Davis, California, USA
May 8, 2016

Arcadia Biosciences, Inc. (Nasdaq: RKDA), an agricultural technology company that creates value for farmers while benefitting the environment and enhancing human health, today released its financial and business results for the first quarter ended March 31, 2016.

Revenues for the quarter were up 5 percent, to $852,000, compared to $815,000 for the first quarter of 2015. The increase reflects higher sales of the company’s SONOVA GLA safflower oil, which was partially offset by lower contract and grant revenue recognized during the quarter. Operating expenses for the first quarter were $5.8 million compared to $4.5 million for the same period in the prior year.

The company’s net loss for the first quarter was $5.2 million compared to a loss of $5.8 million for the same period last year, an improvement of $600,000. Net loss attributable to common stockholders improved for the quarter by $2.5 million from the first quarter of 2015.

Cash on hand and liquid investments at the end of the first quarter totaled $65.1 million.

“During the first quarter of 2016, we streamlined our pipeline to focus on opportunities in large acre, high value crops such as corn, rice, wheat and soybeans,” said Roger Salameh, interim president and CEO. “This is a critical exercise for the company, especially at this point in our evolution, as we move product candidates from research to product development and, ultimately, to commercialization.

“Now more than ever, farmers are looking for ways to improve the bottom line,” Salameh continued. “As we focus our yield and stress pipeline against the most important food and feed crops, Arcadia continues to advance the regulatory and technical milestones that will get these traits into the hands of growers who need them,” he added.

Business and Technology Highlights

Arcadia made the following business and technical achievements in the first quarter of 2016:

• Beck’s Hybrids Corn Collaboration. Arcadia expanded its presence in the corn seed market through a new collaboration with Beck’s Hybrids, the largest family-owned retail corn seed company in the U.S. The partnership will leverage Arcadia’s abiotic stress and yield traits with Beck’s position as a leader in product development, marketing and sales to commercialize traits that improve yield, nutrient efficiency and stress tolerance under various environmental conditions. Both companies will invest in the collaboration and share in the value generated from the products incorporating Arcadia’s traits.
• HB4 Soybean Regulatory Submissions. Following the successful completion of the regulatory process in Argentina, Arcadia, through its Verdeca joint venture, advanced progress in bringing stress tolerant soybeans to market by applying for regulatory approval in Uruguay. Work also continues towards submission for regulatory approval to import HB4 soybeans in China and Europe, the two largest soybean markets.
• Salinity Tolerant Rice Technical Milestone. In two years of initial field trials, rice varieties with Arcadia’s Salinity Tolerance (ST) trait showed double-digit yield increases under saline conditions with no loss of yield under normal conditions. Mahyco will be advancing these lead ST rice lines into their trait introgression program and conducting further multi-location field trials to validate trait performance, a significant step in product development and commercial advancement for both companies

Financial Snapshot

(Unaudited)

($ in thousands)

Revenues

In the first quarter of 2016, revenues were $852,000 as compared with revenues of $815,000 in the first quarter of 2015, a 5 percent improvement. The quarter-over-quarter increase was driven by additional sales of SONOVA GLA safflower oil products, which was partially offset by reduced revenue from contract research and government grants.

Operating Expenses

In the first quarter of 2016, operating expenses totaled $5.8 million, up from $4.5 million in the first quarter of 2015, an increase of $1.3 million, or 28 percent. Cost of product revenues increased by $91,000, as a result of higher sales. Research and development (R&D) spending increased by $370,000, as the company began a major new program in corn trait development and commercialization. General and administrative (SG&A) expenses increased by $798,000, much of which was associated with operating as a public company.

Net Loss

Net loss for the first quarter of 2016 was $5.2 million as compared with $5.8 million for the first quarter of 2015, an improvement of 11 percent. The net loss for the first quarter of 2015 included higher interest expense and income tax provisions, as well as adjustments to the value of financing-related derivatives.

Net Loss Attributable to Common Stockholders

Net loss attributable to common stockholders for the first quarter of 2016 was $5.2 million, or a loss of $0.12 per share, a 33 percent improvement from the $7.7 million loss in the first quarter of 2015. The first quarter 2015 net loss attributable to common stockholders included significant adjustments associated with preferred shares redemption rights and deemed dividends to a warrant holder. The numbers of shares outstanding used to calculate the per-share losses attributable to common stockholders are weighted and reflect the reverse stock split which occurred in connection with the company’s IPO in May 2015.

Website: http://www.arcadiabio.com

Published: May 11, 2016