Arcadia Biosciences Inc (RKDA) 2023 Q3 法說會逐字稿

Good afternoon and welcome to Arcadia Biosciences third-quarter 2023 financial results and business highlights conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to T.J. Schaefer, Chief Financial Officer at Arcadia. Please go ahead.

下午好，歡迎參加 Arcadia Biosciences 2023 年第三季財務業績和業務亮點電話會議。 （操作員指示）請注意，今天的會議正在錄製中。我現在想把會議交給 T.J.謝弗 (Schaefer)，阿卡迪亞 (Arcadia) 財務長。請繼續。

Thank you and good afternoon. Joining me on the call today is Stan Jacot, Arcadia's President, and Chief Executive Officer. This call is being webcast, and you can refer to the company's press release at arcadiabio.com.

謝謝你，下午好。今天與我一起參加電話會議的是 Arcadia 總裁兼執行長 Stan Jacot。這次電話會議正在網路上直播，您可以在 arcadiabio.com 上參閱該公司的新聞稿。

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. 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-Q.

在開始之前，我們想提醒您，Arcadia Biosciences 將在本次電話會議中做出前瞻性聲明。基於當前的預期和當前可用的資訊。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存在重大差異，您可以在我們最近提交的 10-Q 中查看公司的安全港語言。

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

現在，我將把電話轉給史丹。

Good afternoon, everyone. Thank you for joining us today for our 2023 third-quarter conference call. I am pleased to report that Arcadia continues to make excellent progress in executing project greenfield, our three year strategic plan to unlock the company's potential and provide a path to profitability.

大家下午好。感謝您今天參加我們的 2023 年第三季電話會議。我很高興地向大家報告，阿卡迪亞在執行綠地專案方面繼續取得出色進展，這是我們釋放公司潛力並提供盈利之路的三年戰略計劃。

GoodWheat pasta and pancake mixes and zola coconut water add more than 1,000 stores of distribution in Q3, resulting in revenue growth from continued operations of 20% compared to last quarter. And we are operating with a leaner structure after the exit of our body care business as evidenced by our lowest total SG&A since 2019.

GoodWheat 麵食和煎餅粉以及 zola 椰子水在第三季度增加了 1,000 多家經銷店，持續營運收入較上季度增長 20%。退出身體照護業務後，我們的營運結構更加精簡，2019 年以來最低的 SG&A 總額就證明了這一點。

I spoke last quarter about our plans to scale more quickly. And today, I want to provide an update on those key initiatives. First could be pasta is executing two programs that are expected to drive growth in Q4 and throughout 2024. The lower average price is now fully in market across more than 2000 stores. And we expect this more competitive price point result in higher turns and faster customer reorders.

我上個季度談到了我們更快擴展的計劃。今天，我想提供這些關鍵舉措的最新情況。首先可能是義大利麵正在執行兩項計劃，預計將推動第四季和 2024 年全年的成長。較低的平均價格現已在 2000 多家商店全面上市。我們預計這種更具競爭力的價格點會帶來更高的周轉率和更快的客戶再訂購速度。

Q4 will also be the rollout of our new marketing messaging that GoodWheat is picking either approved with a clean plate guarantee, you'll love it or your money back. We began this new messaging in October during National Pasta Month, resulting in over 14 million impressions and multiple social media influencer partnerships.

第四季度還將推出我們新的行銷訊息，即 GoodWheat 正在挑選經過批准的乾淨盤子保證，您會喜歡它或退款。我們在 10 月的全國麵食月期間開始發布這一新消息，獲得了超過 1400 萬次展示，並與多個社交媒體影響者建立了合作夥伴關係。

The second key scaling initiative was the launch of GoodWheat in the breakfast category with new better-for-you pancake and waffle mixes as well as single serve quick cakes. These new products are made with simple ingredients are Acadian's proprietary, non-GMO wheat flour, which delivers the same taste and texture of regular pancakes, but sneaks in more fiber and protein than traditional wheat flour.

第二個關鍵的擴展舉措是在早餐類別中推出 GoodWheat，其中包括新的更適合您的煎餅和華夫餅混合物以及單份快速蛋糕。這些新產品採用阿卡迪亞專有的非基因改造小麥粉等簡單原料製成，具有與普通煎餅相同的味道和質地，但比傳統小麥粉含有更多的纖維和蛋白質。

In product testing, consumers prefer the taste of GoodWheat pancake mix two to one versus the leading better-for-you pancake mix. And I am pleased to report that retailers are recognizing this innovative proposition and we will be shipping to over 750 stores by the end of the year.

在產品測試中，與領先的「更適合你」煎餅混合物相比，消費者更喜歡 GoodWheat 煎餅混合物的味道，兩比一。我很高興地向大家報告，零售商正在認識到這項創新主張，我們將在今年年底前向 750 多家商店出貨。

Not only will GoodWheat pasta and pancake mixes provide the foundation for growth in 2024. I have another good initiative to announce today, the launch of GoodWheat mac and cheese, the mac and cheese category is over $1.1 billion in sales and has long been a household staple for families. Better for you brands make up nearly 20% of the category and are growing faster than traditional brands.

GoodWheat 麵食和煎餅混合物不僅將為2024 年的增長提供基礎。今天我還有另一項好舉措要宣布，即推出GoodWheat 奶酪通心粉，奶酪通心粉品類銷售額超過11 億美元，長期以來一直是家喻戶曉的產品。家庭主食。 Better for you 品牌佔該類別的近 20%，且成長速度快於傳統品牌。

Our GoodWheat mac and cheese packs in the most fiber of any brand in the category four times more than the leading brand. In fact, one serving a GoodWheat mac and cheese has the same fiber as 2 servings of oatmeal or 2.5 servings of broccoli.

我們的 GoodWheat 通心粉和起司的纖維含量是該類別中所有品牌中纖維含量最高的，是領先品牌的四倍。事實上，一份 GoodWheat 起司通心粉的纖維含量與 2 份燕麥片或 2.5 份西蘭花的纖維相同。

And just like our pasta and pancake mixes, GoodWheat mac and cheese is higher in protein than leading brand with 12 grams of protein per serving. Our mac and cheese is sneaky delicious and Picky Eater approved made with real cheese and no artificial flavors, dyes or preservatives. There are three varieties to cheese from classic cheddar, white cheddar and three cheese. We start shipping into retailers this month and will be shipping to over 350 stores by the end of the year and in February, we plan to have all three varieties available online at eatgoodweat.com.

就像我們的義大利麵和煎餅混合物一樣，GoodWheat 通心粉和起司的蛋白質含​​量高於領先品牌，每份含有 12 克蛋白質。我們的起司通心粉非常美味，並且經過 Picky Eater 認證，採用真正的起司製成，不含人工香料、染料或防腐劑。起司有經典切達起司、白切達起司和三乾酪三種品種。我們本月開始向零售商發貨，並將於今年年底向超過 350 家商店發貨，我們計劃在 2 月份在 eatgoodweat.com 上在線提供所有三個品種。

For zola coconut water innovation has been our focus with the upcoming introduction of two new flavors pineapple and lime to add to our original extra pulp and espresso flavors. Pineapple is the number one coconut water flavor and lime was the number one flavored sparkling water. So we believe these new offerings will energize zola sales. Both flavors are 100% natural, no sugar added and non-GMO. Launching Q1 2024 these new flavors will be available in 16.9 ounce resealable containers.

對於佐拉椰子水來說，創新一直是我們的重點，即將推出兩種新口味鳳梨和酸橙，以添加到我們原始的額外果肉和濃縮咖啡口味中。鳳梨是排名第一的椰子水口味，酸橙是排名第一的蘇打水口味。因此，我們相信這些新產品將刺激 zola 的銷售。兩種口味均為 100% 天然、不添加糖且非基因改造。這些新口味將於 2024 年第一季推出，採用 16.9 盎司可重新密封的容器。

The last field initiative to discuss today is the strategic review announced on July 20, which stated that Arcadia would explore a range of strategic options, which could include an asset sale acquisition, merger sale or other strategic transactions. As we discussed in previous earnings calls, our strategic plan calls for an acquisition that would allow us to bring the GoodWheat value proposition to an existing business in a new wheat based category.

今天討論的最後一項現場倡議是 7 月 20 日宣布的戰略審查，其中指出阿卡迪亞將探索一系列戰略選擇，其中可能包括資產出售收購、合併出售或其他戰略交易。正如我們在先前的財報電話會議中所討論的那樣，我們的策略計畫要求進行收購，這將使我們能夠將 GoodWheat 的價值主張引入基於小麥的新類別中的現有業務。

We are beginning the due diligence process with potential candidates and are also evaluating asset sale and larger merger opportunities with our banking partner, and we'll keep you updated as material events occur. However, we must point out that there can be no assurance that this exploration of strategic alternatives will result in the company entering or completing any transaction and no timetable has been set for the conclusion of the strategic review.

我們正在開始對潛在候選人進行盡職調查，並與我們的銀行合作夥伴評估資產出售和更大的合併機會，一旦發生重大事件，我們將及時通知您。然而，我們必須指出，不能保證對策略替代方案的探索將導致公司進入或完成任何交易，並且尚未為策略審查的結論設定時間表。

With that, I'll turn the call over to TJ to discuss our Q3 financial results. TJ.

接下來，我將把電話轉給 TJ，討論我們第三季的財務表現。 TJ。

Thank you, Stan, and good afternoon everyone. Today, I will walk you through our third-quarter financial highlights. And my prepared remarks will focus on our results from continuing operations, which excludes all body care related results for the period discussed. So let me spend just a few minutes providing some background as to why these brands are now being presented as discontinued operations.

謝謝斯坦，大家下午好。今天，我將向您介紹我們第三季的財務亮點。我準備好的演講將重點關注我們持續運作的結果，其中不包括討論期間所有與身體護理相關的結果。因此，讓我花幾分鐘時間提供一些背景知識，解釋為什麼這些品牌現在被列為停產業務。

As you recall, we exited the body care co-packing business in the first half of 2022 and then made the decision to license the Savvy Naturals brand to Radiance Beauty in July of 2022. At that time, we also ceased body care manufacturing activities and began using third party manufacturers for ProVault and Soul Spring. In an effort to simplify our business, focus our resources and increase our margins while freeing up cash.

如您所知，我們於 2022 年上半年退出了身體護理品聯合包裝業務，然後決定於 2022 年 7 月將 Savvy Naturals 品牌授權給 Radiance Beauty。當時，我們還停止了身體護理品製造活動，並開始使用第三方製造商生產ProVault 和Soul Spring。為了簡化我們的業務，集中我們的資源並增加我們的利潤，同時釋放現金。

We consider GoodWheat, zola and ProVault to be core brands that could offer attractive margins, provide differentiation, and give us the ability to scale. However, the CBD category continued to face challenges that included; one, a lack of distribution opportunities as the majority of US retailers would not take CBD products, including online retailers such as Amazon, two, many retailers that did sell CBD, put the product behind locked glass doors that had a negative impact on sales, three CBD products could not be marketed on large mainstream platforms such as Google Search, Facebook and Instagram limiting our ability to advertise and four many retailers that once sold CBD made the decision to significantly reduce or completely step out of the category.

我們認為 GoodWheat、zola 和 ProVault 是核心品牌，可以提供有吸引力的利潤、提供差異化並讓我們有能力擴大規模。然而，CBD 類別繼續面臨挑戰，包括：一是缺乏分銷機會，因為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，二是許多銷售CBD 的零售商將產品放在上鎖的玻璃門後面，這對銷售產生了負面影響，三種 CBD 產品無法在 Google 搜尋、Facebook 和 Instagram 等大型主流平台上銷售，限制了我們的廣告能力，四家曾經銷售 CBD 的零售商決定大幅減少或完全退出該類別。

As a result, we began to explore strategic alternatives for ProVault and Soul Spring at the beginning of 2023, but were unable to find a buyer. In June of 2023, we notified retailers that we would no longer be producing the product and in September 2023, we stopped selling both brands.

因此，我們在 2023 年初開始探索 ProVault 和 Soul Spring 的策略替代方案，但未能找到買家。 2023 年 6 月，我們通知零售商我們將不再生產該產品，並於 2023 年 9 月停止銷售這兩個品牌。

Given the strategic shift as well as the meaningful impact that all of these brands had on our prior year financial results. We made the decision to classify these businesses as discontinued operations in accordance with the guidance disclosures.

鑑於策略轉變以及所有這些品牌對我們上一年財務業績的重大影響。我們決定根據指引揭露將這些業務歸類為已終止經營業務。

Moving now to our results from continuing operations. Revenues of $1.6 million increased 2% year-over-year as higher sales of GoodWheat were largely offset by lost distribution at zola that occurred at the end of 2022. On a sequential basis, revenues increased 20% in Q3, driven by increased GoodWheat distribution and higher sales of Zola.

現在來看我們持續經營的結果。營收為 160 萬美元，年成長 2%，原因是 GoodWheat 銷售額的成長在很大程度上被 2022 年底 zola 的分銷損失所抵消。在 GoodWheat 分銷增加的推動下，第三季營收季增了 20%以及佐拉的更高銷量。

Gross margins in Q3 2023 were 31% compared to 28% in the prior year, which was in line with our expectations. On a year-to-date basis, our gross margins have increased nearly 1,500 basis points compared to the same period last year.

2023 年第三季的毛利率為 31%，而前一年為 28%，符合我們的預期。年初至今，我們的毛利率比去年同期成長了近 1,500 個基點。

Research and development expenses of $305,000 were $50,000 above prior year, but $86,000 below the prior quarter as a result of innovation work in Q2 2023 that resulted in the launch of pancakes and Mac & Cheese.

由於 2023 年第二季的創新工作推出了煎餅和起司通心粉，研發費用為 305,000 美元，比上年同期增加了 50,000 美元，但比上一季減少了 86,000 美元。

Selling general and administrative expenses of $3.4 million were 18% below prior year and 4% below the prior quarter, primarily driven by lower headcount associated with the body care brands, as we discussed last quarter. And as Stan mentioned in his opening remarks, our SG&A expenses are now at the lowest level since 2019. We will continue to evaluate our expense profile in an effort to conserve cash.

正如我們上季度討論的那樣，銷售一般和管理費用為 340 萬美元，比去年同期下降 18%，比上一季下降 4%，這主要是由於與身體護理品牌相關的員工人數減少所致。正如 Stan 在開場白中提到的，我們的 SG&A 支出目前處於 2019 年以來的最低水平。我們將繼續評估我們的支出狀況，以節省現金。

The reduction in expenses led to a 19% year-over-year improvement in our loss from continuing operations. We recorded $133,000 of interest income as well as a benefit of $608,000 from the change in the fair value of common stock warrant and option liabilities resulting in a net loss attributable to common stockholders of $2.5 million.

費用的減少使我們的持續經營虧損年減了 19%。我們記錄了 133,000 美元的利息收入以及普通股認股權證和選擇權負債公允價值變動帶來的 608,000 美元收益，導致普通股股東淨虧損 250 萬美元。

Our cash and short-term investments at the end of Q3 2023 were $15.7 million, a decline of $2.8 million compared to the previous quarter. We expect our use of cash to increase in the fourth quarter, driven by an estimated payment of $1 million related to the grow-out of approximately 6 million pound of grain that will be used to produce pasta and mac and cheese. Accounts receivable of $304,000 declined by $917,000 compared to the beginning of the year, driven by $1 million in milestone payments from bio series.

截至 2023 年第三季末，我們的現金和短期投資為 1,570 萬美元，比上一季減少 280 萬美元。我們預計第四季現金使用量將增加，預計將支付 100 萬美元，用於種植約 600 萬磅穀物，這些穀物將用於生產義大利麵、通心粉和起司。應收帳款為 304,000 美元，較年初下降 917,000 美元，主要受到 Bio 系列里程碑付款 100 萬美元的推動。

As a reminder, we have now collected all milestone payments related to the Chinese approval of HB4 soy. Total inventory of $4.3 million is approximately $1.2 million higher than the balance at the beginning of the year with approximately 80% of this inventory attributable to GoodWheat, driven by production runs in May and September of 2023. We do not anticipate any production runs until Q2 of next year and plan to sell through our finished goods over the next six months.

謹此提醒，我們現已收到與中國批准 HB4 大豆相關的所有里程碑付款。庫存總額為430 萬美元，比年初餘額高出約120 萬美元，其中約80% 來自GoodWheat，這是由2023 年5 月和9 月的生產運行推動的。我們預計直到第二季度才會有任何生產運作並計劃在未來六個月內銷售我們的成品。

In conclusion, we are extremely pleased with the progress we have made so far. We have delivered positive gross profit from continuing operations for seven consecutive quarters. Have reduced our SG&A expenses to the lowest level in four years, lowered our cash burn to less than $3 million in the latest quarter, and we now enter 2024 with the opportunity to scale three GoodWheat categories and the potential to add additional categories through acquisition.

總之，我們對迄今為止所取得的進展感到非常滿意。我們連續七個季度從持續經營中實現了正毛利潤。我們已將SG&A 費用降至四年來的最低水平，將最近一個季度的現金消耗降至300 萬美元以下，現在進入2024 年，我們有機會擴大GoodWheat 的三個類別，並有可能透過收購增加其他類別。

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

現在我將把電話轉回給接線員詢問。

Thank you. At this time we will conduct a question and answer session. (Operator Instructions)

謝謝。這時我們將進行問答環節。 （操作員說明）

Dipesh Patel, H.C. Wainwright & Co.

帕特爾 (Dipesh Patel)，H.C.溫賴特公司

Hi, Stan and TJ. This is Dipesh standing in for Ram Selvaraju. Is there anything else that you can highlight as you look at strategic alternatives, maybe including time lines? And then also what progress has been made in capturing additional economics in the value chain for GoodWheat. So some comments around that would be helpful. Thank you.

嗨，斯坦和 TJ。這是迪佩什 (Dipesh) 代表拉姆·塞爾瓦拉朱 (Ram Selvaraju)。當您考慮戰略替代方案時，還有什麼可以強調的，也許包括時間表？還有 GoodWheat 在獲取價值鏈中的額外經濟效益方面取得了哪些進展。因此，圍繞這一點的一些評論會有所幫助。謝謝。

Thank you, Dipesh, and thanks for calling in today. So for your first question, we don't have a time line that we're ready to give in terms of closing any transactions. But there are several that are in our pipeline and we are continue to work diligently to do the right steps in terms of capturing value through the rest of our supply chain. We do have several agreements that are in front of some of our partners and we do expect the more news on that front in our next earnings call.

謝謝你，迪佩什，也謝謝你今天打電話來。因此，對於你的第一個問題，我們沒有準備好給出完成任何交易的時間表。但我們正在準備一些產品，我們將繼續努力工作，採取正確的步驟，透過供應鏈的其餘部分獲取價值。我們確實有幾項協議正在等待我們的一些合作夥伴，我們確實希望在下一次財報電話會議上聽到更多關於這方面的消息。

Great, certainly very helpful. Thanks again for the update today.

太好了，當然非常有幫助。再次感謝您今天的更新。

Ben Kliev, Lake Street Capital Markets.

Ben Kliev，湖街資本市場。

Thanks for taking my questions, and congratulations guys. Nice little quarter here from top to bottom it seems. Have a handful of questions for you. First of all, on zola, -- it sounds like some of the momentum that you saw in zola in second quarter really continued into the third, excluding the impact of new on the new flavors that are coming online. Can you comment on zola's contributions to the top line and retail distribution today versus the high-water mark. Few quarters ago, before some of the challenges emerged?

感謝您提出我的問題，並祝賀大家。這裡從上到下看起來都不錯。有幾個問題想問你。首先，關於佐拉，聽起來你在第二季度看到的佐拉的一些勢頭確實延續到了第三季度，不包括新產品對即將上線的新口味的影響。您能否評論一下佐拉今天對營收和零售分銷的貢獻與高水位線的對比。幾個季度前，在一些挑戰出現之前？

Yes, sure. And thanks for calling in today Ben. For zola, yes, the challenges that we had last quarter or in Q4 of 2022, there is still continuing. And so we're going to expect to lot those by Q4 of 2023, we have seen incremental distribution, and we have seen velocities also start to improve, but we do expect the innovation to be a catalyst for more distribution in 2024.

是的，當然。感謝本今天打電話來。對於佐拉來說，是的，我們上個季度或 2022 年第四季面臨的挑戰仍在繼續。因此，我們預計將在 2023 年第四季之前進行分配，我們已經看到增量分配，速度也開始提高，但我們確實預計創新將成為 2024 年更多分配的催化劑。

Okay, perfect. Thank you. The curious, GoodWheat retail placements now 15 month old, maybe a little more on, I'm wondering if you can talk about kind of the lessons that you took from the initial placements, a year ago and how you're driving growth now from new retail stores and maybe a more accelerated manner now. I mean, what challenges did you guys roll on into a year ago that you're not running into today? Any insight there would be helpful?

好的，完美。謝謝。好奇的 GoodWheat 零售投放現在已經 15 個月了，也許還有更多，我想知道您是否可以談談您從一年前的初始投放中吸取的教訓，以及您現在如何推動增長新的零售店現在可能會更加加速。我的意思是，你們一年前遇到了哪些今天沒有遇到的挑戰？任何見解會有幫助嗎？

So, if we go back 15 months, it was GoodWheat pasta that we had launched and we were successful in gaining distribution, a number of different accounts, different size accounts, different regions of the country. We've had lots of great learning, as we had spoken in earlier conference calls on price points and where we need to be in comparison to other better-for-you brands.

所以，如果我們回到 15 個月前，我們推出的是 GoodWheat 麵食，我們成功地獲得了分銷、許多不同的客戶、不同規模的客戶、全國不同的地區。正如我們在之前的電話會議上談到的價格點以及我們需要與其他更適合您的品牌相比，我們學到了很多東西。

We've also been learning about shelf placement, number of skews on shelf that promoted pricing programs. To up sell all those factors are going into ways that we can optimize our current distribution footprint. So I think that's really the focus for the pasta category is making sure that we're nurturing those accounts and those skews that we have distribution.

我們也一直在了解貨架放置、貨架上的傾斜數量，這些都促進了定價計畫。為了追加銷售，所有這些因素都需要考慮到我們可以優化目前分銷足跡的方法。因此，我認為麵食類別的真正重點是確保我們正在培養這些客戶以及我們分配的那些偏差。

And in some accounts, there's opportunities to expand our lineup to include more of the pasta skews. So I think that's really what our key learnings for pasta and we're also applying those learnings as we've launched the pancake category and now more recently the mac and cheese category.

在某些情況下，我們有機會擴大我們的產品陣容，包括更多的義大利麵。所以我認為這確實是我們在義大利麵方面學到的關鍵知識，我們也在應用這些知識，因為我們推出了煎餅類別，現在又推出了通心粉和起司類別。

Okay, great. TJ, clarifying question on your prepared remarks. Did I hear you call out costs in the third-quarter associated with mac and cheese, and pancakes? I believe or am I making that up?

好的，太好了。 TJ，澄清關於你準備好的言論的問題。我是否聽到您提到了第三季與通心粉、起司和煎餅相關的成本？我相信還是我編的？

Yes. So I called out R&D expenses that they were higher in Q2 related to preparing for the launches of pancakes, and mac and cheese.

是的。因此，我指出第二季與準備薄餅、通心粉和起司的推出相關的研發費用較高。

Okay. So R&D costs in Q2 were directionally higher before given both of those products. I thought I missed an explicit number on.

好的。因此，在提供這兩種產品之前，第二季的研發成本明顯較高。我以為我錯過了一個明確的號碼。

Okay. Then last question for me. I mean, the looks like a lot of momentum has really built through 2023 so far. I mean, as you look into 2024, can you guys give any kind of high-level expectations regarding our overall retail doors that you hope to be at ending '24. Any kind of high-level metrics that you can really provide to help us get a sense of kind of scale, you're looking at 12 months from now?

好的。然後是我的最後一個問題。我的意思是，到目前為止，到 2023 年為止，看起來確實已經形成了很大的勢頭。我的意思是，當你們展望 2024 年時，你們能否對我們在 24 年結束時的整體零售門給出任何高水平的期望？您能否真正提供任何類型的高級指標來幫助我們了解您正在考慮的 12 個月後的規模？

Yes, sure. I think when we add up, the three categories for GoodWheat will be over 3,000 doors and in 2023. And in 2024, our plan is really to nurture those 3,000 doors, there may be additional accounts that come online in the first half of the year.

是的，當然。我認為，當我們加起來時，GoodWheat的三個類別將在2023年超過3,000個門。到2024年，我們的計劃實際上是培育這3,000個門，上半年可能會有更多帳戶上線。

But really, we want to make sure that we're growing where we are and we become almost indispensable attractive to the larger retailers in the larger, in the accounts that we are today. So we're still planning on double digit growth of GoodWheat next year and then I would say the same for Zola.

但實際上，我們希望確保我們在目前的位置上不斷發展，並且我們對更大的零售商、更大的零售商、我們今天的客戶幾乎具有不可或缺的吸引力。因此，我們仍然計劃明年 GoodWheat 實現兩位數增長，然後我會對 Zola 說同樣的話。

Okay, very good. Plenty more to talk about, that's a good place to leave it. Thanks for taking my questions and congratulations again on a really nice quarter.

好的，非常好。還有很多要談的，這是一個很好的地方。感謝您回答我的問題，並再次祝賀您度過了一個非常美好的季度。

Thank you.

謝謝。

I'm showing no further questions at this time. I would now like to turn it back to Stan Jacot for closing remarks.

我目前沒有提出任何進一步的問題。現在我想請史丹賈科特（Stan Jacot）發表閉幕詞。

In summary, as we enter 20204 Arcadia is in the best position in its history. Our proprietary wheat technology has been commercialized in three categories with the potential to add more category through acquisition. We have exited the low opportunity and high resource body care business and revitalizing the zola coconut water brand with innovation rolling out early next year.

總而言之，當我們進入 20204 年時，阿卡迪亞正處於歷史上最好的位置。我們專有的小麥技術已在三個類別中商業化，並有可能透過收購增加更多類別。我們已經退出了低機會和高資源的身體護理業務，並透過明年初推出的創新來重振佐拉椰子水品牌。

This has resulted in stronger top line growth and higher gross margins. And finally, we have we right-sized the organization and streamlined our cost structure in order to extend our runway to execute our plan. Look forward to updating you in the future. Thanks again for joining us and have a great rest of your day

這帶來了更強勁的收入成長和更高的毛利率。最後，我們調整了組織規模並簡化了成本結構，以擴大執行計劃的範圍。期待您日後的更新。再次感謝您加入我們，祝您有個愉快的一天

Thank you for your participation in today's conference. This does conclude the program, you may now disconnect.

感謝您參加今天的會議。這確實結束了程序，您現在可以斷開連接。