Arcadia Biosciences(US:RKDA)2024-08-13 21:16Financial 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].