: Can you quantify any successes in expanding the distribution pipeline for Zola? - Management indicated that the pipeline is about half of the current distribution, which is approximately 3,500 stores [27] Question: Will the momentum in distribution be reflected in 2025 financials? - Management expects that most of the awarded accounts will impact 2025 financials, despite a potential lag in product placement [28] Question: Is there any commercial value in the remaining patent from the legacy ag biotech business? - There is potential commercial value, but it is licensed to a third party, which is two years away from commercialization [29] Question: When is the expected receipt of the $2.5 million initial payment for the note receivable? - Management confirmed that the payment is scheduled for receipt in Q2 [31]

[Part I — Financial Information (Unaudited)](index=2&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information%20%28Unaudited%29) This section presents Arcadia Biosciences, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2025 [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 for the quarter ended March 31, 2025, along with detailed notes explaining significant accounting policies, recent transactions, and financial positions [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheet Highlights (In thousands) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $3,159 | $4,242 | | Total current assets | $8,846 | $9,242 | | Total assets | $12,990 | $13,517 | | Total current liabilities | $2,216 | $2,563 | | Common stock warrant and option liabilities | $869 | $2,731 | | Total liabilities | $4,085 | $7,294 | | Total stockholders' equity | $8,905 | $6,223 | - Total assets decreased by **$527,000** from December 31, 2024, to March 31, 2025, primarily due to a decrease in cash and cash equivalents[9](index=9&type=chunk) - Total liabilities significantly decreased by **$3,209,000**, mainly driven by a reduction in common stock warrant and option liabilities[9](index=9&type=chunk) - Total stockholders' equity increased by **$2,682,000**, reflecting the net income for the period[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) This section outlines the company's financial performance over a period, including revenues, expenses, and net income or loss Condensed Consolidated Statements of Operations Highlights (In thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Total revenues | $1,200 | $987 | | Total operating expenses | $670 | $2,575 | | Income (loss) from continuing operations | $530 | $(1,588) | | Net income (loss) from continuing operations | $2,599 | $(947) | | Net loss from discontinued operations | $— | $(1,476) | | Net income (loss) attributable to common stockholders | $2,599 | $(2,423) | | Net income (loss) per basic share | $1.90 | $(1.78) | | Net income (loss) per diluted share | $1.90 | $(1.78) | - Total revenues increased by **22%** to **$1.2 million** for the three months ended March 31, 2025, compared to **$987,000** in the prior year period[13](index=13&type=chunk) - The company reported a net income of **$2.6 million** for the three months ended March 31, 2025, a significant improvement from a net loss of **$2.4 million** in the same period last year[13](index=13&type=chunk) - Basic and diluted EPS improved to **$1.90** for the three months ended March 31, 2025, from a loss of **$1.78** in the prior year, largely due to a gain on sale of intangible assets and a change in fair value of contingent consideration[13](index=13&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section details changes in the company's equity accounts, reflecting transactions with owners and comprehensive income Condensed Consolidated Statements of Stockholders' Equity Highlights (In thousands, except share data) | Metric | Balance at Dec 31, 2024 | Issuance of shares (ESPP) | Stock-based compensation | Net income | Balance at Mar 31, 2025 | | :----------------------- | :---------------------- | :------------------------ | :----------------------- | :--------- | :---------------------- | | Common Stock (Shares) | 1,364,940 | 2,100 | — | — | 1,367,040 | | Common Stock (Amount) | $65 | $— | $— | $— | $65 | | Additional Paid-In Capital | $285,036 | $5 | $78 | $— | $285,119 | | Accumulated Deficit | $(278,878) | $— | $— | $2,599 | $(276,279) | | Total Stockholders' Equity | $6,223 | $5 | $78 | $2,599 | $8,905 | - Total stockholders' equity increased from **$6.2 million** at December 31, 2024, to **$8.9 million** at March 31, 2025, primarily due to net income of **$2.6 million**[15](index=15&type=chunk) - The accumulated deficit decreased by **$2.6 million**, reflecting the net income reported for the quarter[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by the company across operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (In thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(1,588) | $(3,210) | | Net cash provided by investing activities | $500 | $4 | | Net cash provided by financing activities | $5 | $5 | | Net decrease in cash and cash equivalents | $(1,083) | $(3,201) | | Cash and cash equivalents — end of period | $3,159 | $3,317 | - Net cash used in operating activities decreased to **$1.6 million** for the three months ended March 31, 2025, from **$3.2 million** in the prior year period, indicating improved operational cash management[18](index=18&type=chunk) - Investing activities provided **$500,000** in cash, primarily from the sale of intangible assets, a significant increase from **$4,000** in the prior year[18](index=18&type=chunk) - Cash and cash equivalents at the end of the period were **$3.2 million**, down from **$4.2 million** at the beginning of the period[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [Note 1. Description of Business and Basis of Presentation](index=7&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) This note describes the company's business, recent strategic shifts, and the foundational principles used in preparing the financial statements - Arcadia Biosciences, Inc. (the 'Company') focuses on consumer goods, primarily Zola coconut water products, after shifting from wheat-based products[22](index=22&type=chunk) - The Company entered an agreement with Bioceres Crop Solutions Corp. (BIOX) on March 28, 2025, transferring certain soy traits and receiving **$750,000**, while also transferring reduced gluten and oxidative stability patents to BIOX[23](index=23&type=chunk) - Arcadia is pursuing a business combination with Roosevelt Resources LP, where Roosevelt's limited partners and general partner will own **90%** of Arcadia's common stock post-closing[24](index=24&type=chunk) - The Company sold its GoodWheat™ brand to Above Food Corp. for **$3.7 million** on May 16, 2024, and its non-GMO Resistant Starch durum wheat trait to Corteva Agriscience for **$4.0 million** on May 14, 2024, monetizing intellectual property and exiting certain wheat-related operations[25](index=25&type=chunk)[26](index=26&type=chunk) - As of March 31, 2025, the Company had an accumulated deficit of **$276.3 million** and cash and cash equivalents of **$3.2 million**, raising substantial doubt about its ability to continue as a going concern for the next 12 months[33](index=33&type=chunk)[34](index=34&type=chunk) [Note 2. Recent Accounting Pronouncements](index=9&type=section&id=Note%202.%20Recent%20Accounting%20Pronouncements) This note outlines recently issued accounting standards and their potential impact on the company's financial reporting - The FASB issued ASU No. 2023-09, effective for fiscal years beginning after December 15, 2024, requiring additional income tax disclosures, which the Company is currently evaluating[36](index=36&type=chunk) - ASU No. 2024-03, effective for annual reporting periods beginning after December 15, 2026, mandates quantitative disclosures for employee compensation, selling expenses, and inventory purchases, with the Company evaluating its impact[37](index=37&type=chunk) [Note 3. Discontinued Operations](index=9&type=section&id=Note%203.%20Discontinued%20Operations) This note details the financial results and impact of business segments that the company has exited or plans to exit - The GoodWheat brand was sold on May 16, 2024, and its operations ceased during the second quarter of 2024, leading to its classification as a discontinued operation[38](index=38&type=chunk)[39](index=39&type=chunk) Net Loss from Discontinued Operations (In thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Product revenue | $— | $268 | | Cost of revenues | $— | $(349) | | Research and development | $— | $(267) | | Selling, general and administrative | $— | $(1,126) | | Net loss from discontinued operations | $— | $(1,476) | [Note 4. Inventory](index=10&type=section&id=Note%204.%20Inventory) This note provides details on the company's inventory valuation methods and composition - Inventories are stated at the lower of cost or net realizable value, with adjustments made for deterioration, obsolescence, or changes in price levels[41](index=41&type=chunk) Inventories, Net (In thousands) | Category | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | Raw materials | $420 | $289 | | Finished goods | $865 | $615 | | Total Inventories | $1,285 | $904 | [Note 5. Property and Equipment, Net](index=10&type=section&id=Note%205.%20Property%20and%20Equipment%2C%20Net) This note presents the company's property and equipment, net of accumulated depreciation and amortization Property and Equipment, Net (In thousands) | Category | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Software and computer equipment | $291 | $291 | | Furniture and fixtures | $32 | $32 | | Leasehold improvements | $1,584 | $1,584 | | Property and equipment, gross | $1,907 | $1,907 | | Less: accumulated depreciation and amortization | $(1,879) | $(1,866) | | Property and equipment, net | $28 | $41 | - Depreciation expense for the three months ended March 31, 2025, was **$13,000**, a decrease from **$51,000** in the same period of 2024[43](index=43&type=chunk) [Note 6. Investments and Fair Value Instruments](index=10&type=section&id=Note%206.%20Investments%20and%20Fair%20Value%20Instruments) This note describes the company's investments and financial instruments measured at fair value, including valuation methodologies Cash Equivalents at Fair Value (In thousands) | Category | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | Money market funds | $2,034 | $2,757 | - The Company's Level 3 liabilities include a contingent liability from the Anawah acquisition and preferred investment options, valued using unobservable inputs and the Black-Scholes Model, respectively[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) Changes in Level 3 Liabilities (In thousands) | Category | Balance as of Dec 31, 2024 | Change in fair value | Balance as of Mar 31, 2025 | | :-------------------------------- | :------------------------- | :------------------- | :------------------------- | | March 2023 Options - Series A | $2,285 | $(1,562) | $723 | | March 2023 Placement Agent Options | $90 | $(59) | $31 | | August 2022 Options | $349 | $(236) | $113 | | August 2022 Placement Agent Options | $7 | $(5) | $2 | | Note Receivable Bifurcated Derivatives | $250 | $— | $250 | | Contingent Liabilities | $2,000 | $(1,000) | $1,000 | | Total | $4,981 | $(2,862) | $2,119 | [Note 7. Note Receivable and Embedded Derivatives](index=13&type=section&id=Note%207.%20Note%20Receivable%20and%20Embedded%20Derivatives) This note details the company's note receivable, including its terms, discount, and any bifurcated embedded derivatives - In connection with the GoodWheat brand sale, Arcadia received a **$6.0 million** promissory note from Above Food, accruing interest at the Wall Street Journal prime rate, with principal payments due over three years[53](index=53&type=chunk) - The promissory note was recorded at a **$545,000** discount, amortized over its term, and generated **$69,000** in discount amortization and **$111,000** in interest income for the three months ended March 31, 2025[55](index=55&type=chunk) - Contingent features of the promissory note were bifurcated as embedded derivatives, with an estimated fair value of **$250,000** as of March 31, 2025, reported as a noncurrent note receivable[56](index=56&type=chunk) [Note 8. Consolidated Joint Venture](index=13&type=section&id=Note%208.%20Consolidated%20Joint%20Venture) This note provides information on the company's joint venture, including its purpose and current status - Arcadia and Legacy Ventures Hawaii, LLC formed Archipelago Ventures Hawaii, LLC in 2019 to develop and commercialize hemp-derived products[57](index=57&type=chunk) - In October 2021, the cultivation activities of Archipelago were mutually agreed to be wound down due to regulatory challenges and a saturated hemp market[58](index=58&type=chunk) [Note 9. Collaborative Arrangements](index=13&type=section&id=Note%209.%20Collaborative%20Arrangements) This note describes the company's collaborative agreements, including terms, asset sales, and revenue recognition - The Company had a collaborative arrangement with Corteva Agriscience for the research, development, and commercialization of its non-GMO RS durum wheat trait in North America[59](index=59&type=chunk) - On May 14, 2024, Arcadia sold its RS durum wheat trait to Corteva for **$4.0 million** in cash, recognizing a gain of the same amount as the trait had no carrying value[61](index=61&type=chunk) [Note 10. Leases](index=15&type=section&id=Note%2010.%20Leases) This note details the company's lease assets and liabilities, including lease terms and associated costs Lease Assets and Liabilities (In thousands) | Category | March 31, 2025 | December 31, 2024 | | :---------------- | :------------- | :---------------- | | Operating lease assets | $19 | $137 | | Operating lease liability — current | $21 | $155 | Net Lease (Income) Cost (In thousands) | Lease Cost | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------- | :-------------------------------- | :-------------------------------- | | Operating lease cost | $119 | $265 | | Short term lease cost | $3 | $3 | | Sublease income | $(143) | $(121) | | Net lease (income) cost | $(21) | $147 | - The weighted-average remaining lease term was **0.5 years** as of March 31, 2025, with a weighted-average discount rate of **6.5%**[64](index=64&type=chunk) [Note 11. Warrants and Options](index=16&type=section&id=Note%2011.%20Warrants%20and%20Options) This note provides information on the company's outstanding equity and liability classified warrants and options Equity Classified Common Stock Warrants Outstanding | Warrant Type | Outstanding at Dec 31, 2024 | Exercised during Q1 2025 | Outstanding at Mar 31, 2025 | | :-------------------------------- | :-------------------------- | :----------------------- | :-------------------------- | | March 2023 Pre-Funded Warrants | — | — | — | | December 2022 Service and Performance Warrants | 1,000 | — | 1,000 | | October 2022 Service and Performance Warrants | 1,000 | — | 1,000 | | January 2021 Placement Agent Warrants | 9,846 | — | 9,846 | | December 2020 Warrants | 16,367 | — | 16,367 | | December 2020 Warrants | 49,100 | — | 49,100 | | December 2020 Placement Agent Warrants | 3,274 | — | 3,274 | | July 2020 Warrants | 16,036 | — | 16,036 | | July 2020 Placement Agent Warrants | 802 | — | 802 | | May 2020 Warrants | 9,946 | — | 9,946 | | May 2020 Warrants | 24,863 | — | 24,863 | | May 2020 Placement Agent Warrants | 1,741 | — | 1,741 | | January 2021 Warrants | 7,831 | — | 7,831 | | January 2021 Warrants | 90,629 | — | 90,629 | | September 2019 Warrants | 9,892 | (9,892) | — | | September 2019 Warrants | 6,594 | (6,594) | — | | June 2019 Warrants | 10,896 | (10,896) | — | | Total | 259,817 | (27,382) | 232,435 | - Certain September 2019 and June 2019 warrants expired during the three months ended March 31, 2025, reducing the total outstanding equity-classified warrants[67](index=67&type=chunk)[68](index=68&type=chunk) Liability Classified Preferred Investment Options Outstanding | Option Type | Outstanding at Dec 31, 2024 | Exercised during Q1 2025 | Outstanding at Mar 31, 2025 | | :-------------------------------- | :-------------------------- | :----------------------- | :-------------------------- | | March 2023 Options - Series A | 666,334 | — | 666,334 | | March 2023 Placement Agent Options | 33,317 | — | 33,317 | | August 2022 Options | 118,063 | — | 118,063 | | August 2022 Placement Agent Options | 5,904 | — | 5,904 | | Total | 823,618 | — | 823,618 | - The liability-classified preferred investment options, including those from March 2023 Private Placement and August 2022 Registered Direct offerings, are adjusted to fair value at each balance sheet date, with changes recorded in the statements of operations[70](index=70&type=chunk) [Note 12. Stock-Based Compensation and Employee Stock Purchase Program](index=17&type=section&id=Note%2012.%20Stock-Based%20Compensation%20and%20Employee%20Stock%20Purchase%20Program) This note details the company's stock-based compensation plans and employee stock purchase program, including related expenses - The Company operates under the 2006 Stock Plan and the 2015 Omnibus Equity Incentive Plan, with **147,038 shares** available for future grant under the 2015 Plan as of March 31, 2025[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) Stock Option Information | Metric | As of March 31, 2025 | | :-------------------------------- | :------------------- | | Outstanding Options (Shares) | 191,511 | | Weighted Average Exercise Price | $14.92 | | Vested and Expected to Vest (Shares) | 177,989 | | Exercisable (Shares) | 29,741 | - Unrecognized compensation cost related to unvested stock-based grants was **$251,000** as of March 31, 2025, to be recognized over a weighted-average remaining period of **1.0 years**[75](index=75&type=chunk) - Stock-based compensation expense was **$78,000** for the three months ended March 31, 2025, down from **$138,000** in the prior year[78](index=78&type=chunk) - The Employee Stock Purchase Plan (ESPP) allows eligible employees to purchase shares at a discount, with **1,108 shares** reserved for future issuance as of March 31, 2025[79](index=79&type=chunk) [Note 13. Income Taxes](index=19&type=section&id=Note%2013.%20Income%20Taxes) This note explains the company's income tax provisions, effective tax rate, and any tax-related contingencies - The Company's effective tax rate was **0.00%** for the three months ended March 31, 2025, and 2024, primarily due to a full valuation allowance on net deferred tax assets[81](index=81&type=chunk) - The Archipelago joint venture was selected for an IRS audit for the 2021 tax year, with the Company accepting adjustments and submitting push-out election forms in Q1 2025, expecting no penalties or interest[83](index=83&type=chunk) [Note 14. Commitments and Contingencies](index=19&type=section&id=Note%2014.%20Commitments%20and%20Contingencies) This note discloses the company's significant commitments, legal proceedings, and contingent liabilities - The Company is involved in a legal proceeding related to Proposition 65, alleging BPA exposure in coconut water containers, and intends to vigorously defend against the claims[87](index=87&type=chunk) - Several demand letters have been received from purported stockholders regarding alleged deficiencies in the preliminary proxy statement for the Roosevelt Exchange Agreement, which the Company believes are without merit[88](index=88&type=chunk) - A contingent liability related to the 2005 Anawah acquisition was reduced to **$1.0 million** as of March 31, 2025, following the abandonment of one of the two remaining development programs[90](index=90&type=chunk) [Note 15. Segment Reporting](index=21&type=section&id=Note%2015.%20Segment%20Reporting) This note provides information on the company's operating segments and how performance is evaluated by management - The Company operates as a single operating and reportable segment, primarily deriving revenue from the sale of Zola coconut water[93](index=93&type=chunk) - The Chief Executive Officer, as the chief operating decision maker (CODM), evaluates performance based on consolidated net income (loss) from continuing operations[93](index=93&type=chunk) Segment Operations Highlights (In thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Total revenues | $1,200 | $987 | | Net income (loss) from continuing operations | $2,599 | $(947) | [Note 16. Net Income (Loss) per Share](index=22&type=section&id=Note%2016.%20Net%20Income%20%28Loss%29%20per%20Share) This note presents the calculation of basic and diluted net income or loss per share for the reporting periods Net Income (Loss) per Share (Basic and Diluted) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to common stockholders | $2,599 | $(2,423) | | Weighted average common shares outstanding (Basic) | 1,366,060 | 1,361,657 | | Basic net income (loss) per share | $1.90 | $(1.78) | | Weighted average common shares outstanding (Diluted) | 1,366,203 | 1,361,657 | | Diluted net income (loss) per share | $1.90 | $(1.78) | - Basic and diluted net income per share significantly improved to **$1.90** for the three months ended March 31, 2025, compared to a loss of **$1.78** in the prior year, reflecting the Company's return to profitability[97](index=97&type=chunk) [Note 17. Related-Party Transactions](index=22&type=section&id=Note%2017.%20Related-Party%20Transactions) This note discloses transactions between the company and its related parties, including royalty agreements - The Company has related-party transactions with Moral Compass Corporation (MCC) and the John Sperling Foundation (JSF), with JSF receiving single-digit royalties from product sales or license payments involving intellectual property developed under BHL research funding[98](index=98&type=chunk)[99](index=99&type=chunk) - Royalty fees due to JSF were **$30,000** as of March 31, 2025, and December 31, 2024, with no future royalty fees expected as product sales related to this intellectual property ceased as of December 31, 2024[99](index=99&type=chunk)[100](index=100&type=chunk) [Note 18. Subsequent Events](index=23&type=section&id=Note%2018.%20Subsequent%20Events) This note reports significant events that occurred after the balance sheet date but before the financial statements were issued - On April 30, 2025, the Exchange Agreement with Roosevelt Resources LP was amended, extending the termination date to August 15, 2025, and fixing the number of shares issuable to Limited Partners at **90%** of outstanding common stock post-closing[101](index=101&type=chunk) - On May 1, 2025, Arcadia delivered a notice to Above Food Corp. to require the issuance of approximately **3.5 million** publicly traded shares of Above Food Ingredients Inc. (AFII) common stock, which will constitute a prepayment of the final **$2.0 million** principal installment of the promissory note[102](index=102&type=chunk)[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%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 for the three months ended March 31, 2025, compared to the same period in 2024. It covers key financial metrics, recent strategic transactions, liquidity, capital resources, and critical accounting estimates [Special Note Regarding Forward-Looking Statements](index=24&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions readers that the report contains forward-looking statements subject to inherent risks and uncertainties - The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections[104](index=104&type=chunk) [Overview](index=24&type=section&id=Overview) This section provides a high-level summary of the company's business, strategic shifts, and key transactions - Arcadia has transitioned its focus to consumer goods, primarily Zola coconut water products, leveraging its science-based approach[106](index=106&type=chunk) - Key strategic transactions include the sale of the non-GMO Resistant Starch durum wheat trait to Corteva for **$4.0 million** and the GoodWheat™ brand to Above Food for **$3.7 million** in May 2024[107](index=107&type=chunk)[108](index=108&type=chunk) - The Company entered a Securities Exchange Agreement with Roosevelt Resources LP in December 2024, which, upon closing, will result in Roosevelt's limited partners owning **90%** of Arcadia's common stock[109](index=109&type=chunk) - An agreement with Bioceres Crop Solutions Corp. (BIOX) in March 2025 involved the transfer of soy traits to Arcadia and the sale of Arcadia's reduced gluten and oxidative stability patents to BIOX for **$750,000**[111](index=111&type=chunk) [Our Products](index=26&type=section&id=Our%20Products) This section describes the company's primary product offerings and their market positioning - Zola Coconut Water is the Company's primary product, sourced from Thailand, offering natural hydration and electrolytes, and is Non-GMO Project Verified[113](index=113&type=chunk) - Arcadia no longer retains effective commercialization rights to its resistant starch portfolio of patents and does not expect future license or royalty fees from wheat-based intellectual property[114](index=114&type=chunk) [Discontinued Operations (MD&A)](index=26&type=section&id=Discontinued%20Operations%20%28MD%26A%29) This section discusses the financial impact and status of operations that the company has exited - The GoodWheat brand has been exited and its financial results are reported as discontinued operations for all periods presented[115](index=115&type=chunk) [Components of Our Statements of Operations Data](index=28&type=section&id=Components%20of%20Our%20Statements%20of%20Operations%20Data) This section explains the key revenue and expense categories within the company's statements of operations - Product revenues primarily consist of sales of Zola and GLA products, recognized upon transfer of control to distributors[116](index=116&type=chunk) - Cost of revenues mainly relates to Zola products, including product and freight costs, and inventory adjustments[117](index=117&type=chunk) - Research and development expenses are expensed as incurred, primarily consisting of fees to product formulation consultants[118](index=118&type=chunk) - Selling, general and administrative expenses include employee costs, professional service fees, and overhead[122](index=122&type=chunk) - Changes in fair value of common stock warrant and option liabilities reflect the remeasurement of liabilities from financing transactions[125](index=125&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, comparing current period results to prior periods Results of Operations Comparison (Three Months Ended March 31, In thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :------------------------------------------------ | :--- | :--- | :------- | :------- | | Product revenues | $1,200 | $987 | $213 | 22% | | Cost of revenues | $682 | $471 | $211 | 45% | | Research and development | $— | $6 | $(6) | (100)% | | Gain on sale of intangible assets | $(750) | $— | $(750) | 100% | | Change in fair value of contingent consideration | $(1,000) | $— | $(1,000) | 100% | | Selling, general and administrative | $1,738 | $2,062 | $(324) | (16)% | | Net income (loss) from continuing operations | $2,599 | $(947) | $3,546 | (374)% | | Net loss from discontinued operations | $— | $(1,476) | $1,476 | (100)% | | Net income (loss) attributable to common stockholders | $2,599 | $(2,423) | $5,022 | (207)% | - Product revenues increased by **22%** due to a **90%** increase in Zola coconut water sales volume, with no price increases[128](index=128&type=chunk) - Operating expenses decreased by **74%**, primarily due to a **$750,000** gain on sale of intangible assets and a **$1.0 million** gain from the change in fair value of contingent consideration[127](index=127&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - Net income from continuing operations significantly improved to **$2.6 million** from a loss of **$947,000** in the prior year, driven by gains and reduced SG&A expenses[127](index=127&type=chunk) [Seasonality](index=32&type=section&id=Seasonality) This section describes how seasonal factors influence the company's sales volumes and financial performance - Sales volumes for coconut water products are typically highest during the second and third fiscal quarters due to warmer weather[139](index=139&type=chunk) [Liquidity & Capital Resources](index=32&type=section&id=Liquidity%20%26%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations and fund operations - The Company's operations have been funded primarily through equity financings and proceeds from product sales and license agreements[140](index=140&type=chunk) Liquidity and Working Capital (In thousands) | Metric | As of March 31, 2025 | As of December 31, 2024 | | :---------------- | :------------------- | :---------------------- | | Current assets | $8,846 | $9,242 | | Current liabilities | $2,216 | $2,563 | | Working capital surplus | $6,630 | $6,679 | - As of March 31, 2025, cash and cash equivalents were **$3.2 million**, and a current note receivable was **$2.0 million**, which management believes are insufficient for the next 12 months, raising substantial doubt about going concern[140](index=140&type=chunk)[141](index=141&type=chunk) Cash Flows Summary (Three Months Ended March 31, In thousands) | Cash Flow Activity | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Net cash used in operating activities | $(1,588) | $(3,210) | | Net cash provided by investing activities | $500 | $4 | | Net cash provided by financing activities | $5 | $5 | | Net decrease in cash | $(1,083) | $(3,201) | [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) This section discloses any significant transactions or obligations not recorded on the company's balance sheet - The Company has not engaged in any off-balance sheet arrangements since its inception, other than Verdeca, which was disposed of in November 2020[150](index=150&type=chunk) [Critical Accounting Estimates](index=36&type=section&id=Critical%20Accounting%20Estimates) This section highlights accounting estimates that require significant management judgment and can materially impact financial results - Critical accounting estimates include revenue recognition, determination of the provision for income taxes, and net realizable value of inventory, which involve significant management judgment[152](index=152&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that quantitative and qualitative disclosures about market risk are not required for the Company - The Company is not required to provide quantitative and qualitative disclosures about market risk[154](index=154&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and reports on changes in internal control over financial reporting - As of March 31, 2025, the President and CEO and CFO concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level[156](index=156&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected or are reasonably likely to materially affect the Company's internal control[157](index=157&type=chunk) [Part II — Other Information](index=38&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the Condensed Consolidated Financial Statements for a discussion of legal proceedings - Information regarding legal proceedings is detailed in Note 14 of the Condensed Consolidated Financial Statements[158](index=158&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the Company's Annual Report on Form 10-K for a comprehensive discussion of risk factors - Readers should refer to Part I, 'Item 1A. Risk Factors' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of factors that could materially affect the business[159](index=159&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds during the reporting period - There were no unregistered sales of equity securities and use of proceeds during the quarter ended March 31, 2025[160](index=160&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the quarter ended March 31, 2025[161](index=161&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[162](index=162&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This section reports on other information, specifically regarding Rule 10b5-1 trading arrangements - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[163](index=163&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including agreements, certifications, and XBRL documents - Exhibits include the agreement between Bioceres and Arcadia, Principal Executive and Financial Officer's Certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and Inline XBRL documents[165](index=165&type=chunk) [SIGNATURES](index=40&type=section&id=SIGNATURES) This section contains the official signatures of the company's principal executive and financial officers, certifying the report - The report is signed by Thomas J. Schaefer, President and Chief Executive Officer, and Mark Kawakami, Chief Financial Officer, on May 8, 2025[171](index=171&type=chunk)

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]

Core Insights - Arcadia Biosciences, Inc. reported a 22% year-over-year increase in total revenues, driven by a 90% growth in Zola® coconut water sales [1][6] - The company successfully sold patents for $750,000 and eliminated $1 million in liabilities, indicating a strategic exit from its legacy business [3] - An amendment to the Roosevelt agreement has been made to provide greater certainty regarding the exchange ratio, enhancing ownership certainty for Arcadia's stockholders post-transaction [4] Financial Performance - Total revenues for Q1 2025 reached $1.2 million, up from $987,000 in Q1 2024, marking a $213,000 increase [4] - Zola coconut water sales accounted for the entire revenue increase, with sales rising by $567,000, or 90%, compared to the same period last year [6] - Operating expenses decreased significantly by $1.9 million, primarily due to reductions in selling, general and administrative expenses [7][10] Profitability Metrics - Income from continuing operations improved to $530,000 in Q1 2025, compared to a loss of $1.6 million in Q1 2024, reflecting a 133% favorable change [4] - Net income attributable to common stockholders was $2.6 million, or $1.90 per share, a $5 million improvement from a net loss of $2.4 million, or $1.78 per share, in Q1 2024 [11] Operational Highlights - Gross margins have exceeded 30% for nine consecutive quarters, indicating strong operational efficiency [2] - Distribution of Zola coconut water grew by 70% year-over-year, contributing to the sales increase [2] - The company did not implement any price increases during 2024 or Q1 2025, focusing on volume growth instead [6]

Core Insights - Arcadia Biosciences, Inc. will release its financial and business results for Q1 2025 on May 8, 2025 [1] - A conference call is scheduled for 2:00 p.m. Eastern time to discuss the results and strategic achievements [2] Company Overview - Arcadia Biosciences has been innovating high-value, healthy ingredients since 2002 to meet consumer demands for healthier choices [3] - The company focuses on agricultural innovation and cultivates next-generation wellness products [3]

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]