Arcadia Biosciences (RKDA) Announces First-Quarter 2021 Financial Results and Business Highlights

Arcadia Biosciences, Inc.

Financial Snapshot

(Unaudited)

 ($ in thousands)

Three Months Ended March 31,

$

%

Total Revenues

828

309

519

168%

Total Operating Expenses

6,154

6,099

(55)

(1)%

Loss From Operations

(5,326)

(5,790)

464

8%

Net Income Attributable to
Common Stockholders

2,058

2,525

(467)

(19)%

Arcadia Biosciences, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

March 31, 2021

December 31, 2020

Assets

Current assets:

Cash and cash equivalents

32,848

$14,042

Short-term investments

19,088

11,625

Accounts receivable

1,113

1,406

Inventories, net — current

2,663

3,812

Prepaid expenses and other current assets

901

811

Total current assets

56,613

31,696

Restricted cash

-

2,001

Property and equipment, net

3,480

3,539

Right of use asset

5,636

5,826

Inventories, net — noncurrent

4,290

3,485

Goodwill

408

408

Intangible assets, net

350

370

Other noncurrent assets

23

23

Total assets

$                 70,800

$                  47,348

Liabilities and stockholders' equity

Current liabilities:

Accounts payable and accrued expenses

$                   3,418

$                    4,105

Amounts due to related parties

26

80

Debt — current

1,141

1,141

Unearned revenue — current

63

8

Operating lease liability — current

705

717

Other current liabilities

264

263

Total current liabilities

5,617

6,314

Debt — noncurrent

96

2,105

Operating lease liability — noncurrent

5,228

5,389

Common stock warrant liabilities

12,016

2,708

Other noncurrent liabilities

2,140

2,280

Total liabilities

25,097

18,796

Stockholders' equity:

   Common stock, $0.001 par value—150,000,000 shares 
   authorized as of March 31, 2021 and December 31, 2020;

   21,336,249 and 13,450,861 shares issued and outstanding as of

   March 31, 2021 and December 31, 2020, respectively

62

54

Additional paid-in capital

254,208

239,496

Accumulated deficit

(209,767)

(211,825)

Total Arcadia Biosciences stockholders' equity

44,503

27,725

Non-controlling interest

1,200

827

Total stockholders' equity

45,703

28,552

Total liabilities and stockholders' equity

$                 70,800

$                  47,348

Arcadia Biosciences, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended March 31,

2021

2020

Revenues:

Product

$                       803

$                       154

License

-

100

Royalty

25

30

Contract research and government grants

—

25

Total revenues

828

309

Operating expenses:

Cost of product revenues

856

132

Research and development

1,159

2.244

Change in fair value of contingent consideration

(140)

—

Write-down of fixed assets

210

—

Selling, general and administrative

4,069

3,723

Total operating expenses

6,154

6,099

Loss from operations

(5,326)

(5,790)

Interest expense

(9)

(3)

Other income, net

7,463

72

Issuance and offering costs

(769)

—

Change in fair value of common stock warrant liabilities

322

8,161

Net income before income taxes

1,681

2,440

Income tax provision

—

(17)

Net income

1,681

2,423

Net loss attributable to non-controlling interest

(377)

(102)

Net income attributable to common stockholders

$                    2,058

$                  2,525

Net income per share attributable to common stockholders:

Basic

$                      0.11

$                    0.29

Diluted

$                      0.11

$                    0.29

Weighted-average number of shares used in per share calculations:

Basic

18,970,250

8,651,213

Diluted

19,042,962

8,674,610

Other comprehensive loss, net of tax

Unrealized losses on investment securities

—

(1)

Other comprehensive loss

—

(1)

Comprehensive income attributable to common stockholders

$                    2,058

$                2,524

Arcadia Biosciences, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Three Months Ended March 31,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$                    1,681

$                2,423

Adjustments to reconcile net income to cash used in operating activities:

Change in fair value of common stock warrant liabilities

(322)

(8,161)

Change in fair value of contingent consideration

(140)

—

Issuance and offering costs

769

—

Depreciation

236

74

Amortization of intangible assets

20

—

Lease amortization

289

223

Net amortization of investment premium

—

(39)

Stock-based compensation

325

772

Unrealized gain on corporate securities

(7,463)

—

Write-down of fixed assets

210

—

Write-down of inventory

160

59

Changes in operating assets and liabilities:

Accounts receivable

293

293

Inventories

184

(4,145)

Prepaid expenses and other current assets

(90)

(748)

Other noncurrent assets

—

(15)

Accounts payable and accrued expenses

(591)

227

Amounts due to related parties

(54)

(24)

Unearned revenue

55

(25)

Other current liabilities

3

—

Operating lease payments

(272)

(184)

Net cash used in operating activities

(4,707))

(9,270)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(485)

(778)

Purchases of investments

—

(1,292)

Proceeds from sales and maturities of investments

—

15,200

Net cash (used in) provided by investing activities

(485)

13,130

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock and warrants from January 2021 PIPE securities purchase agreement

25,147

—

Payments of offering costs relating to January 2021 PIPE

securities purchase agreement

(1,912)

—

Principal payments on debt

(2,009)

(7)

Proceeds from ESPP purchases

21

14

Capital contributions received from non-controlling interest

750

689

Net cash provided by financing activities

21,997

696

Net increase in cash, cash equivalents and restricted cash

16,805

4,556

Cash, cash equivalents and restricted cash — beginning of period

16,043

8,417

Cash, cash equivalents and restricted cash — end of period

$                  32,848

$                12,973

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for income taxes

$                          —

$                         2

Cash paid for interest

$                         19

$                         3

NONCASH INVESTING AND FINANCING ACTIVITIES:

Fixed assets acquired with notes payable

$                         —

$                       37

Common stock warrants issued to placement agent and included in offering costs related to January 2021 PIPE securities purchase agreement

$                      942

$                       —

Right of use assets obtained in exchange for new operating lease liabilities

$                        —

$                  3,836

Purchases of fixed assets included in accounts payable and accrued expenses

$                        25

$                       —