– Strong balance sheet entering
2022 –
– Expanded consumer product
offerings in on-trend categories –
– Experienced CPG talent added
throughout organization –
DAVIS,
Calif., March 30, 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 fourth quarter and full year of 2021.
"Arcadia had an unprecedented
year of transition and entered consumer-focused categories for the
first time" said Stan Jacot,
president and CEO of Arcadia Biosciences. "The acquisitions from
2021 have positioned us to broaden our reach within the health and
wellness sector, and there are significant opportunities to grow
our business by accelerating the monetization of our
GoodWheatTM portfolio, commercializing and scaling our
food, beverage and body care consumer brands, and evaluating
acquisition opportunities.
"In addition, we have made tremendous progress towards becoming
a CPG-driven company and are well positioned to execute on our
business strategy in 2022. Our strong leadership team has deep
experience across many successful brands, and we have added new
talent across the organization to further enhance our CPG
expertise."
2021 Key Operating and Business
Highlights
- Arcadia Advances Progress for GoodWheat Launch. In the
third and fourth quarters of 2021, Arcadia began preparing for a full-scale
retail launch of five GoodWheat pasta SKUs in mid-2022, supported
by a comprehensive, consumer-focused marketing campaign. Arcadia's
pasta products utilize proprietary GoodWheat grain as the sole
ingredient, providing 4X the fiber of traditional pasta and 9g of
protein per serving without sacrificing taste. The company made
meaningful progress preparing GoodWheat pasta products for entrée
into the consumer retail channel, including developing and testing
consumer-preferred packaging.
- Arcadia Acquires Portfolio of Beverage and Body Care Brands
from The Parent Company. In Q2 of 2021, Arcadia acquired select assets of Lief and
Zola®, including their portfolio of wellness brands from
The Parent Company. The acquisition included popular consumer
brands like Zola, a leading coconut water sourced exclusively with
sustainably grown coconuts from Thailand; ProVaultTM, a CBD-infused
sports performance formula providing effective support and recovery
for athletes; SoulSpringTM, the top selling CBD-infused
botanical therapy brand in the natural category; and Saavy
Naturals®, a leading line of all-natural body care
products. As part of the transaction, Arcadia gained access to distribution channels
and relationships in more than 5,000 stores nationally, along with
the Lief manufacturing operations, which occupy a 20,000 square
foot, GMP-licensed, ISO-certified manufacturing facility.
- Arcadia Assembles a Team of Experienced CPG
Leaders. Throughout 2021, Arcadia hired several key senior executives
with deep experience in the CPG industry to solidify its transition
from agricultural biotechnology trailblazer to a dynamic consumer
products company focused on products in on-trend categories with
significant growth potential.
Belinda Yao joined the company in Q2
as vice president of operations in May
2021, overseeing supply chain manufacturing for the company,
including demand planning, procurement and supplier relationships,
order fulfillment, inventory management, logistics, customer
service and data analytics. She is a former supply chain lead for
The Dannon Company, Harmless Harvest and Zola.
In July 2021, Laura Pitlik joined Arcadia as chief marketing officer. A veteran
CPG strategist, Pitlik launched the first national line of
all-natural breads, Nature's Pride, for Hostess Brands, and has
deep expertise in the CPG industry, leading brands such as Dr
Pepper, Wonder Bread and On The Border tortilla chips and
salsas.
Arcadia named Brian Schaffer as senior vice president of sales
in November 2021. With a CPG pedigree
that includes leadership roles at PepsiCo and Kellogg's, Schaffer
possesses comprehensive knowledge across categories, channels of
trade and go-to-market systems. Throughout his extensive career, he
has successfully developed and executed growth strategies for
brands including Keebler Chips Deluxe, Cheez It, Gatorade,
Tropicana, Quaker Foods & Snacks and On The Border tortilla
chips and salsas.
And in the third quarter, Arcadia
began its search for a new CEO with deep experience running
successful CPG organizations who would be able to leverage its
innovation-oriented heritage, elevate its brands and further
penetrate the consumer health and wellness categories.
The company expanded its roster of CPG talent beyond executive
roles as well, attracting key individuals in finance and
procurement positions who bring tenured experience from leading CPG
companies.
- Leading Consumer Food Industry Executive Joins Board.
Debbie Carosella, a prominent
consumer food industry executive, joined Arcadia's board of Directors in February 2021. Carosella is the former CEO of
Madhava Natural Sweeteners, a company that provides natural
alternatives to refined sugars and artificial sweeteners. A
recognized leader in the natural and organic food industry, she
previously served as the senior vice president of innovation for
Dean Foods/ WhiteWave Foods where she led the development of
value-added brands across the company. Prior to that, Carosella was
on the executive leadership team at ConAgra Foods where she was
both a general manager and innovator for numerous brands in a
multitude of food categories.
- Arcadia Completes Sale of Bioceres Shares. In Q2, Arcadia successfully sold the Bioceres shares
previously acquired as partial consideration for the 2020 sale of
its partnership interest in Verdeca. With this sale and the
up-front payments received at the time of the transaction, the
company successfully monetized more than $27
million in cash from the sale of its interest in the
HB4® drought tolerant soybean technology. Arcadia still retains further royalty rights
up to $10 million upon
commercialization of HB4.
- $25.1 Million Private Placement
Priced At the Market. In Q1 of 2021, Arcadia closed a private placement priced
at-the-market with gross proceeds of $25.1
million. The funds were used for general corporate
purposes, including building Arcadia's family of consumer brands.
Recent Highlights
- Arcadia Names Stan Jacot as CEO. In the first quarter of 2022,
veteran consumer goods leader Stan
Jacot joined Arcadia as
chief executive officer. Jacot has an impressive track record of
implementing transformational business strategies and profitably
driving growth, most recently at Jane's Dough Foods where he
achieved a double-digit compound annual growth rate during his
six-year tenure. Previously, Jacot held senior marketing and
operations roles at Mission Foods, Borden Dairy Company, ConAgra
Foods and Kellogg Company across the U.S. and Canada. Jacot was selected after a nationwide
search to lead Arcadia through its
next phase and drive aggressive growth for the company's existing
and emerging better-for-you consumer brands.
Arcadia Biosciences,
Inc.
|
Financial
Snapshot
|
(Unaudited)
|
($ in
thousands)
|
|
|
Three months ended
Dec 31
|
|
Twelve months ended
Dec 31
|
|
2021
|
2020
|
Favorable/
(Unfavorable)
|
|
2021
|
2020
|
Favorable/
(Unfavorable)
|
|
|
|
$
|
%
|
|
|
|
$
|
%
|
Total
Revenues
|
2,171
|
7,130
|
(4,959)
|
(70)%
|
|
6,780
|
8,034
|
(1,254)
|
(16)%
|
Total Operating
Expenses
|
15,975
|
(339)
|
(16,314)
|
(4,812)%
|
|
42,306
|
20,812
|
(21,494)
|
(103)%
|
(Loss) Income
From
Operations
|
(13,804)
|
7,469
|
(21,273)
|
(285)%
|
|
(35,526)
|
(12,778)
|
(22,748)
|
(178)%
|
Net (Loss)
Income
Attributable to Common
Stockholders
|
(9,282)
|
8,898
|
(18,180)
|
(204)%
|
|
(14,660)
|
(4,655)
|
(10,005)
|
(215)%
|
|
|
|
|
|
|
|
|
|
|
|
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
Arcadia's 2021 revenues were
mainly related to the product sales of the newly acquired portfolio
of wellness brands, in addition to sales of GoodWheat grain and
GoodHempTM seed. Arcadia's revenues for 2020 predominately
comprised license revenue generated from the transaction executed
with Bioceres in November 2020. As
expected, revenues from legacy sources continued to wind down
during the year and revenues from GoodWheat and wellness products
are poised for growth in 2022.
In the fourth quarter of 2021, revenues were $2.2 million, compared to $7.1 million in the fourth quarter of 2020.
Annual revenues for 2021 decreased by $1.3
million compared to the same period of 2020. The
quarter-over-quarter and annual results were largely driven by the
non-recurring license revenue generated from Bioceres in 2020.
Operating Expenses
Operating expenses for the fourth quarter and year ended
December 31, 2021, were $16.0 million and $42.3
million, compared to $(339,000) and $20.8
million for the fourth quarter and year ended December 31, 2020. Total operating expenses,
which include cost of product revenues, research and development
(R&D), and selling, general and administrative (SG&A)
expenses, also included asset impairments in 2021. Impairment in
the fourth quarter and fourth quarter year to date of 2021,
respectively, were $3.2 million and
$3.3 million for intangible assets;
$1.6 million and $1.6 million for goodwill; and $197,000 and $1.5
million for property and equipment. Operating expenses for
2020 included an $8.8 million gain on
the sale of Arcadia's membership
interest in Verdeca.
Cost of product revenues was $3.8
million and $8.7 million in
the fourth quarter and year ended December
31, 2021, an increase of $2.0
million and $3.5 million when
compared to the prior year period. The increase is mainly due to
product sales of the newly acquired portfolio of wellness brands,
in addition to GoodWheat grain and GoodHemp seed sales. The
increase was partially offset by lower inventory write-downs
charged to cost of product revenues in 2021 than in 2020.
R&D spending of $561,000 and
$3.9 million in the fourth quarter
and year ended December 31, 2021
decreased by $1.4 million and
$4.1 million compared to the same
periods in 2020, primarily due to the increased focus on
commercialization versus R&D activities.
SG&A expenses of $6.2 million
and $22.9 million for the fourth
quarter and year ended December 31,
2021 were $1.4 million and
$6.5 million higher than for the
fourth quarter and year ended December 31,
2020, primarily the result of increased selling expenses and
other general and support costs related to the acquired brands, as
well as acquisition-related investment banker success fees, legal
diligence and transaction fees. Commercial and marketing personnel
and consulting activities were also increased in preparation for
new product and channel launches.
Net Loss Attributable to Common
Stockholders
Net loss for the fourth quarter of 2021 was $9.3 million, or a loss of $0.42 per share, compared to the $8.9 million of income recognized in the fourth
quarter of 2020. Net loss for the year was $14.7 million, or ($0.69) per share, compared to the net loss of
$4.7 million in 2020. Gains of
$10.2 million were realized on the
sale of Bioceres stock in 2021, and there were no similar realized
gains during 2020. The change in the fair value of the common
stock warrant liabilities for the year was a non-cash gain of
$8.9 million in 2021 and $6.6 million in 2020, the difference driven by
additional warrant shares outstanding and a lower ending stock
price as of December 31, 2021.
Conference Call and
Webcast
The company has scheduled a conference call for 4:30 p.m. Eastern (1:30
p.m. Pacific) today, March 30,
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:
|
7975008
|
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 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; 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 that will be 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/arcadia-biosciences-rkda-announces-fourth-quarter-and-full-year-2021-financial-results-and-business-highlights-301514129.html
SOURCE Arcadia Biosciences, Inc.