RKDA - Earnings call transcript Q2 2019 | Arcadia Biosciences, Inc.

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Operator

Good afternoon, and welcome to Arcadia Biosciences’ Second Quarter 2019 Earnings Conference Call. Today's presenters will be Raj Ketkar, President and CEO; Matt Plavan, CFO of Arcadia and President of Arcadia Specialty Genomics and Sarah Reiter, Chief Commercial Officer. This call is being webcast, and you can refer to the Company's press release and slides at arcadiabio.com.

Before we start, if you refer to Slide 2, we would like to remind you that Arcadia Biosciences will be making forward-looking statements on this call based on current expectations and currently available information.

However, since these statements are based on factors that involve risk and uncertainties, the Company's actual performance and results may differ materially from those described or implied today.

Company's and language of again, the recent their this review XX-K filed on can Safe in Harbor most presentation. You Slide X

Raj I'll President that, now the over With turn and to CEO. call Ketkar,

Rajendra Ketkar

and Josh, call initiatives. in and the the made us We quarter with you, who our is thanks Thank today. several on hemp joining progress major second on everyone fronts soy to wheat,

I, Chief call and Matt today Commercial for our Sarah Reiter, time the Joining the in is Officer. first

about new discuss Genomics. over to developments talking business Verdeca some joint venture, it Arcadia our Matt by turning soybean to start I’ll Specialty exciting talk about and our in before to Sarah wheat

to herbicide Bioceres of soybean. the Turning joint deregulation last received tolerant our drought USDA Verdeca, venture Crop trait tolerance traits for X, HBX with in with Slide approval just week, Solutions from the

recall, commercially used August to USFDA feed in human soybeans allowed in You’ll and animal XXXX. be HBX food

accelerate in for achievement countries, now trait and US the are a Brazil significant now potential as able trait to major soybean varieties. three is in U.S., Argentina. our soy approved fully our their introgressing is discussions with This We interested commercialization the partners growing germplasm into

second authorities full approval According quarter, period grant complete, approval Earlier in as as appeared and HBX soon to now Brazil to we Brazil approval. regulatory this as is received the and the for the from is regulatory we expect the trait. the process, public comment

approval likely in will and approval received recently calls, quarter be China XXXX that fourth from XXXX. approval had received approval await import launch be this the most receive will soybean not learned to In now in the would enable We XXXX XXXX. the we we We in of products. guided that for prior in

in time in conducting launch farmer receiving to large-scale and for this we not use prepare regulatory market for and Argentina. research Delays demos unusual will are approvals

wheat on for Sarah now our I’d business. Chief to Officer, update like turn to an Commercial Sarah? our the Reiter over call

Sarah Reiter

Thanks, and productization sales, my I research XXXX, opportunity of head role, directly. pleased this the Raj. In chain. in have to oversee development as supply sales business we speak you Hello market to GoodWheat first am I and pricing, And everyone. including to towards

with primarily and In our grain been supply the testing grain Arcadia, companies development, seed on advancing we’ve food relationships product GoodWheat been and and building wheat with focusing and I’ve plus chain up our business commercial through year sales. major our

a our like I’d products. in little a family about GoodWheat to to take detail of minute talk more

of attributes important in it’s portfolio like First, added with GoodWheat and gluten. reduced a keep high value to fiber-resistance is wheats starch, mind that

GoodWheat aims valued to The decommoditize nutritional wheat market U.S. in and U.S. global markets. wheat economists values ingredient. to $X.X food the addresses the flour flour by XXXX at adding well-loved billion. It USDA

of wheat captures whole about market. Today, that X%

nutritional our from conducted GoodWheat create research the research nutritional findings by and research market size. unique and delivered our by demonstrate universities leading Our wheat studies can formulations of food similar segments the high attributes

in reiterate our that earlier begin want XXXX. GoodWheat to of sales I we’ll guidance

quarter. planning flour as quality and fourth allergenicity protein retail are reduced We improved GoodWheat in introduce with to

commercial the first of end territories the GoodWheat before year. Resistant in sales of anticipate also Starch We key

We quarter. in book-to-product are position to be working announce sales in to the fourth

nutritional of and of Vegas waffles, baking line foods these of provide GoodWheat emphasize in the the providing benefits. Trade desserts the will launch to in and Show where and foods taste performance GoodWheat industry a samples and wheat at products impressive the demos pasta, familiar IBIE We’ll of like will while Las the we September number

high regarding we in grow year legal through will sales wheat geographic we because expansion GoodWheat proceedings which Wheat. Resistant received XXXX expect both amylose surrounding Starch We’ve sales. will full capture call and enquiries We the

that in Technologies, filed a was we of infringes Cereal case. the ARISTA claiming While Arcadia patents been April Xst understand complaint have served we not

parties XXXX, Furthermore, and summons XXXX on joint complaints that court on October until a “the stipulation June in XX, agreed the to indicating time order XX, serve to have stipulation issued this to seeking a additional between of time in in short light status desire and preserve the continuing the order period discussions”. for quo litigation the settlement ongoing of time settlement discussions to parties enable extend

want Arcadia others time. at respects property we We to defend vigorously the and of our further can there is say intellectual own and reemphasize this will nothing

grow for Second of quarter our terms in We season marked several supply wheats. in is Arcadia our for GoodWheat farmers. chain. most winter building North made These key progress in alternate what harvested American milestones

plan. was Our our production efficient about more significantly we’d than XXX% of winter anticipated averaging

U.S. wheat our in During spring the quarter, planning will fall. harvest also stretch second well harvest third quarter. the across key are The geographies we and the planted into the in

wheat, would I Matt? over Specialty And for the with Matt Arcadia to now review on financial brief and to to call results quarter. Genomics turn like update that the discuss

Matthew Plavan

Thanks, afternoon Sarah. Good everyone.

in progress made our developments, three germplasm and During research great with of in corporate the proprietary development. quarter, we library key building our initiatives, and

is week. Ventures the clearly, achievement formation joint venture and expertise seed genetic and between Turning Hawaiian Asian venture with our transformative Hawaii Hawaiian new serve which ventures, combines This and the growth new announced capital advisory markets. X, Slide we our Arcadia most last to Archipelago to strategic the innovation and in the history Legacy’s of markets Legacy

Vapen vehicle distillate of formulation oil to Hawaiian equity and partners the champion success Additionally, Hawaiian and years in within CBD World Shane its a and by hemp Legacy partnership originally proven product over its to through six sales Islands. Victorino, products to partner and be formed the CBD. of Flyin' two-times the for was Series Legacy pursue cannabinoid extraction, brings opportunities

value profits to CGMP hemp outlet farmers by to high-grade extraction to Hawaiian high their is objective to from primary build CBD and compounds. converting other maximize an growing have facilities world-class to allow Legacy’s

in on that Canadian based Phoenix pineapple operator a producer. is of Frankfurt is the founders traded which Legacy’s help wholly-owned hope restore is flourishing a and and and as exchanges. had Vapen Arizona subsidiary listed Vapen agricultural equity MJ industry publicly to the major sugar Legacy’s partner, Hawaii CBD a Ventures, cannabis once both

extraction on cannabinoids we is focused and the for exclusively high-quality, of responsible non-THC vertically this JV, is integrated hemp Hawaiian of facilities. in construction Hawaii. Through from CBD CBD. first kind processing which believe the own chain seed-to-sale, we will like our They be supply Vapen a operation now the

transitioned the under over be quarter preparing hard right Guidelines to our the which pilot acres which have implemented will via certain XXXX because we expecting production We months. hemp we quality XX to Hawaii the this Department to be we the hemp be next bill be control. farm chose are worked generally Hawaii program, believe Agricultural XX the to past up aspect actively to scale partner, our of vital and Archipelago a is expanding for commercialization this

are XXXX CBD ramp sales the the expect the produce our to in island We in be extraction by sell our process also authorization establishing regulatory in the to in a with of accordance CBD and oil of end significant expected and the capabilities with ready on beyond. year and

a both With let’s industrial research our for that well as as activity update pilot Hawaii said, brief here a research hemp take our activities in program moment in on our Davis.

X, major from pleased for part crop flower As hemp see as you hemp with and pilot Slide milestones are can Hawaii extraction. our CBD pictures having the first very recently harvested our achieved of results we commercialization we program towards the of on

market. CBD and of First, represents successful successfully for on in located hemp demonstrated flower of leader harvest Research the Hawaiian which demonstrates first in hemp and This one Development Molokai as and hemp the varieties production. ASG the facility the in has multiple Molokai and the the ASG State milestone grow first harvest capability a to Hawaii,

deliver derisks the milestone hemp. next that exceeding can Furthermore, this ASG’s the by phase market in without growth the level threshold X.X% defines THC commercial Hawaiian performance establishing that varieties of industrial

to regard hemp with our program. Now breeding

of breeding shown for the on activities in there, which We X. expansion multiple also Slide hemp as the our achieved milestones lay foundation U.S.

can and Our indoor to operations are research facilities each be finalize breeding our SOPs of their enabling settings. Davis replicated operational in teams establish growth which in

Our in altered internal to This cannabinoid program and/or platform breeding potency changes with operational. composition. also and enables terpene profiles is select analyze to lines our

it metabolic hemp rapid and the and is have new established super enables critical extraction of our evaluation Our COX stage in This lines capabilities important research lab. innovations. because been for sets

major see hemp first perhaps our In but many a milestone of important of our transformation. for milestone July, it’s with hemp very reasons, breeding most the We an all in-house team achieved as validation a plant technological the in line. this creation of competency

for the stage varieties, which creating value sets operations for and of our believe of sustained also our potential acceleration the resides. new of expansion we the greatest It breeding is hemp pursuit where

resulted ours. aggressive germplasm which breeding sufficient our fuel intent, plan new has has important the a of our acquisition that objective contain was germplasm development foretold pipeline an a robust library to genetic of in variation been we always as Lastly,

evaluate to the In lab addition the near-term in other revenues. of field, continued in hemp progress and sources to we’ve our

we looking meeting to growers, In hemp number shortage first-hand or up of a hemp of U.S. are begin hemp quality growing with operations, a observed ramping vast seed. fact, when who their

In acquire. to the areas out country, they seeds been struggling able of are the many with or performance sold are they simply that of have the

serving possibly own specific the regions the that market announcing we begin seed as targeting for such, for we our and have XXXX. hemp to implemented varieties As operations of as production seed are spring early expect first select today time

should that’s remain be is based time our excited particular robust current quite economics it new upon really and this revenues in about the are a material squarely to some to contributor us our wheelhouse in look compelling because We now XXXX. and development so which to for

call is typically to financials. turn review this where the of Now part the I the

be detailed discuss available moment, However, profitability. like with our second quarter XX-Q I’d and outlook on review, time later for for today revenues filed to, just a our and your to to

in to better joining I have in our With from XXXX I the quarter and company high been sources; those never scale-up in encouraged two, within backdrop, that have and compelled a near-term as this I call revenues been most described prospects significant about have revenues; is say for late beyond. since the the future. this just that one, the margin XXXX multiple potential believe revenues three, am

performance number hemp to it this so with year in were this revenues So, in far following initial soy call, revenues one, expect XXXX. on we be I financial wheat close we’ve expectations laid first that out and the in summarize would

that from also come Two, revenues online should scale categories these new wheat year should XXXX. significantly crops and product and next in hemp

the quarter new breakeven. And steadfast during forward three, pursuits The on focus we our us market brought announced execution profitability. have we the meaningfully our and reaching confidence timing give advances continue that growing in and to our

as to quarter, sufficient on equivalents, hand to total financing With resources, the at execute believe and second end are brought creation. we investments month. cash and liquidity was value our the drive which these our regard near-term bolstered by cash and to last key We well as that of short-term in resources capital million cash $XX milestones

significant a forward. these in see expect to our progress news flow and increase from regarding We of here part as this execution achievements

I today. earlier be additional mentioned XX-Q financial quarter, insight the to filed please As for the later to do into refer our during performance

And I’ll for call over to wrap Raj a the up. turn Raj? back now,

Rajendra Ketkar

Thanks, Matt.

Before I we successful growing areas. summarize quarter winter season our questions, planted for of we wheat across get varieties scale-up XXXX. just like We second had production GoodWheat of and many a our production to the to for your results trials

quarter to fourth with in continue GoodWheat our We customers. position potential products first sales for XXXX

soybean in advanced We HBX Argentina, received HBX in germplasm. the the approval trait with into approved to which in countries. Brazil. Together major for allows in is now approval soybeans USDA we tolerant drought HBX the introgress the as three the our We U.S. for trade trait commercialize approvals growing us local regulatory

In just our a facility supply business reliable, formed in venture Matt Hawaii. a vertically as from ensures our and chain joint that hemp integrated leveraging Ventures, research stated, cultivation seed-to-sale we Archipelago units,

multiple identified foundation the first targeting varieties breeding and through our production milestones achieved activities hemp specific which our the additional completed high-quality in opportunities near-term breeding regions. for lay seeds hemp hemp and of we in for We Hawaii harvest U.S. expanding revenues select and

next focus achieve revenues positioning will XXXX. grow to rest of in progress reporting continuing the momentum and in by year significantly continuing forward for wheat us on first end look our We Our of to quarter. hemp the and revenues be XXXX this the

turn call your the that, like I’d over With questions now. to to

Operator

from first with question Selvaraju comes Ram Wainwright. [Operator Instructions] Our H.C.

proceed may your You question. with

Raghuram Selvaraju

few Hi. to expectations Thanks to and in months guys. past my I foremost just eventful ought questions business. wanted on about very a what’s first taking for and clearly congrats ask much be the you for reasonable wheat been very

received when before give what expect the you business that business year. have the from come in us model color mentioned of arrangements in the already come you had or of have in? new some you might first already this commitments initial wheat made You you end certain order customer revenues expect been on, to the if sort Can those

context, anticipate forward? looking a and also, position XXXX, wheat expectations within you a long-term And specifically provide do some to be wheat with ramp segment, in revenue range kind ahead might us of that you the guidance the to going

Sarah Reiter

for Thanks your question.

be think, our sharing expectation to we’d share quarter. call be able commercial I next perhaps in agreements comfortable very to this

number a be this We in this time next be share to currently line year. are more introducing confidential of able but We flour retail discussions, quarter to expect do also a detail. to expect

share those somewhat to So, remainder of ramp But in expectations third I information And more quarter be look the are come fourth much for pretty honestly. this able small progressively forward to year we’ll and XXXX. calls.

Raghuram Selvaraju

or driven other reduced gluten principal contribute there trajectory you reduced driver? be specification wheat significantly the here? is that business. then, still going are be be of by the to equally question to Or are regarding the varieties going and to Do starch to And Great. forward reduced it expect likely starch sort to

Sarah Reiter

GoodWheat So, obviously offer. we to that for different number again, portfolio high wheat the like very can which compelling. compelling of is Resistant a Starch a market the so Resistant for platform, is believe to question. – introduce fiber thanks very by we we think that really attributes. Starch research a and is a into concept really a We turning The goes offer eat

That we gluten excited reduced said, equally about the offer. are

of customer secondary may in understand as and we the as as make gluten terms we technology. big Resistant how feel are large opportunity characteristics be it watch Starch research for the say, its terms like, to this has begin continue that to it to We doing would some of I better protein amount in space also a better appeal benefits of quantify us. compelling can just reduced it

Raghuram Selvaraju

respect sense the of revenue being you trajectory with ramp by previously hemp contribution what then maybe wheat had you give trajectory the expect business, could business about also ramp what regarding to the partially talked by a the And to be? and driven relative the you to us

the qualitative of each of would Whether what respective the assessment other outstrip in segments, foreseeable one expect are you those be to sort margins likely significantly picture you. the very of in be and of of even to business future those helpful. growth Thank terms the

Matthew Plavan

Yes, question, that’s a great Ram.

at specific not significant need are to the until we think as fluctuate is wheat from that and part to that can that have depending reasonable that on think and decided more I with it much bit. production, margins expect business going revenues the than because we too actual I up which a margins get spool we those business lead careful we who to you we little partner utilizing, model be

positive see on side, we margins hemp tell wheat gross aggressive that even hemp higher margins out. But But erosion. erosion price business those high would I to at plans, I that four years planning that moment, price pretty for see think are are the for despite the and likely very and you three still bracing we margins in and we on

say will our projections we three that numbers. years I But from at internal competing when revenue for I wheat say that be the little and bit margins would a And look now, expecting better backwards hemp. from on hemp highest would

Raghuram Selvaraju

of you Okay. sense give are And will firstly can can into – technical a question. guys us Archipelago timing making the cash you just that just contribution the outlay that of The then joint be? what venture, financial you a cash

account payment to already are going what made? it’s secondly, be for it? been that you made within Whether has timeframe And or how to going

Matthew Plavan

likely account island this is for capabilities quarters, be more on the our entity as than consolidated of our the XX% own developing joint and we as we to three over it next the will it intent a as Yes, extraction or two are venture.

Raghuram Selvaraju

and a on then, with trade threat has And the to the popular on lot war the and news the soybean been If the so its there had business look Okay. the on. respect drought last item recent of soybean between clearly resistant USDA question soybean of overall the is streams. U.S. landscape, you articles approval and impact guys about China we at

context look to be a performance Can us should on extent that what extent taken of To consideration what when give this expectations for at product? that you just really And we economic future factor? that? is into some

Rajendra Ketkar

So, will have launching Argentinean the towards we what beginning first That’s product, Argentina. be as are been is, country on that this partners we our and planning from the company. Ram, an working right

that the as be we country introduce approval Argentina we So well. Brazil to. have would it second and in would Brazil

And so products. import from for necessary and of is soybean really for and those approval of - either China countries

Brazil. products other So they and beans soybean from Argentina or import

the far we it as affect are approval as doesn’t or our as the Those and soon really So, really as Brazil. go, in goes, Argentina targets war tariff China. issues trade initial get

Raghuram Selvaraju

you Thank so Great. much. Okay.

Rajendra Ketkar

Yes, thanks, Ram.

Operator

question our next comes National from Securities. And with you. Ben Thank Klieve

your You with may proceed question.

Ben Klieve

All right, thanks. A handful here.

Sarah, of wheat the are all, year can where expand? especially of a First to about just you in referred next broadly, Really, you on your you that for to. the couple looking questions expansion plans talk initiatives for and you that kind

Do you perspective have yet? preservation? the in Is that to geographies in ensure would helpful. those Any supply place contracted comments from chain be growers identity

Sarah Reiter

Yes. Thanks, Ben.

markets. the starch a in identity reduced wheat, standing States the well are and to we for United sit for think close it’s up resistant to go. both where the gluten wheat Supply production We preservation to as obviously few both as key going needs international in

so, wheat in the that be can consuming main expect markets. looking And you we would

one as half. gluten are head think market be most point. to our you consumed a into positioning for guess, where tell to States, around gets probably us. for I in And clear who Certainly, first in the this on to you position resistant based world. the second can reduced am wheat on commercial contracting is I come we that to But not with we continue announcements very starch going is product we United the at

Ben Klieve

Okay.

Sarah Reiter

– farmers, which as about number changes a work been with for of yes. we into farmers production season. of production question farmers number a your yes, develop worked Oh, do farmers have farmers we’ve next seed closely. with technologies, And in contracting we very We we’ve our grain the

us, what XXXX of do. that will will for represents an need. just be for More this it’s we the expansion. replicating So, already kind needed be, we farmers But scale

for like So it’s our right feels us, in – it’s wheelhouse.

Ben Klieve

and I a HBX weighs probably is U.S. going you. questions Perfect. but the then, the be about looking first, in can And know that to little Thank – talk can about are Okay. I this you you on couple a of commercialization off, kind you talk target? guess, to geographies

broad corn Is Or western opportunities of this that launched, reach. appropriate? kind you going that launch think kind that targeted to other not do of a dryer there nationwide, for this is are here sort will of or What to looking geographically? at be you have be some particularly a and you region maybe but think be

Rajendra Ketkar

itself, weeds for becomes drought trait, areas the are the the dryer initial we But since a that Ben, target. drought with used trait glyphosate be have particularly tolerant as tolerant drought the and well. weed, So, more this resistant prone the areas broader pressure the stacked actually trait that areas, would obviously, herbicide other be to could prone in product

tolerant all so, the of you to both – now are of States, Illinois we But identify launch. areas, value for think a are broad working geographies United the be herbicide attributes, there. but the the markets we to have initial targeting farmers. through So, not fairly will that Clearly, we going not in to problem specific a Midwest, and Iowa, brings drought central the those tolerant drought

Ben Klieve

trait that it? integrate you help germplasm similar university to that, be going into you a and commercialize a to looking the that develop private mean, of what I are in something Okay. bioseries? Got relationship you is it for to you with it. Or along a And that some partners of have lines we are of like at eventually that nature? expect advance point partner, something doing can

Rajendra Ketkar

our Verdeca So, is venture Bioceres. Verdeca initiative. this will a be joint with

moment. but germplasm, won’t have Argentina It just Arcadia. really their own Verdeca. it be adapted Bioceres it’s So for be at would the

be would traits with for into to partners mainly here in U.S. the private work we So, germplasm. Verdeca to looking introgress these – U.S. as adapted

Ben Klieve

for the Matt, it. Got Thank And cannabis then, Perfect. on you. question front. a you Okay.

You you of you talked production about about by be of acres Can about, think ten next talk currently. believe said talk a will I there bit acres end you the that expanding where Can year, maybe acreage. production say? is you

Matthew Plavan

opportunities it’s going going want I to climate. off that also the a is Ben, say where the I Hawaiian favorable issue, to such to in is, small generate because be But ability very will we think I be are one be one am revenue fairly acreage. especially Mainland. substantial in careful, an market, to that, encouraged evaluating of by thing the competition it’s I

especially, of hemp Mainland surprising acres And in that, are we or a of amount the ability north you that. strain, of germplasm improve when some evaluating the thousand to not for between example to couple the us the say and and that it CBD look Hawaii would be something at for on a be I would

It’s be a that’s really have USDA’s – really based need to going play let important are regulations think each also the that because established on their to to we out guidelines time state, with more guidelines. things little the with I

to of I kind encouraged same the be the associated But we potential margin and revenue time, not the high lot want careful. a So, very with with revenue am, acreage. potential think I at of

Ben Klieve

just And picture guess, Got kind me, last it. a of Perfect. you. Thank here. one for question I big

versus local Argentina the Argentinean that that disruption of in Given U.S. Brazil, elaborate currency both kind the structure contract now, currency. expecting dollar-denominated what your on especially you America you is, and right with in are payments can South risk peso,

us the Can once risk commercialize down road that at are you you actually how you looking just understand help HBX?

Rajendra Ketkar

particularly typically products contracts the Sure, and commodities Brazil in most Argentina are or both and export-related commercial dollar-denominated. of

conversion we concern that peso but don’t So, have necessarily.

Ben Klieve

it. Got

Okay, perfect.

will queue. all in queue I yes, jump think that get I on here. I’ll news does it Congratulations and, in back me. back the for

Matthew Plavan

Ben. Thanks, Great.

Rajendra Ketkar

Ben. Thanks,

Operator

for Thank Robert next from comes Center Smith our And with you. Performance. question

with question. proceed your may You

Robert Smith

All afternoon. for taking my Thanks questions. Good right.

assume it in years so you commercializing have years, I at your naturally, able further the financing whether three looking future by So, is, your product five planning a to line. long-term outrun need mind function be be or my you will whether the for question

you a are well positioned made over You near-term. statement the that

that But near-term I to use a additional your not I’d acreage acreage get for you least the factor. as and for guides need on going How don’t know like further a how oil some you you the – with planting. additional – time? dovetail that might or color feel acquisition plans to the what then back for at for commercialization some for additional how money

Matthew Plavan

That’s a $XX,XXX question.

Robert Smith

it’s yes, are the so to of cusp years spend to going and signs And, speak. you and experiment now in

Matthew Plavan

Yes.

Robert Smith

how enterprise? question The is the value we do

Matthew Plavan

is about we Yes. as more not our to. enough been I would additional a way high in position this ability mentioned room my never Well, we’ve same capital had bullish to I never trajectory begin that a specifically say probably in in and generating been, not think to feels significant the prepared comments, meaningful I something I’ve to revenues are Whether at need speak that’s trajectory. everyone

significantly achievements do quickly so, i.e. But, are or either far our dilutive be the a be from to additional strategic we and any in much capital confident grow we financing. a in will of less that standpoint a be what require resources be can we will have more to the we should improve to better company the sufficient that than valuation arrangements, through position valuation say that with I highly milestone current we is report that should to position

we the done would So in past. have

into it revenue in we specific of it’s it But prudent it - So, near-term. wouldn’t the us is to visibility truly project time than have that. and is be get a I for difficult sources more where think good multiple to

Robert Smith

So, are the about near-term? when XX excitement that would question, call months? you what say you near-term, is probable. Is A we talking

Matthew Plavan

in I to months. the near-term next would XX XX call,

Robert Smith

the Okay, what what of How thoughts mean, different that’s pay? – could enough. with increasing I tax the this? approach of that your processes on you might possibilities do good share what the are are And you me you acreage?

Matthew Plavan

significant depends are supply it it geography. there there for own particular, in be But processing Well, acquiring, or that it states If licensees. our the using other chain. and amounts are it’s with growing hemps in there or is, where additional licenses on in might we if opportunities of expanding Hawaii are interested – were for there contracting acreage farmers

Hawaii. acres licensees XX are There covering in XXX

that so, XXXX in we believe farm rule significantly farm guidelines or will place. build expand the once And are

think, you in think it’s wide will don’t be for long whether and before plant I or hemp. So, looking Mainland are grow the to it farmers I Hawaii, open

so, years any the is what there, out four dramatically that you over are almost two at of reports if the acreage next analyst expectation three nothing And look that just from the or going ago. hemp the is was to grow years

So, we for anticipate being don’t land access to a factor gating us.

Robert Smith

All right.

the place, I a – in? R&D is you’ve the had now things said are other can number you other about And to avenues about your organization? the on mean, understand interested functions that that quite the I all what can emphasis so say be areas of speak. so, or can much in been on you describe, at so something focus commercialization, present, since you

Matthew Plavan

We company. focused to R&D in addition be company a a commercialization continue to

non-GM I a is lot more out one thing think, a company, is, can point we lot important whole as with less to do a money.

don’t in substantially R&D the that increase years. we anticipate will the coming in So, investment

our to continue remain pipeline. new a part Randy continue how we it decrease Shultz, innovation. Head to major and our in productive feed of growth expect It’s don’t of to to R&D, very expect with new We we

Robert Smith

for additional so information. much Okay. Thanks the

Matthew Plavan

Robert. you, Thank Sure.

Robert Smith

Thanks.

Operator

to you. Thank back would over closing to the I like call turn now Raj remarks. Ketkar for

Rajendra Ketkar

joining XXXX speaking and during conference look forward our your We continued for interest call quarter and the to to today call. of thanks and you Thanks, Arcadia. Josh, everyone again support with third

Operator

have Thank and Everyone today’s for program does This wonderful you gentlemen, all today's you. you conclude participating in and a disconnect. conference. Ladies may thank day.

Arcadia Biosciences (RKDA) 14 Aug 192019 Q2 Earnings call transcript