Arcadia Biosciences(US:RKDA)2021-08-16 21:06Financial Position - As of June 30, 2021, the company had an accumulated deficit of $215.0 million and cash and cash equivalents of $44.0 million, with a net loss of $3.7 million for the six months ended June 30, 2021[29]. - The company believes its existing cash and cash equivalents will be sufficient to meet anticipated cash requirements through at least August 2022[30]. - The Company’s net income attributable to common stockholders for Q2 2021 was $(5,248,000), compared to $(9,607,000) for Q2 2020[69]. - The Company recorded a net loss attributable to common stockholders of $161,000 and $538,000 for the three and six months ended June 30, 2021, respectively[73]. Liquidity and Financing - The company generated a one-time liquidity impact of $22.2 million from the sale of 1,875,000 shares of Bioceres stock in June 2021[32]. - The company may seek additional funds through debt or equity financings, which could lead to dilution for stockholders or increased debt service obligations[33]. - The Company raised total gross proceeds of $25.1 million from a private placement in January 2021, issuing 7,876,784 shares of common stock and warrants[82]. - The Company borrowed $1.1 million under the Paycheck Protection Program, with an outstanding balance of $1.1 million as of June 30, 2021[110]. Inventory and Assets - The company recorded inventory write-downs of $823,000 for wheat and $983,000 for hemp seed during the three and six months ended June 30, 2021[38]. - As of June 30, 2021, total inventories amounted to $7.787 million, an increase from $7.297 million as of December 31, 2020[39]. - Property and equipment, net increased to $3.740 million as of June 30, 2021, compared to $3.539 million as of December 31, 2020[40]. - As of June 30, 2021, the Company's net intangible assets totaled $4,068,000, with $1,118,000 in future amortization scheduled[70]. Acquisitions - The acquisition of Industrial Seed Innovations (ISI) in August 2020 was valued at approximately $1,212,000, with $500,000 paid in cash and $432,000 in stock[53]. - The acquisition of Arcadia Wellness on May 17, 2021, totaled approximately $6.1 million, with $4.0 million in cash and $2.1 million in stock[59]. - For the period from May 17 to June 30, 2021, Arcadia Wellness generated approximately $837,000 in revenue and incurred a net loss of $144,000[65]. - The preliminary allocation of the purchase price for Arcadia Wellness included $2.9 million for trade names and trademarks, $360,000 for customer lists, and $1.24 million in goodwill[64]. Liabilities - The Company recorded a total of $14,654,000 in Level 3 liabilities as of June 30, 2021, reflecting a balance increase from $4,987,000 as of December 31, 2020[51]. - Total leased liabilities amounted to $6.69 million as of June 30, 2021, compared to $6.11 million at the end of 2020[79]. - The Company has a contingent liability of $2.0 million related to the Anawah acquisition, reflecting amounts to be paid to previous stockholders[120]. - The contingent consideration related to the ISI acquisition amounts to $280,000, with a $140,000 decrease recorded during the six months ended June 30, 2021[121]. Research and Development - The Company has a collaborative arrangement with Corteva AgriScience for the research and development of improved wheat quality traits in North America[74]. - The Company’s research and development costs are expensed as incurred, in accordance with ASC 730[75]. Stock Options and Compensation - The company had $2.5 million of unrecognized compensation cost related to unvested stock-based compensation grants as of June 30, 2021[104]. - The fair value of stock option awards was estimated using a Black-Scholes model, with expected volatility of 122% for the three months ended June 30, 2021[107]. - The company recognized $0.3 million and $0.7 million of compensation expense for stock options awards for the three and six months ended June 30, 2021, respectively[107]. - The intrinsic value of options outstanding as of June 30, 2021, was $138,915,000[103]. Lease Obligations - As of June 30, 2021, the Company had operating lease assets valued at $6.36 million, an increase from $5.83 million as of December 31, 2020[79]. - The weighted-average remaining lease term was 4.6 years as of June 30, 2021, down from 5.0 years at the end of 2020[81]. - The Company reported a net lease cost of $648,000 for the six months ended June 30, 2021, compared to $659,000 for the same period in 2020[79]. - The Company made lease payments of $42,000 and $48,000 for the six months ended June 30, 2021 and 2020, respectively[129].