Revenue and Financial Performance - Revenue for the year ended December 31, 2024, totaled $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 slight improvement in financial performance [138]. Costs and Expenses - ATEC's cost of sales for 2024 was $4.3 million, resulting in a gross margin of 45.5%, while total cost of sales amounted to $7.3 million [142]. - 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 was $21.5 million for the year ended December 31, 2024, compared to $20.9 million for 2023, primarily for general and administrative expenses [162]. - Cash used for investing activities decreased to $1.2 million in 2024 from $5.8 million in 2023, primarily for alfalfa planting and ATEC acquisition costs [164]. Financing and Capital Structure - The company completed the sale of 10.5 million shares in January 2023 for gross proceeds of $40.32 million, which were used for debt repayment and capital expenditures [149]. - The company also raised $23.4 million from the sale of 7 million shares in November 2024 and $20 million from 5.7 million shares in March 2025, further strengthening its capital position [151][152]. - The company continues to rely on debt and equity financing to support its working capital needs and the development of water solutions [135]. - The company entered into a $50 million Credit Agreement in July 2021, using proceeds to repay $77.6 million in senior secured debt and fund working capital [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]. - Cash provided by financing activities totaled $35.5 million for the year ended December 31, 2024, up from $17.6 million in 2023, mainly from long-term debt issuance [165]. - 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 progress of the Mojave Groundwater Bank and the expected receipt of $51 million for asset transfers [167]. - The company plans to evaluate cash needs and potential capital raises continuously, including equity or debt placements [168]. Project Developments - 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 establishment of Mojave Groundwater Storage Company LLC aims to finance the estimated $800 million facility construction cost, with potential investors identified for up to $425 million [134]. - The company secured an exclusive option to purchase up to 180 miles of steel pipe for the Mojave Groundwater Bank, funded by $5 million from the November 2024 Direct Offering [153]. Goodwill Assessment - The company performed a qualitative assessment of goodwill in Q4 2024, determining that fair values were likely greater than carrying values, indicating no impairment [176].
CADIZ(CDZIP) - 2024 Q4 - Annual Report