– Sales increased 48% from Q4
2021 –
– First retail orders of
GoodWheat™ pasta shipped –
– HB4® soybeans approved in
China, $2M milestone anticipated –
DAVIS,
Calif., May 12, 2022 /PRNewswire/ -- 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 first
quarter of 2022.
"Arcadia is starting to see the
fruits of all its labor over the last year as we transitioned to a
CPG-driven company and right-sized the organization," said
Stan Jacot, president and CEO of
Arcadia Biosciences. "Sales have increased 48% compared to last
quarter, with a more agile organization and the lowest
infrastructure costs since 2019. And our Q1 year-over-year sales
have increased nearly 300%, due to the acquisition of Arcadia
Wellness brands Zola® coconut water, ProVault™
CBD-infused sports performance formulas, and SoulSpring™ and
Saavy Naturals® bath and body care products.
"In addition, we shipped our first orders of
GoodWheat™ pasta to retail customers, and our e-commerce
launch through Amazon is on track for early June," Jacot added.
"Our non-GMO GoodWheat pasta is made with just one simple
ingredient – our superior wheat grain – with four times the fiber
of regular pasta and nine grams of protein per serving. Our initial
launch includes five of the best-selling pasta varieties: penne,
spaghetti, fettuccine, elbow and rotini."
Recently, Arcadia's former
joint venture partner Bioceres (Nasdaq: BIOX) announced that
China's Ministry of Agriculture
has publicly communicated its decision to approve soybeans produced
using Bioceres' HB4® technology for import and use as
food and feed. Once finalized, this will trigger four quarterly
milestone payments to Arcadia
totaling $2 million. Arcadia will also receive 6% royalties on
future Bioceres HB4 net revenue, up to $10
million.
Arcadia Biosciences,
Inc.
|
Financial
Snapshot
|
(Unaudited)
|
($ in
thousands)
|
|
|
Three Months Ended
March 31,
|
|
2022
|
2021
|
Favorable /
(Unfavorable)
|
|
|
|
|
|
$
|
%
|
Total Revenues
|
3,220
|
|
828
|
|
2,392
|
|
289%
|
Total Operating Expenses
|
7,843
|
|
6,154
|
|
(1,689)
|
|
(27%)
|
(Loss) From Operations
|
(4,623)
|
|
(5,326)
|
|
703
|
|
13%
|
Net (Loss) Income Attributable to
Common Stockholders
|
(4,488)
|
|
2,058
|
|
(6,546)
|
|
(318%)
|
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
In the first quarter of 2022, revenues were $3.2 million, compared to revenues of
$828,000 in the first quarter of
2021. The $2.4 million
quarter-over-quarter increase was driven by GoodWheat grain sales
and by the newly acquired lines of products of Arcadia Wellness,
which were not present in the first quarter of 2021.
Operating Expenses
In the first quarter of 2022, operating expenses were
$7.8 million, compared to
$6.2 million in the first quarter of
2021. Cost of revenues was $3.5
million in the first quarter of 2022 compared to
$856,000 in the first quarter of
2021, as a result of additional sales and higher inventory
write-downs quarter over quarter. Research and development
(R&D) spending decreased by $764,000 in the first quarter of 2022, compared
to the first quarter of 2021. The decrease was largely driven by
the company's focus on commercialization, which led to lower
R&D employee-related expenses and activity costs. Selling,
general and administrative (SG&A) costs for the first quarter
of 2022 were $280,000 higher than the
first quarter of 2021, primarily due to higher employee expenses
and increased commercial and consulting activities in preparation
for new product launches.
Net (Loss) Income Attributable to
Common Stockholders
Net loss attributable to common stockholders for the first
quarter of 2022 was ($4.5) million,
or ($0.20) per share, compared to the
$2.1 million, or $0.11 per share, of net income for the first
quarter of 2021. The first quarter of 2022 included a $328,000 gain on the sale of property and
equipment, while the first quarter of 2021 included $322,000 of non-cash income recognized as a
result of the decrease in the fair value of common stock warrant
liabilities, in addition to non-cash income of $7.5 million for the increase in the fair market
value of the shares of Bioceres stock held.
Conference Call and
Webcast
The company has scheduled a conference call for 4:30 p.m. Eastern (1:30
p.m. Pacific) today, May 12,
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:
|
+1-866-374-5140
|
International
Dial-In:
|
+1-404-400-0571
|
Passcode:
|
19987961
|
A live webcast of the conference call will be available on the
"Investors" section of 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.
With origins as a trailblazing developer of science-based
approaches to enhancing the quality and nutritional value of crops
and food ingredients, Arcadia Biosciences (Nasdaq: RKDA) is now a
producer of innovative, plant-based health and wellness products,
which include GoodWheat™, Zola® coconut water,
ProVault™, SoulSpring™ and Saavy
Naturals®. The company's growing number of
innovative offerings are designed to enhance quality and health
benefits in an array of consumer product categories. 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 expectation regarding its e-commerce launch through
Amazon, the approval of HB4 Soy in China, and the company's growth, financial
success 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 and its partners' and affiliates' ability to 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, including the sale of products containing CBD, and
changes to such laws and regulations; 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; the potential
impact of COVID-19 on our business; the achievement of the HB4
soybean milestone by Bioceres; 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" and additional
information set forth in its Form 10-K for the year ended
December 31, 2021, 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.
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SOURCE Arcadia Biosciences, Inc.