Arcadia Biosciences (RKDA) Announces Strong Third Quarter 2022 Financial Results and Business Highlights

— Sales of GoodWheat™ Pasta doubled from Q2 —
— Gross profit margin increased to 28% —
— Streamlined operations to focus on higher-margin brands —

Davis, California, November 10 October 2022 /PRNewswire/—— Arcadia Biosciences.^® (NASDAQ: RKDA), a manufacturer and marketer of innovative plant-based health and wellness products, today released its financial and business results for the third quarter of 2022.

“This year we have made significant progress in transforming Arcadia into a leaner, more focused organization,” he said Stan Jacot, President and CEO of Arcadia Biosciences. “As we execute our three-year strategy, Greenfield Projects, we continue to build the foundation for long-term growth and profitability.

“Our GoodWheat™ launch exceeded expectations, has reached our year-end goal of 1,000 stores, and acceptance continues to grow. We have streamlined our business to focus on higher-margin brands, including divesting the Saavy Naturals brand and our manufacturing facilities As a result, our profit more than doubled sequentially in the third quarter, validating our ability to grow our business while controlling costs.”

More detailed financial statements are included in today’s filing on Form 8-K and are available on the “Investors” section of the company’s website SEC filing.

income
In the third quarter of 2022, revenue was $1.9 millioncompared to $2.4 million Q3 2021 – $498,000 The decline was primarily due to lower body care and GLA revenue, partially offset by GoodWheat pasta sales. Revenue for the first nine months of 2022 is $9 millioncompared to $4.6 million in the first nine months of 2021. The growth was driven by gains in coconut water and body care products, as well as sales of GoodWheat pasta and cereals.

Operating expenses
In the third quarter of 2022, operating expenses were $6.5 million compared to $11.1 million Operating expenses for the third quarter of 2021 and the first nine months of 2022 were $21.9 million compared to $26.3 million in the first nine months of 2021.

The cost of revenue for the third quarter of 2022 is $1.3 millionor $1.2 million lower than $2.5 million The third quarter of 2021 was mainly driven by lower revenue and fewer inventory write-downs. The cost of revenue for the first nine months of 2022 is $8.3 millionor $3.3 million higher than $5 million In the first nine months of 2021, revenue increased as a result.

Reduced research and development (R&D) spending $783,000 and $2.3 million End of three and nine months September 30, 2022Compared to the same period in 2021, staff-related expenses and research-related activity costs were lower as the company focused on commercialization.

Selling, general and administrative (SG&A) costs for the three and nine months ended September 30, 2022 Yes $1.5 million and $2.9 million Three and nine months below the end September 30, 2021This was mainly due to lower staff costs, rental costs and consulting fees, respectively. Acquisition fees confirmed in 2021 do not exist in 2022.

Net income attributable to common stockholders
Net loss attributable to common stockholders for the third quarter of 2022 was $2.9 millionor $0.12 per share, one $692,000 increase from $2.2 millionor $0.10 per share, net loss for the third quarter of 2021. Operating loss for the third quarter of 2022 was $4.1 million The decrease was lower than in the third quarter of 2021 primarily due to lower cost of revenue, SG&A charges, and property and equipment impairment costs.Much of this favorability has been cancelled out $2.9 million A decrease in non-cash income due to changes in fair value of common stock warrants and option liabilities, and $1.1 million Proceeds from PPP loan terminations in 2021 do not apply in 2022.

Net loss attributable to common stockholders for the first nine months of 2022 was $11.1 millionor $0.48 per share, one $5.7 million increase from $5.4 millionor $0.26 Per share, net loss for the first nine months of 2021.Operating loss for the third quarter of 2022 was $8.7 million The lower than in the third quarter so far in 2021 was primarily due to SG&A expenses, R&D expenses and impairment of property and equipment, as well as Verdeca’s sales gains in 2022.Remeasurements and sales of Bioceres stock in the first and second quarters or a significant 2021 net loss attributable to common stockholders, with gains of $10.2 million The first nine months of 2021. No such gain will be recorded in 2022.In addition, non-cash income from changes in fair value of common stock warrants and option liabilities is $2.7 million The first nine months of 2022 are lower than the same period in 2021, which includes proceeds from the termination of PPP loans of $1.1 million This does not apply to 2021.

Conference Calls and Webcasts
The company has scheduled a conference call 4:30pm East(1:30pm Pacific) Today, November 10discussing third-quarter financial results and key strategic achievements.

Interested participants can join the conference call using the following numbers:

A webcast of the conference call will be available on the “Investors” section of the Arcadia website: www.arcadiabio.com. A replay of the recording will be available on the company’s investor website following the conference call.

About Arcadia Biosciences, Inc.
Since 2002, Arcadia Biosciences (Nasdaq: RKDA) has been innovating crops to provide high-value, healthy ingredients to meet consumer demand for healthier options. Arcadia is rooted in agricultural innovation to nurture the next generation of wellness products that make everyone feel good inside and out. The company’s food, beverage and body care products include GoodWheat™, Zola^® Coconut Water, ProVault™ Topical Pain Relief and SoulSpring™ Bath and Body Treatment.For more information, please visit www.arcadiabio.com.

Safe Harbor Statement
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This press release and the accompanying conference call contain forward-looking statements regarding the company and its products, including statements related to the company’s growth, profitability, operating costs, financial success related claims and commercialization of products. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered an indicator of future performance. These risks and uncertainties include, but are not limited to: the ability of the company and its partners and affiliates to develop and sell commercial products incorporating its characteristics and to complete the regulatory review process for such products; consumer demand for its products; company compliance Laws and regulations affecting the company’s business, including the sale of CBD-containing products, and changes in such laws and regulations; growth in the global wheat market; its ability to proceed with acquisitions and execute divestitures or effectively manage the growth of acquisitions in accordance with business strategy; COVID-19 the potential impact on its business; and the company’s future capital needs and ability to meet capital needs.Further information about these and other factors that may affect the company’s financial results is contained in the company’s filings with the Securities and Exchange Commission from time to time, including in the section entitled “Risk Factors” and will be filed in its filings on Form 10-K for the year ended December 31, 2021, and other files. These forward-looking statements speak only as of the date hereof, and Arcadia Biosciences, Inc. undertakes no obligation to update this information.

SOURCEArcadia Biosciences, Inc.