— Company completes $4 million transaction with Corteva Agriscience —

— Above Food Corp acquires GoodWheat^TM Brand —

— Zola^® Coconut water sales increase by 42% year-on-year –

DALLAS, August 13, 2024–(BUSINESS WIRE)–Arcadia Biosciences, Inc.^® (Nasdaq: RKDA), a manufacturer and marketer of innovative plant-based health and wellness products, today reported its financial and operating results for the second quarter and first half of 2024.

“The second quarter of 2024 was a significant inflection point for Arcadia as we transform the business and begin our path to cash flow positive,” said TJ Schaefer, President and CEO. “We monetized our wheat IP through two transactions: the sale of our resistant starch wheat property to a wholly owned subsidiary of Corteva Agriscience for $4 million; and the sale of our GoodWheat^TM brand to Above Food for net payments of $4 million over the next three years. In addition, we secured significant distribution gains for Zola^® coconut water and have launched two new flavors. We are positioned to grow faster than the category and gain market share.”

“Over the past two years, we have divested several underperforming brands, right-sized the organization and rationalized our cost structure to extend our runway. While we continue to evaluate strategic alternatives, our focus for the remainder of the year remains on reducing our operating costs and accelerating growth at Zola,” Schaefer said.

Current operational and business highlights

• Arcadia sells resistant starch durum wheat trait to Corteva Agriscience. In May 2024, Arcadia sold its non-GMO Resistant Starch (RS) Durum property to long-time partner Corteva Agriscience. Arcadia and Corteva began collaborating on the development and commercialization of RS Durum in North America in 2017. This transaction enabled Arcadia to advance the monetization of its wheat technology with a one-time payment of $4 million.

• Arcadia sells the GoodWheat brand to Above Food Corp. Also in the second quarter, Above Food Corp acquired Arcadia’s GoodWheat brand of healthier wheat products for $4 million in net payments over the next three years. The GoodWheat brand was launched in 2018 to help consumers get more fiber in their diets by increasing the fiber content in the delicious foods they love using Arcadia’s patented non-GMO wheat grain, which is naturally higher in fiber and protein.

• Zola Coconut Water offers new flavors and increases sales. Sales gains for Zola continued as new pineapple and lime flavors began shipping in the second quarter. Zola sales outperformed the coconut water category, with sales increasing 42% year-over-year.

• Arcadia announces CEO change. Following the recent departure of Stan Jacot, Thomas J. Schaefer has been appointed President and CEO of Arcadia. Schaefer previously served as Arcadia’s Chief Financial Officer and brings more than 20 years of experience in investments, corporate finance and consumer products.

The story continues

Certain previously reported financial information has been reclassified to conform to the current year presentation. The reclassifications relate to the presentation of the financial results of our former GoodWheat and Personal Care brands as discontinued operations. The above and the following financial information relates to continuing operations unless otherwise noted.

More detailed financial information can be found in the Form 8-K filed today, which is available under “SEC Filings” in the “Investors” section of the Company’s website.

revenue

Revenue increased slightly in the second quarter of 2024 compared to the same period in 2023, due to an increase in Zola sales, partially offset by a decrease in GLA sales. Revenue decreased $86,000 in the first half of 2024 compared to the same period in 2023, due to a decrease in GLA sales, although Zola sales increased year-over-year.

Operating costs

Operating expenses decreased by $3.4 million and $4.0 million, respectively, in the second quarter and first half of 2024 compared to the corresponding periods in 2023, due to a gain of $4.0 million related to the sale of assets to Corteva Agriscience in 2024.

Cost of revenue decreased $17,000 and $74,000, respectively, in the second quarter and first half of 2024 compared to the same periods in 2023, due to lower freight costs.

General and administrative expenses increased by $609,000 and $74,000, respectively, in the second quarter and first half of 2024 compared to the same periods in 2023 due to higher consulting and legal fees related to the Corteva and Above Food transactions in 2024.

Net profit (loss) attributable to ordinary shareholders

Net income attributable to common stockholders was $1.1 million, or $0.78 per share, for the second quarter of 2024, compared to $823,000, or $0.61 per share, for the same period in 2023. The improvement was primarily due to the decrease in net loss from discontinued operations compared to the prior year.

Net loss attributable to common stockholders for the first half of 2024 was $1.4 million, or $1.00 per share, an improvement of $7.2 million from net loss of $8.6 million, or $7.70 per share, for the same period in 2023. The improvement was primarily due to the $4.0 million gain related to the sale of assets to Corteva in 2024 and the decrease in net loss from discontinued operations compared to the prior year.

Conference call and webcast

The Company has scheduled a conference call today, August 13, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss second quarter results and key strategic achievements. Interested participants may join the conference call using the following options:

• An audio-only webcast of the conference call will be available on the Investors section of Arcadia’s website.

• To participate in the live conference call, please register here. You will then receive a dial-in number and an individual PIN.

Following the conclusion 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 developing innovative crops to deliver high-quality, healthy ingredients to meet consumer demands for healthier options. With its roots in agricultural innovation, Arcadia is developing next-generation wellness products that benefit every body. 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 regarding the Company’s growth, strategic process, business direction, reduction of operating costs, liquidity position, 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 risks set forth in the filings Arcadia makes from time to time with the Securities and Exchange Commission, including Arcadia’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. These forward-looking statements speak only as of the date hereof, and Arcadia Biosciences, Inc. undertakes no obligation to update this information.

View original version on businesswire.com: https://www.businesswire.com/news/home/20240813325703/en/

Contacts

Arcadia Biosciences Contact:
Sue Wandell
[email protected]