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 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's growth was 73.7% during the same period [14] - For the full year, the coconut water category grew 18.5%, while Zola increased by 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 that the company is completely 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]

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]

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]

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 increased by 18% year-over-year, reaching approximately $1.5 million, primarily driven by a 55% increase in Zola Coconut Water sales [7][24] - Selling, general and administrative (SG&A) expenses increased by $380,000 compared to last year, mainly due to severance and transition-related fees following the sale of GoodWheat [7][26] - Cash used during the quarter declined to $1.5 million, marking the lowest level of cash used in a quarter since the company went public [8][31] Business Line Data and Key Metrics Changes - Zola Coconut Water sales increased by 55% year-over-year, representing about 86% of total revenues for the quarter [10][24] - The retail store count for Zola increased by 68% compared to the same period last year, achieving the largest quarterly distribution gains in the company's history [11][43] - Sales of GLA oil continued to decline, with Q3 sales being about half of what they were in the same quarter last year [24] Market Data and Key Metrics Changes - The coconut water category grew by 15% over the last 52 weeks, while Zola outpaced this growth with a 23% increase [14] - In the latest four-week period, the coconut water industry grew by 28%, while Zola's sales increased by 73% [15] Company Strategy and Development Direction - The company is focused on reducing its cost structure, monetizing its existing Wheat portfolio, and growing the Zola Coconut Water business [9] - New product innovations are in the pipeline, with plans to test concepts and product samples with retailers before launching [18][19] - The company aims to exceed 80% retail distribution growth for Zola by the end of 2024 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Zola's momentum heading into Q4, despite it being seasonally the softest quarter for the coconut water industry [17] - The company acknowledged challenges in forecasting due to the significant new distribution gains and the timing of initial shipments [21][22] - Management emphasized the importance of maintaining cash flow and managing inventory effectively to support growth [31] Other Important Information - The loss from discontinued operations decreased by 77% compared to the same period last year, with Q3 losses making up about 16% of the total year-to-date loss [27] - The company ended Q3 with $6.6 million in cash and short-term investments, down from $8.1 million at the end of Q2 [28] Q&A Session Summary Question: Clarification on the $150,000 write-down - The CFO confirmed that the $150,000 write-down was entirely within Q3 and related to both Hemp and GoodWheat seed [35][36] Question: Expectations on margins going forward - Management indicated that, excluding the write-down and GLA business, gross margins are expected to be around 33%, aligning with historical long-term outlooks for Zola margins in the low to mid-30s [37] Question: Infrastructure support for Zola's growth - Management expressed confidence in the infrastructure to support Zola's growth, noting that the product is manufactured in Thailand and that they are managing inventory levels carefully [40][41]

Financial Position - As of September 30, 2024, the Company reported an accumulated deficit of $274.8 million, cash and cash equivalents of $3.9 million, and short-term investments of $2.6 million[20] - For the nine months ended September 30, 2024, the Company incurred a net loss of $3.0 million and net cash used in operations of $7.4 million[20] - The Company anticipates that its existing cash and short-term investments will not be sufficient to meet its cash requirements for at least the next 12-18 months, raising substantial doubt about its ability to continue as a going concern[20] - The total assets at fair value as of September 30, 2024, amounted to $5,410,000, a decrease from $10,049,000 as of December 31, 2023, primarily due to changes in short-term investments[30][32] Discontinued Operations - The Company sold the GoodWheat brand on May 16, 2024, and ceased operations of its body care brands in the third quarter of 2023 due to market pressures[21] - The total assets of the discontinued operations for GoodWheat as of September 30, 2024, were reported at $70,000[22] - The company recognized a loss of $1,500 related to the sale of the GoodWheat brand for net consideration of $3.7 million during the nine months ended September 30, 2024[37] Asset Valuation and Impairments - The Company recorded a write-down of $154,000 related to hemp and GoodWheat seed during the three and nine months ended September 30, 2024[26] - The company recorded an impairment of $36,000 related to assets held for sale from the Archipelago as of December 31, 2023, which were sold in the second quarter of 2024[28] - The accumulated depreciation and amortization for property and equipment was $1,852,000 as of September 30, 2024, compared to $1,942,000 as of December 31, 2023[28] Funding and Financing - The Company may seek additional funding through debt or equity financings, which could dilute existing shareholders or impose operational restrictions[20] - The Company raised total gross proceeds of $6.0 million from the March 2023 Private Placement, issuing 165,500 shares of common stock[48] - The estimated fair value of the March 2023 Options issued was $6.6 million, exceeding the gross proceeds by $5.7 million[48] - The promissory note from Above Food, valued at $6.0 million, has a term of three years and accrues interest at the Wall Street Journal prime rate, with principal payments of $2.0 million due annually[38] - The estimated fair value of contingent features related to the promissory note was $250,000 as of September 30, 2024, and is reported as noncurrent note receivable[40] Lease and Asset Management - The inventory as of September 30, 2024, totaled $835,000, down from $1,033,000 as of December 31, 2023[27] - Total leased assets decreased from $792,000 as of December 31, 2023, to $306,000 as of September 30, 2024[45] - Current operating lease liabilities decreased from $852,000 as of December 31, 2023, to $346,000 as of September 30, 2024[45] - The Company recorded a net lease cost of $33,000 for the three months ended September 30, 2024, compared to $83,000 for the same period in 2023[45] Stock Options and Compensation - The company recognized $155,000 and $395,000 in stock option compensation expenses for the three and nine months ended September 30, 2024, respectively[57] - The total number of shares reserved for issuance under the 2015 Omnibus Equity Incentive Plan is 338,248, with 127,725 shares available for future grants as of September 30, 2024[54] - The expected volatility for stock options was 101.31% for the three months ended September 30, 2024[57] - The Company recorded a change in fair value of common stock warrant and option liabilities in its condensed consolidated statements of operations and comprehensive loss[52] Tax and Legal Matters - The Company's effective tax rate was 0.00% for both the three and nine months ended September 30, 2024 and 2023, primarily due to a full valuation allowance on net deferred tax assets[59] - The Company has a contingent liability of $2.0 million related to the Anawah acquisition, reflecting ongoing development programs using acquired technology[63] - The Company is not currently involved in any material litigation or legal proceedings[62] Research and Development - The Company has entered into contract research agreements with initial terms ranging from one to three years, which may include funding commitments[64] - The Company is currently awaiting the IRS Final Partnership Adjustment related to the Archipelago joint venture audit for the 2021 tax year[60] Employee Stock Purchase Plan (ESPP) - The ESPP allows eligible employees to purchase shares at a discount of up to 15% of their eligible compensation, with 8,073 shares issued under the plan as of September 30, 2024[58]

Revenue Performance - Total revenues for the three months ended September 30, 2024, were $1,537,000, an increase of 18.4% compared to $1,298,000 for the same period in 2023[2] - Product revenues for the nine months ended September 30, 2024, reached $3,829,000, up from $3,667,000 in the same period of 2023, reflecting a growth of 4.4%[2] Operating Expenses and Losses - Operating expenses for the three months ended September 30, 2024, totaled $3,297,000, an increase of 22.3% from $2,695,000 in the same period of 2023[2] - The net loss from continuing operations for the three months ended September 30, 2024, was $(1,182,000), compared to a net loss of $(639,000) for the same period in 2023[2] - The company reported a net loss attributable to common stockholders of $(1,612,000) for the three months ended September 30, 2024, compared to $(2,567,000) for the same period in 2023[2] - The basic and diluted net loss per share attributable to common stockholders for the three months ended September 30, 2024, was $(1.18), compared to $(1.89) for the same period in 2023[2] - Net loss for the nine months ended September 30, 2024, was $2.974 million, a decrease from a loss of $11.133 million in the same period of 2023[4] Cash and Current Assets - Cash and cash equivalents decreased to $3,936,000 as of September 30, 2024, down from $6,518,000 as of December 31, 2023[1] - Total current assets decreased to $10,711,000 as of September 30, 2024, from $14,972,000 as of December 31, 2023, representing a decline of 28.4%[1] - Cash and cash equivalents at the end of the period were $3.936 million, down from $10.611 million at the end of the previous year[4] Liabilities - Total liabilities decreased to $5,092,000 as of September 30, 2024, from $7,002,000 as of December 31, 2023, indicating a reduction of 27.3%[1] Cash Flow Activities - Cash used in operating activities resulted in a net cash outflow of $678 thousand, compared to an outflow of $573 thousand in the previous year[4] - Net cash provided by investing activities was $4.827 million, a significant increase from a net cash outflow of $4.396 million in the prior year[4] - Proceeds from the sale of RS durum wheat trait amounted to $4 million, contributing to the overall cash inflow from investing activities[4] Valuation and Gains - The company had a valuation loss on March 2023 PIPE of $0, compared to a loss of $(6,076,000) in the previous period[2] - The company recognized a valuation loss of $493 thousand related to common stock warrant and option liabilities, compared to a loss of $5.965 million in the prior year[4] - The company reported a gain on the sale of investments totaling $2.501 million, which was not present in the previous year[4] - The company reported a gain of $342 thousand from the sale of property and equipment, compared to $42 thousand in the previous year[4] Stock-Based Compensation and Inventory - Stock-based compensation expenses were $395 thousand, a decrease from $573 thousand in the same period last year[4] - The company experienced a write-down of inventories amounting to $154 thousand, down from $444 thousand in the previous year[4]

Financial Performance - Arcadia Biosciences reported adjusted earnings of 78 cents per share in Q2 2024, missing the Zacks Consensus Estimate of $1.27, compared to an adjusted loss of $2.64 per share in Q2 2023 [1] - Net sales for the quarter were $1.3 million, a slight increase of 0.7% year over year, driven by higher Zola sales, and beating the Zacks Consensus Estimate of $1 million [3] - The cost of revenues decreased by 2.6% year over year to $0.63 million, while research and development expenses were $0.01 million compared to $0.03 million in the prior year [5] Strategic Transactions - Arcadia sold its GoodWheat brand to Above Food Corp. for net payments of $4 million over three years, aimed at increasing fiber content in food items [2] - The company also sold its Resistant Starch Durum trait to Corteva Agriscience for $4 million in cash, following a collaboration that began in 2017 [3] - A gain of $4 million was recognized from the asset sale to Corteva, with operating expenses reported at $0.67 million in Q2 [6] Brand Performance - Zola coconut water sales increased by 42% year over year, with new flavors introduced in Q2, and the company plans to expand distribution through mass market retailers [4] - The surge in Zola sales contributed to the overall net sales increase, despite a decline in GLA sales [3] Cash Position and Management Changes - At the end of Q2, Arcadia's cash and cash equivalents were $5.5 million, down from $6.5 million at the end of 2023, with a cash outflow of $5.7 million in operating activities for the first half of 2024 [7] - Following the departure of Stan Jacot, Thomas J. Schaefer has been appointed as the new president and CEO of Arcadia [7] Stock Performance - RKDA shares have declined by 29% over the past year, contrasting with a 3.5% decline in the industry [8]

Company Performance - Arcadia Biosciences reported quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of $1.27 per share, compared to a loss of $2.64 per share a year ago, representing an earnings surprise of -38.58% [1] - The company posted revenues of $1.31 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 37.47%, but down from year-ago revenues of $1.39 million [2] - Over the last four quarters, Arcadia Biosciences has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - Arcadia Biosciences shares have lost about 6.7% since the beginning of the year, while the S&P 500 has gained 12.1% [3] - The current consensus EPS estimate for the coming quarter is -$1.03 on $1.1 million in revenues, and -$2.29 on $4.62 million in revenues for the current fiscal year [7] - The estimate revisions trend for Arcadia Biosciences is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Agriculture - Products industry, to which Arcadia Biosciences belongs, is currently in the bottom 15% of the Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Position - As of June 30, 2024, the company reported an accumulated deficit of $273.2 million, cash and cash equivalents of $5.5 million, and short-term investments of $2.6 million[20]. - As of June 30, 2024, the fair value of the company's total assets at fair value was $5,836,000, compared to $10,049,000 as of December 31, 2023[31][32]. - The company's short-term investments included Treasury bills with an amortized cost of $2,523,000 and unrealized gains of $81,000 as of June 30, 2024[30]. - The company had total current assets of $12.4 million and current liabilities of $2.7 million as of June 30, 2024, resulting in a working capital surplus of $9.7 million[103]. - The company believes existing cash and cash equivalents will not be sufficient to meet anticipated cash requirements for at least the next 12-18 months, raising substantial doubt about its ability to continue as a going concern[101]. - The company may seek to raise additional funds through debt or equity financings, which could result in dilution to stockholders[102]. Operational Performance - For the six months ended June 30, 2024, the company incurred a net loss of $1.4 million and net cash used in operations of $5.7 million[20]. - The company recorded a net loss from discontinued operations of $789,000 for the three months ended June 30, 2024, compared to $2.0 million for the same period in 2023[23]. - The net loss from discontinued operations for GoodWheat was $789,000, a 61% improvement from a loss of $2,007,000 in the same period of 2023[90]. - Total revenues for the three months ended June 30, 2024, were $1,306,000, a 1% increase from $1,297,000 in the same period of 2023[86]. - For the six months ended June 30, 2024, total revenues were $2,293,000, a 4% decrease from $2,379,000 in 2023[91]. - Product revenues accounted for 100% of total revenues, with a $19,000 increase, or 1%, driven by higher Zola sales, offset by lower GLA sales[87]. - Cost of revenues decreased by $17,000, or 3%, to $633,000, attributed to lower freight costs[87]. - Selling, general, and administrative expenses rose by $609,000, or 29%, to $2,683,000, driven by increased consulting and legal expenses[88]. - Net income from continuing operations was $1,850,000, compared to a loss of $1,454,000 in the same period of 2023, marking a 236% improvement[86]. Discontinued Operations - The company sold the GoodWheat brand on May 16, 2024, and ceased operations of its body care brands in the third quarter of 2023 due to regulatory pressures[21]. - The company has exited the GoodWheat and body care brands, reporting these as discontinued operations in its financial statements[77]. Investments and Financing - The company plans to seek additional funding through debt or equity financings to address liquidity concerns, which may lead to dilution for existing shareholders[20]. - In March 2023, the company raised $6.0 million through a private placement, issuing 165,500 shares of common stock and various warrants[47]. - The estimated fair value of the March 2023 Options issued was $6.6 million, exceeding the gross proceeds by $5.7 million, which was recognized as a valuation loss[47]. - The company incurred additional offering costs of $548,000 related to the March 2023 Private Placement[47]. - Cash provided by financing activities for the six months ended June 30, 2024, was $5,000 from the purchase of ESPP shares[107]. Asset Management - Inventory as of June 30, 2024, totaled $1.169 million, an increase from $1.033 million as of December 31, 2023[27]. - The company recorded a write-down of $169,000 related to inventory during the three months ended June 30, 2023, with no write-downs reported for the same period in 2024[26]. - The total operating lease assets decreased to $513,000 from $792,000 as of December 31, 2023, representing a decline of approximately 35.2%[44]. - The total leased liabilities decreased to $574,000 from $1,007,000, a reduction of about 43.0%[44]. Research and Development - Research and development expenses fell by $17,000, or 63%, to $10,000, primarily due to reduced consulting fees[87]. - The company is advancing a new wheat variety with reduced gluten levels, targeting health-conscious consumers[75]. - The improved stability and flavor wheat lines are being tested for sensory characteristics and shelf-life stability, potentially enhancing consumer preference for whole grain products[76]. - The company expects to increase investments in sales and marketing for its consumer products, particularly in connection with commercialization activities[79]. Strategic Initiatives - The company plans to scale the Zola coconut water brand through retail expansion, targeting mass market retailers and grocery store chains[72]. - The company aims to monetize its wheat trait portfolio, leveraging proprietary intellectual property with multiple non-GMO wheat traits[72]. - The company intends to evaluate potential mergers and acquisitions as part of its growth strategy[72]. Legal and Compliance - The Company has no material litigation or other material legal proceedings currently pending[62].