Davis, California, USA
May 12, 2022

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)

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.

Website: http://www.arcadiabio.com

Published: May 13, 2022