Arcadia Biosciences(US:RKDA)2021-11-15 21:53Financial Position - As of September 30, 2021, the company had an accumulated deficit of $217.2 million and cash and cash equivalents of $35.5 million[30]. - For the nine months ended September 30, 2021, the company reported a net loss of $6.6 million and net cash used in operations of $19.2 million[30]. - As of September 30, 2021, total inventories amounted to $8.986 million, an increase from $7.297 million as of December 31, 2020[41]. - The company’s property and equipment, net decreased from $3.539 million as of December 31, 2020, to $2.634 million as of September 30, 2021[41]. - The Company’s lease liabilities totaled $3.696 million as of September 30, 2021, down from $6.106 million at December 31, 2020[84]. 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[33]. - The company may seek additional funds through debt or equity financings, which could result in dilution for stockholders[34]. - The Company raised total gross proceeds of $25.1 million from the January 2021 Private Placement, issuing 7,876,784 shares of common stock and warrants for 3,938,392 shares at an exercise price of $3.13[87]. - The Company raised a total of $8.0 million from the December 2020 Registered Direct Offering by selling 2,618,658 shares of common stock and unregistered warrants[97]. - The Company borrowed $1.1 million under the Paycheck Protection Program, which was fully forgiven in August 2021[116]. Acquisitions and Intangible Assets - The Company acquired Industrial Seed Innovations for a total estimated purchase price of $1,212,000, including $500,000 in cash and $432,000 in common stock[56]. - 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 common stock[64]. - The total intangible assets, net as of September 30, 2021, amounted to $4,146,000, reflecting an impairment of $120,000 due to decreased sales forecasts for ISI seeds[74]. - The Company recognized a deferred tax liability of $107,000 related to the acquisition of ISI, which will enable the realization of a portion of existing deferred tax assets[60]. - The weighted average amortization period for acquired intangible assets from the Arcadia Wellness acquisition is 12.9 years[70]. Revenue and Losses - For the period from May 17 to September 30, 2021, Arcadia Wellness generated approximately $2.6 million in revenue and incurred a net loss of $1.0 million[69]. - The net loss attributable to non-controlling interest for the three and nine months ended September 30, 2021, was $661,000 and $1.199 million, respectively[78]. - The effective tax rate for the three months ended September 30, 2021, was -0.04%, primarily due to a full valuation allowance on net deferred tax assets[121]. Stock and Compensation - As of September 30, 2021, there was $2.3 million of unrecognized compensation cost related to unvested stock-based compensation grants[110]. - The Company issued 248,000 inducement stock options on May 17, 2021, following the completion of the Arcadia Wellness transaction[108]. - The 2015 Omnibus Equity Incentive Plan had 1,595,876 shares reserved for issuance as of September 30, 2021, with 297,540 shares available for future grant[108]. - The Company recognized $0.4 million and $1.0 million of compensation expense for stock options awards for the three and nine months ended September 30, 2021, respectively[113]. Liabilities and Contingent Liabilities - The Company has a contingent liability related to acquisitions that could significantly affect fair value measurements based on future performance[50][51]. - The Company has a contingent liability of $2.0 million related to the Anawah acquisition, which remains on the balance sheet as an other noncurrent liability[127]. - The Company recorded a $140,000 decrease in the contingent consideration liability related to the ISI acquisition during the nine months ended September 30, 2021[128]. Research and Development - The Company has a collaborative arrangement with Corteva AgriScience for the research and development of improved wheat quality traits, sharing both costs and profits[80]. - The Company has entered into contract research agreements with initial terms ranging from one to three years, requiring certain funding commitments[129]. Lease Agreements - The Company leases 10 acres of land on Molokai, Hawaii, at a rate of $1,200 per acre per year, with the original lease executed in February 2019[136]. - Lease payments made by the Company for the nine months ended September 30, 2021, totaled $81,000, compared to $84,000 for the same period in 2020[136]. - Two lease amendments were made in March and April 2020 for two additional 10-acre parcels and two additional 15-acre parcels, maintaining the same lease rate[136].