In This Article:
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Total Revenue: $1.5 million, an 18% increase year-over-year.
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Zola Coconut Water Sales: Increased 55% compared to Q3 of last year, representing about 86% of total revenues.
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SG&A Expenses: Approximately $2.2 million, including $380,000 of transition costs related to the sale of GoodWheat, a 20% increase from last year.
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Cash Usage: Declined to $1.5 million, the lowest level since going public, including $430,000 related to discontinued operations.
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Cash and Short-term Investments: $6.6 million at the end of Q3, down from $8.1 million at the end of Q2.
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Inventory Balance: $835,000, a 15% decrease from the end of Q2.
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Cost of Revenues: Approximately $1 million, including a $150,000 write-down related to hemp and GoodWheat seed.
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Research and Development Costs: $24,000, an increase of $9,000 compared to Q3 of last year.
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Loss from Discontinued Operations: $430,000, a 77% decrease compared to the same period last year.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Arcadia Biosciences Inc (NASDAQ:RKDA) reported an 18% year-over-year increase in total revenues for Q3 2024.
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Zola coconut water sales surged by 55% compared to the same period last year, contributing significantly to revenue growth.
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The company achieved the lowest level of cash usage in a quarter since going public, indicating improved financial management.
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Zola's retail store count increased by 68% year-over-year, marking the largest quarterly distribution gain in the company's history.
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Zola outpaced the coconut water category growth, with a 73% increase in the latest four-week period compared to the industry's 28% growth.
Negative Points
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Selling, general, and administrative expenses increased by $380,000 due to severance and transition-related fees.
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Sales of GLA oil continued to decline, with Q3 sales being about half of what they were in the same period last year.
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The company experienced a $150,000 write-down related to hemp and GoodWheat seed.
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There is uncertainty in forecasting due to the timing of initial shipments and the size of new distribution gains.
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The company did not provide forward-looking guidance, citing challenges in forecast accuracy due to recent distribution changes.
Q & A Highlights
Q: Can you clarify the $150,000 write-down mentioned in the financial results? Was it entirely within this quarter and associated with the legacy hemp business? A: Yes, the $150,000 write-down was entirely in this quarter and related to both hemp and GoodWheat seed. - Mark Kawakami, CFO