Arcadia Biosciences, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue, expenses, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Arcadia generated revenues of $1,537,000, an 18% increase from $1,298,000 in the same period of 2023. This growth was primarily driven by higher sales of Zola Coconut Water. Total revenues for the nine months ended September 30, 2024, reached $3,829,000, up 4% from $3,677,000 in the prior year. Product revenues accounted for 100% of total revenues, reflecting a $162,000 increase attributed to Zola sales.

However, the company faced rising costs, with the cost of revenues increasing by 26% to $1,032,000 for the third quarter, and by 7% to $2,086,000 for the nine months. Total operating expenses for the third quarter rose to $3,297,000, a 22% increase from $2,695,000 in 2023, largely due to higher selling, general, and administrative expenses, which included severance costs related to management changes.

Arcadia reported a net loss of $1,612,000 for the third quarter, a significant improvement from a net loss of $2,567,000 in the same period last year. For the nine months ended September 30, 2024, the net loss was $2,974,000, a substantial decrease from $11,133,000 in 2023, indicating a 73% reduction in losses year-over-year.

Strategically, Arcadia has made significant moves, including the sale of its GoodWheat brand to Above Food Ingredients Corp. for $3.7 million and the sale of its non-GMO Resistant Starch durum wheat trait to Corteva AgriScience for $4.0 million, both completed in May 2024. These transactions contributed to a gain of $4.0 million from the sale of the wheat trait, which had no carrying value.

The company has also exited its body care brands, Soul Spring and ProVault, due to regulatory uncertainties in the CBD market, ceasing operations in the third quarter of 2023. As of September 30, 2024, Arcadia reported total assets of $15,241,000, down from $19,705,000 at the end of 2023, with total stockholders’ equity decreasing to $10,287,000 from $12,841,000.

Despite these strategic developments, Arcadia faces challenges, including a working capital surplus of $8,383,000 and a substantial accumulated deficit of $274.8 million. The company has indicated that its existing cash and investments may not be sufficient to meet anticipated cash requirements for the next 12-18 months, raising concerns about its ability to continue as a going concern.