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Arcadia Biosciences , Inc. (NASDAQ:RKDA), a leader in the field of agricultural biotechnology with a market capitalization of $5.77 million, is currently facing a default situation after failing to receive a scheduled payment of $2 million in principal and approximately $475,000 in interest due on May 14, 2025. This payment was part of a $6 million promissory note issued by Above Food Corp. and its subsidiary as consideration for the assets sold by Arcadia related to its GoodWheat business, along with a $2 million cash payment. According to InvestingPro data, while the company holds more cash than debt, it’s currently burning through cash reserves rapidly.
On May 1, 2025, Arcadia issued a notice to Above Food Corp. to issue shares from its parent company, Above Food Ingredients Inc. (AFII), listed on the Nasdaq Capital Market, as prepayment for the final installment of the note. However, as of the filing date of this report, no such shares have been delivered, and the required payment has not been made.
The non-payment constitutes an event of default under the terms of the note and the related security agreement. Arcadia has the right to declare the entire unpaid principal amount, accrued interest, and other payable amounts to be due immediately. Above Food Corp. is currently undergoing receivership proceedings in Canada, and Arcadia is assessing its options to enforce its rights and seek remedies.
This financial update comes amid Arcadia’s ongoing plans to merge with Roosevelt Resources, LP, in an all-stock transaction as disclosed in a previous SEC filing on December 6, 2024. The combination is intended to be executed through a Securities Exchange Agreement made on December 4, 2024.
The details of this situation are based on a press release statement and reflect the company’s current financial challenges and strategic endeavors. Investors and stakeholders are advised to follow further developments and consider the implications of these events on their interests in Arcadia Biosciences.
In other recent news, Arcadia Biosciences reported a notable 22% increase in revenue for the first quarter of 2025, reaching $1.2 million. This growth was largely driven by the impressive performance of its Zola coconut water line, which saw a 90% surge in sales compared to the previous year. The company maintained a strong gross margin rate of 43% despite a reduction in its cash position. Arcadia also eliminated $1 million in non-current liabilities, contributing to its financial stability. The company announced a gain of $750,000 from the sale of a patent, which aligns with its strategy to streamline operations and monetize intellectual property.
Additionally, Arcadia is moving forward with a planned business combination with Roosevelt Resources, anticipated to be completed by mid-August. This merger could potentially strengthen Arcadia’s market position. The company has not experienced significant impacts from newly imposed tariffs, thanks to strategic inventory management. Analysts have shown interest in the company’s expansion plans and the commercial potential of its remaining intellectual property. Arcadia remains optimistic about future growth, particularly through the continued success of the Zola product line.
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