Arcadia Biosciences(RKDA) - 2024 Q4 - Annual Report

Financial Performance - Total revenues for the year ended December 31, 2024, were $5,045,000, an increase of 13.3$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$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$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]