RKDA - Earnings call transcript Q4 2019 | Arcadia Biosciences, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to Arcadia Biosciences year-end 2019 Earnings Conference Call. Today's presenters will be Matt Plavan, President and CEO; Sarah Reiter, Chief Commercial Officer; and Pam Haley, CFO.

This call is being webcast, and you can refer to the company's press release at arcadiabio.com.

Before we start, 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 risks and uncertainties, the company's actual performance and results may differ materially from those described or implied today.

company's and language today's on the recently their press review XX-K filed Page can safe in harbor most release You X of

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

Matthew Plavan

and operator, today. call the be time you the sheltered their us from place. We you, who very is thanks Thank today you wherever taking in joining or to homes in tune on everyone may appreciate to much

paved in we we'll way briefly on successes our growth, the then for the the Today, our that and in XXXX, exceptional year. for built our foundation where of progress XXXX discuss update outlook the rest you so and far

in lens markets, the past hemp as wellness in opportunity new the the products a over on late creating doubt, in $X approaches wellness And and as this product agriculture floodgates ingredient, a legalization cultivation and derived value up. products industrial queuing with read, globally getting applications industrial also and become CBG, an alone for Dialing health multiple in of sales quickly other whopping ubiquitous from of health unparalleled other application XXXX, XXXX traction you've decade topping billion like CBN back century. hemp $XX without in opened cannabinoids for XXXX billion. retail has the CBD the estimates a probably with

seeds hemp where the that in market-leading is acre proven cannabinoid now the XXXX. and logically soy, the our and of wheat, undomesticated have broad this compelling therefore, opportunity that essentially building the we also and Arcadia's like will transformation for will its is with spent and accomplishments level on improvement we just genetics hemp are extract I say genetics be leading crops providers very in Therefore, of much underlying if And to corn market hemp mentioned, improved cultivation full And essential crops the rapidly for it Arcadia, quality R&D achieve provider. genetic what opportunity potential and to focus wheat, know we to follows tailor-made of and and However, foundations corn in is row soy. that of only capabilities a are least. plant the

and first to seed tested. science we March introduce and in new dozen we hemp with geographies. hemp new and X advanced technology a we germplasm develop supply new began the market XXXX, good quality varieties, genetics. half discovery that architect situated produce established to proprietary research and varieties genomics enabling verified an combines Beginning intelligence and diverse and architect, superior programs research hemp us breeding chain, accelerated modern over branded real to the market Through seed This qualify process field acquired hemp to from bring catalog breeding our time good good across the

products products of good Archipelago to go either late Hawaiian our our side beverage, like Hawaiian a chain, American hemp care. federal announced processing Specialties distribute channel cultivation, sales Hawaiian markets our because and in human Vivion food into we to products. or say state We North with and nutrition Hawaiian of certify which personal our our rules we and sales Monday, once I state is for and marketing key control sales on the up CBD supply branded Through pet agreement JV, signed good summer. hemp foundation commercial scale govern built own full hemp and by managing vertically and now effect channel commerce the our integrated Archipelago and by produced extraction the

quality like hemp retailers high control and CBD, transparency ingredient to products a comes shoppers. it discerning are When priority and and hemp-derived for

time hemp, from microbial certification including a and new convinced metals that has selected XXX of product free pioneered Hawaiian-grown and partner, ensure like -- Vivion, in VivAssure best we've residues, and the but than known We distribute pesticide lot products their labs as quality, guarantees and of contaminants, our ingredients. market they evaluating we're to VivAssure. rigorous standard testing partner, history. their most And understanding for organisms. premium not only spent that heavy a their of CBD their and those effectively Our are ingredients our processes, capabilities final hemp-extract to premium more XX-year

between regarding portfolio Wheat and products, rights GoodWheat in to of the our sell the each Arcadia our globally. importantly, deadlock where party for Arista snapped XXXX, we authorized As to legal RS and is

XXXX varieties XXXX of sales. on We GoodWheat in more the meet supply to X,XXX our harvested grain previous us with seed for acres XXx in enough more than than targets also acres and supplying year,

in global soybean market, XXXX, including soybeans expanding and now approving our progress number for drought-tolerant countries most and, made the than the Paraguay. of HBX stack, more Lastly, excellent sale we Brazil, XX% exceeding herbicide-resistant of recently, Argentina U.S.,

feedback the Northern Hawaii, West. California have Southwest and the and Pacific They regarding Northwest, the us Mountain element good, including invaluable building close providing begun final a growers California, their our major to these our breeding the seeds, XXXX. a good innovation to in hubs, hemp the are traits Southern Desert and partners experiences, hemp inform partnership community. enrolling anticipated, hemp A is leader development on varieties high-value program, which are And is grower X bad interest let's with and In we're the Now our in our we which as become about number located foundations using in majority developmental technologies of partners. in the talk the of in market strategies. is grower our high to deploying best in varieties strategy how hemp, amongst we very the of elite ugly,

grow. new good remains strong and interest to hemp continues Also, reliable our in

fulfilled XXXX. $X.X be no and must this growers and order and as contracts XXXX of the secured backlog fact, delivered In November than for retailers minimum represent to later spring moment, of summer our purchase plantings take-or-pay commitments exceeding we've commitments for from seeds million. be represent in that These

these disclosing entertain As forward expect represents these our these to we we each contract. to are backlog in available minimum And for expectation interest demands commitments, exceed reality, XXXX. revenue significantly. cases, seeds sold of seeds beyond look these of and actual In number strong above continue to take-or-pay more the agreements, the making minimums, meet are we the will some we and in and

our protocol. several ago, agronomy, year up joint pilot use Hawaii testing and, With Agriculture's tested the harvests, are to proprietary in good products and and island varieties now for we've intel venture, we putting program Archipelago, hemp for brought different initial onto acreage dozen of production have coming just launching extraction experience hemp of in Hawaiian the have with sales over the prepare of through gathered our we half Department importation which Since a we ramp a upwards Hawaii ultimately, CBD highly valuable our and our weeks. more as

to upcoming We to QX May. in earnings in expect to our our from call have report you JV preliminary results

prospects regarding in that As test XXXX. walk our when strong. to partners continuing hands get is her expectations continue The that feedback and sales for these say, going products. results suffice for section are our GoodWheat, formulation, from our to reports positive talk varieties, our through taste and our Sarah varieties evaluating our own for we and quite of our through us continue GoodWheat to exceed to baking to variety the those -- of it to performance

intellectual that RS we to our for traits RG also continue Furthermore, the property increase of recent in strength news, protects reported Wheats. high-value and as our both

the begin Regarding in are testing recently in with now our Verdeca glufosinate-tolerant announced trait participants to Argentina our as venture, in HBX able our fields. and in soybean soybean, drought, own program connection early joint their HBX salinity

potential the of season. more for planning of during the XXX,XXX acres next seed production are We than crop

We expected regulatory of expected launch by approval recent American on is timing may impact regulators. Argentina, the North That of events Chinese continue timing access to of of impacts to markets affected. be evaluate the not in but HBX the to timing approval the commercial

platform, rapid well X proprietary degrees. staffed and X with with throttle at transformation running our Masters full XX including scientists, is Architect, and PhDs dedicated with plant

bioinformatics provide prototype and optimize on-farm improve varieties higher These new easier innovation our resistance. were the improvements, breeding for X disease allowing network. hemp Our advanced through on varieties for targeting of summer, evaluation This partner programs new in-house with are deployed launch hemp we returns genomics, are developed rates, farmer and track. architectural yields, to profiles, through farmers harvest were compliance cannabinoid machine -- hemp better

pipeline a consistently the cannabinoid industrial hemp new established and that and also deliver also to fiber research grain varieties challenges just markets. deliver not We've the but growing address market hemp to value, segments,

conducting in the U.S. in varieties will across better cooperators will XXXX be different stage hemp in expansion of and These for trials network and research a perform the understand how beyond. XXXX. to enable trials multi-location us setting developed geographies, we've Additionally,

of library corn, to industry-leading elevate we of hemp that and are traditional crops available on well to wheat, in architectural genetics and like so to summary, way by broad high-value and our soy an establishing that standards. rapidly acre very traits will unique do So

Of crops. commensurate course, our also expect of those same to the corresponding we be of with hemp state genetics value seed the for value

to detailed update. over call Sarah? our for turn like I'd update that, on the Sarah With more to a commercial

Sarah Reiter

our a the and of way time. exclusively GoodWheat, to thanks to high-fiber going and agreement XXXX provide which brought from through expectations. North State wheat, and activities sneak Technologies, the Milling of launch State in continue Arista to progress wherever peek global GoodWheat the under you several our Matt, and for are toward our HealthSense into Thanks, commercial Bay launch of varieties. recent In I'm your cleared American umbrella. those you for Bay with we listening Cereal

occurred seed sales Bay in we as first State to fourth Our anticipated. quarter,

their disease lost the about good reducing XXXX, sale leave for The full is of in rollout initial and extent additional coming Bay with weather grain spring seed million across innovation elevator expectations season is our plan of impact, X high bushel February volume wheat. fields, scale in production us elevator inhospitable for and specialty in caliber accompanying However, expanded brand State's we'll highlights Bay this did We of necessity State's a the of sales unscathed. the announcement demand. amylose the of Midwest that new The XXXX go-to-market HealthSense support $XXX,XXX. for increase news not by and wheat upper An for the several planting. that's the the

gluten also reduced reduces more. GoodWheat we flour, retail the limited out release a of rolled December, of or gluten In allergenic components XX% which

and standard XX% than is fiber wheat flour. about in the lower is all-purpose calories in high Additionally,

Our not and home The than diagnosed CPG end being limited new validate to consumers for gluten reducers. diverse the and enabled partners limited wheat who the These indicated farming expand January to product as release our gluten had we reduce GoodWheat rather that disease. evaluations research in a in market expand since as by their new diets consumer call us among begun December. products of pasta segment well are number is earlier commercial the enjoyed currently sellout and will of to companies supply plans their have validates replace The in as sold reduced out celiac bakers. by early beer, of products testing bread. development ingredient begun Since X variety flour their a novel as then,

the in food of discussed progress we wheat. among of list portfolio evaluating GoodWheat improved the call, As companies we last global the earnings continued

their In customers to pass in R&D programs. fact, target continued key milestones

example, terms track of For recently and remain regional of where functional very GoodWheat of a with on performance in European in testing, completed and our multinational, major a local favorably close very We as companies. products number positive company a terms commitments taste. scored to market ingredient

made food and frame with to year. the expect foods meet We expectations consumer service GoodWheat our this foods revenue in to within companies time XXXX, several required carrying well announce

sales show the work special Our our supply And at seed In products and to for foods, R&D to market fireside the new experiences, seed from XXXX. and teams we under of from many is Their farmers, approved bring state [indiscernible] states are XXXX, seed to creating with more market. hemp hemp everything dishonest continue a hemp. enthusiasm commodity crop USDA, in under become continues there rates us license. quickly reasons and today a X currently a pilot new chain and American growers underscore farmers, redrafting grants Dakota vegetables USDA's hemp and cotton. line X busy allow Association to grow Seed review preparing for deferred event along Trade to acres drafting are hemp-based as experience the trade high XXXX rules, state seed under option, states begin drinks good USDA launch hemp growers. hemp. we outright proposals, to cereals, operate inaccurate from alternation hemp gain expect in CBD the available, like buyers farmers. growing Oregon, entered commercial growers access the they they featuring was degree germination, crops to poor XX team of insurance, subsidies one have has been cultivate by to Arcadia XX a launched our the at and and American also tactics went to their to December, participate for become for or are X one as clearly and with already are states Support commodity chat mainstream discuss X North approved These beans, proposals. and challenges the to states There to

input and Buttonwillow reliable, announced varieties Company That's turn, market reach of demand are in wide beverages peers, our as our the as partners, In learn major production process the becomes that plans X work Grow positioning once last growers. U.S. ambitious to the for the CBD across to our distributors ingredient our feel with every acre. to growers alongside can downstream every confident optimize because supplements. will companies and and time standardized, FDA's And we guidance work crops. many expand best hemp high-performing companies do the FDA goods for make -- entry as market consumer day clear. week, grow We West, as footprints Many to -- more to the this line into of issues California open we themselves reason believe, to among as packaged X crop, many Warehouse farming increases. dietary These a reach evaluating position to floodgates California's their footprint harvest California these market farmers foods, of we

that hemp-derived Unilever sparkling CBD cream a And highlighted in & Corporation, Colorado. For established example, CBD-infused which clearer. once bit CBD, are Hydropothecary a has regulations sparkling treats plans in to sodas Jerry's coverage ice Ben Coors and press controlling of the frozen owned Molson recent introduced interest a produce line line beverages

as even personal deeper product ingredient, has and care. CBD, a in made cosmetics inroads

into Some major the CBD leap recognizable companies have the already taken space.

months. Lauder, and hemp-based last all Kiehl's Estée have Unilever with market products into the example, the X For in brand, with [ph], their introduced U.S. Lorad L'oréal brand their

value on to It's products. Recent think further recognized game going use "People February from that, CBD decisions." even have the make certainly, to comments newly "We appointed these approach that them to help you Hahn the products FDA's we be said using there We're can't are not that." Hahn, try to Americans acknowledged to open them commissioners, the And to fact to be commissioner, products. Commissioner XX, case, the stay, to are Stephen to in able might information say, that's here fool's want products but these be and, right these a some get

authorization March novel also by products applications Standards to which remain been the guidance be requires United availability New FSA CBD should for CBD a has in products the XX, its CBD issued has will Food XXXX. This current on U.K. regulated allowed After by that food the in to businesses facilitate the on guidance allows submit the but date, valid application market. shelves, This to products in only of Kingdom guidance remain Agency. products

in dependence minimal. and Convention The data a subject with "It Organization aware and can recently Single in no Organization by for their drugs, FDA dietary agency next X, of relevant the member In data CBD to the the waiting of hemp-derived successful in supplements. we Congress highly year. to CBD, food and approvals due own study Health of of considering review and the also to "It's all risk CBD effects such step states understand to sold potential XX history to opportunity of their to legislation." CBD January profile in June their the for March submitted, product control CBD UN the XXXX use." forward World about CBD abuse applaud no any on than the we've as support and to safety XXXX, emphasizing We proactive approach available availability data products sampling which company actively to forward to interest national FDA, of taken XX, XXXX, identify CBD the Commission for in Health regulate be under its of shows narcotic certain FDA's Congress the under provide safety potential look We this said, a proactive oils. CBD ill analysis ingredients of novel was the working that to of it using significant and The conditions process. be update to stated, CBD As World that countries questions" being safely their reported wrote, for by described weighed or many analyzing look supplements not the efforts in because It welcome "Rather is oversight. are in dietary public be scheduled products, used in the -- We a been to report are on results its

under has XX% Expoagro relevant turn Early Solutions, by and than of to Brazil with and their Verdeca, has precommercial yield and the regulatory expected to production territories. evaluate can the of soybeans, markets. Argentina and the consideration expand under production in approval currently to salinity regulatory the of this seed HBX needed approved stacks month, upcoming and drought, let's China, 'XX, consumption the herbicide. HBX other and program seed This Verdeca by more field the more our in HBX the soybeans trait The In late stresses production in the regulatory November in demonstrating to in been trade of varieties in Argentina States, the Paraguay. own progress Argentina fields, trait launch which commercial approval Bioceres currently tolerance of on been than plots our and the means other soybeans the has the drought introduction with global HBX Trade Fair X,XXX of in season. gluphosphonate acres more earlier scaling is among and is adopters with soybean United already has submissions from At potential drought and acres China we for technology environmental ensures joint Crop to in presented Approval new this than developed globally. XXX,XXX Finally, trait venture herbicide-tolerant now XXXX. announced

events monitor the to in impacts Argentina. market recent measure our to continue of We of broad the timing introduction

turn I'll our that, With Pam? it to financials. to discuss over Pam

Pamela Haley

Thank you, Sarah.

the As from throughout health transformation of reflect year, fourth model revenue products, our the to licensing We impact company. XXXX see we've our results and the to a were and the impact on and factors these the of discussed in financial in a research full predominantly ingredients our consumer year. of going quarter in business one overall

We've added wound the revenue such, reduction legacy XXXX, as XXXX. Our we quarter was deem to and XX% resources sources year for operating key invest prior in our year for continued in down company. revenue over than XXXX new contributing have annual as shift full And greater fourth in over to XXXX. this success the sources to and external in revenues quarter as $X.X annual annual reduction million X% necessary expertise a commercial expense a we a

the the $XXX,XXX reduction in to of of due gain million fourth the value the company's XXXX, related X% quarter to fair consideration expense the than or current primarily $X quarter was Operating contingent lower for liability. noncash

for increase as precommercial higher were and higher higher expense primarily quarter year-to-date soybean the along costs. The quarter to to XXXX. year-to-date fourth was activities. The employee-related increase due was for for increase compared million $XXX,XXX additional quarter the drivers the with consistent R&D with fourth hemp-related $X and expenses Total

in offset the and $XXX,XXX fees not XXXX partially The hemp-related expense higher than was expenses, fourth higher The during costs marketing present quarter XXXX. in $X quarter the periods was million by to XXXX. and due SG&A in was consulting year-to-date. fourth for unfavorability annual of activities higher recognized both strategic Total XXXX XXXX, in but employee-related advisory mostly of increase

the XXXX was fourth in $XXX,XXX of the Net $X.X in liabilities XXXX. loss hit a footnote million XX the the direct for with that of significant these and Please noncash for of liabilities The description recording the to detailed applicable quarters. at remeasured to transactions. were in common completed as end in of resulted attributable offering compared to quarter accounting September the for charges the stockholders refer fourth our P&L, registered of quarter the XX-K June

hand, $XX.X on Regarding our year. short-term and liquidity the the at and million investments of capital end cash resources, cash equivalents totaled

net from of generated in proceeds for $XX.X Our offerings operating equity and million, the investor along in XXXX activities proceeds million million $XX.X XXXX was cash used with exercise warrants. of $X.X the of gross

XXXX. call I'd That attention now today. our like highlights a financial for for to with time to for wraps up Matt? Thank back wrap-up. your that, turn over you And and Matt the

Matthew Plavan

Thanks, we XXXX. in to goals we Pam. will closing, are outstanding the by and confident achieve our growth take in $XX exceed this stock we context in to laid are And in of far year our projections progress our well as guidance, million how XXXX energized revenues so we of our XXXX. achieve In foundations in the remain positioned we

in lies confidence factors. a Our few

commitment beginning our begin track sales. for sales acreage up more year to from breadth soon our wheat CBD the Also, we're this interest extracts ongoing lastly, And Hawaiian processing on year. we for as orders XXXX. good will seed minimum this our First, of to planned and in strong the hemp and our biomass the scale backlog for remain early hemp harvest

coronavirus. I not achieving confidence would our the be unknown of implications remiss I to forward our were the However, subject guidance in if caveat to

time, to our operating a the able and are become that market of and conditions period reset that it of Although, the over agriculture evaluate time. supply worsen extend Should chain at conditions growers, continue despite to meaning deemed significantly quarantine or conditions. rest is guidance current current essential an industry, likely our our have longer ourselves the apparent we'll are to

questions. Thank you. the turn for all And over to you with I'll that, call

Operator

[Operator Instructions].

Selvaraju H.C. question Wainwright. Ram with first from Our comes

Raghuram Selvaraju

and wondering, and you the can Congratulations the first product revenue wheat comment if what between split relative you to was guidance progress. the hemp the on on be expect I all lines?

Matthew Plavan

Thanks, Ram.

sales, we at comfortable it two. those saying of probably I point, that a have the hemp at and I But CBD we'd be meaningful give I the revenues. you pretty to year, the we they as likely the of think hemp the are error had dominate think if would between who a shot seed to good was see towards this pulling have a would think race between still to well. definitely beginning more said, sales on But to majority at in side. But amount the I wheat was a split, I be going more

Raghuram Selvaraju

right? So say hemp, be favor it might in XX-XX like, potentially of to it's reasonable

Matthew Plavan

Yes, that is reasonable.

Raghuram Selvaraju

you you're United Okay. on in seeing directionality the with in States the impact broader Can downturn some and consumption on respect the provide distancing to any of social economic If general? wheat commentary that?

Matthew Plavan

that. has Thanks Yes, answer good for one, that yes. Sarah well. for a good and question a It's as

Sarah Reiter

Yes.

So great thanks, question. It's a Ram.

meant who've what better really hours away the There meeting been milling term, to we rate is grain or expect store, demands which being the week-on-week XXX% able the areas through current us March. the to home pasta both volume industry United grocery and is is look to seen volumes, this the holiday be is the most flour certainly, sorry, in days, at shelter to the for States and in additional the eat of unusual than grocery transition quarantine of will The current encounter at has and those are that what you production. able obviously For today is that from of industry in as capacity reporting the in a but wheat XX the full store industry reporting to long and like capacity or production family I meet ship question demand operating flour, additional running XX/X about shifted to the called their are capacity place. about gain that -- has, that we've cooking, out past and

Raghuram Selvaraju

overall potentially disruption, I wanted of see helpful. same That's to very shifts a likely better States. juncture, wheat me Okay. can changes Reduced production segment the to or supply a some Reduced sense GoodWheat -- vein, lines at foothold if ask brand that -- and to the Starch for gain And Resistance most this additional chain whether sense be Starch kind Gluten? within also you in give added in which line some or due an to GoodWheat's the also, perhaps potential Reduced you maybe United popular? is

Sarah Reiter

Matt bit earlier, a get the believe of to brings as Frankly, race. fiber go the Well, without better said I amazing. product XXx is of wheat Starch to to horse flour a time, Resistant a a having It that's will we value over sense. that normal value presentation. whole a

healthily. pizza and it's to folks eat and eat eat for want want of lovely So to who still spread all sorts wheat-based and foods

understanding years -- fit the surpass potentially its increase of reduction is Resistant in will Gluten, market. that because material and calories. in of And also X an market it catch high-fiber Reduced terms offer the I and our lag the the its in in about For it fiber Starch, in includes believe has

offer. think broader a is I it

and compelling, really both to are it's our portfolio. in both have So fabulous

for other develop how You back to into more our fitting see the Oh, a another Starch, was, execution. particularly wheat us the pasta. perspective think your a better Durum is had is at and -- valued especially its in Resistant for our which durum, be a we for use a high-fiber like maybe Clearly, grow We're question you have allow a question. that. demand we to of beginning we'll which weeks, market. you do next And view would if there things one I to flour, with a is specialty few of will call. desert come durum,

our high-fiber And in inventory Reduced durum of Resistant -- so XXXX. hitting that will sorry, be certainly, the market we anticipate Starch,

Raghuram Selvaraju

very Okay. helpful That's also.

many acres I How just on mean you the Buttonwillow? Just accessible number of a equates that Florida. I quick have that? -- a are and Do in Grow the think West production question all very here. acres through state to production

Sarah Reiter

It's actually California. all of

have don't a will me give at number. fingertips. you I I it of get my second, If a the tip you

Matthew Plavan

who's accessible growing agree? to Suffice hemp either it to a channels. going of is growing say, -- to grower sizable us be you Do through known anybody those

Sarah Reiter

where up growers interesting seen to alternation to those this very also crops, crops Yes. an in some that growers cotton, they of available really at crop really alfalfa. like end commodities we've in their interested because tons acres cover footprints cereals, which the are state, they of as for here profitable. returns grow And perennials, healthy And a hemp, who aren't vines, makes us are rice, really can not trees which but of in as be and diverse available

Raghuram Selvaraju

Okay. if provide the can that in you be specific number acres Great. California helpful. would of production when a chance, get you Yes,

Matthew Plavan

Thanks, with information. you follow-up Ron. We'll with that afterwards

Operator

question next National Ben from Klieve Our with Securities. comes

Benjamin Klieve

balance of second year market hemp minimum the talked the the from represents by that for on that to of low the there about given the kind incremental backlog opportunity side, you can the think that then the come of year of kind you purchase in your may talk it's the bar, commitment. out can year? additional that just likelihood the about First, is that you the harvest of still end add half commitments, But particularly you

Matthew Plavan

Sure.

price. capture number to at number seed way a seed a minimum the of speak, retailers to price. an So minimum of right, simply is average, and number The sold that is looking minimum the a acres acres at minimum of so multiple of Ben. a Generally, are

with minimum X,XXX as of a to pricing they're growers represent will to for more to as X,XXX well acres acres, likely be for premium seed up bringing seed. signs somebody say, that nonpremium us probably let's going So X,XXX

look So at that's the to first way minimum. that

that of the as minimum. we are There play couple delayed than are or think should we in for revenue, at a As some dissipate. that already. have committing the are are that it be -- substantially to seeds more to think going going factors comes the decisions of That

can of. Sarah so think think with of in outline see on of And June, significant were couple to waiting to -- -- those her I we what that which the that we And can probably a inflow fence. sure, growers I'm will you're I that aware are, defer May, a commitments

plantings. to the continue to decisions the number are So spring XX grow going for growers their the make meaningfully that summer and our next days over expectations is as

Sarah Reiter

a want is transition in states Ben, each rules me part are about states under talked USDA that hemp $X.X in timings. The it's the making Yes, limit the are disjointed is add. little upper the million think year the sales the to this new at season not. this different online we've just for because let that wouldn't of We coming bit hemp anyone that mean that spring,

XX days approve -- USDA, going it. to have program to You USDA state the operate under state your submit to has the each to and is

and we're what Texas. staggered just available release Florida, in places like in So is of which acres drafting week plant in Georgia, seeing California a their last finished

us. on purchases seed acres more bit little we so and we actually originally to majority a more occur available see and later than acres coming And maybe hoped. of the And had

see, you'll So of majority publications, sales industry April, and even seed March, occur you if the May June. look around

can, of obviously, we you in plans sense on give so deliver seed. next And track hemp call, we're with the And that. a better to right our

Benjamin Klieve

Perfect. Okay.

Moving HBX that But on bit announcements. from here of acreage North weighs we move to X to towards really really know milestones America, here that for the off, into as months America but talked elaborate look can the that What goal? what unchanged product? can XXXX expectations wondering, North America. bringing over kind you end which are next be on for I'm you're still in to hoping in prior the out expectations your South seem you a kind of hit I if of about on HBX, you

Matthew Plavan

what do think? you Sarah,

Sarah Reiter

in milestones the about and America think are localization. I North partnership really So

a going germplasm grow we're from Argentine the execute and soybean Argentina. to to germplasm grow Obviously, many of warmer that production it performance parts that about in of we trials So bringing on the isn't the the but in field areas plan successfully, drier will are areas. very some traits have U.S.

under number evaluating of we're we are actively American North are bringing evaluate market soybean XXXX that their to also be planning different right trait would season. to now seed if in with who field a or our So pursuing companies, And portfolios that partnership successful. this we

Canadian have We registration underway.

or we market, ourselves germplasm effectively another our here hard we that's to up partners performs both. if this So find milestone. through to either bring work continue that or to trait directly And

Benjamin Klieve

it. Got

question. Okay. kind And a of then modeling

be to do to we evolution of going revenues, compared that is what of this how the think of first relatively have of kind saw goods year shifting staying cost XXXX and SG&A of consistent good that XXXX? XXXX? the now have sell? OpEx, up And about kind in the with as from any you Now can material year material as to OpEx half sold, back can of Or product the line R&D the kind expect at you look of cost you a goods we sold you

Matthew Plavan

Yes, that's question. right the

and see XXXX a going think I terms metrics of of the we're financial change in proportionality. to lot in

R&D our say end I 'XX year will continue fair towards the into to in back think the that XXXX. in the in of uptick investment it's

as going margin investing significantly As start was during be to Don't but to of evolution cost will going there it and the of have some the expect marketing be -- XXXX, think I sales is sales an is we to as ramp And costs, gross well. we're there. and -- there sales. cost to

cost think to a up of will addition in which for selling drive in XXXX we're our premium that this substantially our in seed in in investing sales XXXX, scale seed production I down XXXX. meaningful year,

we're to as in positioning don't we'll model make expect selling will or we're in back but know I it's strong XXXX leading well. with margins the of And is we're are business. would the in that our what and wheat hemp of really XXXX start margins XXXX our into over back predict, that that we're XXXX. to So expectation of good How, of and end this -- time I very we occurs, want seed good, the year in be sales visibility hemp difficult to good period think mind although, them some XXXX margins grain. depending selling see end through, straight to that a to early whether what in going our whether vary model experience trait and I our will actually part And upon

a moving are there the leverage in I that have need scale conversation get is we of lot there that. before let folks it's give So can comfortable we need and But parts guidance good to that think with better than to is of is it in to operating know a that to expenses. fair this going to amount order our operating change business. our significantly expectation think expenses our in We not XXXX

Operator

queue remarks. I'm the time. showing And closing turn the any in questions to like further at for back to no call the speakers this I'd

Matthew Plavan

hard to continued in support. and to continue joining Okay. while day bring real your the the call for single-minded time, commercial milestone the report to in new field improved interest healthy a on market working continue and And We'll everyone, key market. lab, and wellness achievements Thank you, we every and our and foods focus maintaining the in growth. products profitable

again, and good these wish very thanks, in, tuning times. Thank difficult for we all So and health in you. you safety

Operator

you gentlemen, and does for and you today's disconnect. conclude program, your conference. Ladies participation thank on This now may your

Arcadia Biosciences (RKDA) 25 Mar 202019 Q4 Earnings call transcript