Arcadia Biosciences(US:RKDA)2023-11-09 22:03Financial Position - As of September 30, 2023, the company reported an accumulated deficit of $269.0 million, cash and cash equivalents of $10.6 million, and short-term investments of $5.1 million[29]. - As of September 30, 2023, the company had total assets at fair value of $13.761 million, including cash equivalents and short-term investments[45]. - The fair value of total investment securities as of September 30, 2023, was $13,761,000, a decrease of 26.6% from $18,620,000 on December 31, 2022[47]. - The company anticipates that its existing cash and investments will not be sufficient to meet its cash requirements for at least the next 12-18 months, raising substantial doubt about its ability to continue as a going concern[30]. Operational Performance - For the nine months ended September 30, 2023, the company incurred net losses of $11.1 million and net cash used in operations of $11.1 million[29]. - The net loss from discontinued operations for the three months ended September 30, 2023, was $83,000, compared to a loss of $589,000 for the same period in 2022[35]. - The Company recorded inventory write-downs of $252,000 and $444,000 for the three and nine months ended September 30, 2023, respectively[37]. - Total inventories as of September 30, 2023, amounted to $4.281 million, an increase from $3.088 million as of December 31, 2022[38]. Financing Activities - The Company raised $6.0 million in gross proceeds from the March 2023 Private Placement, which included the issuance of 165,500 shares of common stock and various preferred investment options[61]. - The Company has a shelf Registration Statement allowing for aggregate offering prices of up to $50.0 million, effective until May 12, 2025[66]. - The Company incurred additional offering costs of $548,000 related to the March 2023 Private Placement, with $212,000 attributed to the Placement Agent Options[65]. - The August 2022 Registered Direct Offering generated total gross proceeds of $5.0 million, including the sale of 61,250 registered shares and pre-funded warrants[67]. Liabilities and Contingencies - The Company recorded a contingent liability related to the Anawah acquisition, which is measured using unobservable inputs regarding the pursuit of specific products[48][49]. - The Company has a contingent liability of $2.0 million related to the Anawah acquisition, reflecting ongoing development programs using acquired technology[93]. - As of September 30, 2023, the Company’s Level 3 liabilities included $3,836,000, down from $2,806,000 as of December 31, 2022, reflecting changes in fair value and other adjustments[52]. Stock and Compensation - The Company recognized $162,000 and $573,000 of compensation expense for stock options awards during the three and nine months ended September 30, 2023, respectively[85]. - As of September 30, 2023, there was $833,000 of unrecognized compensation cost related to unvested stock-based compensation grants, expected to be recognized over a weighted-average remaining period of 2.0 years[81]. - The Company has 84,058 options outstanding under its stock incentive plans as of September 30, 2023, with a weighted average exercise price of $82.71[80]. - The Company recorded $7,000 and $12,000 of Employee Stock Purchase Plan (ESPP) related compensation expense during the three and nine months ended September 30, 2023, respectively[86]. Lease and Asset Management - The weighted-average remaining lease term as of September 30, 2023, was 1.9 years, with a weighted-average discount rate of 6.4%[60]. - The Company’s operating lease liabilities totaled $1,271,000 as of September 30, 2023, down from $2,017,000 on December 31, 2022[60]. - Property and equipment, net, decreased to $468,000 as of September 30, 2023, from $680,000 as of December 31, 2022[39]. Research and Development - The Company accounts for research and development costs as expenses incurred, with no guarantee of technological or commercial success in collaborative arrangements[58]. - The Company has entered into contract research agreements with initial terms ranging from one to three years, which may require certain funding commitments[95]. Taxation - The effective tax rate for the Company was 0.00% for each of the three and nine months ended September 30, 2023 and 2022, primarily due to a full valuation allowance on net deferred tax assets[88]. Subsequent Events - Management has evaluated subsequent events through November 9, 2023, the date the financial statements were available to be issued[102].