Financial Performance - Arcadia Biosciences reported an 11% increase in total revenues for the second quarter of 2025, amounting to $1.455 million compared to $1.306 million in the same period of 2024 [3][5][7] - Zola® coconut water sales drove this revenue growth, with a 24% increase, contributing $280,000 to the total revenue in Q2 2025 [3][8] - For the first half of 2025, total revenues increased by 16% to $2.655 million, with Zola revenues rising by 47% [9] Operating Expenses - Total operating expenses for Q2 2025 were $1.956 million, a significant increase compared to the previous year, primarily due to higher costs associated with Zola coconut water [5][10] - Cost of revenues for Zola increased by 30% in Q2 2025, reflecting a $191,000 rise [10] - SG&A expenses decreased by $560,000 in Q2 2025 compared to the same period in 2024, indicating improved operational efficiency [12] Net Income and Loss - The net loss attributable to common stockholders for Q2 2025 was $4.458 million, a significant decline from a net income of $1.061 million in Q2 2024, largely due to a $4.5 million credit loss related to a note receivable [17][19] - For the first half of 2025, the net loss attributable to common stockholders was $1.9 million, compared to a loss of $1.4 million in the same period of 2024 [19] Strategic Developments - Arcadia received 2.7 million shares of stock in Above Food Ingredients Inc. as part of a repayment related to the sale of GoodWheat™ assets [4][15] - The company has eliminated $1 million in contingent liabilities, contributing to a total of $2 million in liabilities removed year-to-date [4] Business Combination - The pending business combination with Roosevelt Resources is progressing, with an amendment filed to the initial Form S-4 registration statement to address SEC comments and provide updated financial information [5][20]

Financial Data and Key Metrics Changes - In Q1 2025, total revenues were approximately $1.2 million, representing a 22% increase year over year [16] - Zola revenues increased 90% compared to the same period last year, driven by a 70% increase in new distribution [4][17] - The cost of revenues in Q1 was approximately $680,000, a 45% increase year over year, with a gross margin rate of 43% compared to 52% in Q1 2024 [17] - Selling, general and administrative costs were $1.7 million, down from $2.1 million in Q1 2024 [19] Business Line Data and Key Metrics Changes - Zola coconut water sales increased 90% year over year, with sell-through data showing a 76% increase [4][6] - The company has successfully launched new flavors, with pineapple sales in the first four months of 2025 surpassing total sales from the previous year [7] - The company has a healthy pipeline and is in discussions with new customers and distributors representing over 50% of its current customer base [8] Market Data and Key Metrics Changes - The coconut water category grew 24% during the same period, indicating Zola's growth is significantly outpacing the overall market [6] - Zola's market presence is expected to expand, with new customer accounts already won in Q2 [8] Company Strategy and Development Direction - The company is focused on monetizing its intellectual property and exiting its legacy ag tech business [10][12] - A pending business combination with Roosevelt Resources is on track to be completed by the end of summer 2025, with a fixed equity share ratio established [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued momentum from 2024 into 2025, with strong sales growth and a robust pipeline of opportunities [35] - The company does not anticipate significant impacts from recently announced tariffs due to proactive inventory management and cost-saving measures [9] Other Important Information - The company completed a transaction to regain rights to certain patents, eliminating a $1 million contingent liability from its balance sheet [12][19] - Cash at the end of Q1 was $3.2 million, down from $4.2 million at the start of the year, reflecting ongoing M&A expenses [20] Q&A Session Summary Question: Can you quantify any successes in expanding the distribution pipeline for Zola? - Management indicated that the pipeline is about half of the current distribution, which is approximately 3,500 stores [27] Question: Will the momentum in distribution be reflected in 2025 financials? - Management expects that most of the awarded accounts will impact 2025 financials, despite a potential lag in product placement [28] Question: Is there any commercial value in the remaining patent from the legacy ag biotech business? - There is potential commercial value, but it is licensed to a third party, which is two years away from commercialization [29] Question: When is the expected receipt of the $2.5 million initial payment for the note receivable? - Management confirmed that the payment is scheduled for receipt in Q2 [31]

Core Insights - Arcadia Biosciences, Inc. reported a 22% year-over-year increase in total revenues, driven by a 90% growth in Zola® coconut water sales [1][6] - The company successfully sold patents for $750,000 and eliminated $1 million in liabilities, indicating a strategic exit from its legacy business [3] - An amendment to the Roosevelt agreement has been made to provide greater certainty regarding the exchange ratio, enhancing ownership certainty for Arcadia's stockholders post-transaction [4] Financial Performance - Total revenues for Q1 2025 reached $1.2 million, up from $987,000 in Q1 2024, marking a $213,000 increase [4] - Zola coconut water sales accounted for the entire revenue increase, with sales rising by $567,000, or 90%, compared to the same period last year [6] - Operating expenses decreased significantly by $1.9 million, primarily due to reductions in selling, general and administrative expenses [7][10] Profitability Metrics - Income from continuing operations improved to $530,000 in Q1 2025, compared to a loss of $1.6 million in Q1 2024, reflecting a 133% favorable change [4] - Net income attributable to common stockholders was $2.6 million, or $1.90 per share, a $5 million improvement from a net loss of $2.4 million, or $1.78 per share, in Q1 2024 [11] Operational Highlights - Gross margins have exceeded 30% for nine consecutive quarters, indicating strong operational efficiency [2] - Distribution of Zola coconut water grew by 70% year-over-year, contributing to the sales increase [2] - The company did not implement any price increases during 2024 or Q1 2025, focusing on volume growth instead [6]

Financial Data and Key Metrics Changes - For full year 2024, total revenues increased to just over $5 million, a 13% increase compared to 2023, driven by a 46% increase in Zola sales despite a 49% decline in GLA oil sales [8][24] - Q4 total revenues were approximately $1.2 million, representing a 56% increase year-over-year, with Zola revenues increasing by 124% in Q4 [23][24] - Gross margin rate declined from 51% in 2023 to 41% in 2024, with Q4 gross margin at 32% [24][25] Business Line Data and Key Metrics Changes - Zola sales increased 46% for the full year 2024, with a significant 80% growth in the second half of the year [11][13] - GLA sales for the full year were $756,000, with Q4 sales at $55,000, and the company is completely sold out of GLA inventory as of December 31, 2024 [38] Market Data and Key Metrics Changes - The shelf-stable coconut water category grew 28.7% in the four weeks ending December 28, 2024, while Zola's growth was 73.7% during the same period [14] - For the full year, the coconut water category grew 18.5%, while Zola increased by 38.5% [15] Company Strategy and Development Direction - The company has focused on simplifying its business by exiting underperforming Body Care brands and concentrating on Zola coconut water products [6][7] - The strategy has resulted in a leaner company with reduced operating expenses and a focus on profitable growth [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Zola's momentum entering 2025, supported by new distribution gains from the second half of 2024 [17][45] - The company aims to maintain tight cost controls while expanding revenues, achieving gross margins above 30% for eight consecutive quarters [45] Other Important Information - The company ended 2024 with $4.2 million in cash, down from $11.6 million at the start of the year, but managed to reduce operating cash consumption in the second half [28][31] - A pending transaction with Roosevelt Resources is expected to be completed towards the end of Q2 2025 [20][19] Q&A Session Summary Question: Expectations for continued Zola distribution growth in 2025 - Management indicated a healthy pipeline for distribution growth in 2025, benefiting from full-year impact of new distribution established in 2024 [36] Question: Full year GLA revenue and confirmation of inventory status - Full year GLA revenue was $756,000, with Q4 revenue at $55,000, confirming that the company is completely out of GLA inventory as of December 31, 2024 [38] Question: Status of monetizing legacy IP from prior business model - Management is in advanced discussions to monetize the wheat patent portfolio, expecting to complete transactions in the first half of the year [40][42]