-- GoodWheat™ Pasta distribution
doubles from Q2 --
-- Gross margins improve to 28% --
-- Streamlined operations focus on higher-margin brands
--
DAVIS, Calif.,
Nov. 10,
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 third
quarter of 2022.
"We've made significant progress this year transitioning
Arcadia to a leaner, more focused organization," said Stan Jacot, president and CEO of Arcadia
Biosciences. "And we continue to lay the groundwork for long-term
growth and profitability as we execute on our three-year
strategy, Project Greenfield.
"Our GoodWheat™ launch is outperforming expectations,
having already reached our year-end goal of 1,000 stores, and
acceptance continues to grow. And we've streamlined the business to
focus on our higher-margin brands, which included divesting the
Saavy Naturals brand and our manufacturing facility. As a result,
we've more than doubled our margins quarter-over-quarter in Q3,
validating our ability to grow the business while keeping costs
under control."
Arcadia Biosciences, Inc.
Financial Snapshot
(Unaudited)
($ in thousands)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
2021
|
Favorable /
(Unfavorable)
|
|
2022
|
2021
|
Favorable /
(Unfavorable)
|
|
|
|
$
|
%
|
|
|
|
$
|
%
|
Total revenues
|
1,878
|
2,376
|
(498)
|
(21 %)
|
|
8,956
|
4,609
|
4,347
|
94 %
|
Total operating expenses
|
6,458
|
11,089
|
4,631
|
42 %
|
|
21,941
|
26,331
|
4,390
|
17 %
|
Loss from operations
|
(4,580)
|
(8,713)
|
4,133
|
47 %
|
|
(12,985)
|
(21,722)
|
8,737
|
40 %
|
Net loss attributable to
common stockholders
|
(2,867)
|
(2,175)
|
(692)
|
(32 %)
|
|
(11,132)
|
(5,378)
|
(5,754)
|
(107 %)
|
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 third quarter of
2022, revenues were $1.9 million,
compared to $2.4 million in the third
quarter of 2021 – a $498,000 decrease
driven primarily by lower body care and GLA revenue, partially
offset by GoodWheat pasta sales. Revenues for the first nine months
of 2022 were $9.0 million, compared
to $4.6 million in the first nine
months of 2021. The increase was driven by higher coconut water and
body care products, along with GoodWheat pasta and grain
sales.
Operating Expenses
In the third
quarter of 2022, operating expenses were $6.5 million compared to $11.1 million in the third quarter of 2021, and
the first nine months of 2022 operating expenses were $21.9 million compared to $26.3 million in the first nine months of
2021.
Cost of revenues in the third quarter of 2022 were
$1.3 million, or $1.2 million lower than $2.5 million in the third quarter of 2021,
primarily driven by lower revenues and lower inventory write-downs.
Cost of revenues for the first nine months of 2022 were
$8.3 million, or $3.3 million higher than $5.0 million in the first nine months of 2021,
the result of higher revenues.
Research and development (R&D) spending decreased by
$783,000 and $2.3 million for the three and nine months ended
September 30, 2022, respectively,
compared to the same periods in 2021, as a result of the company's
focus on commercialization, which has led to lower employee-related
expenses and research-related activity costs.
Selling, general and administrative (SG&A) costs for
the three and nine months ended September
30, 2022 were $1.5 million and
$2.9 million lower than in the three
and nine months ended September 30,
2021, respectively, primarily driven by lower employee
expenses, lease expense and consulting fees. Acquisition fees
recognized in 2021 were not present in 2022.
Net Income Attributable to Common
Stockholders
Net loss attributable to common
stockholders for the third quarter of 2022 was $2.9 million, or $0.12 per share, a $692,000 increase from the $2.2 million, or $0.10 per share, net loss for the third quarter
of 2021. The loss from operations in the third quarter of 2022 was
$4.1 million less than in the third
quarter of 2021, primarily due to lower cost of revenues, SG&A
expenses and impairment of property and equipment. This
favorability was mostly offset by $2.9
million lower non-cash income from the change in the fair
value of common stock warrant and option liabilities and the
$1.1 million gain on extinguishment
of a PPP loan in 2021 that was not applicable to 2022.
Net loss attributable to common stockholders for the first
nine months of 2022 was $11.1
million, or $0.48 per share, a
$5.7 million increase from the
$5.4 million, or $0.26 per share, net loss for the first nine
months of 2021. The loss from operations in third quarter year to
date 2022 was $8.7 million less than
third quarter year to date 2021, primarily due to lower
SG&A expenses, R&D expenses and impairment of property and
equipment, as well as the gain on sale of Verdeca in 2022. The
remeasurement and sale of Bioceres stock in the first and second
quarters of 2021 impacted net loss attributable to common
stockholders significantly with a gain of $10.2 million in the first nine months of 2021.
No such gain was recorded in 2022. In addition, the non-cash income
of a change in fair value of common stock warrant and option
liabilities was $2.7 million lower in
the first nine months of 2022 compared to the same period in 2021,
and 2021 included a gain on the extinguishment of a PPP loan in the
amount of $1.1 million that was not
applicable to 2021.
Conference Call and Webcast
The
company has scheduled a conference call for 4:30 p.m. Eastern (1:30
p.m. Pacific) today, November
10, to discuss third 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:
|
|
14010760
|
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.
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, beverage and body care products
include GoodWheat™, Zola® coconut water, ProVault™
topical pain relief and SoulSpring™ bath and body care. 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,
profitability, operating costs, 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; consumer demand for
its 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; its ability to continue to make
acquisitions and execute on divestitures in accordance with its
business strategy or effectively manage the growth from
acquisitions; the potential impact of COVID-19 on its 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.
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SOURCE Arcadia Biosciences, Inc.