Press Release
Arcadia Biosciences Announces Third Quarter 2015 Financial Results and Business Highlights
The company’s loss from operations of
“Our third-quarter and year-to-date results were in line with our
expectations,” said
The third quarter also included key regulatory approvals and patent issuances as well as new and expanded partnership agreements, Rey noted. “We are systematically executing on the key steps that will bring our rich pipeline to market. The careful construction of these expanding platforms allows us to support the launch of multiple traits that offer both yield and quality improvements with extensive market reach and significant revenue potential,” he added.
Arcadia Biosciences, Inc. | ||||||||||||||
Financial Snapshot | ||||||||||||||
(In thousands) |
||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||
2015 | 2014 |
% Favorable/ (Unfavorable) |
2015 | 2014 |
% Favorable/ (Unfavorable) |
|||||||||
Total Revenues | 1,823 | 1,502 | 21% | 4,068 | 4,184 | (3%) | ||||||||
Total Operating Expenses | 6,058 | 7,445 | 19% | 15,561 | 17,707 | 12% | ||||||||
Loss From Operations | (4,235) | (5,943) | 29% | (11,493) | (13,523) | 15% | ||||||||
Net Loss and Comprehensive Loss | (4,619) | (7,064) | 35% | (14,099) | (16,351) | 14% | ||||||||
Net Loss Attributable to Common Stockholders | (4,619) | (8,634) | 47% | (16,870) | (18,439) | 9% | ||||||||
Revenues
In the third quarter of 2015, revenues were
Operating Expenses
In the third quarter of 2015, operating expenses were
Net Loss and Comprehensive Loss
Net loss and comprehensive loss for the third quarter of 2015 was
Net Loss Attributable to Common Stockholders
Net loss attributable to common stockholders for the third quarter of
2015 was
Business and Technology Update
During the third quarter of 2015, Arcadia announced the achievement of several key business milestones, including:
-
July 2015 – Stress Tolerant Soybean Collaboration with Bioceres and TMG. Arcadia formed a new collaboration throughVerdeca LLC , its joint venture withBioceres, Inc. , to develop new soybean varieties using Verdeca’s HB4 Stress Tolerance trait. These new varieties will allow soybeans to achieve higher yields by adapting to multiple environmental stresses. -
July 2015 – European Patent for Water Use Efficiency Trait. The European Patent Office issued a key patent for Arcadia’s Water Use Efficiency trait. The patent covers the use of Arcadia’s WUE trait to develop drought resistant and water efficient plants that will help growers produce higher yields per unit of available water. -
August 2015 – Completion ofUS Food and Drug Administration (FDA ) Early Food Safety Evaluation (EFSE) of HB4 Stress Tolerant Soybeans. TheFDA completed the EFSE process which evaluated the plant protein responsible for Verdeca’s HB4 Stress Tolerance trait. In the EFSE process, theFDA reviewed safety data provided by Verdeca and supported the conclusion that the inadvertent presence of low levels of the HAHB4 protein would not raise food safety concerns. The data provided to theFDA is consistent with international regulatory requirements for genetically modified crops and will be used by Verdeca and its global partners for future regulatory submissions. -
September 2015 – 30 Percent Yield Increase in Rice with Nitrogen Use Efficiency (NUE) Trait. Four years of NUE rice field trials demonstrated an average yield increase of 30 percent as reported by Arcadia, theInternational Center for Tropical Agriculture (CIAT) and theAfrican Agricultural Technology Foundation (AATF). The results are based on independent testing by CIAT at the center’s research fields inColombia . -
September 2015 – Collaboration with Bioceres and TMG to Develop Non-GM Agronomic and Product Quality Soybean Traits. A new collaboration agreement was reached between TMG and Verdeca. The collaboration will use Verdeca’s proprietary soybean genetic diversity library and Arcadia’s high-throughput screening platform to develop a portfolio of new non-genetically modified (non-GM) soybean varieties with a number of agronomic and product quality benefits.
Conference Call and Webcast
The company has scheduled a conference call for
Interested participants can join the conference call using the following numbers:
U.S. Toll-Free Dial-In: | +1-855-546-9560 | ||||
International Dial-In: | +1-412-455-6124 | ||||
Passcode: | 60422408 | ||||
A live webcast of the conference call will be available on the “Investors” section of the Arcadia’s website at www.arcadiabio.com. Following completion of the call, a recorded replay will be available on the company’s investor website.
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 components of the company’s long-term
financial success; the company's traits, commercial products, and
collaborations; and the company’s ability to manage the regulatory
processes for its traits and commercial 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’ ability to develop 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, and changes to such laws and regulations; 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
About
Based in
Arcadia Biosciences, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands, except share data) |
||||||||
September 30, 2015 | December 31, 2014 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 62,966 | $ | 16,571 | ||||
Short-term investments | 11,290 | — | ||||||
Accounts receivable | 685 | 1,042 | ||||||
Unbilled revenue | 431 | 380 | ||||||
Inventories — current | 598 | 424 | ||||||
Prepaid expenses and other current assets | 672 | 278 | ||||||
Total current assets | 76,642 | 18,695 | ||||||
Property and equipment, net | 597 | 728 | ||||||
Inventories — noncurrent | 2,132 | 2,149 | ||||||
Cost method investment | 500 | 500 | ||||||
Other noncurrent assets | 102 | 2,817 | ||||||
Total assets | $ | 79,973 | $ | 24,889 | ||||
Liabilities, redeemable and convertible preferred stock and
stockholders’ equity
(deficit) |
||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 3,976 | $ | 3,197 | ||||
Amounts due to related parties | 15 | 56 | ||||||
Promissory notes — current | — | 1,055 | ||||||
Convertible promissory notes | 3,639 | 4,551 | ||||||
Unearned revenue — current | 840 | 830 | ||||||
Derivative liabilities related to convertible promissory notes | 2,425 | 1,580 | ||||||
Total current liabilities | 10,895 | 11,269 | ||||||
Notes payable | 19,462 | — | ||||||
Note payable to related party | — | 8,000 | ||||||
Promissory notes — noncurrent | — | 869 | ||||||
Unearned revenue — noncurrent | 2,783 | 3,636 | ||||||
Other noncurrent liabilities | 3,000 | 3,000 | ||||||
Total liabilities | 36,140 | 26,774 | ||||||
Redeemable convertible preferred stock, no par value—0 and 10,553,770 shares authorized as of September 30, 2015 and December 31, 2014; 0 and 9,587,764 issued and outstanding as of September 30, 2015 and December 31, 2014 |
— | 34,098 | ||||||
Convertible preferred stock, no par value—0 and 94,586,346 shares authorized as of September 30, 2015 and December 31, 2014; 0 and 23,385,029 issued and outstanding as of September 30, 2015 and December 31, 2014 |
— | 48,783 | ||||||
Stockholders’ equity (deficit): | — | — | ||||||
Preferred stock, $0.001 par value—20,000,000 and 0 shares authorized as of September 30, 2015 and December 31, 2014; no shares issued and outstanding as of September 30, 2015 and December 31, 2014 |
— | — | ||||||
Common stock, $0.001 par value—400,000,000 and 140,000,000 shares authorized as of September 30, 2015 and December 31, 2014; 43,931,094 and 2,074,030 shares issued and outstanding as of September 30, 2015 and December 31, 2014 |
44 | — | ||||||
Additional paid-in capital |
171,858 | 29,204 | ||||||
Accumulated deficit | (128,069 | ) | (113,970 | ) | ||||
Total stockholders’ equity (deficit) | 43,833 | (84,766 | ) | |||||
Total liabilities, redeemable and convertible preferred stock and stockholders’ equity (deficit) |
$ | 79,973 | $ | 24,889 |
Arcadia Biosciences, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues: | ||||||||||||||||
Product | $ | 123 | $ | 67 | $ | 383 | $ | 266 | ||||||||
License | 214 | 91 | 773 | 462 | ||||||||||||
Contract research and government grants | 1,486 | 1,344 | 2,912 | 3,456 | ||||||||||||
Total revenues | 1,823 | 1,502 | 4,068 | 4,184 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of product revenues | 61 | 1,795 | 223 | 1,932 | ||||||||||||
Research and development | 3,179 | 3,684 | 7,097 | 7,942 | ||||||||||||
Selling, general and administrative | 2,818 | 1,966 | 8,241 | 7,833 | ||||||||||||
Total operating expenses | 6,058 | 7,445 | 15,561 | 17,707 | ||||||||||||
Loss from operations | (4,235 | ) | (5,943 | ) | (11,493 | ) | (13,523 | ) | ||||||||
Interest expense | (766 | ) | (265 | ) | (2,008 | ) | (1,048 | ) | ||||||||
Other income (expense), net | 285 | (813 | ) | (376 | ) | (613 | ) | |||||||||
Net loss before income taxes and equity in loss of unconsolidated entity |
(4,716 | ) | (7,021 | ) | (13,877 | ) | (15,184 | ) | ||||||||
Income tax benefit (provision) | 97 | (43 | ) | (222 | ) | (235 | ) | |||||||||
Equity in loss of unconsolidated entity | — | — | — | (932 | ) | |||||||||||
Net loss and comprehensive loss | (4,619 | ) | (7,064 | ) | (14,099 | ) | (16,351 | ) | ||||||||
Accretion of redeemable convertible preferred stock to redemption value |
— | (1,570 | ) | (2,574 | ) | (2,088 | ) | |||||||||
Deemed dividends to warrant holder | — | — | (197 | ) | — | |||||||||||
Net loss attributable to common stockholders | $ | (4,619 | ) | $ | (8,634 | ) | $ | (16,870 | ) | $ | (18,439 | ) | ||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic and diluted | $ | (0.11 | ) | $ | (4.19 | ) | $ | (0.72 | ) | $ | (8.96 | ) | ||||
Weighted-average number of shares used in per share calculations: |
||||||||||||||||
Basic and diluted | 43,647,180 | 2,061,805 | 23,318,262 | 2,058,327 |
Arcadia Biosciences, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
(In thousands) |
||||||||
Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (14,099 | ) | $ | (16,351 | ) | ||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
Depreciation and amortization | 210 | 272 | ||||||
Gain on disposal of equipment | — | 3 | ||||||
Equity in loss of unconsolidated entity | — | 932 | ||||||
Loss related to amendment of Bioceres funding agreement | — | 1,450 | ||||||
Stock-based compensation | 1,205 | 595 | ||||||
Common stock warrants issued for services | — | 93 | ||||||
Change in fair value of derivative liabilities related to convertible promissory notes | 845 | 621 | ||||||
Gain on expiration of warrant and derivative liability related to notes payable upon IPO | (437 | ) | — | |||||
Accretion of debt discount | 589 | 342 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 357 | 591 | ||||||
Amounts due from related parties | — | 100 | ||||||
Unbilled revenue | (51 | ) | (821 | ) | ||||
Inventories | (157 | ) | 550 | |||||
Prepaid expenses and other current assets | (375 | ) | 39 | |||||
Other noncurrent assets | (43 | ) | — | |||||
Accounts payable and accrued expenses | 1,676 | 60 | ||||||
Amounts due to related parties | (41 | ) | (151 | ) | ||||
Unearned revenue | (842 | ) | (454 | ) | ||||
Net cash used in operating activities | (11,163 | ) | (12,129 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Cost method investment | — | (1,450 | ) | |||||
Proceeds from sale of property and equipment | — | 7 | ||||||
Purchases of property and equipment | (80 | ) | (40 | ) | ||||
Purchases of short-term investments | (11,290 | ) | — | |||||
Net cash used in investing activities | (11,370 | ) | (1,483 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of common stock upon IPO | 68,226 | — | ||||||
Payments of IPO issuance costs | (8,054 | ) | (9 | ) | ||||
Proceeds from issuance of notes payable | 20,000 | — | ||||||
Payments of debt issuance costs | (290 | ) | — | |||||
Proceeds from exercise of stock options | 168 | 6 | ||||||
Proceeds from issuance of redeemable convertible preferred stock and common stock warrants, net of issuance costs | — | 32,845 | ||||||
Payments on notes payable to related party | (8,000 | ) | — | |||||
Payments on notes payable and convertible promissory notes | (3,122 | ) | (836 | ) | ||||
Capital lease payments | — | (59 | ) | |||||
Net cash provided by financing activities | 68,928 | 31,947 | ||||||
Net increase in cash and cash equivalents | 46,395 | 18,335 | ||||||
Cash and cash equivalents — beginning of period | 16,571 | 2,835 | ||||||
Cash and cash equivalents — end of period | $ | 62,966 | $ | 21,170 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for interest | $ | 1,411 | $ | 571 | ||||
Cash paid for income taxes | $ | 149 | $ | 83 | ||||
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Accretion of redeemable convertible preferred stock | $ | 2,574 | $ | 2,088 | ||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 1 | $ | — | ||||
Deferred offering costs included in accounts payable and accrued expenses | $ | 155 | $ | 214 | ||||
Reclassification of deferred IPO costs to equity | $ | 5,026 | $ | — | ||||
Deemed dividend to common stock warrant holder | $ | 197 | $ | — | ||||
Issuance of warrants and derivatives | $ | 437 | $ | — | ||||
Stock option exercise cost included in accounts receivable | $ | 19 | $ | — | ||||
Conversion of preferred stock to common stock upon IPO | $ | 85,455 | $ | — |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105006794/en/
Source:
Arcadia Biosciences, Inc.
Media Contact:
Jeff Bergau
jeff.bergau@arcadiabio.com
+1-312-217-0419