Arcadia Biosciences, Inc. (RKDA) - 10-K Summary
Business Context and Reporting Period
This Annual Report on Form 10-K covers the fiscal year ended December 31, 2025. Arcadia Biosciences, Inc. has transitioned from a biotechnology firm focused on wheat traits to a consumer goods company primarily selling Zola Coconut Water. The company exited its wheat business in 2024 and 2025 through the sale of its GoodWheat brand and various patent portfolios. As of December 31, 2025, the company had eight employees and operates from its headquarters in Dallas, Texas.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Total Revenues | $4.9 million | $5.0 million |
| Net Loss (Continuing Ops) | $(2.3) million | $(4.3) million |
| Net Loss (Total) | $(2.3) million | $(7.0) million |
| Cash and Cash Equivalents | $0.3 million | $4.2 million |
| Net Cash Used in Operating Activities | $(4.7) million | $(9.6) million |
| Accumulated Deficit | $(281.2) million | $(278.9) million |
| Working Capital | $4.3 million | $6.7 million |
Note: 2024 Net Loss includes a $2.7 million loss from discontinued operations (GoodWheat). 2025 results include a $4.7 million credit loss related to a defaulted promissory note.
Material Changes vs. Prior Period
- Revenue Composition: Product revenue decreased 3% to $4.9 million, driven by the cessation of GLA oil sales, partially offset by a 17% increase in Zola coconut water sales. License and royalty revenues ceased entirely in 2025.
- Asset Monetization: The company recognized a $750,000 gain on the sale of reduced gluten and oxidative stability patent portfolios to Bioceres Crop Solutions Corp. (BIOX). This contrasts with a $4.0 million gain in 2024 from the sale of wheat traits to Corteva.
- Significant Credit Loss: A material $4.7 million credit loss was recorded in 2025 due to the default of Above Food on a $6.0 million promissory note received for the GoodWheat sale. Above Food is currently in receivership.
- Transaction Termination: The proposed all-stock business combination with Roosevelt Resources LP, announced in late 2024, was terminated in December 2025 without a break-up fee.
- Cost Reduction: Selling, general, and administrative (SG&A) expenses decreased 27% to $7.0 million, and R&D expenses dropped 83% to $9,000, reflecting a leaner operational structure.
Outlook, Risks, and Contingencies
- Going Concern: The company has raised substantial doubt about its ability to continue as a going concern. With only $0.3 million in cash and recurring losses, management states existing resources are insufficient to meet anticipated requirements for the next 12 months without additional financing.
- Liquidity Strategy: In January 2026, the company raised approximately $2.1 million through the exercise of preferred investment options. Management is exploring further equity/debt financing or the sale of restricted shares of Above Food Ingredients, Inc. (AFII).
- Tariff Uncertainty: Zola coconut water is sourced from Thailand. The company faces uncertainty regarding U.S. tariffs, including a 19% rate implemented in August 2025 and subsequent legal challenges and new executive orders imposing global tariffs. This poses a risk to cost of goods sold.
- Legal Proceedings: The company is defending a Proposition 65 lawsuit in California regarding Bisphenol A (BPA) in coconut water containers. Additionally, shareholder demand letters regarding the terminated Roosevelt transaction remain a potential, though likely moot, risk.
- Internal Controls: The company identified material weaknesses in internal controls over financial reporting, specifically regarding segregation of duties and information system controls.
- Nasdaq Listing: The company's Market Value of Listed Securities (MVLS) was approximately $3.4 million as of March 2026, below the proposed $5 million threshold for continued listing, creating a risk of delisting.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $2.1 million raised in January 2026 against current burn rates and the timeline for securing additional capital.
- Above Food Note Recovery: Assess the likelihood of recovering value from the defaulted $6.0 million note, specifically regarding the issuance and liquidity of the restricted AFII shares.
- Tariff Impact: Monitor the finalization of U.S. trade policy regarding Thailand and the potential pass-through of tariff costs to consumers.
- Delisting Risk: Track the company's MVLS and Nasdaq compliance status given the proposed $5 million minimum market value rule.
- Legal Exposure: Review the status of the California Proposition 65 litigation and potential financial penalties or operational restrictions.