Arcadia Biosciences, Inc. (Nasdaq: RKDA), an agricultural
technology company that creates value for farmers while benefitting
the environment and enhancing human health, today released its
financial and business results for the first quarter ended March
31, 2017.
Revenues for the quarter were up 19 percent to $1.0 million,
compared to $852,000 for the first quarter of 2016. The increase
reflects higher contract and grant revenue, primarily the result of
a new agreement. Operating expenses for the first quarter were $5.0
million compared to $5.8 million for the same period in the prior
year.
The company’s loss from operations was $4.0 million in the first
quarter of 2017 compared to $4.9 million in the first quarter of
2016. Net loss and net loss attributable to common stockholders in
the first quarter of 2017 was $4.2 million, compared to $5.2
million in the comparable period in 2016.
Cash on hand and liquid investments at the end of the first
quarter totaled $48.5 million.
“We are pleased with our progress in Q1 of this year, having
increased revenue and lowered our operating expenses, reducing our
loss by 20 percent compared to the same period last year,” said Raj
Ketkar, president and CEO of Arcadia. “We also met with several of
our key business partners, who continue to be committed to the
commercialization of our rich pipeline in our yield trait and food
ingredient platforms.”
Business and Technology Highlights
Arcadia made the following business and technical achievements
in the first quarter of 2017:
- Arcadia
Biosciences Obtains U.S. FDA GRAS Status for
SONOVA® GLA Safflower Oil. Arcadia followed FDA-proposed
procedures to establish its high gamma-linolenic acid (GLA)
safflower oil as GRAS (generally recognized as safe). This approval
expands the application options for use of SONOVA GLA oil, opening
adjacent markets in nutritional beverages and medical foods.
- Study Shows
Arcadia’s Nitrogen Use Efficiency Trait Increases Yield in NERICA
Rice. In field evaluations over three growing seasons and in
both upland and lowland rice production systems, rice lines with
Arcadia’s NUE trait showed substantial yield increases under
different nitrogen application rates. The leading NUE rice line
showed a 34 percent increase over controls.
- Origin, Arcadia
Announce China Biotechnology Collaboration in Corn. Arcadia
announced a collaboration with Origin Agritech to deregulate insect
resistance/ herbicide tolerance traits in corn. The project
involves the first-ever export of a key corn biotechnology product
developed in China to the U.S., and Arcadia will assist Origin in
developing information for submission to regulatory authorities in
the U.S., China and other countries.
- Arcadia and
Limagrain Explore New Wheat Trait Development Collaboration.
Arcadia and its wheat trait development partner Limagrain agreed to
pursue an optimized collaboration structure to explore new wheat
trait development activities, and for Arcadia to exit the existing
joint venture between the parties, Limagrain Cereal Seeds (LCS). In
connection with the exit from LCS, Arcadia exchanged its 35 percent
ownership in LCS for the 1.8 million shares of Arcadia common stock
previously held by Limagrain, which were retired by Arcadia upon
receipt, thereby reducing the company’s outstanding common stock
from 44.5 million to 42.7 million, or 4%, as of March 31,
2017.
Since the close of the first quarter, Arcadia has announced the
following:
- SONOVA GLA
Safflower Oil Approved For Use in Dog Food. After completing
its review of Arcadia’s food additive petition, the FDA concluded
that the data supports the safety and functionality of GLA
safflower oil as a source of omega-6 fatty acids in dry food for
adult dogs. The petition will be approved when the final rule is
published in the Federal Register. This approval opens up an
expanded opportunity for use SONOVA GLA safflower oil in pet
nutrition and demonstrates Arcadia’s strong regulatory capabilities
and commitment toward creating the greatest possible value for our
entire product portfolio.
Arcadia Biosciences, Inc. Financial Snapshot
(Unaudited)
($ in thousands)
Three Months Ended March 31 2017
2016 $ Favorable/ % Favorable/
(Unfavorable) (Unfavorable)
Total Revenues 1,018 852 166 19%
Total Operating Expenses 4,981 5,785 804 14%
Loss From
Operations (3,963 ) (4,933 ) 970 20%
Net Loss and Net Loss
Attributable to Common Stockholders (4,216 ) (5,190 ) 974 19%
Revenues
In the first quarter of 2017, revenues were $1.0 million
compared to revenues of $852,000 in the first quarter of 2016, a 19
percent improvement. The quarter-over-quarter increase was driven
by additional revenue from a new contract research agreement in
2017.
Operating Expenses
In the first quarter of 2017, operating expenses totaled $5.0
million, down from $5.8 million in the first quarter of 2016, a
decrease of $804,000 or 14 percent. Cost of product revenues
decreased by $41,000 as a result of slightly lower sales when
comparing the respective periods. Research and development
(R&D) spending decreased by $379,000 and general and
administrative (SG&A) expenses decreased by $384,000. Both
decreases were driven primarily by lower salaries and benefits,
mainly the result of workforce reductions made during 2016.
Net Loss Attributable to Common Stockholders
Net loss attributable to common stockholders for the first
quarter of 2017 was $4.2 million, or a loss of $0.10 per share, a
19 percent improvement from the $5.2 million loss in the first
quarter of 2016.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m.
Eastern (1:30 p.m. Pacific) today, May 10, to discuss first-quarter
financial results and key strategic achievements.
Interested participants can join the conference call using the
following numbers:
U.S. Toll-Free Dial-In: +1-855-243-4690 International
Dial-In: +1-225-283-0138 Passcode: 12082266
A live webcast of the conference call will be available on the
“Investors” section of the Arcadia’s website at www.arcadiabio.com.
Following completion of the call, a recorded replay will be
available on the company’s investor website.
Safe Harbor Statement
“Safe Harbor” statement under the Private Securities Litigation
Reform Act of 1995: This press release and the accompanying
conference call contain forward-looking statements about the
company and its products, including statements relating to
components of the company’s long-term financial success; the
company’s traits, commercial products, and collaborations; and the
company’s ability to manage the regulatory processes for its traits
and commercial products. Forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially, and reported results should not be considered as an
indication of future performance. These risks and uncertainties
include, but are not limited to: the company’s and its partners’
ability to develop commercial products incorporating its traits and
to complete the regulatory review process for such products; the
company’s compliance with laws and regulations that impact the
company’s business, and changes to such laws and regulations; and
the company’s future capital requirements and ability to satisfy
its capital needs. Further information regarding these and other
factors that could affect the company’s financial results is
included in filings the company makes with the Securities and
Exchange Commission from time to time, including the section
entitled “Risk Factors” in the company's Annual Report on Form 10-K
for the year ended December 31, 2016. These documents are on the
SEC Filings section of the “Investors” section of the company’s
website at www.arcadiabio.com. All information provided in this
release and in the attachments is as of the date hereof, and
Arcadia Biosciences, Inc. undertakes no duty to update this
information.
About Arcadia Biosciences, Inc.
Based in Davis, Calif., Arcadia Biosciences (Nasdaq: RKDA)
develops agricultural products that create added value for farmers
while benefitting the environment and enhancing human health.
Arcadia’s agronomic performance traits, including Nitrogen Use
Efficiency, Water Use Efficiency, Salinity Tolerance, Heat
Tolerance and Herbicide Tolerance, are all aimed at making
agricultural production more economically efficient and
environmentally sound. Arcadia’s nutrition traits and products are
aimed at creating healthier ingredients and whole foods with lower
production costs. For more information, visit
www.arcadiabio.com.
Arcadia Biosciences, Inc. Condensed Consolidated
Balance Sheets (Unaudited)
(In thousands, except share data)
March 31, December
31, 2017 2016 Assets Current
assets: Cash and cash equivalents $ 7,559 $ 2,013 Short-term
investments 40,966 48,547 Accounts receivable 284 349 Unbilled
revenue 112 184 Inventories — current 242 252 Prepaid expenses and
other current assets 1,281 877 Total current assets
50,444 52,222 Property and equipment, net 486 508 Inventories —
noncurrent 1,276 1,327 Long-term investments — 2,498 Other
noncurrent assets 442 19 Total assets $ 52,648 $
56,574
Liabilities and stockholders’ equity Current
liabilities: Accounts payable and accrued expenses $ 2,183 $ 2,359
Amounts due to related parties 20 30 Notes payable — current 2,083
— Unearned revenue — current 885 740 Total current
liabilities 5,171 3,129 Notes payable — noncurrent 23,092 25,127
Unearned revenue — noncurrent 3,014 3,120 Other noncurrent
liabilities 3,000 3,000 Total liabilities
34,277 34,376 Stockholders’ equity: Common stock, $0.001 par
value—400,000,000 shares authorized as of March 31, 2017 and
December 31, 2016; 42,664,821 and 44,487,678 shares issued and
outstanding as of March 31, 2017 and December 31, 2016 43 44
Additional paid-in capital 174,114 173,723 Accumulated deficit
(155,766 ) (151,550 ) Accumulated other comprehensive loss
(20 ) (19 ) Total stockholders’ equity 18,371
22,198 Total liabilities and stockholders’ equity $ 52,648 $ 56,574
Arcadia Biosciences, Inc. Condensed Consolidated
Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands, except share and per share
data)
Three Months Ended March 31,
2017 2016 Revenues:
Product $ 205 $ 255 License 106 152 Contract research and
government grants 707 445 Total revenues 1,018 852
Operating expenses: Cost of product revenues 106 147 Research and
development 1,823 2,202 Selling, general and administrative
3,052 3,436 Total operating expenses 4,981
5,785 Loss from operations (3,963 ) (4,933 ) Interest expense (339
) (327 ) Other income, net 96 76 Net loss before
income taxes (4,206 ) (5,184 ) Income tax provision (10 )
(6 ) Net loss and net loss attributable to common
stockholders $ (4,216 ) $ (5,190 ) Net loss per share attributable
to common stockholders: Basic and diluted $ (0.10 ) $ (0.12 )
Weighted-average number of shares used in
per share calculations:
Basic and diluted 44,360,189 44,215,156 Other
comprehensive income (loss), net of tax
Unrealized gains (losses) on
available-for-sale securities
(1 ) 84 Other comprehensive income (loss) (1 )
84 Comprehensive loss attributable to common stockholders $
(4,217 ) $ (5,106 )
Arcadia Biosciences, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three Months Ended March 31,
2017 2016 CASH FLOWS FROM
OPERATING ACTIVITIES: Net loss $ (4,216 ) $ (5,190 ) Adjustments to
reconcile net loss to cash used in operating activities:
Depreciation and amortization 81 67 Gain on disposal of equipment
(3 ) — Net amortization of investment premium and discount (36 ) 76
Stock-based compensation 371 221 Accretion of debt discount 49 48
Changes in operating assets and liabilities: Accounts receivable 65
119 Unbilled revenue 72 (24 ) Inventories 62 14 Prepaid expenses
and other current assets (404 ) (641 ) Other noncurrent assets (423
) (152 ) Accounts payable and accrued expenses (176 ) 414 Amounts
due to related parties (10 ) (7 ) Unearned revenue 38
200 Net cash used in operating activities (4,530 )
(4,855 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale
of property and equipment 4 — Purchases of property and equipment
(57 ) (137 ) Purchases of investments (4,582 ) — Proceeds from
sales and maturities of investments 14,695 10,465 Net
cash provided by investing activities 10,060 10,328
CASH FLOWS FROM FINANCING ACTIVITIES: Payments of debt issuance
costs — (45 ) Proceeds from exercise of stock options and ESPP
purchases 16 139 Net cash provided by financing
activities 16 94 Net increase in cash and cash
equivalents 5,546 5,567 Cash and cash equivalents — beginning of
period 2,013 23,973 Cash and cash equivalents — end
of period $ 7,559 $ 29,540 SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION: Cash paid for interest $ 288 $ 193 Cash paid for
income taxes $ — $ 1 NONCASH INVESTING AND FINANCING ACTIVITIES:
Exchange of membership interest in unconsolidated entity for common
stock $ 2 $ — Purchases of property and equipment included in
accounts payable and accrued expenses $ 2 $ 1
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version on businesswire.com: http://www.businesswire.com/news/home/20170510005408/en/
Arcadia Biosciences, Inc.Jeff
Bergaujeff.bergau@arcadiabio.com+1-312-217-0419
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