EX-99.2 3 rkda-ex99_2.htm EX-99.2 EX-99.2

 

Exhibit 99.2

img193038000_0.jpg

 

Arcadia Biosciences, Inc.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,936

 

 

$

6,518

 

Short-term investments

 

 

2,640

 

 

 

5,124

 

Accounts receivable and other receivables, net of allowance for doubtful accounts of
   $0 as of September 30, 2024 and December 31, 2023

 

 

882

 

 

 

506

 

Inventories — current

 

 

835

 

 

 

837

 

Assets held for sale

 

 

 

 

 

51

 

Note receivable — current

 

 

1,827

 

 

 

 

Prepaid expenses and other current assets

 

 

521

 

 

 

807

 

Current assets of discontinued operations — GoodWheat

 

 

70

 

 

 

1,129

 

Total current assets

 

 

10,711

 

 

 

14,972

 

Property and equipment, net

 

 

55

 

 

 

70

 

Right of use asset

 

 

306

 

 

 

792

 

Inventories — noncurrent

 

 

 

 

 

196

 

Intangible assets, net

 

 

39

 

 

 

39

 

Note receivable — noncurrent

 

 

3,966

 

 

 

 

Other noncurrent assets

 

 

164

 

 

 

164

 

Noncurrent assets of discontinued operations — GoodWheat

 

 

 

 

 

3,472

 

Total assets

 

$

15,241

 

 

$

19,705

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

1,692

 

 

$

1,910

 

Amounts due to related parties

 

 

30

 

 

 

58

 

Operating lease liability — current

 

 

346

 

 

 

852

 

Other current liabilities

 

 

260

 

 

 

270

 

Current liabilities of discontinued operations — GoodWheat

 

 

 

 

 

500

 

Total current liabilities

 

 

2,328

 

 

 

3,590

 

Operating lease liability — noncurrent

 

 

 

 

 

155

 

Common stock warrant and option liabilities

 

 

764

 

 

 

1,257

 

Other noncurrent liabilities

 

 

2,000

 

 

 

2,000

 

Total liabilities

 

 

5,092

 

 

 

7,002

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $0.001 par value—150,000,000 shares authorized; 1,364,940 and 1,285,337
   shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

 

 

65

 

 

 

65

 

Additional paid-in capital

 

 

284,919

 

 

 

284,515

 

Accumulated other comprehensive income

 

 

117

 

 

 

101

 

Accumulated deficit

 

 

(274,814

)

 

 

(271,840

)

Total stockholders’ equity

 

 

10,287

 

 

 

12,841

 

Non-controlling interest

 

 

(138

)

 

 

(138

)

Total stockholders' equity

 

 

10,149

 

 

 

12,703

 

Total liabilities and stockholders’ equity

 

$

15,241

 

 

$

19,705

 

 

1


 

 

Arcadia Biosciences, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

1,537

 

 

$

1,298

 

 

$

3,829

 

 

$

3,667

 

License

 

 

 

 

 

 

 

 

 

 

 

10

 

Total revenues

 

 

1,537

 

 

 

1,298

 

 

 

3,829

 

 

 

3,677

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

1,032

 

 

 

818

 

 

 

2,136

 

 

 

1,996

 

Research and development

 

 

24

 

 

 

15

 

 

 

40

 

 

 

55

 

Gain on sale of intangible assets

 

 

 

 

 

 

 

 

(4,000

)

 

 

 

Impairment of property and equipment

 

 

 

 

 

 

 

 

36

 

 

 

 

Selling, general and administrative

 

 

2,241

 

 

 

1,862

 

 

 

6,986

 

 

 

6,535

 

Total operating expenses

 

 

3,297

 

 

 

2,695

 

 

 

5,198

 

 

 

8,586

 

Loss from continuing operations

 

 

(1,760

)

 

 

(1,397

)

 

 

(1,369

)

 

 

(4,909

)

Interest income

 

 

233

 

 

 

133

 

 

 

428

 

 

 

538

 

Other income, net

 

 

15

 

 

 

17

 

 

 

168

 

 

 

36

 

Valuation loss on March 2023 PIPE

 

 

 

 

 

 

 

 

 

 

 

(6,076

)

Change in fair value of common stock warrant and option liabilities

 

 

330

 

 

 

608

 

 

 

493

 

 

 

5,965

 

Issuance and offering costs allocated to liability classified options

 

 

 

 

 

 

 

 

 

 

 

(430

)

Net loss from continuing operations before income taxes

 

 

(1,182

)

 

 

(639

)

 

 

(280

)

 

 

(4,876

)

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

(1

)

Net loss from continuing operations

 

 

(1,182

)

 

 

(639

)

 

 

(280

)

 

 

(4,877

)

Net loss from discontinued operations — Body Care

 

 

 

 

 

(83

)

 

 

 

 

 

(591

)

Net loss from discontinued operations — GoodWheat

 

 

(430

)

 

 

(1,845

)

 

 

(2,694

)

 

 

(5,665

)

Net loss

 

 

(1,612

)

 

 

(2,567

)

 

 

(2,974

)

 

 

(11,133

)

Net loss attributable to non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

(5

)

Net loss attributable to common stockholders

 

$

(1,612

)

 

$

(2,567

)

 

$

(2,974

)

 

$

(11,128

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted from continuing operations

 

$

(0.87

)

 

$

(0.47

)

 

$

(0.21

)

 

$

(4.08

)

Basic from discontinuing operations

 

$

(0.32

)

 

$

(1.42

)

 

$

(1.98

)

 

$

(5.24

)

Net loss per basic and diluted share attributable to common stockholders

 

$

(1.18

)

 

$

(1.89

)

 

$

(2.18

)

 

$

(9.31

)

Weighted-average number of shares used in per share
   calculations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

1,363,753

 

 

 

1,359,511

 

 

 

1,362,754

 

 

 

1,195,354

 

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains on available-for-sale securities

 

$

36

 

 

$

66

 

 

$

117

 

 

$

87

 

Reclassification adjustment for gains on available-for-sale securities included in net loss

 

$

-

 

 

$

 

 

$

(111

)

 

$

 

Change in unrealized gains on available-for-sale securities

 

$

36

 

 

$

66

 

 

$

6

 

 

$

87

 

Comprehensive loss

 

$

(1,576

)

 

$

(2,501

)

 

$

(2,968

)

 

$

(11,041

)

 

2


 

Arcadia Biosciences, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

Nine Months Ended September 30,

 

 

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(2,974

)

 

$

(11,133

)

Adjustments to reconcile net loss to cash used in operating activities:

 

 

 

 

 

 

Change in fair value of common stock warrant and option liabilities

 

 

(493

)

 

 

(5,965

)

Issuance and offering costs allocated to liability classified options

 

 

 

 

 

430

 

Valuation loss on March 2023 PIPE

 

 

 

 

 

6,076

 

Depreciation

 

 

92

 

 

 

227

 

Lease amortization

 

 

502

 

 

 

535

 

Amortization of note receivable discount

 

 

(90

)

 

 

 

Gain on disposal of property and equipment

 

 

(65

)

 

 

(36

)

Gain on sale of RS durum wheat trait

 

 

(4,000

)

 

 

 

Stock-based compensation

 

 

395

 

 

 

573

 

Write-down of inventories

 

 

154

 

 

 

444

 

Impairment of property and equipment

 

 

36

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable and other receivables

 

 

(445

)

 

 

249

 

Inventories

 

 

620

 

 

 

(1,388

)

Prepaid expenses and other current assets

 

 

287

 

 

 

(284

)

Other noncurrent assets

 

 

 

 

 

(13

)

Accounts payable and accrued expenses

 

 

(719

)

 

 

(300

)

Amounts due to related parties

 

 

(29

)

 

 

(2

)

Other current liabilities

 

 

(11

)

 

 

11

 

Operating lease liabilities

 

 

(678

)

 

 

(573

)

Net cash used in operating activities

 

 

(7,418

)

 

 

(11,149

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Proceeds from sale of property and equipment

 

 

342

 

 

 

42

 

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

 

 

4,827

 

 

 

(4,396

)

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

 

 

9

 

 

 

12

 

Net cash provided by financing activities

 

 

9

 

 

 

5,512

 

Net decrease in cash and cash equivalents

 

 

(2,582

)

 

 

(10,033

)

Cash and cash equivalents — beginning of period

 

 

6,518

 

 

 

20,644

 

Cash and cash equivalents — end of period

 

$

3,936

 

 

$

10,611

 

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

 

Right of use assets obtained in exchange for new operating lease liabilities

 

$

86

 

 

$

 

Note receivable recognized from sale of GoodWheat

 

$

5,705

 

 

$

 

 

 

# # #

3