DAVIS, Calif. / Mar 30, 2023 / Business Wire / 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 2022.
“Arcadia has made tremendous progress over the last year,” said Stan Jacot, president and CEO. “We’ve streamlined the business by exiting less profitable brands, and we’re focused on the most compelling opportunities that will build long-term value for our shareholders.
“As a result, we’ve increased sales and gross margins while lowering our operating expenses and cash burn,” said Jacot. “For the full year 2022, our revenues increased 47% compared to 2021, our reported gross margins were positive for the first time in the company’s history, and our cash used in operations declined by nearly 50%.”
“Most importantly, we’ve laid out a long-term strategy for the future success of the company with Project Greenfield, our 3-year plan to unlock the company’s potential and create a path to profitability,” Jacot added. “Building on the successful launch of GoodWheat, we’re focused on launching or acquiring new categories, building distribution, and supporting our retail customers and partners.”
2022 Key Operating and Business Highlights
Recent Highlights
Arcadia Biosciences, Inc. | |||||||||||||||||||||
Financial Snapshot | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
| Three months ended Dec 31 |
| Twelve months ended Dec 31 | ||||||||||||||||||
| 2022 | 2021 | Favorable/ |
| 2022 | 2021 | Favorable/ | ||||||||||||||
| $ | % | $ | % | |||||||||||||||||
Total Revenues | 1,000 |
| 2,171 |
| (1,171 | ) | (54)% |
| 9,956 |
| 6,780 |
| 3,176 |
| 47% | ||||||
Total Operating Expenses | 6,830 |
| 15,975 |
| 9,145 |
| 57% |
| 28,771 |
| 42,306 |
| 13,535 |
| 32% | ||||||
(Loss) Income From Operations | (5,830 | ) | (13,804 | ) | 7,974 |
| 58% |
| (18,815 | ) | (35,526 | ) | 16,711 |
| 47% | ||||||
Net (Loss) Income Attributable to Common Stockholders | (4,244 | ) | (9,282 | ) | 5,038 |
| 54% | (15,376 | ) | (14,660 | ) | (716 | ) | (5)% |
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 2022 revenues were primarily related to sales of coconut water and body care products, along with GoodWheat pasta and grain. Arcadia’s revenues for 2021 were primarily related to sales of coconut water and body care products, as well as GoodWheat grain and GoodHemp™ seeds. As expected, revenues from legacy sources continued to wind down during the year and revenues from GoodWheat products are poised for growth in 2023.
In the fourth quarter of 2022, revenues were $1.0 million, compared to $2.2 million during the same period 2021 driven primarily by lower body care sales. Annual revenues for 2022 increased by $3.2 million compared to 2021 driven by higher coconut water and body care products, along with GoodWheat pasta and grain sales.
Operating Expenses
Operating expenses for the fourth quarter and year ended December 31, 2022, were $6.8 million and $28.8 million, respectively, compared to $16.0 million and $42.3 million during the same periods in 2021. The quarter-over-quarter decrease in operating expenses were primarily driven by lower cost of revenues, lower write-downs of intangible assets, lower selling, general and administrative expenses (“SG&A”), and the absence of goodwill impairment in the fourth quarter of 2022. The year-over-year decrease in operating expenses is primarily attributable to lower research and development costs (“R&D”), lower write-downs of intangible and fixed assets, lower SG&A, the absence of goodwill impairment and a gain on sale of Verdeca in 2022.
Cost of revenues were $1.6 million in the fourth quarter of 2022 compared to $3.8 million during the same period in 2021. The quarter-over-quarter decrease in cost of revenues is primarily due to lower sales in the fourth quarter of 2022. Cost of revenues were $9.8 million for the year ended December 31, 2022 compared to $8.7 million in 2021. The year-over-year increase in cost of revenues is primarily due to higher sales in 2022.
R&D spending of $501,000 and $1.5 million in the fourth quarter and year ended December 31, 2022, respectively, decreased by $59,000 and $2.4 million compared to the same periods in 2021, primarily due to the increased focus on commercialization versus R&D activities.
SG&A expenses of $4.2 million and $18.0 million for the fourth quarter and year ended December 31, 2022, respectively, were $2.0 million and $4.9 million lower than the same periods in 2021, primarily driven by lower employee expenses, lease expense and consulting fees in 2022.
Net Loss Attributable to Common Stockholders
Net loss for the fourth quarter of 2022 was $4.2 million, or a loss of $6.31 per share, compared to the net loss of $9.3 million in the fourth quarter of 2021. Net loss for 2022 was $15.4 million, or a loss of $25.65 per share, compared to the net loss of $14.7 million in 2021. Gains of $10.2 million were realized on the sale of Bioceres stock in 2021, and there were no similar realized gains during 2022. The change in the fair value of the common stock warrant liabilities for 2022 was a non-cash gain of $3.2 million compared to a non-cash gain of $8.9 million in 2021.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m. Eastern time (1:30 p.m. Pacific time) today, March 30 to discuss fourth-quarter and year-end results and the year’s key strategic achievements. Interested participants can join the conference call using the following options:
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, 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 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; 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, 2022, 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.
Last Trade: | US$4.07 |
Daily Change: | 0.02 0.53 |
Daily Volume: | 1,189 |
Market Cap: | US$5.540M |
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