Cadiz (US:CDZI)2025-03-28 12:46Financial Performance - Total revenue for the year ended December 31, 2024, was $9.6 million, a significant increase from $2.0 million in 2023, primarily driven by ATEC sales of $7.9 million [141]. - The company incurred a net loss of $31.1 million for the year ended December 31, 2024, compared to a net loss of $31.4 million in 2023, indicating a relatively stable loss year-over-year [138]. - ATEC's gross margin for 2024 was 45.5%, contributing to the overall revenue growth despite ongoing challenges in the alfalfa market [142]. Expenses and Costs - General and administrative expenses increased to $19.7 million in 2024 from $17.3 million in 2023, primarily due to higher professional fees and marketing activities [143]. - Interest expense rose to $7.9 million in 2024 from $4.9 million in 2023, largely due to increased borrowing under the Third Amended Credit Agreement [145]. - Cash used for operating activities totaled $21.5 million for the year ended December 31, 2024, compared to $20.9 million for 2023, primarily for general and administrative expenses [162]. Financing and Capital - The company completed several equity offerings, raising approximately $40.32 million in January 2023 and $23.4 million in November 2024, to support its development projects [149][151]. - The company established Mojave Groundwater Storage Company LLC to finance the construction of a facility with an estimated cost of $800 million, aiming to raise up to $425 million from investors [134]. - The company expects to meet short-term working capital needs with approximately $18.3 million from the March 2025 Direct Offering and existing cash [166]. - Long-term capital needs will depend on the development of the Mojave Groundwater Bank and the expected receipt of $51 million for asset transfers [167]. - The company plans to evaluate cash requirements continuously and may raise funds through equity or debt placements as necessary [168]. Debt and Agreements - The company entered into a $50 million Credit Agreement in July 2021, which was used to repay approximately $77.6 million in senior secured debt and fund dividend payments [154]. - The First Amended Credit Agreement allows lenders to convert up to $15 million of outstanding principal into common stock at a conversion price of $4.80 per share [155]. - The annual interest rate on the remaining principal amount of $21.2 million is 7.00%, with interest on new secured convertible debt paid in kind quarterly [159]. Water Supply and Infrastructure - The company has secured agreements with multiple public water systems for the purchase of 21,275 acre-feet per year (AFY) of water supply, representing 85% of the Northern Pipeline's capacity [132]. - The company has not yet received significant revenues from its water supply, storage, or conveyance assets, relying on ATEC sales and agricultural operations for current revenue [140]. - The company secured an exclusive option to purchase up to 180 miles of steel pipe for the Mojave Groundwater Bank, utilizing $5 million from the November 2024 Direct Offering [153]. Acquisitions and Goodwill - The company completed the acquisition of ATEC in 2022, enhancing its portfolio with innovative water filtration solutions for contaminated groundwater [130]. - The goodwill of all reporting units was assessed and determined to be more-likely-than-not greater than their carrying values, indicating no impairment [176].