Arcadia Biosciences Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Benjamin Klieve - Lake Street Capital Markets - Analyst : Congratulations here on some nice momentum from Q2 extending into Q3. First, a clarifying question, Mark, in your prepared comments, you noted a $150,000 write-down. Did you say that, that was entirely within this quarter and associated the legacy hemp business? Did I hear that correctly? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 9:30PM, RKDA.OQ - Q3 2024 Arcadia Biosciences Inc Earnings Call

Question: Benjamin Klieve - Lake Street Capital Markets - Analyst : Perfect. So then looking at gross , if you back out that $150,000 write-down and then and then strip out the GLA business here that's going to be coming off the books, can you help give us some guideposts regarding your kind of expectations on margins on a go-forward basis when you back out those 2 big ticket items?

Question: Benjamin Klieve - Lake Street Capital Markets - Analyst : Perfect. And then the onetime items within OpEx that you flagged, do you expect any more of those kind of residual items to come through in the fourth quarter? Or do you think that was really contained within the third quarter?

Question: Benjamin Klieve - Lake Street Capital Markets - Analyst : Great. And then one more for me, and I'll get back in queue. Regarding this just really kind of torrid pace of growth that you have in Zola with new distributors. Can you talk about kind of your confidence in the infrastructure at Arcadia to support this growth, both in terms of inventory levels, any kind of ERP-related dynamic that you have to support this growth? Do you feel comfortable that you guys are going to be able to execute growth of this magnitude here in the fourth quarter and going forward?