Exhibit 99.2
Arcadia Biosciences, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
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June 30, 2022 |
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December 31, 2021 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
21,234 |
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$ |
28,685 |
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Accounts receivable, net of allowance for doubtful accounts of $89 and $76 |
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3,854 |
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1,370 |
|
Inventories, net — current |
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3,275 |
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4,433 |
|
Assets held for sale |
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254 |
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— |
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Prepaid expenses and other current assets |
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1,441 |
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|
900 |
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Total current assets |
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30,058 |
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35,388 |
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Property and equipment, net |
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954 |
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2,291 |
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Right of use asset |
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2,308 |
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3,081 |
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Inventories, net — noncurrent |
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1,136 |
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2,494 |
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Intangible assets, net |
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386 |
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|
484 |
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Other noncurrent assets |
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166 |
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180 |
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Total assets |
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$ |
35,008 |
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$ |
43,918 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable and accrued expenses |
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$ |
3,391 |
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$ |
3,638 |
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Amounts due to related parties |
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83 |
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64 |
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Operating lease liability — current |
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994 |
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1,074 |
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Other current liabilities |
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272 |
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264 |
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Total current liabilities |
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4,740 |
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5,040 |
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Operating lease liability — noncurrent |
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1,500 |
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2,220 |
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Common stock warrant liabilities |
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— |
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3,392 |
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Other noncurrent liabilities |
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2,000 |
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2,070 |
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Total liabilities |
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8,240 |
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12,722 |
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Commitments and contingencies (Note 15) |
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Stockholders’ equity: |
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Common stock, $0.001 par value—150,000,000 shares authorized as |
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63 |
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63 |
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Additional paid-in capital |
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277,492 |
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257,515 |
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Accumulated deficit |
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(250,748 |
) |
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(226,485 |
) |
Total stockholders’ equity |
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26,807 |
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31,093 |
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Non-controlling interest |
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(39 |
) |
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103 |
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Total stockholders' equity |
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26,768 |
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31,196 |
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Total liabilities and stockholders’ equity |
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$ |
35,008 |
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$ |
43,918 |
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1
2
Arcadia Biosciences, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands, except share data and per share data)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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Revenues: |
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Product |
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$ |
2,946 |
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$ |
1,379 |
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$ |
6,116 |
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$ |
2,183 |
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Royalty |
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50 |
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26 |
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100 |
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51 |
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License |
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862 |
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— |
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862 |
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— |
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Total revenues |
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3,858 |
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1,405 |
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7,078 |
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2,234 |
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Operating expenses (income): |
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Cost of revenues |
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3,447 |
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1,587 |
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6,906 |
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2,443 |
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Research and development |
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359 |
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1,131 |
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754 |
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2,290 |
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Gain on sale of Verdeca |
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(1,138 |
) |
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— |
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(1,138 |
) |
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— |
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Impairment of intangible assets |
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72 |
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— |
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72 |
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— |
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Change in fair value of contingent consideration |
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(39 |
) |
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— |
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(70 |
) |
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(140 |
) |
Impairment of property and equipment |
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346 |
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— |
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346 |
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210 |
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Gain on sale of property and equipment |
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(58 |
) |
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— |
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(386 |
) |
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— |
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Selling, general and administrative |
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4,652 |
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6,370 |
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9,000 |
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10,439 |
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Total operating expenses |
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7,641 |
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9,088 |
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15,484 |
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15,243 |
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Loss from operations |
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(3,783 |
) |
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(7,682 |
) |
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(8,406 |
) |
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(13,009 |
) |
Interest income (expense) |
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30 |
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(1 |
) |
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29 |
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(8 |
) |
Other (expense) income, net |
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(44 |
) |
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2,759 |
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(3 |
) |
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10,222 |
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Change in fair value of common stock warrant liabilities |
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— |
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(498 |
) |
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— |
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(176 |
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Issuance and offering costs |
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— |
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— |
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(27 |
) |
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(769 |
) |
Net loss before income taxes |
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(3,797 |
) |
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(5,422 |
) |
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(8,407 |
) |
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(3,740 |
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Income tax provision |
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— |
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— |
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— |
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— |
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Net loss |
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(3,797 |
) |
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(5,422 |
) |
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(8,407 |
) |
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(3,740 |
) |
Net loss attributable to non-controlling interest |
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(20 |
) |
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(161 |
) |
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(142 |
) |
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(538 |
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Net loss attributable to common stockholders |
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$ |
(3,777 |
) |
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$ |
(5,261 |
) |
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$ |
(8,265 |
) |
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$ |
(3,202 |
) |
Net loss per share attributable to common stockholders: |
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Basic and diluted |
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$ |
(0.17 |
) |
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$ |
(0.24 |
) |
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$ |
(0.37 |
) |
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$ |
(0.15 |
) |
Weighted-average number of shares used in per share |
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Basic and diluted |
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22,188,918 |
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21,745,403 |
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22,187,961 |
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21,271,960 |
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Other comprehensive loss, net of tax |
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Foreign currency translation adjustment |
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— |
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(12 |
) |
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— |
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(12 |
) |
Other comprehensive loss |
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— |
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(12 |
) |
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— |
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(12 |
) |
Comprehensive loss attributable to common stockholders |
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$ |
(3,777 |
) |
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$ |
(5,273 |
) |
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$ |
(8,265 |
) |
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$ |
(3,214 |
) |
3
Arcadia Biosciences, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
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Six Months Ended June 30, |
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2022 |
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2021 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net loss |
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$ |
(8,407 |
) |
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$ |
(3,740 |
) |
Adjustments to reconcile net loss to cash used in operating activities: |
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Change in fair value of common stock warrant liabilities |
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— |
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|
176 |
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Change in fair value of contingent consideration |
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(70 |
) |
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(140 |
) |
Issuance and offering costs |
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— |
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|
769 |
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Depreciation |
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|
277 |
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|
484 |
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Amortization of intangible assets |
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26 |
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|
48 |
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Lease amortization |
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420 |
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639 |
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Impairment of intangible assets |
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72 |
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— |
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(Gain) loss on disposal of property and equipment |
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(386 |
) |
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135 |
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Stock-based compensation |
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|
583 |
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|
681 |
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Bad debt expense |
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37 |
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— |
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Realized gain on corporate securities |
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— |
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(10,222 |
) |
Impairment of property and equipment |
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346 |
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210 |
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Write-down of inventories |
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1,515 |
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|
983 |
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Changes in operating assets and liabilities: |
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— |
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— |
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Accounts receivable |
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(2,471 |
) |
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|
259 |
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Inventories |
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|
1,001 |
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(633 |
) |
Prepaid expenses and other current assets |
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(541 |
) |
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(938 |
) |
Other noncurrent assets |
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|
15 |
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(153 |
) |
Accounts payable and accrued expenses |
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(247 |
) |
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|
1,083 |
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Amounts due to related parties |
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19 |
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(47 |
) |
Unearned revenue |
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— |
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|
56 |
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Other current liabilities |
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8 |
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|
1 |
|
Other noncurrent liabilities |
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(1 |
) |
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(1 |
) |
Operating lease payments |
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(446 |
) |
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(590 |
) |
Net cash used in operating activities |
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(8,250 |
) |
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(10,940 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
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Proceeds from sale of property and equipment |
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|
841 |
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— |
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Purchases of property and equipment |
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(46 |
) |
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(713 |
) |
Acquisitions, net of cash acquired |
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— |
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(4,250 |
) |
Proceeds from sales and maturities of investments |
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— |
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|
21,845 |
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Net cash provided by (used in) investing activities |
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|
795 |
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16,882 |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Proceeds from issuance of common stock and warrants from |
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— |
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25,147 |
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Payments of offering costs relating to January 2021 PIPE |
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— |
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(1,912 |
) |
Principal payments on debt |
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— |
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(2,019 |
) |
Proceeds from ESPP purchases |
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4 |
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27 |
|
Capital contributions received from non-controlling interest |
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— |
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|
750 |
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Net cash provided by financing activities |
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4 |
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21,993 |
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Effects of foreign currency translation on cash and cash equivalents |
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— |
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(1 |
) |
Net (decrease) increase in cash and cash equivalents |
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(7,451 |
) |
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|
27,934 |
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Cash and cash equivalents — beginning of period |
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28,685 |
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|
16,043 |
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Cash and cash equivalents — end of period |
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$ |
21,234 |
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$ |
43,977 |
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
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Cash paid for income taxes |
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$ |
— |
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$ |
1 |
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Cash paid for interest |
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$ |
1 |
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$ |
21 |
|
NONCASH INVESTING AND FINANCING ACTIVITIES: |
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Shares of common stock issued at closing of Arcadia Wellness transaction |
|
$ |
— |
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$ |
2,053 |
|
Common stock warrant liabilities reclassified to equity upon adoption of ASU 2020-06 |
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$ |
3,392 |
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|
$ |
— |
|
Common stock warrants issued to placement agent and included in offering |
|
$ |
— |
|
|
$ |
942 |
|
Right of use assets obtained in exchange for new operating lease liabilities |
|
$ |
— |
|
|
$ |
913 |
|
Proceeds from sale of property and equipment in accounts receivable |
|
$ |
51 |
|
|
$ |
— |
|
Purchases of property and equipment included in accounts payable and accrued expenses |
|
$ |
— |
|
|
$ |
58 |
|
# # #
4