Arcadia Biosciences(RKDA) - 2025 Q3 - Quarterly Report

Financial Performance - Arcadia reported product revenues of $1,302,000 for the three months ended September 30, 2025, a decrease of 15% compared to $1,537,000 in the same period of 2024[133]. - The company recorded a net income of $856,000 from continuing operations for Q3 2025, a significant improvement compared to a net loss of $1,182,000 in Q3 2024[133]. - Arcadia's other income surged to $1,698,000 in Q3 2025, compared to only $15,000 in Q3 2024, marking a 11220% increase[133]. - Product revenues decreased by $235,000, or 15%, during the three months ended September 30, 2025, compared to the same period in 2024[134]. - Product revenues increased by $128,000, or 3%, during the nine months ended September 30, 2025, driven entirely by Zola coconut water sales[145]. Operating Expenses - Total operating expenses decreased by 26% to $2,454,000 in Q3 2025 from $3,297,000 in Q3 2024, driven by a 30% reduction in selling, general and administrative expenses[133]. - Research and development expenses were eliminated in Q3 2025, down from $24,000 in Q3 2024, reflecting a strategic shift in focus[133]. - Selling, general, and administrative expenses decreased by $671,000 during the three months ended September 30, 2025, primarily due to operating costs that were absent in 2025[137]. - Selling, general, and administrative expenses decreased by $1.6 million during the nine months ended September 30, 2025, compared to the same period in 2024[151]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $1.1 million, with a net loss of $1.0 million for the nine months ended September 30, 2025[159]. - Cash used in operating activities for the nine months ended September 30, 2025, was $3,878,000, compared to $7,418,000 for the same period in 2024[165][167]. - The company reported a net decrease in cash of $3,122,000 for the nine months ended September 30, 2025, compared to a decrease of $2,582,000 in 2024[165]. - Cash provided by investing activities for the nine months ended September 30, 2025, consisted of proceeds from the sale of intangible assets amounting to $750,000[168]. - Current assets as of September 30, 2025, were $8,387,000, while current liabilities were $2,285,000, resulting in a working capital surplus of $6,102,000[164]. Discontinued Operations - The company experienced a 100% increase in net loss from discontinued operations, reporting no loss in Q3 2025 compared to a loss of $430,000 in Q3 2024[133]. Strategic Transactions - Arcadia sold its non-GMO Resistant Starch durum wheat trait to Corteva for $4.0 million, retaining certain rights to use the trait[111]. - The company sold the GoodWheat™ brand to Above Food Corp. for net consideration of $3.7 million, resulting in a loss of $1,500 during Q2 2024[112]. - Arcadia entered into a Securities Exchange Agreement to issue shares of common stock to the limited partners of Roosevelt, resulting in a 90% ownership for the partners post-transaction[113]. Risks and Future Outlook - The company may seek additional funding through debt or equity financings, which could result in dilution for existing shareholders[162]. - If the company cannot secure adequate funding, it may be forced to reduce spending, extend payment terms, liquidate assets, or initiate bankruptcy proceedings[163]. - The market price of AFII common stock is very volatile, and there are no assurances regarding the net proceeds from potential sales of AFII shares[162]. Accounting and Estimates - Critical accounting estimates include revenue recognition, provision for income taxes, and net realizable value of inventory[172].