Arcadia Biosciences Announces Third-Quarter and Nine-Month 2018 Financial Results and Business
Highlights
Arcadia Biosciences, Inc. (Nasdaq: RKDA), an agricultural food ingredient company, today released its financial and business
results for the third quarter and first nine months of 2018.
“With the announcement of our collaboration with Ardent Mills, the largest wheat milling company in the U.S., we are positioning
ourselves to commercialize our wheat products portfolio,” said Raj Ketkar, president and CEO of Arcadia. “We are planning to launch
up to three uniquely different traits in three crops around the globe over the next 12-18 months, driving value for consumers,
growers, food manufacturers and Arcadia investors.”
Q3 2018 Operating and Financial Highlights
- GoodWheat Harvest Completed. In late Q3, early Q4, Arcadia completed its
2018 GoodWheat Harvest, featuring the scale up of Resistant Starch (RS) GoodWheat and the first field production of its Reduced
Gluten variety. These agronomic trials help fine tune the highest possible functionality and performance for GoodWheat growers,
and those efforts will continue in the Southern hemisphere during the upcoming planting season. These trials also validated the
agronomic performance of the traits in multiple states, which will enable Arcadia to develop specific agronomic packages for each
growing region for farmers who will produce commercial quantities of GoodWheat.
- GoodWheat Test Marketing Initiated. Arcadia initiated market testing
with an independent food and beverage innovation team to evaluate GoodWheat formulations in bread, crackers and other baked
goods. Arcadia is also conducting consumer research studies through a leading consumer packaged goods market insight company to
help refine its GoodWheat commercialization strategy.
- Building GoodWheat Commercial Team. Arcadia hired Grant Aldridge as head
of commercial development to help build out the GoodWheat supply chain. Aldridge has over 25 years of expertise in agronomic
breeding, seed production and commercial development.
- Defending GoodWheat Intellectual Property (IP). Arcadia initiated
legal action against Arista Cereal Technologies to defend the patents supporting Resistant Starch GoodWheat. Arcadia respects and
honors the IP of others and vigorously defends its own. While claims are pursued in the U.S., Arcadia is concentrating
commercialization efforts for Resistant Starch wheat in regions that are not affected by this dispute and continuing to
commercialize and develop the other varieties in its diverse GoodWheat portfolio. Arcadia estimates that its wheat, soy and other
nutrition and ingredient products address a total target market approaching $1.5 billion, and the portion of the total target
market potentially relevant to the Arista matter represents only approximately 10 percent. Therefore the company does not expect
the prosecution and resolution of the Arista matter to have a material impact on its ability to commercialize products or grow
its business.
- HB4 Drought Tolerant Soybeans Advancing Toward Commercialization. In
preparation for the commercialization of drought tolerant soybeans, Arcadia’s joint venture with Bioceres, Verdeca, hired a
general manager in Q3. Martin Mariani Ventura is a seasoned agriculture executive with over 20 years of experience in marketing
and commercialization of new products.
The HB4 technology was introduced to farmers at the AAPRESID Congress in Argentina in Q3. During the 2017-18 field trial season
in Argentina, HB4 Drought Tolerant soybeans showed improved yields in under drought conditions in elite breeding lines.
- Extended Shelf Life Tomatoes Achieve Milestone. Arcadia reached a
technical milestone in Q3 with partner Shriram Bioseed in India for Extended Shelf Life tomatoes. This non-GM trait is bred to
fully ripen on the vine yet remain durable enough to survive the packing and shipping process, reducing post harvest damage and
costly waste. Field trial results over multiple seasons in multiple varieties showed significant improvements in field yield,
firmness, shelf life and color development. These new hybrids are in the pre-commercial, wide area testing phase and Bioseed
expects to launch them in 2019.
Q4 Achievements and Strategic Outlook
- Arcadia and Ardent Mills To Collaborate on Wheat Innovations. Arcadia
recently announced a collaboration with Ardent Mills, the leading flour-milling and ingredient company in North America, to
develop and commercialize innovative wheat varieties. The first project in this partnership will focus on extending the shelf
life of whole wheat flour products to improve taste, reduce waste and positively impact health outcomes by increasing the
consumption of whole grains.
- U.S. Patent Granted for Extended Shelf Life Wheat. Arcadia was recently
granted a U.S. patent on its Extended Shelf Life Wheat technology which extends the storage life of whole wheat flour by
minimizing oxidation. This new trait was designed to promote whole wheat consumption by improving the shelf life and taste of
whole grain wheat products.
- Argentina Approves HB4 Drought Tolerance Trait Stack With Herbicide
Tolerance. Verdeca, a joint venture between Arcadia and Bioceres, recently received approval in Argentina for its HB4
drought tolerant trait stacked with herbicide tolerant traits in soybeans. The approval allows Verdeca to incorporate tolerance
to both glyphosate and glufosinate-ammonium into the trait. This expands the market for HB4 technology in South America and will
enable increased field testing and seed production in Argentina.
| |
|
Arcadia Biosciences, Inc.
Financial Snapshot
(Unaudited)
($ in thousands)
|
|
|
|
|
|
|
|
Three months ended Sept 30 |
|
Nine months ended Sept 30 |
|
|
2018 |
|
2017 |
|
Favorable/
(Unfavorable)
|
|
2018 |
|
2017 |
|
Favorable/
(Unfavorable)
|
|
|
|
|
$ |
|
% |
|
|
|
|
$ |
|
% |
|
| Total Revenues |
|
370 |
|
589 |
|
(219 |
) |
(37 |
%) |
|
1,020 |
|
2,598 |
|
(1,578 |
) |
(61 |
%) |
| Total Operating Expenses |
|
4,469 |
|
4,204 |
|
(265 |
) |
(6 |
%) |
|
13,536 |
|
13,913 |
|
377 |
|
3 |
% |
| Loss From Operations |
|
(4,099 |
) |
(3,615 |
) |
(484 |
) |
(13 |
%) |
|
(12,516 |
) |
(11,315 |
) |
(1,201 |
) |
(11 |
%) |
| Net Income (Loss) and Net Income (Loss) Attributable to Common Stockholders |
|
4,450 |
|
(4,525 |
) |
8,975 |
|
198 |
% |
|
(12,834 |
) |
(12,747 |
) |
(87 |
) |
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
In the third quarter of 2018, total revenues were $370,000 compared to revenues of $589,000 in the third quarter of 2017, a 37
percent decrease. The quarter-over-quarter decrease was driven mainly by a $147,000 reduction in our contract research and
government grant revenue due to the completion of government grants during 2017. In the first nine months of 2018, overall revenues
decreased by $1.6 million from $2.6 million to $1.0 million, driven again by the decrease in government grant revenue, in addition
to a contract research agreement in 2017 that is not present in 2018. Over the next 12 to 36 months, as the company transitions to
its new focus on health and nutrition quality products, Arcadia expects revenue from government grants, research contracts and
license revenues to be replaced by product and trait revenues.
Operating Expenses
In the third quarter of 2018, operating expenses totaled $4.5 million, up from $4.2 million in the third quarter of 2017, an
increase of $265,000 or 6 percent. Cost of product revenues was $124,000 for the quarter, which was $84,000 or 210 percent higher
than in the third quarter of 2017, due to a write-down of our GLA inventory in the amount of $46,000 and additional product
revenues. Research and development (R&D) spending was $415,000 lower for the quarter, resulting from the termination of license
and contract research agreements at the end of 2017. General and administrative (SG&A) costs were $596,000 higher than the
amounts in third quarter of the previous year due to higher intellectual property legal fees and additional marketing activity. For
the first nine months of 2018, total operating expenses were $13.5 million, compared with $13.9 million during the same period in
2017, a reduction of $377,000 or 3 percent. Cost of product revenues increased by $169,000, or 65 percent, as a result of the GLA
inventory write-downs in the second and third quarters of 2018. Year to date R&D spending in 2018 was $717,000 less, or 14
percent, primarily the effect of the license and contract research agreement terminations at the end of 2017. SG&A expenses
increased slightly by $171,000 or 2 percent, due largely to higher intellectual property legal fees and bonus expense in the first
three quarters of 2018, partially offset by lower salary, benefit and advisory costs.
Net Income (Loss) and Net Income (Loss) Attributable to Common Stockholders
Net income and net income attributable to common stockholders for the third quarter of 2018 was $4.5 million, a 198 percent
increase from the $4.5 million loss in the third quarter of 2017. The change from a net loss to a net income position in this
quarter as compared to the third quarter of 2017 was due to non-cash income of $8.4 million recognized as the fair value of the
common stock warrant liabilities associated with the PIPE financing and Registered Direct Offering decreased from the value at the
end of the second quarter. Net loss and net loss attributable to common stockholders for the first nine months of 2018 was $12.8
million, a 1 percent decrease from the $12.7 million loss in the first nine months of 2017. The loss for the first nine months of
2018 included the initial recognition, and subsequent fair value remeasurement, of the liabilities associated with the PIPE
financing, the subsequent fair value remeasurement of the liability associated with the Registered Direct Offering, and offering
costs expensed for both transactions. The combined impact of this activity during the first nine months of 2018 totaled $558,000 of
expense, while the first nine months of 2017 included a loss of $900,000 related to the extinguishment of debt and $747,000 of
interest expense.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m. Eastern (1:30 p.m. Pacific) today, November 7, to discuss
third-quarter and nine-month financial results and key strategic achievements.
Interested participants can join the conference call using the following numbers:
U.S. Toll-Free Dial-In: +1-844-243-4690
International Dial-In: +1-225-283-0138
Passcode: 6469448
A live webcast of the conference call will be available on the “Investors” section of the Arcadia’s website at
www.arcadiabio.com. Following completion of the call, a recorded replay will be available on the company’s investor
website.
About Arcadia Biosciences, Inc.
Arcadia Biosciences (Nasdaq: RKDA) develops and markets high-value food ingredients and nutritional oils that help meet consumer
demand for a healthier diet. Arcadia’s GoodWheat™ branded ingredients deliver health benefits to consumers and enable consumer
packaged goods companies to differentiate their brands in the marketplace. The company’s agricultural traits are being developed to
enable farmers around the world to be more productive and minimize the impact of agriculture on the environment. 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 launch
of the company’s products; the impact of legal disputes on the company’s business; the sources of future revenue; collaborations;
and the company’s ability to manage the regulatory processes for its traits and commercial 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’ ability to develop 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 company’s ability to
enter into favorable commercial relationships; the company’s ability to develop, secure, enforce and defend its intellectual
property rights; 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” in the company's Annual
Report on Form 10-K for the year ended December 31, 2017. These documents are on the SEC Filings section of the “Investors” section
of the company’s website at
www.arcadiabio.com. All information provided in this release and in the attachments is as of the date hereof, and Arcadia
Biosciences, Inc. undertakes no duty to update this information.
|
Arcadia Biosciences, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
| Assets |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
6,669 |
|
|
$ |
9,125 |
|
| Short-term investments |
|
|
17,931 |
|
|
|
3,898 |
|
| Accounts receivable |
|
|
193 |
|
|
|
1,231 |
|
| Unbilled revenue |
|
|
168 |
|
|
|
4 |
|
| Inventories — current |
|
|
354 |
|
|
|
229 |
|
| Prepaid expenses and other current assets |
|
|
888 |
|
|
|
560 |
|
| Total current assets |
|
|
26,203 |
|
|
|
15,047 |
|
| Property and equipment, net |
|
|
265 |
|
|
|
299 |
|
| Inventories — noncurrent |
|
|
742 |
|
|
|
1,168 |
|
| Other noncurrent assets |
|
|
7 |
|
|
|
56 |
|
| Total assets |
|
$ |
27,217 |
|
|
$ |
16,570 |
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable and accrued expenses |
|
$ |
2,303 |
|
|
$ |
2,496 |
|
| Amounts due to related parties |
|
|
18 |
|
|
|
29 |
|
| Unearned revenue — current |
|
|
316 |
|
|
|
1,000 |
|
| Total current liabilities |
|
|
2,637 |
|
|
|
3,525 |
|
| Unearned revenue — noncurrent |
|
|
— |
|
|
|
2,038 |
|
| Common stock warrant liabilities |
|
|
8,658 |
|
|
|
— |
|
| Other noncurrent liabilities |
|
|
3,000 |
|
|
|
3,000 |
|
| Total liabilities |
|
|
14,295 |
|
|
|
8,563 |
|
| Stockholders’ equity: |
|
|
|
|
|
|
|
|
| Common stock, $0.001 par value—150,000,000 shares authorized as of September 30, 2018
and December 31, 2017; 4,774,919 and 2,134,154 shares issued and outstanding as of September 30, 2018 and December 31, 2017,
respectively |
|
|
45 |
|
|
|
42 |
|
| Additional paid-in capital |
|
|
190,599 |
|
|
|
175,223 |
|
| Accumulated deficit |
|
|
(177,720 |
) |
|
|
(167,257 |
) |
| Accumulated other comprehensive loss |
|
|
(2 |
) |
|
|
(1 |
) |
| Total stockholders’ equity |
|
|
12,922 |
|
|
|
8,007 |
|
| Total liabilities and stockholders’ equity |
|
$ |
27,217 |
|
|
$ |
16,570 |
|
|
|
|
|
|
|
|
|
|
|
Arcadia Biosciences, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(In thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Product |
|
$ |
144 |
|
|
$ |
82 |
|
|
$ |
393 |
|
|
$ |
482 |
|
| License |
|
|
10 |
|
|
|
144 |
|
|
|
100 |
|
|
|
353 |
|
| Contract research and government grants |
|
|
216 |
|
|
|
363 |
|
|
|
527 |
|
|
|
1,763 |
|
| Total revenues |
|
|
370 |
|
|
|
589 |
|
|
|
1,020 |
|
|
|
2,598 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of product revenues |
|
|
124 |
|
|
|
40 |
|
|
|
431 |
|
|
|
262 |
|
| Research and development |
|
|
1,334 |
|
|
|
1,749 |
|
|
|
4,524 |
|
|
|
5,241 |
|
| Selling, general and administrative |
|
|
3,011 |
|
|
|
2,415 |
|
|
|
8,581 |
|
|
|
8,410 |
|
| Total operating expenses |
|
|
4,469 |
|
|
|
4,204 |
|
|
|
13,536 |
|
|
|
13,913 |
|
| Loss from operations |
|
|
(4,099 |
) |
|
|
(3,615 |
) |
|
|
(12,516 |
) |
|
|
(11,315 |
) |
| Interest expense |
|
|
— |
|
|
|
(43 |
) |
|
|
— |
|
|
|
(747 |
) |
| Other income, net |
|
|
134 |
|
|
|
46 |
|
|
|
266 |
|
|
|
246 |
|
| Initial loss on common stock warrant and common stock adjustment feature
liability |
|
|
— |
|
|
|
— |
|
|
|
(4,000 |
) |
|
|
— |
|
|
Change in fair value of common stock warrant liabilities and
common stock adjustment feature liability
|
|
|
8,421 |
|
|
|
— |
|
|
|
5,986 |
|
|
|
— |
|
| Offering costs |
|
|
(1 |
) |
|
|
— |
|
|
|
(2,544 |
) |
|
|
— |
|
| Loss on extinguishing of debt |
|
|
— |
|
|
|
(900 |
) |
|
|
— |
|
|
|
(900 |
) |
| Net income (loss) before income taxes |
|
|
4,455 |
|
|
|
(4,512 |
) |
|
|
(12,808 |
) |
|
|
(12,716 |
) |
| Income tax provision |
|
|
(5 |
) |
|
|
(13 |
) |
|
|
(26 |
) |
|
|
(31 |
) |
| Net income (loss) |
|
$ |
4,450 |
|
|
$ |
(4,525 |
) |
|
$ |
(12,834 |
) |
|
$ |
(12,747 |
) |
| Net income (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
$ |
0.93 |
|
|
$ |
(2.12 |
) |
|
$ |
(3.74 |
) |
|
$ |
(5.89 |
) |
| Weighted-average number of shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
|
4,774,732 |
|
|
|
2,133,846 |
|
|
|
3,427,799 |
|
|
|
2,163,604 |
|
| Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) on available-for-sale
securities
|
|
|
(2 |
) |
|
|
8 |
|
|
|
(1 |
) |
|
|
14 |
|
| Other comprehensive income (loss) |
|
|
(2 |
) |
|
|
8 |
|
|
|
(1 |
) |
|
|
14 |
|
| Comprehensive income (loss) attributable to common stockholders |
|
$ |
4,448 |
|
|
$ |
(4,517 |
) |
|
$ |
(12,835 |
) |
|
$ |
(12,733 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arcadia Biosciences, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
Additional
Paid-In
Capital
|
|
|
Accumulated
Deficit
|
|
|
Accumulated
Other
Comprehensive
(Loss)
|
|
|
Total
Stockholders’
Equity
|
|
|
|
Shares |
|
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at January 1, 2017 |
|
|
2,224,384 |
|
|
$ |
44 |
|
|
$ |
173,723 |
|
|
$ |
(151,550 |
) |
|
$ |
(19 |
) |
|
$ |
22,198 |
|
| Issuance of shares related to employee stock purchase plan |
|
|
1,964 |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
| Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
1,474 |
|
|
|
— |
|
|
|
— |
|
|
|
1,474 |
|
| Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
18 |
|
| Exchange of membership interest in unconsolidated entity for common stock |
|
|
(92,194 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,707 |
) |
|
|
— |
|
|
|
(15,707 |
) |
| Balance at December 31, 2017 |
|
|
2,134,153 |
|
|
$ |
42 |
|
|
$ |
175,223 |
|
|
$ |
(167,257 |
) |
|
$ |
(1 |
) |
|
$ |
8,007 |
|
| Impact of adoption of Topic 606 (Note 5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,371 |
|
|
|
— |
|
|
|
2,371 |
|
| Issuance of shares related to employee stock option exercises |
|
|
44,354 |
|
|
|
— |
|
|
|
963 |
|
|
|
— |
|
|
|
— |
|
|
|
963 |
|
| Issuance of shares related to employee stock purchase plan |
|
|
1,122 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
| Issuance of shares related to Purchase Agreement |
|
|
1,201,634 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Issuance of placement agent warrants related to Purchase Agreement |
|
|
— |
|
|
|
— |
|
|
|
526 |
|
|
|
— |
|
|
|
— |
|
|
|
526 |
|
|
Reclassification of common stock adjustment
feature liability balance
|
|
|
— |
|
|
|
— |
|
|
|
8,378 |
|
|
|
— |
|
|
|
— |
|
|
|
8,378 |
|
| Issuance of shares related to June Offering |
|
|
1,392,345 |
|
|
|
2 |
|
|
|
4,976 |
|
|
|
— |
|
|
|
— |
|
|
|
4,978 |
|
| Offering costs related to June Offering |
|
|
— |
|
|
|
— |
|
|
|
(897 |
) |
|
|
— |
|
|
|
— |
|
|
|
(897 |
) |
| Issuance of placement agent warrants related to June Offering |
|
|
— |
|
|
|
— |
|
|
|
427 |
|
|
|
— |
|
|
|
— |
|
|
|
427 |
|
| Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
998 |
|
|
|
— |
|
|
|
— |
|
|
|
998 |
|
| Issuance of shares related to reverse stock split |
|
|
1,311 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other comprehensive income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
| Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,834 |
) |
|
|
— |
|
|
|
(12,834 |
) |
| Balance at September 30, 2018 |
|
|
4,774,919 |
|
|
$ |
45 |
|
|
$ |
190,599 |
|
|
$ |
(177,720 |
) |
|
$ |
(2 |
) |
|
$ |
12,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arcadia Biosciences, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(12,834 |
) |
|
$ |
(12,747 |
) |
| Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
|
|
|
|
| Initial loss on common stock warrant and common stock adjustment feature
liabilities |
|
|
4,000 |
|
|
|
— |
|
| Change in fair value of common stock warrant liabilities and common stock adjustment
feature liability |
|
|
(5,986 |
) |
|
|
— |
|
| Offering costs |
|
|
2,544 |
|
|
|
— |
|
| Depreciation and amortization |
|
|
123 |
|
|
|
215 |
|
| Gain on disposal of equipment |
|
|
(3 |
) |
|
|
(3 |
) |
| Net amortization of investment premium |
|
|
(115 |
) |
|
|
(82 |
) |
| Stock-based compensation |
|
|
998 |
|
|
|
1,177 |
|
| Loss on sale of investments |
|
|
— |
|
|
|
2 |
|
| Accretion of debt discount |
|
|
— |
|
|
|
98 |
|
| Loss on extinguishment of debt |
|
|
— |
|
|
|
900 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
1,038 |
|
|
|
276 |
|
| Unbilled revenue |
|
|
(164 |
) |
|
|
123 |
|
| Inventories |
|
|
301 |
|
|
|
164 |
|
| Prepaid expenses and other current assets |
|
|
(334 |
) |
|
|
(222 |
) |
| Other noncurrent assets |
|
|
— |
|
|
|
(245 |
) |
| Accounts payable and accrued expenses |
|
|
(142 |
) |
|
|
(496 |
) |
| Amounts due to related parties |
|
|
(11 |
) |
|
|
1 |
|
| Unearned revenue |
|
|
(351 |
) |
|
|
(443 |
) |
| Net cash used in operating activities |
|
|
(10,936 |
) |
|
|
(11,282 |
) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Proceeds from sale of property and equipment |
|
|
10 |
|
|
|
4 |
|
| Purchases of property and equipment |
|
|
(89 |
) |
|
|
(77 |
) |
| Purchases of investments |
|
|
(22,871 |
) |
|
|
(19,405 |
) |
| Proceeds from sales and maturities of investments |
|
|
8,950 |
|
|
|
57,778 |
|
| Net cash (used in) provided by investing activities |
|
|
(14,000 |
) |
|
|
38,300 |
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Proceeds from issuance of common stock and warrants from Purchase Agreement |
|
|
10,000 |
|
|
|
— |
|
| Payments of offering costs relating to Purchase Agreement |
|
|
(1,308 |
) |
|
|
— |
|
| Proceeds from issuance of common stock and warrants from June Offering |
|
|
14,000 |
|
|
|
— |
|
| Payments of offering costs relating to June Offering |
|
|
(1,181 |
) |
|
|
— |
|
| Payment of debt extinguishment costs |
|
|
— |
|
|
|
(1,125 |
) |
| Proceeds from exercise of stock options and ESPP purchases |
|
|
969 |
|
|
|
24 |
|
| Payment on notes payable |
|
|
— |
|
|
|
(25,000 |
) |
| Net cash provided by (used in) financing activities |
|
|
22,480 |
|
|
|
(26,101 |
) |
| Net (decrease) increase in cash and cash equivalents |
|
|
(2,456 |
) |
|
|
917 |
|
| Cash and cash equivalents — beginning of period |
|
|
9,125 |
|
|
|
2,013 |
|
| Cash and cash equivalents — end of period |
|
$ |
6,669 |
|
|
$ |
2,930 |
|
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
| Cash paid for interest |
|
$ |
— |
|
|
$ |
746 |
|
| Cash paid for income taxes |
|
$ |
24 |
|
|
$ |
2 |
|
| NONCASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Common stock warrants issued to placement agent and included in offering
costs related to Purchase Agreement |
|
$ |
526 |
|
|
$ |
— |
|
| Common stock warrants issued to placement agent and included in offering
costs related to June Offering |
|
$ |
239 |
|
|
$ |
— |
|
| Purchases of property and equipment included in accounts payable and accrued
expenses |
|
$ |
— |
|
|
$ |
2 |
|
| Reclassification of common stock adjustment feature liability balance to
equity |
|
$ |
8,378 |
|
|
$ |
— |
|
| Exchange of membership interest in unconsolidated entity for common
stock |
|
$ |
— |
|
|
$ |
2 |
|
Arcadia Biosciences, Inc.
Jeff Bergau
jeff.bergau@arcadiabio.com
+1-312-217-0419
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005899/en/