“2018 was a transformative year for Arcadia, as we delivered significant regulatory, commercial and scientific advancements in wheat, soy, tomato and safflower,” said Raj Ketkar. “We are now well positioned in 2019 to apply our years of expertise to a new crop – cannabis – with the formation of Arcadia Specialty Genomics. This new strategic business unit, headed by Matt Plavan, is dedicated to improving the plant quality, productivity, consistency and climate resilience of cannabis, working initially in hemp in federal and state legal markets.”
“This is a natural evolution of our business, consistent with Arcadia’s focus as a consumer-driven agricultural technology company, developing and commercializing innovative food ingredients, nutritional oils and products that improve crop productivity, nutritional quality and value,” Ketkar said.
2018 Operating and Business Highlights
GoodWheat™ Portfolio of Branded Specialty Wheats. In Q1 of 2018, Arcadia launched its GoodWheat brand of wheat ingredients that add value to the entire wheat value chain, from seed to table, by enabling a wider range of choices to meet evolving consumer demands. The platform includes Arcadia’s current and future non-GM wheat portfolio of high fiber Resistant Starch (RS) and Reduced Gluten (RG) wheat varieties, as well as future wheat innovations.
Key Technical Milestones Achieved with High Fiber, Resistant Starch GoodWheat. Arcadia achieved key technical milestones in its high fiber, RS wheat lines in 2018. Arcadia’s RS wheat varieties contain 94 percent amylose, compared to 25 to 30 percent in traditional wheat. Increased levels of amylose correspond to higher levels of resistant starch, which has been proven to deliver significant health benefits. These same wheat varieties deliver levels of total dietary fiber high enough to meet the FDA’s threshold for “Good Source” of fiber and “High in Fiber” designations on consumer packaging. These new non-GM wheat varieties, naturally high in fiber, will help satisfy consumers’ demands for healthier, clean-label ingredients in their favorite wheat-based foods.
Reduced Gluten Wheat Added to GoodWheat Portfolio. Arcadia added new Reduced Gluten wheat to the GoodWheat portfolio, a non-GM, patent-pending, identity preserved specialty wheat in which allergenic glutens have been reduced by 70 percent while the levels of glutens important for baking are not changed. With the growing number of consumers making a conscious effort to reduce gluten in their diets, Arcadia’s RG wheat represents a rich and untapped opportunity for specialty products and unique brand extensions.
Industry Veterans Hired to Build Commercial Capabilities and Supply Chain Partnerships. Arcadia hired two agricultural biotech industry veterans to build its commercial capabilities. Sarah Reiter joined as chief commercial officer, and Grant Aldridge joined as head of commercial development to help build out the GoodWheat supply chain. Each of them has over 20 years of expertise in agronomic breeding, seed production and commercial development.
US Patent Received for Extended Shelf Life Wheat. Arcadia was granted a U.S. patent for its Extended Shelf Life Wheat technology which extends the storage life of whole wheat flour by minimizing oxidation. This new trait was designed to promote whole wheat consumption by improving the shelf life and taste of whole grain wheat products.
Partnership with Ardent Mills to Develop and Commercialize Innovative Wheat Traits. Arcadia announced a collaboration with Ardent Mills, the leading flour-milling and ingredient company in North America, to develop and commercialize innovative wheat varieties. The first project in this partnership will focus on extending the shelf life of whole wheat flour products to improve taste, reduce waste and positively impact health outcomes by increasing the consumption of whole grains.
Verdeca General Manager Hired to Prepare for HB4 Commercialization. Arcadia’s joint venture with Bioceres Crop Solutions Corporation, Verdeca, hired Martin Mariani Ventura, a seasoned agriculture executive with over 20 years of experience in marketing and commercialization of new products, as General Manager.
Regulatory Approval for HB4 Drought Tolerance Trait Stacked with Herbicide Tolerance. Verdeca received approval in Argentina for its HB4 drought tolerant trait stacked with herbicide tolerant traits in soybeans. The approval allows Verdeca to incorporate tolerance to both glyphosate and glufosinate-ammonium into the trait and expands the addressable acres for HB4 technology in South America.
HB4 Drought Tolerant Soybean Trials in Argentina Demonstrate Efficacy in Drought Conditions. During the 2017-18 field trial season in Argentina, HB4 Drought Tolerant soybeans showed improved yields under drought conditions in elite breeding lines. More than 50 million of the world’s soybean hectares are grown in Argentina and Brazil, a region that has experienced significant drought conditions in recent years. Verdeca estimates that 30 percent of these hectares are the addressable market for the HB4 trait.
Extended Shelf Life Tomato Achieves Key Milestone. Arcadia reached a technical milestone with partner Shriram Bioseed in India for Extended Shelf Life tomatoes. This non-GM trait is bred to fully ripen on the vine yet remain durable enough to survive the packing and shipping process, reducing post harvest damage and costly waste. This milestone demonstrates Arcadia’s ability to innovate novel traits in crops that add value for growers and other stakeholders in the supply chain.
Double-Digit Yield Increases Demonstrated in Stacked Traits in Rice. Three of Arcadia’s abiotic stress traits stacked together demonstrated double digit yield increases in rice in two crop seasons of field trials. Multiple lines carrying the nitrogen use efficiency (NUE), water use efficiency (WUE) and salinity tolerance (ST) traits outperformed control lines by an average of 25 percent under limiting nitrogen applications, when measured for yield.
$24M Raised in Financing. During 2018, Arcadia raised a total of $24M in financing, through a private placement (PIPE) financing and a registered direct offering. These funds will be used to support commercialization activities for its portfolio of health and nutrition products.
Q1 Achievements and Strategic Outlook
New Business Unit Dedicated to Cannabis. In February 2019, Arcadia launched Arcadia Specialty Genomics, to leverage the company’s years of plant science, industry and regulatory expertise, offering value-added capabilities for rapid growth in cannabis-based functional ingredients. This dedicated business unit will develop a proprietary germplasm estate and traits for license to cultivators, and for products serving the nutraceutical and food industries. These innovations are made possible through a proprietary approach combining conventional breeding, TILLING and gene editing. Matt Plavan, Arcadia’s CFO, will lead the business unit as president of Arcadia Specialty Genomics.
Licensed to Grow Hemp in Hawaii. Hawaii’s Department of Agriculture recently granted Arcadia Biosciences a license for their Industrial Hemp Pilot Program. With this license, Arcadia Specialty Genomics can begin its research and cultivation immediately, and plans are already underway to begin planting in April.
First Sales of GoodWheat expected in 2019. Arcadia’s focus will continue on building and expanding partnerships throughout the wheat supply chain with growers, seed companies, millers and food companies. The first product in the GoodWheat portfolio, Resistant Starch wheat, is anticipated to be commercially available in 2019, so these partnerships will be key to launching innovative wheat ingredients and forming the foundation of a long-term, sustainable business.
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Arcadia’s revenues in 2018 reflect the impact of the company’s transformation from a predominately research and licensing business model to a one of a consumer products health and ingredients model. As a result, revenues from its legacy R&D business model wound down during the year, and forward expectations for the onset and scale up of new revenues from nutritional ingredient products over the next nine to 18 months remain unchanged.
In the fourth quarter of 2018, revenues were $444,000, compared to revenues of $1.4 million in the fourth quarter of 2017. For annual 2018, overall revenues decreased to $1.5 million compared to $4.0 million during the same period of 2017. The quarter-over-quarter and annual results were primarily impacted by the decrease in government grant revenue, in addition to a contract research agreement in 2017 that was not present in 2018 and the recognition of previously deferred upfront license fees with the termination of several agreements in the fourth quarter of 2017. Over the next nine to 18 months, as the company transitions to its new focus on health and nutrition quality products, Arcadia expects revenue from government grants, research contracts and license revenues to be replaced by product and trait revenues.
In the fourth quarter of 2018, operating expenses were $4.8 million, compared to $4.4 million in the fourth quarter of 2017. For annual 2018, operating expenses were $18.3 million, consistent with the amount incurred during the same period in 2017. Annual research and development (R&D) spending decreased by $1.3 million in 2018, primarily the result of the termination of license and contract research agreements at the end of 2017. General and administrative (SG&A) costs for annual 2018 were $953,000 higher than annual 2017, driven primarily by higher intellectual property legal fees and additional marketing activity. Cost of product revenues was $210,000 higher than in the fourth quarter of 2017 and $378,000 higher than annual 2017 due to the write-down of inventory and additional product sales in 2018.
Net Loss Attributable to Common Stockholders
Net loss attributable to common stockholders for the fourth quarter of 2018 was $646,000, or a loss of $0.14 per share, a 78 percent improvement from the $3.0 million loss in the fourth quarter of 2017. Net loss attributable to common stockholders for the year was $13.5 million, or a loss of $3.58 per share, a 14 percent improvement from the $15.7 million loss in 2017.
The annual loss for 2018 includes non-cash income of $9.6 million recognized as the fair values of the common stock warrant liabilities associated with the PIPE financing and Registered Direct Offering were adjusted from quarter to quarter during 2018. The loss for annual 2018 also includes $4.0 million of expense recorded upon the initial recognition of the common stock warrant and adjustment feature liabilities associated with the PIPE financing. In addition, there was $2.6 million of offering costs expensed in support of both transactions. The combined impact of this activity during annual 2018 netted to $3.0 million of income.
The annual loss for 2017 includes a loss on extinguishment of debt in the amount of $900,000, as well as $747,000 of interest expense incurred through the July 2017 debt payoff.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m. Eastern (1:30 p.m. Pacific) today, March 27, to discuss fourth-quarter and annual financial results and key strategic achievements.
Interested participants can join the conference call using the following numbers:
A live webcast of the conference call will be available on the “Investors” section of the Arcadia’s website at www.arcadiabio.com. Following completion of the call, a recorded replay will be available on the company’s investor website.
About Arcadia Biosciences, Inc.
Arcadia Biosciences (Nasdaq: RKDA) develops and markets high-value food ingredients and nutritional oils that help meet consumer demand for a healthier diet. Arcadia’s GoodWheat™ branded ingredients deliver health benefits to consumers and enable consumer packaged goods companies to differentiate their brands in the marketplace. The company’s agricultural traits are being developed to enable farmers around the world to be more productive and minimize the impact of agriculture on the environment. For more information, 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 about the company and its products, including statements relating to components of the company’s long-term financial success and ongoing plans; the company’s traits, commercial products, and collaborations; and the company’s ability to manage the regulatory processes for its traits and commercial 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 as an indication of future performance. These risks and uncertainties include, but are not limited to: the company’s and its partners’ ability to develop commercial products incorporating its traits and to complete the regulatory review process for such products; the company’s compliance with laws and regulations that impact the company’s business, and changes to such laws and regulations; and the company’s future capital requirements and ability to satisfy its capital needs. Further information regarding these and other factors that could affect the company’s financial results is included in filings the company makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and additional information that will be set forth in its Form 10-K for the year ended December 31, 2018. These documents are or will be available on the SEC Filings section of the Investor Relations pages of the company’s website at www.arcadiabio.com. All information provided in this release and in the attachments is as of the date hereof, and Arcadia Biosciences, Inc. undertakes no duty to update this information.
(In thousands, except share data)
(In thousands, except share and per share data)
Arcadia Biosciences, Inc.
Consolidated Statements of Cash Flows
View source version on businesswire.com: https://www.businesswire.com/news/home/20190327005764/en/
Source: Arcadia Biosciences, Inc.
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“2018年是阿卡迪亚转型的一年，我们在小麦、大豆、番茄和红花方面取得了重大的监管、商业和科学进步，” RajKetkar 说。“我们现在处于2019年的有利位置，可以将多年的专业知识应用于新作物——大麻——的形成中。这一由 Matt Plavan 领导的新战略业务部门致力于提高大麻的植物质量、生产力、一致性和气候适应性，最初在联邦和州法律市场的大麻生产领域开展工作。”
“这是我们业务的自然演变，符合 Arcadia 作为一家以消费者为导向的农业技术公司的重点，开发和商业化创新食品配料、营养油和产品，以提高作物生产率、营养质量和价值，” Ketkar 说。
GoodWheat ™品牌特种小麦组合.2018年第一季度， Arcadia 推出了 GoodWheat 品牌的小麦配料，通过提供更广泛的选择，满足不断变化的消费者需求，为从种子到餐桌的整个小麦价值链增加价值。该平台包括 Arcadia 目前和未来的非转基因小麦高纤维抗淀粉（ RS ）和还原型谷胱甘肽（ RG ）小麦品种组合，以及未来的小麦创新。
主要技术里程碑实现高纤维,电阻淀粉 GoodWheat .2018年，阿卡迪亚在其高纤维、 RS 小麦生产线上实现了关键技术里程碑。阿卡迪亚的 RS 小麦品种含有94%的直链淀粉，而传统小麦品种的直链淀粉含量为25%至30%。淀粉含量的增加与耐性淀粉含量的增加相对应，后者已被证明具有显著的健康益处。这些相同的小麦品种提供的总膳食纤维水平足够高，足以满足 FDA 对纤维“良好来源”和消费者包装“高纤维”的要求。这些新的非转基因小麦品种，天然纤维含量高，将有助于满足消费者的需求，更健康，清洁标签的成分，在他们喜爱的小麦为基础的食品。
减少谷胱甘肽小麦添加到小麦组合。Arcadia 在 GoodWheat 的投资组合中增加了新的还原型谷蛋白小麦，这是一种非转基因的、正在申请专利的、保有身份的特殊小麦，其中过敏性谷蛋白减少了70%，而对烘烤重要的谷蛋白水平没有改变。随着越来越多的消费者有意识地努力减少饮食中的麸质，阿卡迪亚的 RG 小麦代表了丰富的、尚未开发的特殊产品和独特的品牌延伸机会。
聘请行业资深人士建立商业能力和供应链伙伴关系.阿卡迪亚雇佣了两名农业生物技术行业的资深人士来建立其商业能力。Sarah Reiter 担任首席商务官， Grant Aldridge 担任商业开发主管，帮助建立 GoodWheat 供应链。他们在农业育种、种子生产和商业开发方面都有20多年的专业知识。
与 Ardent 磨坊合作开发和商业化创新小麦产品.阿卡迪亚宣布与北美领先的面粉和配料公司 Ardent Mills 合作，开发和商业化创新小麦品种。这一伙伴关系的第一个项目将侧重于延长整个小麦面粉产品的保质期，以提高口感，减少浪费，并通过增加整个谷物的消费量积极影响健康结果。
Verdeco 总经理受雇为 HB4商业化做准备。Arcadia 与 Verdeco Bioceres Crop Solutions Corporation 的合资企业雇佣了马丁·马里亚尼·文图拉( Martin Mariani Ventura )，他是一位经验丰富的农业高管，在新产品的营销和商业化方面有20多年的经验。
含除草剂耐受性的 HB4耐旱陷阱的法规批准.Verdeco 在阿根廷获得批准，因为它的 HB4耐旱特性与大豆中的除草剂耐性特性堆叠。批准允许 Verdeco 将对草甘膦和草铵膦的耐受性结合到该特性中，并扩大 HB4技术在南美的可寻址面积。
阿根廷的 HB4耐旱大豆试验证明了干旱条件下的有效性。2017-18年阿根廷田间试验季节， HB4耐旱大豆在优良育种系干旱条件下表现出较好的产量。世界上超过5000万公顷的大豆种植地在阿根廷和巴西，这一地区近年来经历了严重干旱。Verdec 估计这些公顷中有30%是 HB4特性的目标市场。
延长的货架寿命西红柿达到关键里程碑.Arcadia 与印度合作伙伴 Shriram Bioseed 就延长货架寿命西红柿达成了技术里程碑。这种非转基因特性是培育充分成熟的葡萄藤，但仍然足够持久，以生存包装和运输过程，减少后收获损害和昂贵的浪费。这一里程碑表明， Arcadia 有能力创新作物的新特性，为种植者和供应链中的其他利益相关者增加价值。
双数字水稻增产的实证研究.在田间试验的两个作物季节里， Arcadia 积累的三个非生物胁迫性状表明水稻产量增加了两位数。在限制氮肥施用条件下，测定产量时，具有氮肥利用效率（ NUE ）、用水效率（ WUE ）和耐盐性（ ST ）特征的多个品系平均比对照品系高25%。
筹资2400万美元。2018年， Arcadia 通过私募（ PIPE ）融资和注册直接发行募集资金共计2,400万美元。这些资金将用于支持其保健和营养产品组合的商业化活动。
新业务部门致力于大麻。2019年2月， Arcadia 推出了 Arcadia Specialty Genomics ，以利用该公司多年的植物科学、行业和监管专长，为基于大麻的功能成分的快速增长提供增值能力。这个专门的业务部门将开发一个专有的种质产业和性状的许可证，种植，产品服务于营养和食品工业。这些创新是通过传统育种、 TILLING 和基因编辑相结合的专有方法实现的。Arcadia 首席财务官 Matt Plavan 将领导该业务部门担任 Arcadia Specialty Genomics 总裁。
获准在夏威夷种植大麻。夏威夷农业部最近向 Arcadia 生物科学公司颁发了其工业大麻试点项目的许可证。有了这个许可证， Arcadia Specialty Genomics 可以立即开始其研究和培育，并且计划在4月开始种植。
固特异的第一次销售预计在2019年。Arcadia 的重点将继续是与种植者、种子公司、米勒和食品公司建立和扩大整个小麦供应链的伙伴关系。GoodWheat 产品组合中的第一个产品，抗病淀粉小麦，预计将于2019年上市，因此这些合作伙伴关系将是推出创新小麦成分和形成长期可持续业务基础的关键。
2018年第四季度收入为44.4万美元，2017年第四季度收入为140万美元。2018年全年总收入由2017年同期的400万美元下降至150万美元。本季度及年度业绩主要受政府补助收入减少的影响，此外，于二零一八年并无订立合约研究协议，以及于二零一七年第四季度终止若干协议时确认先前递延的预付许可费。在接下来的9到18个月里，随着公司转向其新的关注健康和营养质量产品， Arcadia 预计来自政府补助、研究合同和许可收入的收入将被产品和特性收入所取代。
2018年第四季度，营业费用为480万美元，2017年第四季度为440万美元。2018年度营业费用为1,830万元，与2017年度同期发生的金额一致。2018年年度研发（研发）支出减少130万美元，主要系2017年底终止许可及合同研究协议所致。2018年的一般及行政（销售成本、综合开销及行政管理费用（SG&A）& A ）成本比2017年高出953,000美元，主要受知识产权法律费用和额外营销活动的推动。产品收入成本较2017年第四季度增加210,000美元，较2017年全年增加378,000美元，原因是2018年计提存货及附加产品销售所致。
2018年年度亏损包括确认为与 PIPE 融资及登记直接发售相关的普通股认股权证负债的公平值的非现金收入9.6百万美元，已于2018年每季度作出调整。2018年的亏损还包括初始确认普通股认股权证时记录的400万美元开支以及与 PIPE 融资相关的调整特征负债。此外，支助这两项交易的费用支出为260万美元。该活动在2018年度的综合影响为净收益300万美元。
本次电话会议的现场网络直播将在 Arcadia 网站的“投资者”部分 www.arcdiabio.com 上进行，电话会议结束后，将在公司投资者网站上进行录音录像重播。
关于 Arcadia 生物科学公司。
阿卡迪亚生物科学公司（ Nasdaq ： RKDA ）开发和销售高价值的食品配料和营养油，帮助满足消费者对健康饮食的需求。Arcadia 的 GoodWheat ™品牌成分为消费者带来了健康益处，并使消费品公司能够在市场上脱颖而出。该公司的农业特性正在开发中，以使世界各地的农民更有生产力，并将农业对环境的影响降到最低。有关详细信息，请访问 www.arcdiabio.com 。
1995年《私人证券诉讼改革法案》中的“安全港”声明：本新闻稿和伴随的电话会议包含有关公司及其产品的前瞻性声明，包括与公司长期财务成功和持续计划的组成部分相关的声明；公司的特点，商业产品和合作；以及公司管理其特性和商业产品的监管流程的能力。前瞻性陈述存在可能导致实际结果产生重大差异的风险和不确定性，报告的结果不应被视为未来业绩的指标。这些风险和不确定性包括但不限于：公司及其合作伙伴开发具有自身特点的商业产品并完成此类产品的监管审查程序的能力；公司遵守影响公司业务的法律法规的情况；以及该等法律法规的变更，以及公司未来的资金需求和满足其资金需求的能力。有关这些及其他可能影响公司财务业绩的因素的进一步信息，包括公司不时向美国证券交易委员会( SEC )提交的文件，包括公司截至9月30日的季度报告10-Q 中标题为“风险因素”的章节。2018年及截至2018年12月31日止年度将载于其10-K报表的其他资料。这些文件现在或将在公司网站 www.archidiabio.com 的投资者关系页面的 SEC 备案部分提供。本新闻稿和附件中提供的所有信息截至本公告发布之日， Arcadia Biosciences , Inc .不承担更新该信息的义务。
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杰夫。bergau @ archidiabio.com
资料来源： Arcadia Biosciences , Inc .