Arcadia Biosciences Inc. (NASDAQ:RKDA) president and CEO, Raj Ketkar said the company expects to “significantly scale revenues in 2020” as it reported financial and business results for the second quarter and first half of 2019.
In a statement accompanying the food ingredient company’s latest numbers, Ketkar said: "We made major progress on several fronts in the second quarter with our wheat, soybean and hemp initiatives.
"Most notably, we recently launched Archipelago Ventures, a strategic joint venture with Legacy Ventures Hawaii, which harnesses the islands' unique geographic and climate advantages for growing hemp year-round, gives us access to world class extraction facilities and provides a channel to key international markets for hemp and CBD.”
"Our focus for the rest of 2019 will be on continuing this momentum to achieve first revenues in wheat and hemp by the end of the year, positioning us to significantly scale revenues in 2020," the president CEO added.
Arcadia Bioscience, which is a proven leader in agricultural innovation to improve the quality and nutritional content of crops, reported second quarter revenues of $203,000, compared $436,000 in the same period of 2018, while first half revenues were $361,000, compared to $650,000 at the same stage in 2018.
The group said the decrease for both periods was largely the result of the wind down in government grant and contract research activity.
Over the next three to 12 months, as the company transitions to its new focus on health and nutrition quality products, Arcadia expects revenue from government grants and research contracts revenues to be replaced by product and trait revenues from wheat and hemp.
The group said its operating expenses in the second quarter of 2019 were $5.2 million, compared to $5.0 million in the second quarter of 2018, while the cost of product revenues was $182,000 less in the second quarter of 2019 compared to the second quarter of 2018 due to a write-down of its GLA inventory in the period.
Net income gets a boost
Arcadia’s net income for the second quarter of 2019 was $4.2 million, or $0.84 per share, a 164% increase from the $6.7 million loss seen in the second quarter of 2018.
For the first half, the company’s net loss for the first half of 2019 was $8.4 million, or $1.70 per share, compared to the net loss of $17.3 million for the first half of 2018.
The increase for both periods was largely due to the change in the fair value of common stock warrant and common stock adjustment feature liabilities in the second quarter versus the same quarter last year, partially offset by the $4.0 million initial loss on common stock warrant and common stock adjustment feature liabilities that was recorded in the first quarter of 2018.
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