Arcadia Biosciences (RKDA) 8-K Arcadia Biosciences (RKDA) Announces Second-Quarter and First-Half 2024 Financial Results and Business Highlights

Exhibit 99.2

 

Arcadia Biosciences, Inc.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

	June 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	5,504		$	6,518
Short-term investments		2,604			5,124
Accounts receivable and other receivables, net of allowance for doubtful accounts of    $0 as of June 30, 2024 and December 31, 2023		840			506
Inventories — current		978			837
Assets held for sale		—			51
Note receivable — current		1,759			—
Prepaid expenses and other current assets		537			807
Current assets of discontinued operations — GoodWheat		212			1,129
Total current assets		12,434			14,972
Property and equipment, net		54			70
Right of use asset		513			792
Inventories — noncurrent		191			196
Intangible assets, net		39			39
Note receivable — noncurrent		3,974			-
Other noncurrent assets		164			164
Noncurrent assets of discontinued operations — GoodWheat		—			3,472
Total assets	$	17,369		$	19,705
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	1,560		$	1,910
Amounts due to related parties		80			58
Operating lease liability — current		563			852
Other current liabilities		255			270
Current liabilities of discontinued operations — GoodWheat		240			500
Total current liabilities		2,698			3,590
Operating lease liability — noncurrent		11			155
Common stock warrant and option liabilities		1,094			1,257
Other noncurrent liabilities		2,000			2,000
Total liabilities		5,803			7,002
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.001 par value—150,000,000 shares authorized; 1,362,840 and 1,285,337    shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		65			65
Additional paid-in capital		284,760			284,515
Accumulated other comprehensive income		81			101
Accumulated deficit		(273,202	)		(271,840	)
Total stockholders’ equity		11,704			12,841
Non-controlling interest		(138	)		(138	)
Total stockholders' equity		11,566			12,703
Total liabilities and stockholders’ equity	$	17,369		$	19,705

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Arcadia Biosciences, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share data and per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Revenues:
Product	$	1,306		$	1,287		$	2,293		$	2,369
License		—			10			—			10
Total revenues		1,306			1,297			2,293			2,379
Operating expenses (income):
Cost of revenues		633			650			1,104			1,178
Research and development		10			27			16			40
Gain on sale of intangible assets		(4,000	)		—			(4,000	)		—
Impairment of property and equipment		—			—			36			—
Selling, general and administrative		2,683			2,074			4,745			4,671
Total operating (income) expenses		(674	)		2,751			1,901			5,889
Income (loss) from continuing operations		1,980			(1,454	)		392			(3,510	)
Interest income		150			207			195			405
Other income (loss), net		150			(13	)		153			19
Valuation loss on March 2023 PIPE		—			—			—			(6,076	)
Change in fair value of common stock warrant and option liabilities		(430	)		4,416			163			5,357
Issuance and offering costs allocated to liability classified options		—			—			—			(430	)
Net income (loss) from continuing operations before income taxes		1,850			3,156			903			(4,235	)
Income tax provision		—			(1	)		—			(1	)
Net income (loss) from continuing operations		1,850			3,155			903			(4,236	)
Net loss from discontinued operations — Body Care		—			(330	)		—			(511	)
Net loss from discontinued operations — GoodWheat		(789	)		(2,007	)		(2,265	)		(3,819	)
Net income (loss)		1,061			818			(1,362	)		(8,566	)
Net loss attributable to non-controlling interest		—			(5	)		—			(5	)
Net income (loss) attributable to common stockholders	$	1,061		$	823		$	(1,362	)	$	(8,561	)
Net income (loss) per share attributable to common stockholders:
Basic and diluted from continuing operations	$	1.36		$	2.33		$	0.66		$	(3.81	)
Basic from discontinuing operations	$	(0.58	)	$	(1.71	)	$	(1.66	)	$	(3.90	)
Net income (loss) per basic and diluted share attributable to common stockholders	$	0.78		$	0.61		$	(1.00	)	$	(7.70	)
Weighted-average number of shares used in per share    calculations:
Basic and diluted		1,362,840			1,358,395			1,362,249			1,111,915
Other comprehensive income, net of tax
Unrealized gains on available-for-sale securities	$	31		$	21		$	91		$	21
Change in unrealized gains on available-for-sale securities	$	(80	)	$	21		$	(20	)	$	21
Comprehensive income (loss)	$	981		$	844		$	(1,382	)	$	(8,540	)

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Arcadia Biosciences, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Six Months Ended June 30,
		2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,362	)	$	(8,566	)
Adjustments to reconcile net loss to cash used in operating activities:
Change in fair value of common stock warrant and option liabilities		(163	)		(5,357	)
Issuance and offering costs allocated to liability classified options		—			430
Valuation loss on March 2023 PIPE		—			6,076
Depreciation		85			138
Lease amortization		352			357
Amortization of note receivable discount		(29	)		—
Gain on disposal of property and equipment		(89	)		(26	)
Gain on sale of RS durum wheat trait		(4,000	)		—
Stock-based compensation		240			411
Write-down of inventories		—			192
Impairment of property and equipment		36			—
Changes in operating assets and liabilities:
Accounts receivable and other receivables		(334	)		87
Inventories		440			(1,316	)
Prepaid expenses and other current assets		270			(142	)
Other noncurrent assets		—			(13	)
Accounts payable and accrued expenses		(612	)		(149	)
Amounts due to related parties		22			(16	)
Other current liabilities		(15	)		12
Operating lease liabilities		(507	)		(382	)
Net cash used in operating activities		(5,666	)		(8,264	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property and equipment		162			37
Proceeds from sale of Verdeca — earn-out received		—			569
Proceeds from sale of investments		2,501			—
Proceeds from sale of RS durum wheat trait		4,000			—
Cash paid related to sale of GoodWheat		(2,000	)		—
Purchases of property and equipment		(16	)		(5	)
Purchases of investments		—			(5,002	)
Net cash provided by (used in) investing activities		4,647			(4,401	)
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 ESPP purchases		5			5
Net cash provided by financing activities		5			5,505
Net decrease in cash and cash equivalents		(1,014	)		(7,160	)
Cash and cash equivalents — beginning of period		6,518			20,644
Cash and cash equivalents — end of period	$	5,504		$	13,484
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
NONCASH INVESTING AND FINANCING ACTIVITIES:
Common stock options issued to placement agent and included in offering     costs related to March 2023 PIPE	$	—		$	212
Warrant and option modifications included in Valuation loss on March     2023 PIPE	$	—		$	404
Proceeds from sale of property and equipment in accounts receivable and other receivables	$	84		$	2
Right of use assets obtained in exchange for new operating lease liabilities	$	86		$	—
Note receivable recognized from sale of GoodWheat	$	5,705		$	—

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