Exhibit 99.2
Arcadia Biosciences, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
| | | | | | | | |
| | As of December 31, | |
| | 2023 | | | 2022 | |
Assets | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 6,518 | | | $ | 20,644 | |
Short-term investments | | | 5,124 | | | | — | |
Accounts receivable and other receivables, net of allowance for doubtful accounts of $0 and $3 as of December 31, 2023 and 2022, respectively | | | 514 | | | | 1,221 | |
Inventories, net — current | | | 1,958 | | | | 2,321 | |
Assets held for sale | | | 51 | | | | 87 | |
Prepaid expenses and other current assets | | | 807 | | | | 795 | |
Current assets of discontinued operations | | | — | | | | 330 | |
Total current assets | | | 14,972 | | | | 25,398 | |
Property and equipment, net | | | 384 | | | | 680 | |
Right of use assets | | | 792 | | | | 1,848 | |
Inventories, net — noncurrent | | | 3,354 | | | | 767 | |
Intangible assets, net | | | 39 | | | | 40 | |
Other noncurrent assets | | | 164 | | | | 165 | |
Noncurrent assets of discontinued operations | | | — | | | | 24 | |
Total assets | | $ | 19,705 | | | $ | 28,922 | |
Liabilities and stockholders’ equity | | | | | | |
Current liabilities: | | | | | | |
Accounts payable and accrued expenses | | $ | 2,410 | | | $ | 2,855 | |
Amounts due to related parties | | | 58 | | | | 48 | |
Operating lease liability — current | | | 852 | | | | 1,010 | |
Other current liabilities | | | 270 | | | | 270 | |
Current liabilities of discontinued operations | | | — | | | | 26 | |
Total current liabilities | | | 3,590 | | | | 4,209 | |
Operating lease liability — noncurrent | | | 155 | | | | 1,007 | |
Common stock warrant and option liabilities | | | 1,257 | | | | 806 | |
Other noncurrent liabilities | | | 2,000 | | | | 2,000 | |
Total liabilities | | | 7,002 | | | | 8,022 | |
Commitments and contingencies (Note 13) | | | | | | |
Stockholders’ equity: | | | | | | |
Common stock, $0.001 par value—150,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 1,285,337 and 616,079 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively. | | | 65 | | | | 65 | |
Additional paid-in capital | | | 284,515 | | | | 278,827 | |
Accumulated other comprehensive income | | | 101 | | | | — | |
Accumulated deficit | | | (271,840 | ) | | | (257,859 | ) |
Total Arcadia Biosciences stockholders’ equity | | | 12,841 | | | | 21,033 | |
Non-controlling interest | | | (138 | ) | | | (133 | ) |
Total stockholders' equity | | | 12,703 | | | | 20,900 | |
Total liabilities and stockholders’ equity | | $ | 19,705 | | | $ | 28,922 | |
Arcadia Biosciences, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands, except share data and per share data)
| | | | | | | | |
| | Year Ended December 31, | |
| | 2023 | | | 2022 | |
Revenues: | | | | | | |
Product | | $ | 5,313 | | | $ | 6,422 | |
License | | | 17 | | | | 879 | |
Royalty | | | — | | | | — | |
Total revenues | | | 5,330 | | | | 7,301 | |
Operating expenses (income): | | | | | | |
Cost of revenues | | | 3,300 | | | | 6,101 | |
Research and development | | | 1,387 | | | | 1,509 | |
Gain on sale of Verdeca | | | — | | | | (1,138 | ) |
Impairment of intangible assets | | | — | | | | 141 | |
Change in fair value of contingent consideration | | | — | | | | (70 | ) |
Gain on sale of property and equipment | | | (40 | ) | | | (314 | ) |
Impairment of property and equipment | | | — | | | | 160 | |
Impairment of ROU asset | | | 113 | | | | — | |
Selling, general and administrative | | | 14,508 | | | | 15,036 | |
Total operating expenses | | | 19,268 | | | | 21,425 | |
Loss from operations | | | (13,938 | ) | | | (14,007 | ) |
Interest income | | | 695 | | | | 289 | |
Other income, net | | | 48 | | | | 9 | |
Valuation loss on March 2023 PIPE | | | (6,076 | ) | | | — | |
Change in fair value of common stock warrant and option liabilities | | | 6,544 | | | | 3,209 | |
Issuance and offering costs allocated to liability classified options | | | (430 | ) | | | (314 | ) |
Net loss from continuing operations before income taxes | | | (13,157 | ) | | | (10,814 | ) |
Income tax expense | | | (8 | ) | | | (14 | ) |
Net loss from continuing operations | | | (13,165 | ) | | | (10,828 | ) |
Net loss from discontinued operations | | | (821 | ) | | | (4,784 | ) |
Net loss | | | (13,986 | ) | | | (15,612 | ) |
Net loss attributable to non-controlling interest | | | (5 | ) | | | (236 | ) |
Net loss attributable to common stockholders | | $ | (13,981 | ) | | $ | (15,376 | ) |
Net loss per share attributable to common stockholders: | | | | | | |
Basic and diluted from continuing operations | | $ | (10.64 | ) | | $ | (17.67 | ) |
Basic and diluted from discontinued operations | | $ | (0.66 | ) | | $ | (7.98 | ) |
Weighted-average number of shares used in per share calculations: | | | | | | |
Basic and diluted | | | 1,236,934 | | | | 599,389 | |
Other comprehensive income, net of tax | | | | | | |
Unrealized gains on available-for-sale securities | | $ | 101 | | | $ | — | |
Other comprehensive income | | $ | 101 | | | $ | — | |
Comprehensive loss attributable to common stockholders | | $ | (13,880 | ) | | $ | (15,376 | ) |
Arcadia Biosciences, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| | | | | | | | |
| | Year Ended December 31, | |
| | 2023 | | | 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | |
Net loss | | $ | (13,986 | ) | | $ | (15,612 | ) |
Adjustments to reconcile net loss to cash used in operating activities: | | | | | | |
Change in fair value of common stock warrant and option liabilities | | | (6,544 | ) | | | (3,209 | ) |
Change in fair value of contingent consideration | | | — | | | | (70 | ) |
Issuance and offering costs allocated to liability classified options | | | 430 | | | | 314 | |
Valuation loss on March 2023 PIPE | | | 6,076 | | | | — | |
Depreciation | | | 287 | | | | 439 | |
Amortization of intangible assets | | | — | | | | 40 | |
Lease amortization | | | 697 | | | | 884 | |
Impairment of intangible assets | | | — | | | | 404 | |
Gain on disposal of equipment | | | (40 | ) | | | (314 | ) |
Stock-based compensation | | | 717 | | | | 1,106 | |
Bad debt expense | | | 20 | | | | 60 | |
Gain on sale of Verdeca | | | — | | | | (1,138 | ) |
Write-down of inventories | | | 444 | | | | 2,471 | |
Impairment of property and equipment | | | — | | | | 530 | |
Impairment of ROU asset | | | 113 | | | | — | |
Changes in operating assets and liabilities: | | | | | | |
Accounts receivable and other receivables | | | 184 | | | | 592 | |
Inventories | | | (2,419 | ) | | | 1,118 | |
Prepaid expenses and other current assets | | | 1 | | | | 91 | |
Other noncurrent assets | | | 2 | | | | 16 | |
Accounts payable and accrued expenses | | | (522 | ) | | | (757 | ) |
Amounts due to related parties | | | 10 | | | | (16 | ) |
Other current liabilities | | | — | | | | 6 | |
Operating lease payments | | | (764 | ) | | | (932 | ) |
Net cash used in operating activities | | | (15,294 | ) | | | (13,977 | ) |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | |
Proceeds from sale of property and equipment | | | 115 | | | | 920 | |
Proceeds from sale of Verdeca — earn-out received | | | 569 | | | | 569 | |
Proceeds from sale of investments | | | 2,502 | | | | — | |
Purchases of property and equipment | | | (5 | ) | | | (72 | ) |
Purchases of investments | | | (7,525 | ) | | | — | |
Net cash (used in) provided by investing activities | | | (4,344 | ) | | | 1,417 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | |
Proceeds from issuance of common stock, pre-funded warrants and preferred investment options from March 2023 PIPE | | | 5,997 | | | | — | |
Payments of offering costs relating to March 2023 PIPE | | | (497 | ) | | | — | |
Proceeds from issuance of common stock, pre-funded warrants and preferred investment options from August 2022 Offering | | | — | | | | 5,000 | |
Payments of offering costs relating to August 2022 Offering | | | — | | | | (488 | ) |
Proceeds from ESPP purchases | | | 12 | | | | 7 | |
Net cash provided by financing activities | | | 5,512 | | | | 4,519 | |
Net decrease in cash and cash equivalents | | | (14,126 | ) | | | (8,041 | ) |
Cash and cash equivalents — beginning of period | | | 20,644 | | | | 28,685 | |
Cash and cash equivalents — end of period | | $ | 6,518 | | | $ | 20,644 | |
| | | | | | | | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | |
Cash paid for interest | | $ | — | | | $ | 1 | |
NONCASH TRANSACTIONS: | | | | | | |
Common stock warrant liabilities reclassified to equity upon adoption of ASU 2020-06 | | $ | — | | | $ | 3,392 | |
Common stock options issued to placement agent and included in offering costs related to August 2022 RDO securities purchase agreement | | $ | — | | | $ | 191 | |
Common stock options issued to placement agent and included in offering costs related to March 2023 PIPE | | $ | 212 | | | $ | — | |
Right of use assets obtained in exchange for new operating lease liabilities | | $ | — | | | $ | 114 | |
Proceeds from sale of property and equipment in accounts receivable and other receivables | | $ | 8 | | | $ | 19 | |
Warrant and option modifications included in Valuation loss on March 2023 PIPE | | $ | 404 | | | $ | — | |
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