Arcadia Biosciences Earnings 2020-09-30

Arcadia Biosciences Earnings 2020-09-30

RKDA 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

10-Q 1 rkda-10q_20200930.htm 10-Q rkda-10q_20200930.htm

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, 2020

☐	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.)
202 Cousteau Place, Suite 105 Davis, CA	95618
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (530) 756-7077

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 11, 2020, the registrant had 10,832,203 shares of common stock outstanding, $0.001 par value per share.

Arcadia Biosciences, Inc.

FORM 10-Q FOR THE QUARTER ENDED September 30, 2020

INDEX

			Page
Part I —	Financial Information		1

	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	5

		Notes to Condensed Consolidated Financial Statements	6

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35

	Item 4.	Controls and Procedures	35

Part II —	Other Information		36

	Item 1.	Legal Proceedings	36

	Item 1A.	Risk Factors	36

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

	Item 3.	Defaults Upon Senior Securities	36

	Item 4.	Mine Safety Disclosures	36

	Item 5.	Other Information	36

	Item 6.	Exhibits	37

SIGNATURES			38

ITEM 1.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Arcadia Biosciences, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

	September 30, 2020			December 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	10,201		$	8,417
Short-term investments		—			16,915
Accounts receivable		373			602
Inventories, net — current		9,416			1,794
Prepaid expenses and other current assets		1,204			712
Total current assets		21,194			28,440
Restricted cash		2,001			—
Property and equipment, net		3,484			1,799
Right of use asset		6,013			1,963
Inventories, net — noncurrent		461			364
Goodwill		301			-
Intangible assets, net		400			-
Other noncurrent assets		23			8
Total assets	$	33,877		$	32,574
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	6,711		$	4,685
Amounts due to related parties		29			40
Debt — current		705			24
Unearned revenue — current		—			42
Operating lease liability — current		700			611
Other current liabilities		263			306
Total current liabilities		8,408			5,708
Debt — noncurrent		2,548			107
Operating lease liability — noncurrent		5,574			1,497
Common stock warrant liabilities		3,065			14,936
Other noncurrent liabilities		2,280			2,000
Total liabilities		21,875			24,248
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.001 par value—150,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 10,832,203 and 8,646,149 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively		51			49
Additional paid-in capital		231,954			214,826
Accumulated other comprehensive income		—			1
Accumulated deficit		(220,725	)		(207,171	)
Total Arcadia Biosciences stockholders’ equity		11,280			7,705
Non-controlling interest		722			621
Total stockholders' equity		12,002			8,326
Total liabilities and stockholders’ equity	$	33,877		$	32,574

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,
		2020			2019			2020			2019
Revenues:
Product	$	245		$	216		$	630		$	485
License		10			17			110			17
Royalty		16			—			58			—
Contract research and government grants		43			159			106			251
Total revenues		314			392			904			753
Operating expenses:
Cost of product revenues		1,841			177			3,463			324
Research and development		1,762			1,931			5,999			5,387
Selling, general and administrative		4,292			4,477			11,689			10,434
Total operating expenses		7,895			6,585			21,151			16,145
Loss from operations		(7,581	)		(6,193	)		(20,247	)		(15,392	)
Interest expense		(23	)		(3	)		(32	)		(3	)
Other income, net		—			119			83			339
Change in fair value of common stock warrant liabilities		1,130			(7,777	)		6,212			(6,790	)
Loss on extinguishment of warrant liability		(682	)		—			(635	)		—
Offering costs		—			(336	)		—			(702	)
Net loss before income taxes		(7,156	)		(14,190	)		(14,619	)		(22,548	)
Income tax benefit (provision)		(9	)		3			(15	)		(14	)
Net loss		(7,165	)		(14,187	)		(14,634	)		(22,562	)
Net loss attributable to non-controlling interest		(774	)		—			(1,081	)		—
Net loss attributable to common stockholders	$	(6,391	)	$	(14,187	)	$	(13,553	)	$	(22,562	)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.60	)	$	(2.04	)	$	(1.42	)	$	(4.03	)
Weighted-average number of shares used in per share calculations:
Basic and Diluted		10,719,618			6,942,612			9,570,259			5,596,545
Other comprehensive loss, net of tax
Unrealized losses on available-for-sale securities		—			(1	)		(1	)		—
Other comprehensive loss		—			(1	)		(1	)		—
Comprehensive loss attributable to common stockholders	$	(6,391	)	$	(14,188	)	$	(13,554	)	$	(22,562	)

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 Comprehensive			Non- Controlling			Total Stockholders’
	Shares		Amount		Capital		Deficit			(Loss) Income			Interest			Equity
Balance at December 31, 2019		8,646,149	$	49	$	214,826	$	(207,171	)	$	1		$	621		$	8,326
Issuance of shares related to employee stock purchase plan		7,946		—		14		—			—			—			14
Stock-based compensation		—		—		772		—			—			—			772
Unrealized losses on available-for-sale securities		—		—		—		—			(1	)		—			(1	)
Non-controlling interest contributions		—		—		—		—			—			689			689
Net (loss) income		—		—		—		2,525			—			(102	)		2,423
Balance at March 31, 2020		8,654,095	$	49	$	215,612	$	(204,646	)	$	—		$	1,208		$	12,223
Issuance of shares related to exercise of June 2018 Warrants		1,392,345		1		5,568		—			—			—			5,569
Issuance of investor warrants related to May 2020 Warrant Transaction		—		—		4,415		—			—			—			4,415
Issuance of placement agent warrants related to issuance of May 2020 Warrants		—		—		215		—			—			—			215
Stock-based compensation		—		—		595		—			—			—			595
Non-controlling interest contributions		—		—		—		—			—			493			493
Net loss		—		—		—		(9,688	)		—			(205	)		(9,893	)
Balance at June 30, 2020		10,046,440	$	50	$	226,405	$	(214,334	)	$	—		$	1,496		$	13,617
Issuance of shares related to exercise of March 2018 PIPE		641,416		1		2,443		—			—			—			2,444
Issuance of investor warrants related to July 2020 Warrant Transaction		—		—		2,059		—			—			—			2,059
Issuance of placement agent warrants related to issuance of July 2020 Warrants		—		—		101		—			—			—			101
Issuance of shares related to employee stock purchase plan		11,721		—		37		—			—			—			37
Stock-based compensation		—		—		477		—			—			—			477
Shares of common stock issued at closing of ISI transaction		132,626		—		432		—			—			—			432
Net loss		—		—		—		(6,391	)		—			(774	)		(7,165	)
Balance at September 30, 2020		10,832,203	$	51	$	231,954	$	(220,725	)	$	—		$	722		$	12,002

	Common Stock				Additional Paid-In			Accumulated			Non- Controlling		Total Stockholders’
	Shares		Amount		Capital			Deficit			Interest		Equity
Balance at December 31, 2018		4,774,919	$	45	$	191,136		$	(178,366	)	$	—	$	12,815
Issuance of shares related to employee stock purchase plan		2,500		—		8			—			—		8
Stock-based compensation		—		—		422			—			—		422
Net loss		—		—		—			(12,612	)		—		(12,612	)
Balance at March 31, 2019		4,777,419	$	45	$	191,566		$	(190,978	)	$	—	$	633
Issuance of shares related to June 2019 Offering		1,489,575		2		3,301			—			—		3,303
Issuance of placement agent warrants related to June 2019 Offering		—		—		198			—			—		198
Issuance of shares related to the exercise of warrants issued with the June 2019 offering		1,053,745		1		5,268			—			—		5,269
Offering costs related to June 2019 Offering		—		—		(487	)		—			—		(487	)
Stock-based compensation		—		—		389			—			—		389
Net loss		—		—		—			4,237			—		4,237
Balance at June 30, 2019		7,320,739	$	48	$	200,235		$	(186,741	)	$	—	$	13,542
Issuance of shares related to employee stock purchase plan		6,036		—		10			—			—		10
Issuance of shares related to employee stock option exercises		546		—		3			—			—		3
Reclassification of common stock warrant liability balance with exercise		—		—		7,016			—			—		7,016
Issuance of shares related to September 2019 Offering		1,318,828		1		6,570			—			—		6,571
Issuance of placement agent warrants related to September 2019 Offering		—		—		326			—			—		326
Offering costs related to September 2019 Offering		—		—		(796	)		—			—		(796	)
Stock-based compensation		—		—		1,059			—			—		1,059
Non-controlling interest contributions		—		—		—			—			689		689
Net loss		—		—		—			(14,187	)		—		(14,187	)
Balance at September 30, 2019		8,646,149

Price	0.26	EPS	-3
Shares	9	P/E	-0
MCap	2	P/FCF	-0
Net Debt	-20	EBIT	-23
TEV	-18	TEV/EBIT	1
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-13
10-Q	2020-06-30	Filed 2020-08-13
10-Q	2020-03-31	Filed 2020-05-13
10-K	2019-12-31	Filed 2020-03-25
S-1	2019-12-11	Public Filing
10-Q	2019-09-30	Filed 2019-11-06
S-1	2019-07-26	Public Filing
10-Q	2019-06-30	Filed 2019-08-14
10-Q	2019-03-31	Filed 2019-05-08
10-K	2018-12-31	Filed 2019-04-01
S-1	2018-12-27	Public Filing
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-31	Filed 2018-03-20
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-10
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-08
10-Q	2016-09-30	Filed 2016-11-10
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-08
10-Q	2015-09-30	Filed 2015-11-05
10-Q	2015-06-30	Filed 2015-08-11
10-Q	2015-03-31	Filed 2015-06-25

8-K	2020-11-12
8-K	2020-11-12
8-K	2020-08-13
8-K	2020-07-06
8-K	2020-07-06
8-K	2020-06-26
8-K	2020-06-01
8-K	2020-05-14
8-K	2020-05-14
8-K	2020-05-13
8-K	2020-04-16
8-K	2020-03-25
8-K	2019-11-06
8-K	2019-09-27
8-K	2019-09-11
8-K	2019-09-05
8-K	2019-08-22
8-K	2019-08-14
8-K	2019-08-05
8-K	2019-06-12
8-K	2019-06-03
8-K	2019-05-20
8-K	2019-05-08
8-K	2019-03-27
8-K	2019-02-28
8-K	2019-02-13
8-K	2018-11-07
8-K	2018-08-08
8-K	2018-07-31
8-K	2018-06-11
8-K	2018-06-06
8-K	2018-05-12
8-K	2018-05-09
8-K	2018-05-07
8-K	2018-05-02
8-K	2018-03-20
8-K	2018-03-19
8-K	2018-01-19

EX-31.1	rkda-ex311_8.htm
EX-31.2	rkda-ex312_10.htm
EX-32.1	rkda-ex321_6.htm
EX-32.2	rkda-ex322_9.htm

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company