Arcadia Biosciences (RKDA) Announces Second-Quarter and First-Half 2023 Financial Results and Business Highlights
- GoodWheat™ expands into breakfast category with the launch of better-for-you pancake and waffle mixes
- Exiting Body Care to reduce OpEx, focus on Food & Beverage
- Exploring strategic opportunities to drive shareholder value
“Arcadia continues to make progress executing Project Greenfield, our three-year strategic plan to unlock the company’s potential and provide a path to profitability,” said
“We’ve also embarked on several initiatives to scale more quickly, while simultaneously reducing expenses and complexity, and together, these plans have the potential to accelerate Project Greenfield milestones.”
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GoodWheat Expands Into
$850M Baking Mixes Category with Better-for-You Pancake and Waffle Mixes and Single-Serve Quikcakes™. Launching just in time for back-to-school, Arcadia’s new pancake mixes are made with simple ingredients and its proprietary GoodWheat flour, delivering the same delicious taste and texture of regular pancakes with 8X-11X the fiber and 5-7g of protein per serving. GoodWheat Quikcakes are available nationwide on Amazon, and both Quikcakes and Multi-Serve Pancake & Waffle Mixes began shipping to retailers in August. - Zola Coconut Water Distribution Grows in Q2, Innovations to Launch in Early 2024. Zola reversed its downward distribution trend in Q2 and grew velocity through adding rack displays in the Produce category. Innovation will ramp up on the brand for the first time in years, with new flavor launches planned in Q1 2024, continuing to accelerate growth in the category.
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Arcadia Streamlines Operations, Exits Body Care Brands ProVault™ and SoulSpring™. As part of its strategy to focus resources on high-opportunity, scalable businesses, Arcadia decided to wind-down its two remaining Body Care brands in order to concentrate on the more promising GoodWheat and Zola brands. Streamlined operations and organizational changes are expected to result in operating expense savings of
$2 million in the remainder of 2023 and$3 million to$4 million annually. -
Arcadia Engages Lake Street Capital Markets to Explore Strategic Opportunities. Arcadia recently initiated a strategic review process to explore a range of potential transactions and opportunities focused on maximizing the GoodWheat value proposition and driving long-term shareholder value. As part of this process, the company will explore strategic options that may include potential acquisition, company sale, merger, business combination, asset sale, joint venture, licensing arrangement, capital raise or other strategic transaction.
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Financial Snapshot (Unaudited) ($ in thousands) |
|||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
2023 |
2022 |
Favorable / (Unfavorable) |
|
2023 |
2022 |
Favorable / (Unfavorable) |
|||||||||||
|
$ |
% |
$ |
% |
||||||||||||||
|
Total revenues |
1,389 |
|
3,858 |
|
(2,469 |
) |
(64 |
%) |
2,899 |
|
7,078 |
|
(4,179 |
) |
(59 |
%) |
|
|
Total operating expenses |
5,180 |
|
7,641 |
|
2,461 |
|
32 |
% |
10,739 |
|
15,484 |
|
4,745 |
|
31 |
% |
|
|
Loss from operations |
(3,791 |
) |
(3,783 |
) |
(8 |
) |
(0 |
%) |
(7,840 |
) |
(8,406 |
) |
566 |
|
7 |
% |
|
|
Net income (loss) attributable to common stockholders |
823 |
|
(3,777 |
) |
4,600 |
|
122 |
% |
(8,561 |
) |
(8,265 |
) |
(296 |
) |
(4 |
%) |
|
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
Revenues decreased
Arcadia achieved a
Operating Expenses
Operating expenses decreased
Cost of product revenues decreased
General and administrative (SG&A) expenses decreased
Net Income (Loss) Attributable to Common Stockholders
Net income attributable to common stockholders for the second quarter of 2023 was
Net loss attributable to common stockholders for the first half of 2023 was
Conference Call and Webcast
The company has scheduled a conference call for
- An audio-only webcast of the conference call will be available in the Investors section of Arcadia’s website.
- To join the live call, please register here, and a dial-in number and unique PIN will be provided.
Following completion of the call, a recorded replay will be available on the company’s investor website.
About
Since 2002,
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, reduction in operating expenses, retail expansion, financial performance 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 ability to reduce operating expenses; the company’s and its partners’ and affiliates’ ability to successfully 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; 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; 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 and prospects is included in filings the company makes with the
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ir@arcadiabio.com
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