Arcadia Biosciences, Inc. [RKDA] Filings

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10-Q 1 rkda-20240930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-37383

Arcadia Biosciences, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware	81-0571538
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
5950 Sherry Lane, Suite 215 Dallas, TX	75225
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (214) 974-8921

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common	RKDA	NASDAQ CAPITAL MARKET

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2024, the registrant had 1,364,940 shares of common stock outstanding, $0.001 par value per share.

Arcadia Biosciences, Inc.

FORM 10-Q FOR THE QUARTER ENDED September 30, 2024

INDEX


			Page
Part I —	Financial Information (Unaudited)

	Item 1.	Condensed Consolidated Financial Statements:	1

		Condensed Consolidated Balance Sheets	1

		Condensed Consolidated Statements of Operations and Comprehensive Loss	2

		Condensed Consolidated Statements of Stockholders’ Equity	3

		Condensed Consolidated Statements of Cash Flows	4

		Notes to Condensed Consolidated Financial Statements	5

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

	Item 4.	Controls and Procedures	28

Part II —	Other Information		29

	Item 1.	Legal Proceedings	29

	Item 1A.	Risk Factors	29

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

	Item 3.	Defaults Upon Senior Securities	29

	Item 4.	Mine Safety Disclosures	29

	Item 5.	Other Information	29

	Item 6.	Exhibits	30

SIGNATURES			31

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Arcadia Biosciences, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)


	September 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	3,936		$	6,518
Short-term investments		2,640			5,124
Accounts receivable and other receivables, net of allowance for doubtful accounts of $0 as of September 30, 2024 and December 31, 2023		882			506
Inventories — current		835			837
Assets held for sale		—			51
Note receivable — current		1,827			—
Prepaid expenses and other current assets		521			807
Current assets of discontinued operations — GoodWheat		70			1,129
Total current assets		10,711			14,972
Property and equipment, net		55			70
Right of use asset		306			792
Inventories — noncurrent		—			196
Intangible assets, net		39			39
Note receivable — noncurrent		3,966			—
Other noncurrent assets		164			164
Noncurrent assets of discontinued operations — GoodWheat		—			3,472
Total assets	$	15,241		$	19,705
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	1,692		$	1,910
Amounts due to related parties		30			58
Operating lease liability — current		346			852
Other current liabilities		260			270
Current liabilities of discontinued operations — GoodWheat		—			500
Total current liabilities		2,328			3,590
Operating lease liability — noncurrent		—			155
Common stock warrant and option liabilities		764			1,257
Other noncurrent liabilities		2,000			2,000
Total liabilities		5,092			7,002
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.001 par value—150,000,000 shares authorized; 1,364,940 and 1,285,337 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		65			65
Additional paid-in capital		284,919			284,515
Accumulated other comprehensive income		117			101
Accumulated deficit		(274,814	)		(271,840	)
Total stockholders’ equity		10,287			12,841
Non-controlling interest		(138	)		(138	)
Total stockholders' equity		10,149			12,703
Total liabilities and stockholders’ equity	$	15,241		$	19,705

See accompanying notes to the unaudited condensed consolidated financial statements.

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,
		2024			2023			2024			2023
Revenues:
Product	$	1,537		$	1,298		$	3,829		$	3,667
License		—			—			—			10
Total revenues		1,537			1,298			3,829			3,677
Operating expenses:
Cost of revenues		1,032			818			2,136			1,996
Research and development		24			15			40			55
Gain on sale of intangible assets		—			—			(4,000	)		—
Impairment of property and equipment		—			—			36			—
Selling, general and administrative		2,241			1,862			6,986			6,535
Total operating expenses		3,297			2,695			5,198			8,586
Loss from continuing operations		(1,760	)		(1,397	)		(1,369	)		(4,909	)
Interest income		233			133			428			538
Other income, net		15			17			168			36
Valuation loss on March 2023 PIPE		—			—			—			(6,076	)
Change in fair value of common stock warrant and option liabilities		330			608			493			5,965
Issuance and offering costs allocated to liability classified options		—			—			—			(430	)
Net loss from continuing operations before income taxes		(1,182	)		(639	)		(280	)		(4,876	)
Income tax provision		—			—			—			(1	)
Net loss from continuing operations		(1,182	)		(639	)		(280	)		(4,877	)
Net loss from discontinued operations — Body Care		—			(83	)		—			(591	)
Net loss from discontinued operations — GoodWheat		(430	)		(1,845	)		(2,694	)		(5,665	)
Net loss		(1,612	)		(2,567	)		(2,974	)		(11,133	)
Net loss attributable to non-controlling interest		—			—			—			(5	)
Net loss attributable to common stockholders	$	(1,612	)	$	(2,567	)	$	(2,974	)	$	(11,128	)
Net loss per share attributable to common stockholders:
Basic and diluted from continuing operations	$	(0.87	)	$	(0.47	)	$	(0.21	)	$	(4.08	)
Basic from discontinuing operations	$	(0.32	)	$	(1.42	)	$	(1.98	)	$	(5.24	)
Net loss per basic and diluted share attributable to common stockholders	$	(1.18	)	$	(1.89	)	$	(2.18	)	$	(9.31	)
Weighted-average number of shares used in per share calculations:
Basic and diluted		1,363,753			1,359,511			1,362,754			1,195,354
Other comprehensive income (loss), net of tax
Unrealized gains on available-for-sale securities	$	36		$	66		$	117		$	87
Reclassification adjustment for gains on available-for-sale securities included in net loss		—			—			(111	)		—
Change in unrealized gains on available-for-sale securities	$	36		$	66		$	6		$	87
Comprehensive loss	$	(1,576	)	$	(2,501	)	$	(2,968	)	$	(11,041	)

See accompanying notes to the unaudited condensed consolidated financial statements.

Arcadia Biosciences, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands, except share data)


	Common Stock				Additional Paid-In		Accumulated			Accumulated Other			Non- Controlling			Total Stockholders’
	Shares		Amount		Capital		Deficit			Comprehensive Income			Interest			Equity
Balance at December 31, 2023		1,285,337	$	65	$	284,515	$	(271,840	)	$	101		$	(138	)	$	12,703
Issuance of shares related to March 2023 pre-funded warrants exercise		75,000		—		—		—			—			—			—
Issuance of shares related to employee stock purchase plan		2,503		—		5		—			—			—			5
Stock-based compensation		—		—		138		—			—			—			138
Unrealized gains on available-for-sale securities		—		—		—		—			60			—			60
Net loss		—		—		—		(2,423	)		—			—			(2,423	)
Balance at March 31, 2024		1,362,840	$	65	$	284,658	$	(274,263	)	$	161		$	(138	)	$	10,483
Stock-based compensation		—		—		102		—			—			—			102
Change in unrealized gains on available-for-sale securities		—		—		—		—			(80	)		—			(80	)
Net income		—		—		—		1,061			—			—			1,061
Balance at June 30, 2024		1,362,840	$	65	$	284,760	$	(273,202	)	$	81		$	(138	)	$	11,566
Issuance of shares related to employee stock purchase plan		2,100		—		4		—			—			—			4
Stock-based compensation		—		—		155		—			—			—			155
Change in unrealized gains on available-for-sale securities		—		—		—		—			36			—			36
Net loss		—		—		—		(1,612	)		—			—			(1,612	)
Balance at September 30, 2024		1,364,940	$	65	$	284,919	$	(274,814	)	$	117		$	(138	)	$	10,149


	Common Stock				Additional Paid-In		Accumulated			Accumulated Other		Non- Controlling			Total Stockholders’
	Shares		Amount		Capital		Deficit			Comprehensive Income		Interest			Equity
Balance at December 31, 2022		616,079	$	65	$	278,827	$	(257,859	)	$	—	$	(133	)	$	20,900
Issuance of shares related to March 2023 PIPE		165,500		—		4,740		—			—		—			4,740
Modification of warrants related to March 2023 PIPE		—		—		219		—			—		—			219
Issuance of shares related to August 2022 pre-funded warrants exercise		56,813		—		—		—			—		—			—
Issuance of shares related to employee stock purchase plan		88		—		5		—			—		—			5
Issuance of shares related to reverse stock split		19,092		—		—		—			—		—			—
Stock-based compensation		—		—		212		—			—		—			212
Net loss		—		—		—		(9,384	)		—		—			(9,384	)
Balance at March 31, 2023		857,572	$	65	$	284,003	$	(267,243	)	$	—	$	(133	)	$	16,692
Issuance of shares related to March 2023 pre-funded warrants exercise		250,834		—		—		—			—		—			—
Issuance of shares related to reverse stock split		26		—		—		—			—		—			—
Stock-based compensation		—		—		199		—			—		—			199
Unrealized gains on available-for-sale securities		—		—		—		—			21		—			21
Net income		—		—		—		823			—		(5	)		818
Balance at June 30, 2023		1,108,432	$	65	$	284,202	$	(266,420	)	$	21	$	(138	)	$	17,730
Issuance of shares related to employee stock purchase plan		1,905		—		7		—			—		—			7
Stock-based compensation		—		—		162		—			—		—			162
Unrealized gains on available-for-sale securities		—		—		—		—			66		—			66
Net loss		—		—		—		(2,567	)		—		—			(2,567	)
Balance at September 30, 2023		1,110,337	$	65	$	284,371	$	(268,987	)	$	87	$	(138	)	$	15,398

See accompanying notes to the unaudited condensed consolidated financial statements.

Arcadia Biosciences, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)


	Nine Months Ended September 30,
		2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,974	)	$	(11,133	)
Adjustments to reconcile net loss to cash used in operating activities:
Change in fair value of common stock warrant and option liabilities		(493	)		(5,965	)
Issuance and offering costs allocated to liability classified options		—			430
Valuation loss on March 2023 PIPE		—			6,076
Depreciation		92			227
Lease amortization		502			535
Amortization of note receivable discount		(90	)		—
Gain on disposal of property and equipment		(65	)		(36	)
Gain on sale of RS durum wheat trait		(4,000	)		—
Stock-based compensation		395			573
Write-down of inventories		154			444
Impairment of property and equipment		36			—
Changes in operating assets and liabilities:
Accounts receivable and other receivables		(445	)		249
Inventories		620			(1,388	)
Prepaid expenses and other current assets		287			(284	)
Other noncurrent assets		—			(

Arcadia Biosciences, Inc. [RKDA] Filings
10-Q	[2024-11-12]
10-Q	[2024-08-13]
10-Q	[2024-05-13]
10-K	[2024-03-28]
10-Q	[2023-11-09]
10-Q	[2023-08-10]
10-Q	[2023-05-15]
10-K	[2023-03-30]
10-Q	[2022-11-10]
S-1	[2022-09-27]
10-Q	[2022-08-11]
10-Q	[2022-05-12]
10-K	[2022-03-31]
S-1	[2022-01-28]
10-Q	[2021-11-15]
10-Q	[2021-08-16]
10-Q	[2021-05-17]
10-K	[2021-03-31]
10-Q	[2020-11-13]
10-Q	[2020-08-13]
10-Q	[2020-05-13]
10-K	[2020-03-25]
S-1	[2019-12-11]
10-Q	[2019-11-06]
10-Q	[2019-08-14]
S-1	[2019-07-26]
10-Q	[2019-05-08]
10-K	[2019-04-01]
S-1	[2018-12-27]
10-Q	[2018-11-07]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-03-20]
10-Q	[2017-11-09]
10-Q	[2017-08-10]
10-Q	[2017-05-10]
10-K	[2017-03-08]
10-Q	[2016-11-10]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-08]
10-Q	[2015-11-05]
10-Q	[2015-08-11]
10-Q	[2015-06-25]
S-1	[2015-02-17]