Arcadia Biosciences(US:RKDA)2022-03-31 21:30Financial Performance - Total revenues for the year ended December 31, 2021, were $6,780,000, a decrease from $8,034,000 in 2020, representing a decline of approximately 15.6%[240] - Product revenues increased significantly to $6,587,000 in 2021 from $1,044,000 in 2020, marking a growth of approximately 531%[240] - The net loss attributable to common stockholders for 2021 was $14,660,000, compared to a net loss of $4,655,000 in 2020, reflecting an increase in losses of approximately 214%[240] - The net loss for the year ended December 31, 2021, was $16,134,000, compared to a net loss of $6,026,000 for the year ended December 31, 2020, representing an increase in loss of approximately 168%[248] - The company reported a total stockholders' equity of $31,196,000 as of December 31, 2021, up from $28,552,000 at the end of 2020[244] Expenses and Liabilities - Operating expenses for 2021 totaled $42,306,000, up from $20,812,000 in 2020, indicating an increase of about 103%[240] - The company had total liabilities of $12,722,000 as of December 31, 2021, down from $18,796,000 in 2020, representing a decrease of approximately 32.4%[238] - The company incurred offering costs of $769,000 in 2021, compared to no offering costs in 2020[248] - The company recorded a loss of $497,000 from the sale of its subsidiary Arcadia Spain in November 2021[255] Cash and Cash Equivalents - Cash and cash equivalents as of December 31, 2021, were $28,685,000, an increase from $14,042,000 in 2020, representing a growth of about 104%[238] - Cash used in operating activities for the year ended December 31, 2021, was $25,868,000, a decrease from $30,218,000 in 2020[248] - Cash provided by financing activities for the year ended December 31, 2021, was $21,900,000, compared to $20,560,000 in 2020[248] - The company had cash, cash equivalents, and restricted cash of $28,685,000 at the end of 2021, an increase from $16,043,000 at the end of 2020[248] Assets and Deficits - The company reported an accumulated deficit of $226,485,000 as of December 31, 2021, compared to $211,825,000 in 2020, indicating a worsening of the deficit by approximately 6.9%[238] - Total assets decreased to $43,918,000 in 2021 from $47,348,000 in 2020, a decline of about 7.4%[238] - As of December 31, 2021, the net property and equipment decreased to $2,291,000 from $3,539,000 in 2020, reflecting a decline of approximately 35.2%[321] Acquisitions and Investments - The recent acquisitions of Lief, Eko, and Zola expanded the Company's portfolio to include CBD-infused products and coconut water[254] - The acquisition of Industrial Seed Innovations (ISI) was recorded with a total purchase price consideration of $1,212,000, including $500,000 in cash and $432,000 in common stock[340] - The total purchase price allocation for the acquisition of Arcadia Wellness was approximately $6.1 million, consisting of $4.0 million in cash and $2.1 million in stock[348] Impairments and Write-downs - The impairment of intangible assets was recorded at $3,302,000 in 2021, indicating significant challenges in asset valuation[240] - The Company recorded an impairment of intangible assets amounting to $3.3 million due to a decrease in sales forecasts for Arcadia Wellness products[360] - The Company recorded impairments of property and equipment totaling $1.5 million for the year ended December 31, 2021, primarily due to the winding down of cultivation activities related to Archipelago[323] Stock and Equity - The company’s common stock, $0.001 par value, increased in shares issued and outstanding from 13,450,861 in 2020 to 22,184,235 in 2021[238] - The total number of warrants outstanding at December 31, 2021, was 5,675,052, with various exercise prices ranging from $1.92 to $41.56[398] - The Company recognized $1.5 million and $2.0 million of compensation expense for stock options awards for the years ended December 31, 2021 and 2020, respectively[411] Revenue Recognition - The Company’s revenue recognition includes product sales, licensing agreements, and government grants, with revenues fluctuating based on shipment timing[299][306] - Significant customers representing over 10% of total revenues included Customer D at 11% and Customer B at 10% for the year ended December 31, 2021, compared to Customer A at 83% in 2020[295] Legal and Regulatory - There are no material legal proceedings currently involving the Company[414]