Arcadia Biosciences, Inc. Q4 FY2024 earnings call

• Over the last 2 years, exited underperforming Body Care brands to simplify the business and focus on promising brands.
• In mid-2024, monetized a portion of wheat intellectual property portfolio through sale of a trait and GoodWheat brand, providing non-dilutive capital and reducing operating expenses.
• 2024 full year revenues were just over $5 million, gross profit was $2.1 million with gross margins of 41.3%.
• Zola sales grew 16% in the first half of 2024 and 80% in the second half, with 124% increase in Q4 2024 compared to Q4 2023.
• In 2024, added more than 1,600 new stores and grew retail distribution by 86% for Zola.
• Pending transaction with Roosevelt Resources: Filed Form S-4 with SEC on February 14, 2025, expect transaction completion towards end of Q2 2025.

For the full year 2024, Zola coconut water sales increased 46% compared to the previous year, with full year revenues of just over $5 million. Zola contributed significantly to the overall revenue. GLA oil had full year revenue of $756,000 and Q4 revenue of $55,000; it is completely sold out with no sales expected in 2025. Zola's revenue contribution was substantial, while GLA oil's contribution was much lower.

• For 2024, full year revenues were in line with 2023 prior to GoodWheat sale, gross profit above $2 million with low 40s gross margins, and R&D and SG&A expenses had quarterly run rate around $2 million in second half; actual results had higher SG&A due to transaction fees.
• Zola has momentum from new distribution in second half of 2024 and pipeline of new opportunities for growth in 2025.
• Expect transaction with Roosevelt Resources to be completed towards end of Q2 2025.

• Transaction-related fees incurred in second half of 2024 were higher than anticipated, affecting SG&A expenses.
• SEC review process for Roosevelt transaction could cause delays; multiple rounds of comments possible.
• Legal constraints in monetizing legacy IP portfolio due to existing licensing deals and relationships, may lead to multiple transactions rather than one large deal.

Q: Can you elaborate on expectations for continued Zola distribution growth in 2025?

A: We have a healthy pipeline for 2025, similar to 2024, and will benefit from full 12 months of new distribution from 2024 in 2025.

Q: What was full year and Q4 GLA revenue and status of GLA inventory?

A: Full year GLA revenue was $756,000, Q4 was $55,000; we are completely out of GLA inventory with no GLA sales in 2025.

Q: Update on monetizing legacy IP from prior business model?

A: We have a portfolio of wheat-related patents and are seeking to monetize them, likely multiple transactions due to legal constraints, in advanced stages with hope of something done in first half of 2025