- GoodWheat™ expands into breakfast category with the launch
of better-for-you pancake and waffle mixes
- Exiting Body Care to reduce OpEx, focus on Food &
Beverage
- Exploring strategic opportunities to drive shareholder
value
Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a producer and
marketer of innovative, plant-based health and wellness products,
today released its financial and business results for the second
quarter and first half of 2023.
“Arcadia continues to make progress executing Project
Greenfield, our three-year strategic plan to unlock the company’s
potential and provide a path to profitability,” said Stan Jacot,
president and CEO. “Both GoodWheat™ pasta and Zola® coconut water
added hundreds of stores of distribution in Q2, and we are
aggressively managing costs, as evidenced by our lowest quarterly
operating expense since Q4 of 2020.
“We’ve also embarked on several initiatives to scale more
quickly, while simultaneously reducing expenses and complexity, and
together, these plans have the potential to accelerate Project
Greenfield milestones.”
- GoodWheat Expands Into $850M Baking Mixes
Category with Better-for-You Pancake and Waffle Mixes and
Single-Serve Quikcakes™. Launching just in time for
back-to-school, Arcadia’s new pancake mixes are made with simple
ingredients and its proprietary GoodWheat flour, delivering the
same delicious taste and texture of regular pancakes with 8X-11X
the fiber and 5-7g of protein per serving. GoodWheat Quikcakes are
available nationwide on Amazon, and both Quikcakes and Multi-Serve
Pancake & Waffle Mixes began shipping to retailers in
August.
- Zola Coconut Water Distribution Grows in
Q2, Innovations to Launch in Early 2024. Zola reversed its
downward distribution trend in Q2 and grew velocity through adding
rack displays in the Produce category. Innovation will ramp up on
the brand for the first time in years, with new flavor launches
planned in Q1 2024, continuing to accelerate growth in the
category.
- Arcadia Streamlines Operations, Exits
Body Care Brands ProVault™ and SoulSpring™. As part of its
strategy to focus resources on high-opportunity, scalable
businesses, Arcadia decided to wind-down its two remaining Body
Care brands in order to concentrate on the more promising GoodWheat
and Zola brands. Streamlined operations and organizational changes
are expected to result in operating expense savings of $2 million
in the remainder of 2023 and $3 million to $4 million
annually.
- Arcadia Engages Lake Street Capital
Markets to Explore Strategic Opportunities. Arcadia recently
initiated a strategic review process to explore a range of
potential transactions and opportunities focused on maximizing the
GoodWheat value proposition and driving long-term shareholder
value. As part of this process, the company will explore strategic
options that may include potential acquisition, company sale,
merger, business combination, asset sale, joint venture, licensing
arrangement, capital raise or other strategic transaction.
Arcadia Biosciences,
Inc.
Financial Snapshot
(Unaudited)
($ in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Favorable /
(Unfavorable)
2023
2022
Favorable /
(Unfavorable)
$
%
$
%
Total revenues
1,389
3,858
(2,469
)
(64
%)
2,899
7,078
(4,179
)
(59
%)
Total operating expenses
5,180
7,641
2,461
32
%
10,739
15,484
4,745
31
%
Loss from operations
(3,791
)
(3,783
)
(8
)
(0
%)
(7,840
)
(8,406
)
566
7
%
Net income (loss) attributable to
common stockholders
823
(3,777
)
4,600
122
%
(8,561
)
(8,265
)
(296
)
(4
%)
More detailed financial statements are included in the Form 8-K
filed today, available in the Investors section of the company’s
website under SEC Filings.
Revenues
Revenues decreased $2.5 million and $4.2 million during the
second quarter and first half of 2023, respectively, compared to
the same periods in 2022. Revenues during the second quarter and
first half of 2022 included sales of GoodWheat grain and body care
products that are no longer part of the Arcadia product portfolio
in 2023, as well as one-time license revenue recognized in the
second quarter of 2022 related to the sale of Verdeca.
Arcadia achieved a $2 million milestone from Bioceres in the
second quarter of 2022 as a result of the HB4® soybean approval in
China. Based on accounting guidance, $862,000 was recognized as
license revenue and the remaining $1.1 million was recognized as a
gain on the 2020 sale to Bioceres of Arcadia’s interest in the
Verdeca joint venture.
Operating Expenses
Operating expenses decreased $2.5 million and $4.7 million
during the second quarter and first half of 2023, respectively,
compared to the same periods in 2022.
Cost of product revenues decreased $2.5 million and $5.1 million
during the second quarter and first half of 2023, respectively,
compared to the same periods in 2022. Cost of revenues in the
second quarter and first half of 2022 included grain sold at cost,
low-margin body care product sales and higher inventory
write-downs.
General and administrative (SG&A) expenses decreased
$837,000 and $791,000 during the second quarter and first half of
2023, respectively, compared to the same periods in 2022, primarily
driven by lower employee compensation, insurance and research
expenses in 2023.
Net Income (Loss) Attributable to Common Stockholders
Net income attributable to common stockholders for the second
quarter of 2023 was $823,000, or $0.61 per share, a $4.6 million
improvement from the $3.8 million, or $6.81 per share, net loss for
the second quarter of 2022. The change in the fair value of the
common stock warrant and option liabilities during the second
quarter of 2023 resulted in a non-cash gain of $4.4 million. No
such gain was recorded in the second quarter of 2022.
Net loss attributable to common stockholders for the first half
of 2023 was $8.6 million, or $7.70 per share, a $296,000 increase
from the $8.3 million, or $14.90 per share, net loss for the first
half of 2022. The net loss attributable to common stockholders
during the first half of 2023 included a $6.1 million valuation
loss from the March 2023 financing.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) today, August 10, to discuss
second-quarter results and key strategic achievements. Interested
participants can join the conference call using the following
options:
- An audio-only webcast of the conference call will be available
in the Investors section of Arcadia’s website.
- To join the live call, please register here, and a dial-in
number and unique PIN will be provided.
Following completion of the call, a recorded replay will be
available on the company’s investor website.
About Arcadia Biosciences, Inc.
Since 2002, Arcadia Biosciences (Nasdaq: RKDA) has been
innovating crops to provide high-value, healthy ingredients to meet
consumer demands for healthier choices. With its roots in
agricultural innovation, Arcadia cultivates next-generation
wellness products that make every body feel good, inside and out.
The company’s food and beverage products include GoodWheat™ pasta
and pancake mixes and Zola® coconut water. For more information,
visit www.arcadiabio.com.
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 the
company’s growth, reduction in operating expenses, retail
expansion, financial performance and commercialization of 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 ability to reduce operating expenses; the
company’s and its partners’ and affiliates’ ability to successfully
develop and sell 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; the growth of the global wheat market; our
ability to continue to make acquisitions and execute on
divestitures in accordance with our business strategy or
effectively manage the growth from acquisitions; 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 and prospects is
included in filings the company makes with the Securities and
Exchange Commission from time to time, including the section
entitled “Risk Factors” and additional information set forth in its
Form 10-K for the year ended December 31, 2022, and other filings.
These forward-looking statements speak only as of the date hereof,
and Arcadia Biosciences, Inc. undertakes no duty to update this
information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810201410/en/
Arcadia Biosciences T.J. Schaefer ir@arcadiabio.com
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