Thu, May 8, 12:11 PM (11 days ago)
**Arcadia Biosciences, Inc. (RKDA) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1.2 million, up 22% YoY, driven by Zola coconut water sales. - **Profit Margins:** Net income of $2.6 million, a significant improvement from a net loss of $2.4 million in Q1 2024. - **Cash Flow:** Net cash used in operations was $1.6 million, an improvement from $3.2 million in Q1 2024. - **Earnings Changes:** Basic EPS was $1.90, up from $(1.78) in Q1 2024. **Key Financial Metrics:** - **Current Assets:** $8.8 million, down from $9.2 million in Q4 2024. - **Current Liabilities:** $2.2 million, down from $2.6 million in Q4 2024. - **Working Capital:** $6.6 million, slightly down from $6.7 million in Q4 2024. **Trends & Uncertainties:** - **Seasonality:** Coconut water sales peak in warmer months (Q2 & Q3). - **Tariffs:** Potential impact from U.S. tariffs, with discussions ongoing to mitigate effects. - **Legal Proceedings:** Ongoing litigation related to Proposition 65 and the Exchange Agreement. - **Going Concern:** Doubt raised about the company's ability to continue as a going concern due to insufficient cash reserves. **Future Operations & Impact:** - **Business Combination:** Pending transaction with Roosevelt Resources, LP, with amendments made to the Exchange Agreement. - **Patent Sale:** Gain of $750,000 from the sale of soy traits and patents to Bioceres Crop Solutions Corp. - **Funding Needs:** Potential need for additional funding through debt or equity, which could dilute shareholders or impose debt service obligations. **Discontinued Operations:** - **GoodWheat Sale:** Sold for $3.7 million, resulting in a $1.5 million loss in Q2 2024. - **RS Durum Wheat Trait Sale:** Sold to Corteva for $4.0 million, with retained usage rights. **Segment Reporting:** - **Single Segment:** Focused on Zola coconut water sales, with net income from continuing operations of $2.6 million. **Stock-Based Compensation:** - **Expenses:** $78,000 in Q1 2025, down from $138,000 in Q1 2024. - **Unrecognized Compensation:** $251,000 related to unvested stock-based compensation grants. **Related-Party Transactions:** - **Royalty Fees:** $30,000 due to JSF, with no future royalty fees expected. **Subsequent Events:** - **Amendment to Exchange Agreement:** Extended termination date and adjusted share issuance provisions. - **Promissory Note:** Issued to Above Food, with prepayment shares requested and registration statement preparation underway.