A producer and marketer of innovative, plant-based health and wellness products, Arcadia today announced its financial and business results for the fourth quarter and the full year of 2024. The company has achieved significant milestones, particularly in the latter half of the year following the sale of its GoodWheat™ assets.
“We are extremely pleased with the progress we made in 2024, particularly in the second half of the year following the sale of our GoodWheat™ assets,” said T.J. Schaefer, president and CEO of Arcadia. “Our strategic focus on Zola® coconut water led to an impressive 80 percent revenue growth for the brand in the back half of the year, which contributed to an overall revenue increase of more than 30 percent for Arcadia. At the same time, we maintained disciplined cost controls, leading to the lowest use of cash from operations since Arcadia became a publicly traded company a decade ago.”
In addition to the strong financial results, Arcadia announced a business combination agreement with Roosevelt Resources, Inc. during the fourth quarter. The transaction, once completed, will merge the two companies in an all-stock deal. “The expansion of Zola’s distribution in the last six months of 2024 has provided a strong momentum for Arcadia as we move into 2025,” Schaefer added.
Key Operating and Business Highlights for 2024
Arcadia Enters into Business Combination Agreement with Roosevelt Resources
In December 2024, Arcadia announced a business combination agreement with Roosevelt Resources, Inc. Under the terms of the agreement, Roosevelt partners will receive shares of Arcadia common stock in exchange for all equity interests in Roosevelt. Upon closing, Roosevelt’s existing equity holders and Arcadia’s shareholders will own approximately 90% and 10%, respectively, of the newly combined company, subject to specific adjustments outlined in the agreement.
Arcadia Announces Leadership Transition
A significant leadership change took place in July 2024 when Thomas J. Schaefer was appointed president and chief executive officer, following the departure of Stan Jacot. Schaefer had previously served as Arcadia’s chief financial officer and brings more than two decades of experience in investments, corporate finance, and consumer products. He holds a bachelor’s degree in business administration, specializing in economics and finance from McKendree University, as well as an MBA from the University of Southern California. Additionally, he has earned the prestigious Chartered Financial Analyst (CFA) designation.
Arcadia Sells Resistant Starch Durum Trait to Corteva Agriscience
In May 2024, Arcadia completed the sale of its non-GMO Resistant Starch (RS) Durum trait to longtime partner Corteva Agriscience. The two companies had been collaborating since 2017 to develop and commercialize RS Durum in North America. The transaction allowed Arcadia to advance the monetization of its wheat technology and resulted in a one-time payment of $4 million.
Arcadia Sells GoodWheat Brand to Above Food Corp.
Also in May 2024, Arcadia finalized the sale of its GoodWheat brand to Above Food Corp. for $4 million in net payments, to be made over the next three years. Launched in 2018, GoodWheat is known for its high-fiber, non-GMO wheat products aimed at improving consumer nutrition. The sale allowed Arcadia to further refine its business focus on plant-based beverage products, particularly Zola® coconut water.
Certain previously reported financial information has been reclassified to align with the current year’s presentation. These reclassifications mainly relate to the reporting of Arcadia’s former GoodWheat and body care brands as discontinued operations. All financial details and commentary below pertain to continuing operations unless explicitly stated otherwise.
More comprehensive financial statements can be found in the Form 8-K filed today, which is available in the Investors section of the company’s website under SEC Filings.
Financial Performance Overview
Revenues
Arcadia experienced significant growth in retail distribution for its Zola brand in 2024, nearly doubling its reach. This expansion led to a revenue increase of $611,000 in the fourth quarter and $1.3 million for the full year. However, these gains were partially offset by a decline in sales of GLA oil. Overall, the net increase in total revenue stood at $439,000 for the fourth quarter and $591,000 for the full year.
Operating Expenses
- Cost of Revenues: The cost of revenues rose by $649,000 in the fourth quarter and $789,000 for the full year. This increase was primarily driven by the higher sales of Zola coconut water, with product costs accounting for 84 percent of total cost of revenues in 2024.
- Selling, General, and Administrative (SG&A) Expenses: SG&A expenses increased by $1.0 million in the fourth quarter and $1.4 million for the full year. This was largely due to more than $2.0 million in transaction costs incurred in 2024, linked to both the GoodWheat asset sale and the pending Roosevelt Resources merger. Of this amount, $700,000 was recorded in the fourth quarter.
- Other Operating Expenses: Other operating expenses declined by $4.0 million for the full year, primarily due to a gain related to the asset sale to Corteva in the second quarter.
Net Loss Attributable to Common Stockholders
For the fourth quarter of 2024, Arcadia reported a net loss attributable to common stockholders of $4.1 million, or $2.98 per share, compared to $2.8 million, or $2.10 per share, in the same period in 2023. The increased net loss was primarily due to changes in the estimated fair value of common stock warrant and option liabilities.
For the full year of 2024, Arcadia reported a net loss attributable to common stockholders of $7.1 million, or $3.17 per share, a significant improvement from the $14.0 million, or $11.30 per share, reported in 2023. The improvement was primarily driven by the $4.0 million gain from the Corteva asset sale and a year-over-year reduction in net loss from discontinued operations.
Conference Call and Webcast
Arcadia has scheduled a conference call today, March 20, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss fourth-quarter and year-end results, as well as key strategic achievements. Interested participants can join the conference call through the following options:
- An audio-only webcast of the call will be available in the Investors section of Arcadia’s website.
- To join the live call, participants must register in advance; upon registration, they will receive a dial-in number and a unique PIN for access.
