DAVIS, Calif., March 25, 2020 /PRNewswire/ -- Arcadia
Biosciences, Inc. (Nasdaq: RKDA), a leader in science-based
approaches to enhancing the quality and nutritional value of crops
and food ingredients, today released its financial and business
results for the fourth quarter and full year of 2019.
"We are energized by our progress in hemp, wheat and soy in 2019
and the strength with which we enter 2020 to grow our
GoodHempTM seed sales, Hawaiian CBD oils, and
GoodWheatTM flour and grain sales," said Matthew Plavan, president and CEO. "Moreover, as
we take stock of our progress so far this year, including more than
$3.7 million in backlog GoodHemp seed
orders, we maintain confidence in our projected goal to exceed
$10 million in total revenue this
year, although we will continue to assess the potential impact
of COVID-19 on our business. Revenues from these orders will
be recognized when the seeds are delivered to growers, between
second and fourth quarter this year.
"The legalization of industrial hemp cultivation in late 2018
provided us an opportunity like none other in the history of our
company," Plavan continued. "With Arcadia's proven plant
transformation capabilities in global crops like wheat, rice and
soybean, we trained our sights in 2019 on building the most
advanced plant breeding platform, ArcaTech, to rapidly prototype,
develop and deliver functional improvements in hemp targeting the
greatest challenges growers face in adopting and scaling hemp
cultivation, such as federal compliance, disease resistance and
high cannabinoid content. As a result, much of our R&D focus
for the year was on this newly emerging crop, having introduced 10
new varieties, with the goal of becoming a leading provider of high
value seed and extracts for the global hemp market.
"2019 also marked a year of strong progress in our GoodWheat
business, where we captured first sales and executed a key global
commercial agreement. And our Verdeca joint venture
accelerated toward commercial launch with new approvals of
HB4® drought and herbicide tolerant soybeans in the
U.S., Brazil and Paraguay," Plavan said.
2019 Operating and Business Highlights
New Focus on Innovating in Hemp
- Hemp Research Rapidly Initiated in Hawaii. Arcadia launched its new hemp business in the
first quarter, quickly acquired a pilot program license in
Hawaii, and by early April began
research and cultivation of sun-grown hemp. The islands offer
unique geographic and climate advantages for growing hemp
year-round, and the state's pilot program under the 2014 Farm Bill
allowed Arcadia to get a head
start while other states were just starting to develop agricultural
guidelines for hemp cultivation.
- Accelerated Hemp R&D with New Leadership and ArcaTech
Technology Platform. To expand its hemp R&D capabilities in the
areas of breeding operations, extraction research, cannabinoid
profiling and germplasm acquisition, Arcadia brought in Randy Shultz, Ph.D. as head of research and
development. Shultz is the former global crop lead at Inari
Agriculture, with deep expertise in gene editing and new plant
breeding technologies and a well-established reputation as a keen
R&D strategist.
Using ArcaTech, a proprietary technology platform designed to bring
innovative and disruptive plant genomics to market rapidly,
Arcadia's R&D team produced
its first unique variety and executed a number of varietal crosses
to generate new performance characteristics and identify valuable
attributes. ArcaTech combines modern breeding science and genomics
technology to develop high-quality non-genetically modified
(non-GM) hemp varieties with improved uniformity, stability,
resiliency and yield, enabling farmers to maximize the value and
profitability of this newly-legal crop.
- Launched Archipelago Ventures, Hawaiian Hemp Joint
Venture. In the third quarter, Arcadia launched a strategic joint venture
with Legacy Ventures Hawaii to grow, extract and sell superior
sun-grown hemp. The partnership, Archipelago Ventures, joins
Arcadia's extensive genetic
expertise, resources and cultivation facility in Hawaii with the proven extraction and
commercial capabilities of Legacy and its partner Vapen CBD.
The result is one vertically integrated supply chain, from seed to
sale, enabling Archipelago to deliver superior hemp extract which
harnesses the islands' geographic and climate advantages. The
partnership also provides access to world class extraction
facilities and a channel to key international markets for hemp and
cannabidiol (CBD). In the fourth quarter, Archipelago began the
build of large-scale mobile extraction and processing equipment to
produce tetrahydrocannabinol (THC)-free, sun-grown hemp isolate or
distillate on the islands.
- Expanded Hemp Operations in Three States. Arcadia
established a hemp research facility in California in Q3 and partnered with an
Oregon research company to conduct
field research in that key hemp territory. As a result,
Arcadia now has operational
locations in three geographies to produce hemp and hemp seed –
Hawaii, California and Oregon – and is well equipped to test
varieties and advance breeding activities under multiple climate
conditions with improved access to more germplasm.
- Introduced GoodHemp, a New Commercial Brand of Superior Hemp
Seeds. By the fourth quarter, less than a year after launching its
hemp business, Arcadia introduced
GoodHemp, its new commercial line of genetically superior hemp
seeds, transplants, flower and extracts. GoodHemp debuted its first
commercial product, a disease resistant and ultra-low THC hemp
seed, during the American Seed Trade Association CSS & Seed
Expo in December. This innovation came just months after the USDA's
Interim Final Ruling for hemp cultivation, which mandated that
states test hemp crops and dispose of "hot" crops that exceed 0.3
percent THC.
GoodWheat Portfolio of Non-GM Specialty Wheat
Varieties
- Global Commercial Agreement Signed for GoodWheat. The big
news for GoodWheat in 2019 was a global collaboration agreement
between Arcadia, Bay State Milling
Company and Arista Cereal Technologies signed in the third quarter.
The agreement secures a U.S. route to market for the company's high
fiber GoodWheat, which will enter the North American market as part
of Bay State's HealthSenseTM
flour. The collaboration also ended the ongoing legal dispute
between Arcadia and Arista over
patents in resistant starch wheat, enabling both companies to share
the growing global market for innovations in wheat.
- Arcadia Secures First Purchase Commitment for High Fiber Wheat
in 2020. After signing the agreement with Bay State Milling
Company and Arista Cereal Technologies, Arcadia received its first purchase commitment
from Bay State in the fourth quarter of
2019. As the exclusive North American commercial partner,
Bay State will bring Arcadia's high-fiber bread wheat to market
under Bay State's HealthSense brand
portfolio. Arcadia plans to
significantly expand GoodWheat acres with growers to meet 2020
sales commitments and plans.
- Scaled GoodWheat Production in Preparation for Commercial
Launch. Arcadia completed its
counter-season GoodWheat production trials in the first quarter,
and scaled up production of its GoodWheat specialty wheat
varieties, harvesting winter trials with higher than expected
yields. Summer production trials have been planted in key wheat
growing areas. The company achieved first sales of GoodWheat
products at the end of 2019.
- Arcadia Offers Limited Release GoodWheat Reduced Gluten Wheat
Flour. In the fourth quarter, Arcadia introduced a limited release of its
GoodWheat Reduced Gluten Wheat Flour. Developed for those with
sensitive stomachs, the flour contains 65 percent less allergenic
gluten and is higher in fiber than traditional flour, while also
delivering improved protein quality and increased levels of
essential amino acids such as lysine and histidine. Foods made with
Arcadia's reduced gluten wheat
flour offer the same baking quality, taste and texture as
traditional wheat. This limited release marked the first retail
offering within the company's GoodWheat portfolio of non-GM
specialty wheat ingredients.
- Arcadia Receives Patent for Reduced Gluten GoodWheat. The
U.S. Patent and Trademark Office awarded Arcadia a patent for reduced gluten grains.
This unique attribute was developed through Arcadia's in-house breeding platform, which
brings novel food innovations to consumers. The patent is the
17th in Arcadia's
GoodWheat portfolio of non-genetically modified (non-GM) wheat
varieties, which includes high-fiber resistant starch, extended
shelf life and now reduced gluten.
HB4® Drought and Herbicide Tolerant
Soybeans
- Verdeca HB4 Drought and Herbicide Tolerant Soybeans Receive Key
Regulatory Approvals in the U.S., Brazil and Paraguay. Verdeca, Arcadia's joint venture with Bioceres Crop
Solutions Corp, received several key regulatory approvals for its
HB4 drought and herbicide tolerant soybeans in 2019: the U.S.,
Brazil and Paraguay. HB4 soybean varieties deliver two
layers of value for growers: drought and herbicide tolerance,
helping growers facing climate and production challenges.
HB4 soybeans are now approved in the top four global suppliers,
accounting for more than 80 percent of the soybean market
worldwide. Verdeca continues to prepare for full-scale launch
of HB4 soybean sales in Argentina,
pending import approval from China. The expectations for that approval are
under review in light of recent developments in the country. The
USDA approval allows Verdeca to accelerate its evaluation of
potential U.S. germplasm partners to carry the HB4 trait, and the
company is in negotiations with several commercial partners and
soybean producers to prepare the North American market for this new
trait.
- Verdeca Introduces Pre-Commercial HB4 Drought and Herbicide
Tolerant Soybeans to Growers in Argentina. In preparation for commercial
launch, Verdeca introduced HB4 soybeans at Expoagro 2019, the
largest farm show in Argentina.
More than 1200 growers from throughout South America visited the Verdeca pavilion,
and many signed on to the company's HB4 program for early adopters,
which grants priority access to test the HB4 soybean varieties in
their fields.
Recent Highlights in 2020
- Received more than $3 million in
seed purchase commitments for GoodHemp. Within two months post
launch of the GoodHemp seed catalog, Arcadia secured more than $3 million in initial seed purchase commitments,
reflecting strong market demand for quality genetics in the
emerging hemp industry. Revenues from these initial purchase
commitments will be recognized when the seeds are delivered to
growers, between second and fourth quarter of 2020. This revenue,
along with that expected from follow-on commitments, will
contribute meaningfully to the greater than $10 million in total expected revenues for 2020,
as forecasted in the company's financial guidance.
- Established GoodHemp Innovation Partners Platform. To support
the company's strategy to become the market leader in high-value
hemp innovations and ensure the continued success of the GoodHemp
line, Arcadia established the
GoodHemp Innovation Partners platform, a select group of growers
who will work closely with Arcadia's team of regional agronomists to
further the shared understanding of GoodHemp seed performance at
industrial scale throughout the production season. This unique
go-to-market approach utilizes a hub model with initial centers in
Hawaii, the Pacific Northwest,
Southern California, Northern California, the Desert Southwest and
the Mountain West. Innovation partners receive exclusive access to
the team of breeders, geneticists and computational biologists at
Arcadia's R&D headquarters in
Davis, and serve as a hemp
production advisory board highlighting grower challenges to inform
Arcadia's future breeding efforts.
They also have early access to developmental seed varieties and
will help validate innovations under real farm conditions.
- Strategic Retailer Partnership to Introduce GoodHemp Seeds to
California Growers. In March, Arcadia announced a new strategic partnership
with Grow West, one of the largest independent marketers of
agricultural products in California, and Buttonwillow Warehouse Company
(BWC), a family owned and operated fertilizer and crop protection
products company in central and Southern
California, to introduce Arcadia's USDA-compliant GoodHemp seed line to
California growers. Grow West
and BWC will bring their collective grower relationships to
Arcadia's GoodHemp Innovation
Partners platform, and Arcadia gains access to every
production acre in the state, including top California cultivators who rely on the crop
and pest control advisors of these two companies to make important
decisions throughout the growing season.
- Archipelago Ventures Partnered with Vivion Specialties, Inc. To
Certify and Distribute Hawaiian Hemp Products in North America. Recently Arcadia announced a new partnership between
Archipelago Ventures, its joint venture with Legacy Ventures
Hawaii, and Vivion Specialties, Inc. (VSI), a North American
specialty ingredient supplier. VSI will serve as Archipelago's
North American distributor, managing the stateside marketing and
sales of sun-grown Hawaiian hemp ingredients in key markets like
food and beverage, human and pet nutrition and personal
care. VSI has a network of 18 sales regions in the U.S. and
Canada and is known for its
proprietary VivAssure® purity validation process, which
tests every ingredient and provides a detailed Certificate of
Analysis of its contents. The collaboration will deliver rigorously
tested and lab-certified CBD ingredients, providing high quality
and transparency for discerning retailers and shoppers throughout
North America.
- Verdeca Registers Early Adopters for HB4 Program at Expoagro
2020. For the second year in a row in March, Verdeca showcased
pre-commercial HB4 soybeans varieties at Expoagro 2020,
Argentina's largest farm show. At
Verdeca's pavilion, growers were able to inspect field plots of HB4
soybeans demonstrating the trait stack's tolerance to drought,
salinity and glufosinate. Early adopters in the HB4 program can
begin testing the trait in their own fields in preparation for
commercial launch following import approval from China. These pre-commercial varieties are
currently being multiplied on close to 7,400 acres, with the
potential for more than 100,000 additional acres available for seed
multiplication during the next crop season.
- U.S. Patent Granted for High Fiber Wheat with Improved
Yield. Arcadia expanded its GoodWheat patent portfolio to
include an allele that improves yield in high fiber, resistant
starch wheat. In multi-year field studies, wheat
breeding lines carrying the higher-yielding allele produced an
average of 6 to 9 percent higher yields, with some resulting in as
much as 30 percent higher yields. Field trials further indicated
there may be other benefits to this innovation, including reduction
in sensitivity to the damaging effects of cold at specific growth
stages. The higher-yielding allele is the output of Arcadia's ArcaTech technology platform and is
the latest among a suite of patents Arcadia has licensed to Arista Cereal
Technologies and Bay State Milling in North America. These improvements to the crop
yield and production efficiency are an example of the companies'
continuing plans to expand the adoption and market footprint of
high fiber, resistant starch wheat.
Arcadia
Biosciences, Inc.
|
Financial
Snapshot
|
(Unaudited)
|
($ in
thousands)
|
|
|
Three months ended
Dec 31
|
|
Twelve months
ended Dec 31
|
|
2019
|
2018
|
Favorable/
(Unfavorable)
|
|
2019
|
2018
|
Favorable/
(Unfavorable)
|
|
|
|
$
|
%
|
|
|
|
$
|
%
|
Total
Revenues
|
416
|
444
|
(28)
|
(6%)
|
|
1,169
|
1,464
|
(295)
|
(20%)
|
Total Operating
Expenses
|
4,405
|
4,798
|
393
|
8%
|
|
20,550
|
18,334
|
(2,216)
|
(12%)
|
Loss From
Operations
|
(3,989)
|
(4,354)
|
365
|
8%
|
|
(19,381)
|
(16,870)
|
(2,511)
|
(15%)
|
Net Loss
Attributable to Common Stockholders
|
(6,243)
|
(646)
|
(5,597)
|
(866%)
|
|
(28,805)
|
(13,480)
|
(15,325)
|
(114%)
|
Revenues
Arcadia's revenues in 2019 reflect
the impact of the company's transformation from a predominately
research and licensing business model to a commercial agriculture
model. As a result, revenues from its legacy sources continued to
wind down during the year. Arcadia's expectations for the onset and scale
up of new product and trait revenues from hemp and wheat remain
unchanged for 2020 and beyond, although the company will continue
to assess the potential impact of COVID-19 on its business.
In the fourth quarter of 2019, revenues were $416,000, compared to revenues of $444,000 in the fourth quarter of 2018. For
annual 2019, revenues decreased to $1.2
million from $1.5 million
during the same period of 2018. The quarter-over-quarter and annual
results were primarily driven by the decrease in government grant
and contract research revenue, partially offset by higher GLA
product revenues. The company expects revenue from its hemp and
wheat products to total at least $10
million in 2020.
Operating Expenses
Operating expenses for the fourth quarter and year ended
December 31, 2019 were $4.4 million and $20.6
million, compared to $4.8
million and $18.3 million for
the fourth quarter and year ended December
31, 2018.
Research and development (R&D) spending increased by
$166,000 and $1.0 million for the fourth quarter and year end
December 31, 2019 compared to the
same periods in 2018, primarily due to additional soybean
development activities, higher employee-related expenses and hemp
related costs.
General and administrative (SG&A) expenses for the fourth
quarter of 2019 were $110,000 and
$2.0 million higher than for the
fourth quarter and year ended December 31,
2018, primarily the result of additional employee-related
expenses, hemp consulting fees and stock compensation expense, as
well as increased marketing and public relations activities.
Included in annual 2019 stock compensation expense was $662,000 of one-time charges for the accelerated
vesting of a consultant's performance-based warrants and the
modification of our former CEO's stock options in connection with
his separation.
Cost of product revenues was $331,000 higher than in the fourth quarter of
2018 and $224,000 higher than annual
2018 due primarily to the write down of wheat inventory in
2019.
Operating expenses for 2019 includes a $1.0 million non-cash fair value gain recognized
during the fourth quarter. The non-cash gain was the result of a
reduction in the fair value of Arcadia's contingent consideration
liability.
Net Loss Attributable to Common Stockholders
Net loss for the fourth quarter of 2019 was $6.2 million, or a loss of ($0.72) per share, compared to the $646,000 loss recognized in the fourth quarter of
2018. Net loss for the year was $28.8
million, or ($4.53) per share,
compared to the net loss of $13.5
million in 2018. The decrease for both periods was largely
due to the change in the fair value of the common stock warrant and
common stock adjustment feature liabilities, which is driven by the
number of common stock warrants outstanding, as well as the change
in the company's stock price. Net loss in the fourth quarter and
year ended December 31, 2019 includes
non-cash expense of $2.5 million and
$9.2 million, respectively, for the
change in the fair value of common stock warrant and common stock
adjustment feature liabilities, as compared to $3.6 million and $9.6
million of non-cash income recorded during the same periods
in 2018.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m. Eastern (1:30
p.m. Pacific) today, March 25,
to discuss fourth-quarter and annual financial results and key
strategic achievements.
Interested participants can join the conference call using the
following numbers:
U.S. Toll-Free
Dial-In:
|
+1-844-243-4690
|
International
Dial-In:
|
+1-225-283-0138
|
Passcode:
|
8662765
|
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.
About Arcadia Biosciences, Inc.
Arcadia Biosciences (Nasdaq: RKDA) is a leader in science-based
approaches to enhancing the quality and nutritional value of crops
and food ingredients. The company's GoodWheat™ branded ingredients
deliver health benefits to consumers and enable consumer packaged
goods companies to differentiate their brands in the marketplace.
Arcadia's agricultural traits are
being developed to enable farmers around the world to be more
productive and minimize the impact of agriculture on the
environment. The company's new GoodHemp seed catalog delivers
genetically superior hemp seeds, clones, transplants, flower and
extracts, applying the company's proprietary crop innovation
technology, ArcaTech, to an emerging crop. 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
components of the company's long-term financial success and ongoing
plans; the company's and its partners' ability to fulfill backlog
seed orders; and the company's traits, commercial products and
collaborations. 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; the potential
impact of COVID-19 on our business; 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 Quarterly Report on Form 10-Q for the quarter ended
September 30, 2019 and additional
information that will be set forth in its Form 10-K for the year
ended December 31, 2019. These
documents are or will be available on the SEC Filings section of
the Investor Relations pages 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.
Arcadia
Biosciences, Inc.
|
Consolidated
Balance Sheets
|
(Unaudited)
|
(In thousands,
except share data)
|
|
|
As of December
31,
|
|
2019
|
2018
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
8,417
|
$
11,998
|
Short-term
investments
|
16,915
|
9,825
|
Accounts
receivable
|
602
|
165
|
Unbilled
revenue
|
—
|
3
|
Inventories, net —
current
|
1,794
|
181
|
Prepaid expenses and
other current assets
|
712
|
704
|
Total current
assets
|
28,440
|
22,876
|
Property and
equipment, net
|
1,799
|
395
|
Right of use
asset
|
1,963
|
—
|
Inventories, net —
noncurrent
|
364
|
746
|
Other noncurrent
assets
|
8
|
7
|
Total
assets
|
$
32,574
|
$
24,024
|
Liabilities and
stockholders' equity
|
|
|
Current
liabilities:
|
|
|
Accounts payable and
accrued expenses
|
$
4,685
|
$
2,645
|
Amounts due to related
parties
|
40
|
29
|
Notes payable –
current
|
24
|
—
|
Unearned revenue —
current
|
42
|
96
|
Operating lease
liability – current
|
611
|
—
|
Other current
liabilities
|
306
|
284
|
Total current
liabilities
|
5,708
|
3,054
|
Notes payable –
noncurrent
|
107
|
—
|
Operating lease
liability – noncurrent
|
1,497
|
—
|
Common stock warrant
liabilities
|
14,936
|
5,083
|
Other noncurrent
liabilities
|
2,000
|
3,072
|
Total
liabilities
|
24,248
|
11,209
|
Stockholders'
equity:
|
|
|
Common stock, $0.001
par value — 150,000,000 shares authorized as of December 31, 2019
and December 31, 2018; 8,646,149 and 4,774,919 shares issued and
outstanding as of December 31, 2019 and December 31, 2018,
respectively.
|
49
|
45
|
Additional paid-in
capital
|
214,826
|
191,136
|
Accumulated other
comprehensive income
|
1
|
—
|
Accumulated
deficit
|
(207,171)
|
(178,366)
|
Total Arcadia
Biosciences stockholders' equity
|
7,705
|
12,815
|
Non-controlling
interest
|
621
|
—
|
Total stockholders'
equity
|
8,326
|
12,815
|
Total liabilities and
stockholders' equity
|
$
32,574
|
$
24,024
|
Arcadia
Biosciences, Inc.
|
Consolidated
Statements of Operations and Comprehensive Loss
|
(Unaudited)
|
(In thousands,
except share and per share data)
|
|
|
Year Ended December 31,
|
|
2019
|
2018
|
Revenues:
|
|
|
Product
|
$
814
|
$
657
|
License
|
67
|
150
|
Contract research and
government grants
|
288
|
657
|
Total
revenues
|
1,169
|
1,464
|
Operating
expenses:
|
|
|
Cost of product
revenues
|
885
|
661
|
Research and
development
|
7,098
|
6,069
|
Change in fair value
of contingent consideration
|
(1,000)
|
-
|
Selling, general and
administrative
|
13,567
|
11,604
|
Total operating
expenses
|
20,550
|
18,334
|
Loss from
operations
|
(19,381)
|
(16,870)
|
Interest
expense
|
(5)
|
—
|
Other income,
net
|
466
|
394
|
Initial loss on
common stock warrant and common stock adjustment feature
liabilities
|
—
|
(4,000)
|
Change in fair value
of common stock warrant and common stock adjustment feature
liabilities
|
(9,243)
|
9,561
|
Offering
costs
|
(708)
|
(2,555)
|
Net loss before
income taxes
|
(28,871)
|
(13,470)
|
Income tax
provision
|
(2)
|
(10)
|
Net
loss
|
(28,873)
|
(13,480)
|
Net loss
attributable to non-controlling interest
|
(68)
|
—
|
Net loss
attributable to common stockholders
|
$
(28,805)
|
$
(13,480)
|
Net loss per
share attributable to common stockholders:
|
|
|
Basic and
diluted
|
$
(4.53)
|
$
(3.58)
|
Weighted-average
number of shares used in per share calculations:
|
|
Basic and
diluted
|
6,363,112
|
3,766,419
|
Other
comprehensive income, net of tax
|
|
|
Unrealized gains
on available-for-sale securities
|
1
|
—
|
Other
comprehensive income
|
1
|
—
|
Comprehensive
loss attributable to common stockholders
|
$
(28,804)
|
$
(13,480)
|
Arcadia
Biosciences, Inc.
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
(In
thousands)
|
|
|
Year Ended
December 31,
|
|
2019
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
Net loss
|
$
(28,873)
|
$
13,480)
|
Adjustments to
reconcile net loss to cash used in operating activities:
|
|
|
Initial loss on common
stock warrant and common stock adjustment feature
liabilities
|
—
|
4,000
|
Change in fair value
of common stock warrant and common stock adjustment feature
liabilities
|
9,243
|
(9,561)
|
Change in fair value
of contingent consideration
|
(1,000)
|
-
|
Offering
costs
|
708
|
2,555
|
Depreciation
|
194
|
154
|
Lease
amortization
|
708
|
—
|
Gain (loss) on
disposal of equipment
|
3
|
(3)
|
Net amortization of
investment premium
|
(180)
|
(193)
|
Stock-based
compensation
|
2,287
|
1,550
|
Write down of
inventory
|
304
|
310
|
Changes in operating
assets and liabilities:
|
|
|
Accounts
receivable
|
(437)
|
1,066
|
Unbilled
revenue
|
3
|
2
|
Inventories
|
(1,535)
|
160
|
Prepaid expenses and
other current assets
|
(8)
|
(151)
|
Other noncurrent
assets
|
(1)
|
—
|
Accounts payable and
accrued expenses
|
2,102
|
176
|
Amounts due to related
parties
|
11
|
(1)
|
Unearned
revenue
|
(54)
|
(312)
|
Other current
liabilities
|
42
|
25
|
Other noncurrent
liabilities
|
—
|
72
|
Operating lease
payments
|
(715)
|
—
|
Net cash used in
operating activities
|
(17,198)
|
(13,631)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
Proceeds from sale of
property and equipment
|
16
|
10
|
Purchases of property
and equipment
|
(1,477)
|
(250)
|
Purchases of
investments
|
(28,358)
|
(29,885)
|
Proceeds from sales
and maturities of investments
|
21,450
|
24,150
|
Net cash used in
investing activities
|
(8,369)
|
(5,975)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
Proceeds from
issuance of common stock and warrants from June 2019
Offering
|
7,500
|
—
|
Payments of offering
costs relating to June 2019 Offering
|
(663)
|
—
|
Proceeds from
issuance of common stock and warrants from September 2019
Offering
|
10,000
|
—
|
Payments of offering
costs relating to September 2019 Offering
|
(798)
|
—
|
Proceeds from
issuance of common stock and warrants under March 20108 Purchase
Agreement
|
—
|
10,000
|
Payments of offering
costs relating to March 2018 Purchase Agreement
|
—
|
(1,308)
|
Proceeds from
issuance of common stock and warrants from June 2018
Offering
|
—
|
14,000
|
Payments of offering
costs relating to June 2018 Offering
|
(24)
|
(1,182)
|
Principal payments on
notes payable
|
(8)
|
—
|
Proceeds from
exercise of warrants
|
5,269
|
—
|
Proceeds from
exercise of stock options and purchases through ESPP
|
21
|
969
|
Capital contributions
received from non-controlling interest
|
689
|
—
|
Net cash provided by
financing activities
|
21,986
|
22,479
|
Net (decrease)
increase in cash and cash equivalents
|
(3,581)
|
2,873
|
Cash and cash
equivalents — beginning of period
|
11,998
|
9,125
|
Cash and cash
equivalents — end of period
|
$
8,417
|
$
11,998
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
Cash paid for
interest
|
$
4
|
$
—
|
Cash paid for income
taxes
|
$
2
|
$
34
|
NONCASH
TRANSACTIONS:
|
|
|
Offering costs in
accounts payable and accrued expenses at end of period
|
$
20
|
$
23
|
Common stock warrants
issued to placement agent and included in offering costs related to
March 2018 Purchase Agreement
|
$
—
|
$
526
|
Common stock warrants
issued to placement agent and included in offering costs related to
June 2018 Offering
|
$
—
|
$
239
|
Common stock warrants
issued to placement agent and included in offering costs related to
June 2019 Offering
|
$
86
|
$
—
|
Common stock warrants
issued to placement agent and included in offering costs related to
September 2019 Offering
|
$
95
|
$
—
|
Reclassification of
common stock warrant liability balance with warrant
exercises
|
$
7,016
|
$
—
|
Reclassification of
unearned revenue to other short-term liabilities
|
$
—
|
$
259
|
Reclassification of
common stock adjustment feature liability balance to
equity
|
$
—
|
$
8,378
|
Right of use assets
obtained in exchange for new operating lease liabilities
|
$
2,328
|
$
—
|
Right of use assets
obtained through modification of existing lease
agreement
|
$
194
|
$
—
|
Fixed assets acquired
with notes payable
|
$
139
|
$
—
|
Purchases of fixed
assets included in accounts payable and accrued expenses
|
$
1
|
$
—
|
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SOURCE Arcadia Biosciences, Inc.