Arcadia Biosciences Inc (RKDA) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Arcadia Biosciences Q4 2022 Financial Results and Business Highlights Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持，歡迎來到 Arcadia Biosciences 2022 年第四季度財務業績和業務亮點電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to Arcadia Biosciences. Please go ahead.

我現在想把會議交給 Arcadia Biosciences。請繼續。

(inaudible) Earnings Conference Call. I'm T.J Schaefer, Chief Financial Officer, and presenting with me today will be Stan Jacot, President and Chief Executive Officer. This call is being webcast, and you can refer to the company's press release at arcadiabio.com.

（聽不清）收益電話會議。我是首席財務官 T.J Schaefer，今天與我一起出席的是總裁兼首席執行官 Stan Jacot。此電話會議正在進行網絡直播，您可以在 arcadiabio.com 上參閱公司的新聞稿。

Before we start, we would like to remind you that Arcadia Biosciences will be making forward-looking statements on this call based on current expectations and currently available information.

在我們開始之前，我們想提醒您，Arcadia Biosciences 將根據當前預期和當前可獲得的信息對本次電話會議做出前瞻性陳述。

However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied today. You can review the company's safe harbor language in our most recently filed 10-K.

然而，由於這些陳述是基於涉及風險和不確定性的因素，公司的實際業績和結果可能與今天描述或暗示的有重大差異。您可以在我們最近提交的 10-K 中查看公司的安全港語言。

With that, I'll now turn the call over to Stan.

有了這個，我現在將電話轉給 Stan。

Good afternoon, and thank you for joining us today. I'm excited to speak with you about our fourth quarter and full year results for 2022. But before we dive into the results, let's take a moment to reflect. It was exactly 1 year ago today that I spoke to you for the first time, so I want to highlight the tremendous progress Arcadia has made over the last 12 months.

下午好，感謝您今天加入我們。我很高興與您談論我們 2022 年第四季度和全年的業績。但在我們深入研究結果之前，讓我們花點時間回顧一下。就在 1 年前的今天，我第一次與您交談，所以我想強調 Arcadia 在過去 12 個月中取得的巨大進步。

On that very first earnings call in March 2022, we highlighted the need to reduce complexity, develop robust processes and narrow the priorities in order to focus on activities with the highest likelihood of bringing long-term value to our shareholders.

在 2022 年 3 月的第一次財報電話會議上，我們強調了降低複雜性、開發穩健流程和縮小優先級的必要性，以便專注於最有可能為股東帶來長期價值的活動。

As a part of this initiative, we introduced a disciplined approach to evaluating our businesses and identifying priorities based on the size of the opportunity, the ease with which we could scale the business and the level of expected profitability.

作為該計劃的一部分，我們引入了一種嚴格的方法來評估我們的業務，並根據機會的大小、我們可以輕鬆擴展業務的難易程度以及預期的盈利水平來確定優先事項。

During our May earnings call, we announced that we had made the decision to exit a body care co-packing business that we had inherited as a part of the 2021 acquisition. While this business generated revenues and increased our capacity utilization, it resulted in significant losses. We estimate that exiting this business will save us $1.5 million to $2 million on an annualized basis.

在 5 月的財報電話會議上，我們宣布我們已決定退出作為 2021 年收購的一部分繼承的身體護理聯合包裝業務。雖然這項業務產生了收入並提高了我們的產能利用率，但它造成了重大損失。我們估計退出這項業務每年將為我們節省 150 萬至 200 萬美元。

In June, we officially launched our GoodWheat pasta in both a retail channel and online through Amazon and have experienced significant growth in distribution in the second half of the year, which I will touch on in more detail in a few minutes.

6 月，我們通過亞馬遜在零售渠道和在線渠道正式推出了 GoodWheat 麵食，下半年的分銷量顯著增長，我將在幾分鐘後詳細介紹。

On our August earnings call, we introduced Project Greenfield, Arcadia's 3-year plan to unlock potential and create shareholder value. As a reminder, the 4 key strategies are as follows: one, establish GoodWheat footholds in retail categories representing over $10 billion in annual consumer spending; two, drive share growth in key brands where there is a large opportunity to scale the business and deliver attractive margins; three, leverage partnerships and build future licensing royalty streams; and four, build an agile organization and winning culture.

在 8 月的財報電話會議上，我們介紹了 Arcadia 釋放潛力和創造股東價值的 3 年計劃 Project Greenfield。提醒一下，4個關鍵戰略如下：第一，在代表每年超過100億美元消費支出的零售類別中建立GoodWheat立足點；第二，推動關鍵品牌的份額增長，這些品牌有很大的機會擴大業務規模並提供可觀的利潤率；第三，利用合作夥伴關係並建立未來的許可使用費流；第四，建立敏捷的組織和致勝文化。

In regard to Strategy #2, we communicated that we made the decision to divest our manufacturing facility in Los Angeles as the manufacturing of our body care products was a complex process that included a large number of inputs and tied up cash.

關於戰略 2，我們表示我們決定剝離我們在洛杉磯的製造工廠，因為我們的身體護理產品的製造是一個複雜的過程，包括大量投入和現金佔用。

At the same time, we reached an agreement to license the Saavy Naturals brand to its original founders, further simplifying our Body Care business while reducing the number of Arcadia employees by about 1/3.

同時，我們達成協議，將 Saavy Naturals 品牌授權給其原始創始人，進一步簡化我們的身體護理業務，同時將 Arcadia 員工人數減少約 1/3。

These strategic decisions allowed us to focus on the most compelling opportunities and avoid allocating our resources to unprofitable businesses. The benefits were almost immediate as we reported Q3 gross margins of 28% in November and saw additional improvements in Q4.

這些戰略決策使我們能夠專注於最引人注目的機會，避免將我們的資源分配給無利可圖的業務。收益幾乎是立竿見影的，因為我們在 11 月份報告了 28% 的第三季度毛利率，並且在第四季度看到了進一步的改善。

For the full year, despite the fact that we exited several business lines resulting in lost revenue, our 2022 revenues increased 47% versus 2021 and our reported gross margins were positive for the first time in Arcadia's history. During the same period, our spending on research and development declined by 61% and our SG&A spending was 21% lower than prior year.

就全年而言，儘管我們退出了幾條業務線導致收入損失，但我們 2022 年的收入比 2021 年增長了 47%，我們報告的毛利率在 Arcadia 歷史上首次為正。同期，我們的研發支出下降了 61%，我們的 SG&A 支出比上一年下降了 21%。

And perhaps the most significant impact was on cash. In 2021, our cash used in operations was $25.9 million compared to $14 million in 2022, a decline of almost 50%. I'm extremely pleased with the progress this team has made over the last 12 months. And while there is still plenty of work to do, I think it's important to celebrate what we've accomplished thus far.

也許最重要的影響是現金。 2021 年，我們用於運營的現金為 2590 萬美元，而 2022 年為 1400 萬美元，下降了近 50%。我對這個團隊在過去 12 個月中取得的進步感到非常高興。雖然還有很多工作要做，但我認為慶祝我們迄今為止所取得的成就很重要。

So let's turn our attention now to a GoodWheat. The pasta category continued to expand in the last 3 months of 2022. Based on Nielsen data for the 13 weeks ended December 24, unit sales increased 3% and dollar sales rose 25% driven by pricing action across the category. Looking at the last 52 weeks, units grew 2%, while dollar sales increased 21%, leading to category sales of $2.9 billion.

現在讓我們把注意力轉向 GoodWheat。意大利麵類別在 2022 年的最後 3 個月繼續擴大。根據尼爾森截至 12 月 24 日的 13 週數據，在整個類別的定價行動的推動下，單位銷售額增長了 3%，美元銷售額增長了 25%。回顧過去 52 週，銷量增長 2%，而美元銷售額增長 21%，類別銷售額達到 29 億美元。

GoodWheat continued its impressive distribution gains in Q4 as store count increased 34% in the quarter not normally associated with significant new shelf placements. From the initial launch in June, we have added more than 1,200 stores in 7 months, beating our own internal projections by more than 50%.

GoodWheat 在第四季度繼續取得令人印象深刻的分銷收益，因為本季度商店數量增加了 34%，這通常與大量新貨架放置無關。自 6 月首次推出以來，我們在 7 個月內新增了 1,200 多家門店，超過我們內部預測的 50% 以上。

As we look forward into 2023, our focus will remain on gaining significant new distribution and launching or acquiring new categories, but we will also support our retail customers through a variety of programs that will drive traffic to our brand and increase velocities.

展望 2023 年，我們的重點仍將放在獲得重要的新分銷以及推出或收購新類別上，但我們還將通過各種計劃為我們的零售客戶提供支持，這些計劃將為我們的品牌帶來流量並提高速度。

One example of a program, I'd like to spend a couple of minutes talking about is the Heart-Check certification. In mid-January, we announced that GoodWheat pasta received the American Heart Association's Heart-Check certification on all 5 varieties. According to the American Heart Association, heart disease and stroke statistics fact sheet, heart disease accounted for approximately 13% of deaths in the United States in 2018 and heart disease remains the #1 cause of death in the United States.

程序的一個例子，我想花幾分鐘來談談心臟檢查認證。 1 月中旬，我們宣布 GoodWheat 麵食的所有 5 個品種都獲得了美國心臟協會的心臟檢查認證。根據美國心臟協會的心髒病和中風統計資料表，2018 年心髒病約占美國死亡人數的 13%，心髒病仍然是美國的第一大死因。

Established in 1995 by the American Heart Association, the-Heart-Check mark gives consumers an easy, reliable system for identifying heart healthy foods. Based on the June 2021 W5 market research among Millennials and GenX, the Heart-Check symbol is far more likely to drive purchase interest than other certifications like organic, plant-based, or gluten-free.

心臟檢查標誌由美國心臟協會於 1995 年設立，為消費者提供了一個簡單、可靠的系統來識別對心臟有益的食品。根據 2021 年 6 月對千禧一代和 GenX 進行的 W5 市場研究，與有機、植物性或無麩質等其他認證相比，Heart-Check 標誌更有可能推動購買興趣。

The same study showed that heart health importance ranked #2 out of 23 claims just behind great source of protein. Additionally, the 2019 Hartman Group report on health and wellness cited that 78% of consumers look for foods and beverages that are good for my heart.

同一項研究表明，心臟健康的重要性在 23 項聲明中排名第二，僅次於重要的蛋白質來源。此外，2019 年 Hartman Group 健康報告指出，78% 的消費者尋找對心臟有益的食品和飲料。

Aside from the outstanding health benefits, the Heart-Check certification also differentiates us from every traditional pasta competitor made with wheat and to drive awareness and trial as a large number of consumers shop for food benefits.

除了顯著的健康益處外，Heart-Check 認證還使我們有別於所有用小麥製作的傳統麵食競爭對手，並隨著大量消費者購買食品益處而提高認識和試用。

And finally, we believe the certification mark makes GoodWheat less susceptible to distribution losses compared to its peers that lack heart health claims.

最後，我們認為，與缺乏心臟健康聲明的同行相比，認證標誌使 GoodWheat 不易受到分銷損失的影響。

So in summary, with its high fiber, lower sodium, zero saturated fat, GoodWheat meets the criteria for our heart healthy pasta and provides consumers with a better-for-you option that delivers superior nutrition with the taste and texture of traditional pasta.

因此總而言之，憑藉其高纖維、低鈉、零飽和脂肪，GoodWheat 符合我們心臟健康麵食的標準，並為消費者提供了一種更適合您的選擇，即提供具有傳統麵食味道和質地的卓越營養。

Shifting gears now to coconut water. The coconut water category experienced a 4% decline in units but a 10% increase in dollars for the 13 weeks ending December 24. As we have seen throughout the year, pricing was the primary driver of category growth in the last quarter of 2022. For the last 52 weeks, units declined 8%, but sales were up 11% to $433 million.

現在換檔到椰子水。在截至 12 月 24 日的 13 週內，椰子水類別的銷量下降了 4%，但美元增長了 10%。正如我們全年所見，定價是 2022 年最後一個季度類別增長的主要驅動力。在過去的 52 週內，銷量下降了 8%，但銷售額卻增長了 11%，達到 4.33 億美元。

In the fourth quarter, Zola sales declined compared to the same period last year, driven by some distribution losses in Q3 as a result of supply chain constraints. For the full year, Zola gained market share as sales were up 12% from our price increase in the first half of the year to offset higher freight costs.

第四季度，Zola 的銷售額與去年同期相比有所下降，這是由於供應鏈受限導致第三季度的一些分銷損失所致。在全年中，Zola 獲得了市場份額，因為銷售額比我們上半年的價格上漲增長了 12%，以抵消更高的運費。

Despite the fact that 2022 was a challenging year from a supply chain perspective, we are optimistic about the prospects for Zola moving forward. We started to see freight costs improve towards the end of 2022, and that progress has continued in the early part of 2023. We are investing in the brand, refreshing our packaging and plan to launch innovation later in the year.

儘管從供應鏈的角度來看，2022 年是充滿挑戰的一年，但我們對 Zola 前進的前景持樂觀態度。到 2022 年底，我們開始看到運費有所改善，並且這種進展在 2023 年初仍在繼續。我們正在投資品牌，更新我們的包裝，併計劃在今年晚些時候推出創新產品。

Moving now to Body Care. As mentioned on prior calls as well as in my previous comments, we licensed the Saavy Naturals brand in August 2022 and retained the CBD brand, Soul Spring and ProVault due to their higher margins. However, the CBD category has experienced 4 obstacles that impact the growth opportunity of these brands.

現在轉向身體護理。正如之前的電話和我之前的評論所述，我們在 2022 年 8 月獲得了 Saavy Naturals 品牌的許可，並保留了 CBD 品牌、Soul Spring 和 ProVault，因為它們的利潤率更高。然而，CBD 類別經歷了 4 個影響這些品牌增長機會的障礙。

One, the vast majority of U.S. retailers will not take CBD products, including online retailers, such as Amazon. Two, many retailers that do sell CBD put the product behind locked glass doors, which has had a significantly negative impact on sales. Three, CBD products cannot be marketed on large mainstream platforms such as Google Search, Facebook and Instagram, limiting the ability to advertise the product. And fourth, many retailers that once sold CBD have either significantly reduced the set or sticked out of CBD completely.

第一，絕大多數美國零售商不會接受 CBD 產品，包括亞馬遜等在線零售商。第二，許多銷售 CBD 的零售商將產品鎖在玻璃門後，這對銷售產生了顯著的負面影響。第三，CBD產品無法在Google Search、Facebook和Instagram等主流大平台上銷售，限制了產品的宣傳能力。第四，許多曾經銷售 CBD 的零售商要么大幅減少了數量，要么完全退出了 CBD。

Soul Spring was a victim of loss distribution as several retailers that carry Soul Spring often not to carry CBD products any longer. As a result, Soul Spring lost more than half the distribution that one had and ProVault has struggled to make meaningful gains.

Soul Spring 是損失分配的受害者，因為幾家銷售 Soul Spring 的零售商通常不再銷售 CBD 產品。結果，Soul Spring 失去了一半以上的分配，而 ProVault 一直在努力取得有意義的收益。

So we have made the decision to explore strategic alternatives for these 2 brands. As we consider our options, we plan to continue to sell both brands in our current retail footprint and we'll keep you updated as any new information comes to life.

因此，我們決定為這兩個品牌探索戰略選擇。在我們考慮我們的選擇時，我們計劃繼續在我們當前的零售足跡中銷售這兩個品牌，並且我們會在出現任何新信息時及時通知您。

The last 2 topics I'd like to cover before turning the call over to T.J on the reverse stock split in our March 2023 capital raise. At the end of September 2022, we were notified by NASDAQ that our stock price had closed below $1 for 30 consecutive days, and that we had until the end of March to get the stock price back above $1, or we would be at the risk of being delisted.

在我們將 2023 年 3 月的融資中的反向股票拆分的電話轉交給 T.J 之前，我想討論最後兩個主題。 2022 年 9 月底，我們收到納斯達克通知，我們的股價已連續 30 天收於 1 美元以下，我們必須在 3 月底之前將股價拉回 1 美元以上，否則我們將面臨風險被摘牌。

Over the next several months, the stock remained under pressure and continue to trade lower despite positive announcements such as the doubling of GoodWheat distribution in November 2022 and the Heart-Check certification from the American Heart Association in January 2023. And while we could [have] apply for an extension, we felt that the best course of action will be to move forward with the reverse stock split, so we could focus on executing Project Greenfield.

在接下來的幾個月裡，儘管有積極的公告，例如 2022 年 11 月 GoodWheat 的分銷量增加一倍以及 2023 年 1 月獲得美國心臟協會的 Heart-Check 認證，但該股仍承受壓力並繼續走低。雖然我們可以 [have ] 申請延期，我們認為最好的行動方案是繼續進行反向股票分割，這樣我們就可以專注於執行 Project Greenfield。

On February 15, we held a special shareholder meeting where there was overwhelming approval to initiate the reverse stock split. After the special shareholder meeting, our Board approved a 1-for-40 reverse stock split that became effective March 1. After the reverse stock split went into effect, we were presented with an opportunity to raise additional capital.

2 月 15 日，我們召開了一次特別股東大會，會上以壓倒性多數通過了反向拆股。特別股東大會後，我們的董事會批准了 40 比 1 的反向股票拆分，該股票於 3 月 1 日生效。反向股票拆分生效後，我們獲得了籌集額外資金的機會。

Access to capital in the current environment is extremely challenging and we don't know how long that uncertainty will last. As we have previously discussed, we are evaluating potential acquisitions to help scale the business and reach breakeven faster than planned, but that will require additional capital. As a result, we decided to take advantage of the opportunity. And on March 2, we announced a transaction that would provide us gross proceeds of $6 million.

在當前環境下獲得資金極具挑戰性，我們不知道這種不確定性會持續多久。正如我們之前所討論的，我們正在評估潛在的收購，以幫助擴大業務規模並比計劃更快地實現收支平衡，但這將需要額外的資金。因此，我們決定利用這個機會。 3 月 2 日，我們宣布了一項交易，將為我們提供 600 萬美元的總收益。

While decisions such as reverse stock splits and capital raises are always difficult, we believe it is the right move to ensure the long-term success of Arcadia.

雖然反向股票拆分和融資等決策總是很困難，但我們相信這是確保 Arcadia 長期成功的正確舉措。

With that, I will turn the call over to T.J to discuss our 2022 financial results.

有了這個，我將把電話轉給 T.J 來討論我們 2022 年的財務業績。

Thank you, Stan, and good afternoon to everyone joining us on the call today. As Stan mentioned, Arcadia has made tremendous headway that has resulted in significant financial improvement, and today, I will focus primarily on the progress we made in 2022.

謝謝你，斯坦，今天和我們一起參加電話會議的所有人下午好。正如 Stan 所提到的，Arcadia 取得了巨大的進步，帶來了顯著的財務改善，今天，我將主要關注我們在 2022 年取得的進展。

But before I discuss the full year results, I do want to spend a few minutes discussing Q4 in order to provide you with some perspective into our operating performance, as well as the drivers of that performance.

但在我討論全年業績之前，我確實想花幾分鐘討論一下第四季度，以便讓您對我們的經營業績以及該業績的驅動因素有一些看法。

In Q4, our total revenues of $1 million were $877,000 below the previous quarter. The primary drivers were seasonality in Zola where Q4 is historically the softest quarter for the entire category as well as distribution losses in both Zola and Soul Spring that Stan mentioned earlier.

在第四季度，我們的總收入為 100 萬美元，比上一季度減少了 877,000 美元。主要驅動因素是 Zola 的季節性，第四季度是整個類別歷史上最疲軟的季度，以及 Stan 之前提到的 Zola 和 Soul Spring 的分銷損失。

Compared to last year, Q4 revenues were down $1.2 million, with about 3/4 of the variance due to revenues from brands that were no longer part of our product portfolio. The remaining variance was attributable to loss distribution in Soul Spring.

與去年相比，第四季度的收入下降了 120 萬美元，其中約 3/4 的差異是來自不再屬於我們產品組合的品牌的收入。剩餘差異歸因於 Soul Spring 的損失分配。

Our cost of revenues as reported in Q4 was approximately $1.6 million. Included in this number is $941,000 of write-downs related to body care inventory, hemp seeds and CBD oil. These write-downs were necessary as the prospects for these products have significantly diminished.

我們在第四季度報告的收入成本約為 160 萬美元。這個數字包括與身體護理庫存、大麻種子和 CBD 油相關的 941,000 美元減記。這些減記是必要的，因為這些產品的前景已大大減弱。

We also believe we have minimized the risk of future write-downs related to these legacy products as 86% of our inventory at year-end is related to either GoodWheat or Zola, and the remainder consists of only finished goods that we plan to sell in 2023. So the performance of the underlying business was actually stronger than it's ever been in Q4 as a result of the higher quality of revenue.

我們還相信，我們已將與這些遺留產品相關的未來減記風險降至最低，因為年底我們 86% 的庫存與 GoodWheat 或 Zola 相關，其餘僅包括我們計劃在2023 年。因此，由於收入質量更高，基礎業務的表現實際上比第四季度的任何時候都要好。

With that, I will now transition to full year 2022. Our 2022 total revenues of approximately $10 million were $3.2 million or 47% above prior year revenues of $6.8 million.

有了這個，我現在將過渡到 2022 年全年。我們 2022 年的總收入約為 1000 萬美元，比上一年的收入 680 萬美元高出 320 萬美元或 47%。

And while 2021 actual results only include about 8 months of Body Care and Zola, even if we assumed we own these brands from the beginning of the year, our revenues still would have increased 11% despite the fact that we exited several business lines in the middle of 2022.

雖然 2021 年的實際結果僅包括大約 8 個月的 Body Care 和 Zola，但即使我們假設我們從年初開始擁有這些品牌，儘管我們在 2018 年退出了多個業務線，但我們的收入仍會增長 11% 2022年中。

Cost of revenues for 2022 was $9.8 million, resulting in Arcadia's first full year gross profit. Even more encouraging is the fact that our reported cost of revenues includes more than $2.3 million in write-offs. This level of increased profitability validates our strategy of focusing on brands that offer the greatest amount of opportunity, scalability and profitability.

2022 年的收入成本為 980 萬美元，這是阿卡迪亞的第一個全年毛利潤。更令人鼓舞的是，我們報告的收入成本包括超過 230 萬美元的註銷。這種盈利水平的提高證實了我們專注於提供最大機會、可擴展性和盈利能力的品牌的戰略。

Research and development expenses totaled $1.5 million in 2022, a reduction of $2.4 million or 61% compared to 2021. As discussed on previous calls, our transition to consumer products has resulted in a much smaller organization that is focused on product formulation as opposed to trait development.

2022 年的研發費用總計 150 萬美元，與 2021 年相比減少 240 萬美元或 61%。正如在之前的電話會議上所討論的，我們向消費品的過渡導致了一個更小的組織，該組織專注於產品配方而不是特性發展。

SG&A expenses of $18 million were $4.9 million or 21% lower than prior year, primarily driven by a reduction in headcount, lower facilities costs and lower consulting fees as 2021 included Body Care acquisition costs that were absent in 2022.

SG&A 費用為 1800 萬美元，比上年減少 490 萬美元或 21%，這主要是由於 2021 年員工人數減少、設施成本降低和諮詢費用減少，其中包括 2022 年不存在的身體護理購置成本。

At the same time, our marketing investment increased 40% year-over-year to support the launch of GoodWheat. Going forward, we will continue to increase investment in trial and brand-building marketing activities, but expect our SG&A to remain relatively flat as we reduce expenses in other parts of the business.

同時，我們的營銷投資同比增長 40%，以支持 GoodWheat 的推出。展望未來，我們將繼續增加對試驗和品牌建設營銷活動的投資，但隨著我們減少業務其他部分的開支，預計我們的 SG&A 將保持相對平穩。

Our reported loss from operations of $18.8 million was $16.7 million or 47% lower than prior year. The primary drivers of improvement were: one, higher gross profit, which contributed just over $2 million; two, a little more than $7 million from lower R&D and SG&A expenses; three, $2 million in benefits from the Bioceres milestone payment; and finally, a $5.5 million favorable variance from lower write-downs in 2022 compared to 2021.

我們報告的運營虧損為 1,880 萬美元，比上年減少 1,670 萬美元或 47%。改善的主要驅動力是：第一，毛利潤增加，貢獻了超過 200 萬美元；第二，研發和 SG&A 費用減少略高於 700 萬美元；三、Bioceres 里程碑付款帶來的 200 萬美元收益；最後，與 2021 年相比，2022 年的減記減少了 550 萬美元的有利差異。

The net loss attributable to common stockholders was $716,000, unfavorable to prior year as 2021 included benefits of $10.2 million related to the sale of Bioceres stock as well as a net favorable variance of $5.7 million from the change in the fair value of warrant and option liabilities.

歸屬於普通股股東的淨虧損為 716,000 美元，與上一年相比不利，因為 2021 年包括與出售 Bioceres 股票相關的 1,020 萬美元收益以及認股權證和期權負債公允價值變動帶來的 570 萬美元淨有利差異.

Before I conclude my prepared remarks, I did want to highlight a couple of improvements in our balance sheet. First, while our accounts receivable balance of approximately $1.3 million is essentially flat compared to last year, there are meaningful changes in the composition.

在我結束準備好的發言之前，我確實想強調我們資產負債表中的一些改進。首先，雖然我們的應收賬款餘額約為 130 萬美元，與去年相比基本持平，但其構成發生了重大變化。

At the end of 2022, $1 million of the $1.3 million AR balance is related to the remaining Bioceres milestone payments, which was not on our books at the end of 2021. Offsetting this increase is a significant decline in the Body Care balances given the separation from these businesses as well as the challenges Stan alluded to earlier.

到 2022 年底，130 萬美元的 AR 餘額中有 100 萬美元與剩餘的 Bioceres 里程碑付款相關，這在 2021 年底不在我們的賬簿上。由於分離，身體護理餘額的顯著下降抵消了這一增長來自這些企業以及 Stan 之前提到的挑戰。

Next, our short-term and long-term inventory declined from $6.9 million at the end of 2021 to $3.3 million at the end of 2022 as a result of the following factors: one, the write-offs associated with the legacy businesses; two, the separation from business lines and loss distribution in Body Care; and three, the launch of GoodWheat and corresponding reduction in our grain inventory.

其次，由於以下因素，我們的短期和長期庫存從 2021 年底的 690 萬美元下降到 2022 年底的 330 萬美元：一是與遺留業務相關的註銷；二、美體業務條線分離及虧損分攤；第三，推出 GoodWheat 並相應減少我們的糧食庫存。

Last, we ended 2022 with $20.6 million in cash and cash equivalents as our use of cash declined significantly from a use of $25.9 million in 2021 to a use of $14 million in 2022. As a reminder, we also raised net proceeds of $4.5 million in August of 2022.

最後，我們在 2022 年結束時擁有 2060 萬美元的現金和現金等價物，因為我們的現金使用量從 2021 年的 2590 萬美元大幅下降到 2022 年的 1400 萬美元。提醒一下，我們還籌集了 450 萬美元的淨收益2022 年 8 月。

And subsequent to the end of the year, we raised net proceeds of $5.5 million in March that is not included in the $20.6 million cash balance at the end of 2022. Given our current use of cash, as well as the cash we have on hand, we believe we are well positioned to fund Project Greenfield beyond 2023.

年底之後，我們在 3 月份籌集了 550 萬美元的淨收益，這不包括在 2022 年底的 2060 萬美元現金餘額中。考慮到我們目前使用的現金，以及我們手頭的現金，我們相信我們有能力為 2023 年以後的綠地項目提供資金。

With that, I will now turn the call over to the operator for questions.

有了這個，我現在將把電話轉給接線員提問。

(Operator Instructions) And our first question comes from Ram Selvaraju from H.C. Wainwright.

（操作員說明）我們的第一個問題來自 H.C. 的 Ram Selvaraju。溫賴特。

This is Mitchell on for Ram. The first one, I just wanted to touch upon the GoodWheat retail footprint expansion. And just wanted to understand when we'll be able to see the real impact from a sales trajectory standpoint, what will be meaningful? If you could just provide some context around that.

這是拉姆的米切爾。第一個，我只想談談 GoodWheat 零售業務的擴張。只是想了解什麼時候我們能夠從銷售軌蹟的角度看到真正的影響，什麼才是有意義的？如果你能提供一些相關的背景信息。

We expect in the second half of 2023 to see that become meaningful.

我們希望在 2023 年下半年看到這變得有意義。

Okay. Great. And then what are you planning to do with your coconut water and body care product lines? Do you consider these to be core elements of the revenue base? Or do you think that they could be potentially spun out kind of like the Saavy Naturals?

好的。偉大的。那麼您打算如何處理您的椰子水和身體護理產品線？您認為這些是收入基礎的核心要素嗎？或者你認為它們可能會像 Saavy Naturals 一樣被分離出來嗎？

Yes. So for Zola, we still see strong growth prospects. And as I mentioned, we are investing in marketing, both from a packaging perspective and innovation in order to continue to grow share in that category. For body care, there are lots of obstacles. So we are exploring all alternatives.

是的。所以對於 Zola，我們仍然看到強勁的增長前景。正如我所提到的，我們正在從包裝的角度和創新的角度投資於營銷，以繼續增加該類別的份額。對於身體護理，存在很多障礙。所以我們正在探索所有替代方案。

Okay. Great. And then just wanted to understand a little bit more about the legacy hemp business and the opportunity to potentially monetize this segment of the business? Or do you think this is no longer feasible?

好的。偉大的。然後只是想更多地了解遺留大麻業務以及可能將這部分業務貨幣化的機會？或者您認為這不再可行？

I'll turn that over to T.J to answer.

我會把它交給 T.J 來回答。

Yes. So from a legacy business perspective, our Archipelago business, we have written down all of the inventory, we've written it off. So we're carrying no value on our balance sheet any longer.

是的。因此，從傳統業務的角度來看，我們的 Archipelago 業務，我們已經記下了所有庫存，我們已經註銷了。所以我們的資產負債表上不再有任何價值。

From a hemp seed perspective, we did significantly write it down. We still have about $200,000 in inventory on our balance sheet. We will continue to try and sell that. We have agreements with distributors in both the U.S. and Canada that continue to sell those products. And so our goal would be to sell through the remaining hemp seed inventory in 2023.

從大麻種子的角度來看，我們確實把它寫下來了。我們的資產負債表上仍有大約 200,000 美元的存貨。我們將繼續嘗試銷售它。我們與美國和加拿大的分銷商達成協議，繼續銷售這些產品。因此，我們的目標是在 2023 年賣掉剩餘的大麻種子庫存。

Okay. Great. And the last one for me. If you could just provide any commentary on when you potentially see yourselves reaching profitability?

好的。偉大的。最後一個給我。如果您能就何時可能看到自己實現盈利提供任何評論？

Yes. So Project Greenfield had a 3-year path to profitability. We are ahead of that plan currently through the end of 2022. Our -- all the aspects that T.J. had commented on both gross profit improvements, operating expense reductions, all those have kind of helped us in our trajectory. So -- but yes, we are looking at still that kind of 3-year horizon when we launched it in June.

是的。因此，Project Greenfield 有一條 3 年的盈利之路。我們目前領先於該計劃，直到 2022 年底。我們的 - T.J. 的所有方面。對毛利潤的改善、運營費用的減少發表了評論，所有這些都對我們的發展軌蹟有所幫助。所以 - 但是，是的，當我們在 6 月推出時，我們仍在考慮那種 3 年的期限。

And one moment for our next question. And our next question comes from Ben Klieve from Lake Street Capital Markets.

請稍等一下我們的下一個問題。我們的下一個問題來自 Lake Street Capital Markets 的 Ben Klieve。

First one on the fourth quarter performance, specifically within GoodWheat. I appreciated your comments on the sort of sequential challenges from Zola and body care businesses.

第一個關於第四季度的表現，特別是在 GoodWheat 內部。我感謝您對 Zola 和身體護理業務的連續挑戰的評論。

Could you provide a little bit more granularity on the performance of GoodWheat from the third quarter to the fourth quarter? Did revenue pick up from third quarter to fourth quarter? Did you see similar headwinds and that product specifically on the revenue front?

您能否更詳細地介紹 GoodWheat 從第三季度到第四季度的表現？收入從第三季度到第四季度有所回升嗎？您是否看到類似的逆風和該產品特別是在收入方面？

I'll let T.J answer that one.

我會讓 T.J 回答那個問題。

Yes. Thanks, Ben. So from a GoodWheat perspective, we are still in launch phase, having only launched this in June. And so -- from a Q4 perspective, there obviously was a slowdown in the new store count growth. And so that does have an impact on GoodWheat sales in Q4 relative to previous quarters where we've been doubling distribution.

是的。謝謝，本。因此，從 GoodWheat 的角度來看，我們仍處於啟動階段，僅在 6 月推出。因此——從第四季度的角度來看，新店數量增長明顯放緩。因此，相對於我們一直在將分銷量翻倍的前幾個季度，這確實對第四季度的 GoodWheat 銷售產生了影響。

Okay. And so then, I guess, a follow-up to that in some of the early adopters for this product that have been selling products since June. Those locations see increase or decreases in revenue from the third quarter to the fourth quarter that had kind of a same-store sales type number that you can actually observe?

好的。然後，我想，這是自 6 月以來一直在銷售產品的該產品的一些早期採用者的後續行動。這些地點從第三季度到第四季度的收入增加或減少，您可以實際觀察到某種同店銷售類型數字？

Yes, Ben, this is Stan. What we've seen in the market is that velocities have been steadily improving from when we first launched these products, right? So that's where the -- it takes some times a while for the velocity increase to show up in revenue because there's still inventory that's in the markets in the launch, the pipeline fills.

是的，本，這是斯坦。我們在市場上看到的是，自我們首次推出這些產品以來，速度一直在穩步提高，對嗎？所以這就是 - 速度增加需要一段時間才能體現在收入中，因為在發佈時市場上仍有庫存，管道會填滿。

Got it. Okay. And then turning to the distribution losses in Zola and Soul Spring. Can you kind of elaborate a bit more on these? And most notably, are these distribution losses that you still maintain relationships with that you think may come back online in 2023? Or are these kind of permanent losses that you're seeking to replace particularly on Zola, but do so from -- kind of from square one?

知道了。好的。然後轉向 Zola 和 Soul Spring 的分配損失。你能詳細說明一下嗎？最值得注意的是，這些你認為可能會在 2023 年重新上線的分銷損失是否仍在維持關係？還是您正在尋求特別是在 Zola 上取代這些永久性損失，但這樣做是從——有點從方開始？

T.J, do you want to take that?

T.J，你想接受嗎？

Yes. So on Zola, that is -- there is an opportunity potentially to win those back. Those were supply chain issues, nothing specific to the product or our go-to-market strategy.

是的。所以在 Zola 身上，那就是 - 有機會贏回那些人。這些都是供應鏈問題，與產品或我們的上市戰略無關。

On Soul Spring, not likely to win those back. One was a retailer that -- a rather large retailer that made the decision to get out of all CBD products. The other was another larger retailer that has reduced their CBD set. They decided to keep ProVault, but they decided to get out of Soul Spring.

魂泉之上，不太可能贏回那些。一個是一家零售商——一家相當大的零售商決定退出所有 CBD 產品。另一家是另一家更大的零售商，他們減少了 CBD 集。他們決定保留 ProVault，但他們決定離開 Soul Spring。

Okay. And then I got a follow-up question to what you were just asked about the path to profitability. So Stan, you said, from the launch of Project Greenfield in June of '22, you had a 3-year path to profitability, and you think that, that you're ahead of schedule on that path.

好的。然後我得到了一個跟進問題，你剛剛被問及盈利之路。所以 Stan，你說，從 22 年 6 月推出 Project Greenfield 開始，你有一條 3 年的盈利之路，你認為，你在這條路上提前了。

But particularly given what you observed in the -- what we've seen in the fourth quarter of '22, I'm having a hard time reconciling that. So can you elaborate a bit more on how you think the path to profitability has been really accelerated over the last 6 months?

但特別是考慮到你在 2022 年第四季度觀察到的情況，我很難調和這一點。那麼，您能否詳細說明您認為在過去 6 個月中盈利之路是如何真正加速的？

And then how much of that visibility that you have is going to come from future acquisitions that you may have in the [hopper] versus organic growth?

然後，您擁有的可見性中有多少來自您在 [hopper] 中可能擁有的未來收購與有機增長？

Yes. I'd say what we had, Ben, in our model was less cash at the end of 2022 than what we actually delivered. So it's really about our cash position. That was improved through the end of 2022. And yes, acquisitions, were always a part of the Project Greenfield model, and we do think that, that's going to be a sizable impact once we find the right acquisition and close.

是的。我想說的是，本，在我們的模型中，到 2022 年底，我們擁有的現金少於我們實際交付的現金。所以這真的與我們的現金狀況有關。到 2022 年底，這種情況得到了改善。是的，收購一直是 Project Greenfield 模型的一部分，我們確實認為，一旦我們找到合適的收購併關閉，這將產生相當大的影響。

And thank you. And I am showing no further questions. I would now like to turn the call back over to Stan Jacot for closing remarks.

謝謝你。我不再提出更多問題。我現在想把電話轉回給 Stan Jacot 作結束語。

Well, thank you. So in summary, Arcadia has made tremendous progress over the last 12 months. We've streamlined the business by exiting less profitable brands and activities. We're focused on the most compelling opportunities that will build long-term value for our shareholders.

嗯，謝謝。因此，總而言之，Arcadia 在過去 12 個月中取得了巨大進步。我們通過退出利潤較低的品牌和活動來精簡業務。我們專注於為股東創造長期價值的最具吸引力的機會。

We successfully launched GoodWheat pasta and have made significant distribution gains. We've increased sales and gross margins while lowering our operating expenses and reducing cash burn, and we have a clear vision for building the future of the company.

我們成功推出了 GoodWheat 麵食，並取得了顯著的分銷收益。我們增加了銷售額和毛利率，同時降低了運營費用並減少了現金消耗，我們對建設公司的未來有著清晰的願景。

We look forward to updating you on our progress in the months to come and on our next earnings call. Thank you again for joining us today. Have a great afternoon, everyone.

我們期待在未來幾個月和我們的下一次財報電話會議上向您通報我們的進展情況。再次感謝您今天加入我們。大家下午好。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。