Arcadia Biosciences, Inc. · NASDAQ:RKDA
Arcadia Biosciences — Q3 2015 Earnings Presentation
11 slides from Arcadia Biosciences's earnings presentation, Nov 5, 2015
Slide 1: Third-Quarter 2015 Business Results
Third-Quarter 2015 Business Results November 5, 2015
Slide 2: Forward-looking statements
Forward-looking statements “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation c ontains forward-looking statements about the company and its products, including statements relating to components of the company’s long-term financial success;; the
Slide 3: Key financial results
Key financial results Third Quarter First Nine Months % Favorable/ % Favorable/ 2015 2014 (Unfavorable) 2015 2014 (Unfavorable) Total revenues 1,823 1,502 21% 4,068 4,184 (3%) Cost of product revenues 61 1,795 97% 223 1,932 88% R&D expense 3,179 3,684 14% 7,097 7,942 11% SG&A expense 2,818 1,966 (43
Slide 4: Revenue
Revenue Third Quarter First Nine Months % Favorable/ % Favorable/ 2015 2014 (Unfavorable) 2015 2014 (Unfavorable) Product revenue 123 67 84% 383 266 44% License revenue 214 91 135% 773 462 67% Contract research and 1,486 1,344 11% 2,912 3,456 (16%) governmental grants Total revenues 1,823 1,502 21%
Slide 5: Operating expenses
Operating expenses Third Quarter First Nine Months % Favorable/ % Favorable/ 2015 2014 (Unfavorable) 2015 2014 (Unfavorable) Cost of product revenues 61 1,795 97% 223 1,932 88% R&D expense 3,179 3,684 14% 7,097 7,942 11% SG&A expense 2,818 1,966 (43%) 8,241 7,833 (5%) Total operating expenses 6,058
Slide 6: NUE rice demonstrates average yield increase of up to 30%
NUE rice demonstrates average yield increase of up to 30% Nitrogen Use Efficiency – Rice Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 400M acres • Each 10% yield increase creates D 1 2 3 4 C added value of $75 per acre, • Most valuable global crop 24-48 mo 12
Slide 7: Regulatory approvals, commercial partnerships and patents continue to advance pipeline
Regulatory approvals, commercial partnerships and patents continue to advance pipeline Regulatory approvals Commercial partnerships Patent advancements Regulatory process completed for Verdeca c ollaboration with TMG to stress tolerant s oybeans in Argentina;; advance breeding of s tress tolerant US
Slide 8: Trait opportunity for HB4 Stress Tolerant soybeans is 25% – 35% of South American acres
Trait opportunity for HB4 Stress Tolerant soybeans is 25% – 35% of South American acres Top five soybean producing countries HB4 commercial launch status • Regulatory approvals complete in Argentina • US FDA Early Food Safety Evaluation completed • Submissions for production and import approvals und
Slide 9: HB4 Stress Tolerant soybeans lift grower revenue and significantly reward entire value chain
HB4 Stress Tolerant soybeans lift grower revenue and significantly reward entire value chain Yields increase by 4 bushels per acre under stress 42 41 Bushels per acre 40 38 36 37 34 Conventional Soybeans HB4 Soybeans Value created f or farmer: 100% ($40 per acre) Value retained by farmer: 60%–65% Va
Slide 10: New Phytola R&D partnership targets added value from increased soybean oil content
New Phytola R&D partnership targets added value from increased soybean oil content Potential added value from increased soybean oil content $60 $16,000 Global Potential Added Value ($M) Non-GM approach using Global Potential Added Value ( $M) $50 Added Value ($/acre) Arcadia’s genetic diversity $12
Slide 11: Late-stage portfolio with 13 products in Phase 3 of development or later
Late-stage portfolio with 13 products in Phase 3 of development or later Phase D 1 2 3 4 C Months 24-48 12-24 12-24 12-24 12-36 Success1 5% 25% 50% 75% 90% Productivity t raits: Designed t o increase crop yields and income t hrough improved input efficiency and environmental stress t olerance