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Arcadia Biosciences Falls On Quarterly Net Loss of $14.2M, CEO Says Hemp Research 'More Valuable Than Ever'

Arcadia Biosciences, Inc. (NASDAQ: RKDA) reported third-quarter revenue of $392,000 on Wednesday, an increase from revenue of $370,000 in the same qu

Benzinga · -

Arcadia Biosciences, Inc. (NASDAQ: RKDAreported third-quarter revenue of $392,000 on Wednesday, an increase from revenue of $370,000 in the same quarter in 2018.

The company posted a net loss for the quarter of $14.2 million, or $2.04 per share, representing a 419% decrease from the $4.5-million in net income in the corresponding period in 2018.

For the first nine months of 2019, Arcadia reported a net loss of $22.6 million versus a net loss of $12.8 million for the same period in 2018.

Larger net losses in both periods was mostly because of the adjustment in the fair value of the common stock warrant and common stock adjustment feature liabilities, the company said in a press release.

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"We achieved important progress during the third quarter in both product commercialization and continuing research and development in each of our three strategic crop categories — hemp, wheat and soy," Matthew Plavan, president and CEO, said in a statement.

"We continue to lay the foundations for rapid revenue growth, across multiple product lines in 2020 and beyond, with notable acceleration of our hemp genetic innovations to enhance the enterprise value of our growing germplasm estate."

Arcadia also commented on the recently released USDA hemp production final rule that requires THC testing procedures for hemp crops.

"Now that the THC content of U.S. hemp crops will be closely monitored by the USDA, the hemp research we have underway in Hawaii and California is more valuable than ever," said Plavan.

"We are bringing modern breeding science and genomics technology to develop high-quality non-GM hemp varieties with improved uniformity, stability, resiliency and yield, enabling farmers to maximize the value and profitability of this newly-legal crop."

Arcada shares were down 23.95% at $4.39 at the time of publication.