Good afternoon. And welcome to Arcadia Biosciences First Quarter 2022 Earnings Conference Call. Today’s presenters will be Stan Jacot, President and Chief Executive Officer; and Pam Haley, Chief Financial Officer of Arcadia. This call is being webcast and you can refer to the Company’s press release at arcadiabio.com. Before we start, we would like to remind you that Arcadia will be making forward-looking statements on this call based on current expectations and currently available information. However, these statements are based on factors that include risks and uncertainties, and 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 their most recently filed 10-K. With that, I'll turn the caller to Stan Jacot, CEO.

Good afternoon, everyone. And thank you for joining us today for our 2022 first quarter conference call. Despite the fact that it has only been six weeks since we last spoke to you, Arcadia has made tremendous progress from both a financial and a strategic perspective on its path from a bioscience company to one focused on bringing innovative plant-based health and wellness products to the consumer marketplace. Today, I would like to discuss five important topics that we believe have a meaningful impact on Arcadia today, and will help to better position the company for growth and profitability going forward. These topics include; one, key financial highlights for the quarter; two, a decision we have made to wind down a legacy co-packing business that was part of the Arcadia Wellness acquisition; three, the launch of GoodWheat; four, an update on our long term strategy; and five, how the recent Bioceres announcement regarding HB4 soy will impact Arcadia. So let's start with the financial highlights for the quarter. As many have already seen in the press release, we delivered strong financial results in Q1 that were well ahead of consensus estimates with respect to revenues, gross margins, operating expenses and cash. Our revenues were up nearly 300% year-over-year and were up 48% versus Q4 2021, primarily driven by opportunistic grain sales, expanded distribution in our body care business and continued double digit-growth from Zola coconut water. In Q1, we saw an opportunity to take advantage of rising wheat prices and sold approximately $1 million worth of grain. We view these grain sales as a win for Arcadia as we were able to liquidate older inventory for which we currently have no commercial home while at the same time generating a considerable amount of cash for the company. Going forward, we…

Thanks Dan. As mentioned at the onset of the call, we are pleased with the financial results achieved this quarter. Total revenues recognized for first quarter of 2022 were $3.2 million compared to $828,000 in first quarter 2021. Product revenues generated from the body care brands acquired in the second quarter of 2021 contributed to the majority of the $2.4 million increase along with the opportunistic grain sales this quarter. Total operating expenses of $7.8 million in the first quarter of 2022 were up $1.7 million from the $6.2 million recognized in the first quarter of 2021. The additional grain and body care product sales generated additional cost of revenues in the first quarter of 2022 compared to the same quarter in 2021, $3.5 million versus $856,000 for an increase of $2.6 million. Research and development expenses have continued to trend downwards, $395,000 this quarter and $1.2 million this quarter last year, for a decrease of $764,000 as we continue our focus on commercialization. This focus is also driving the slight increase in SG&A expenses. We recognized $4.4 million in this first quarter of 2022 compared to $4.1 million in the first quarter of 2021, an increase of $283,000. Net loss attributable to common stockholders was $4.5 million in the first quarter of 2022 compared to net income of $2.1 million in the first quarter of 2021. While the loss from operations of $4.6 million in first quarter 2022 was $700,000 favorable to the $5.3 million recognized in first quarter of 2021, an unrealized noncash gain in the amount of $7.5 million related to the Bioceres stock we held was recorded in the first quarter of 2021. I'd also like to note that we recognize noncash income of $322,000 in the first quarter of 2021 for the change in fair value of common stock warrant liabilities. No such change, income or expense, was recorded in the first quarter of 2022 as we implemented a new accounting standard this quarter, that eliminates the remeasurements of these warrants going forward. Additional detail regarding this change is included in footnotes 2 and 11 of our first quarter Form 10-Q. We also recognized $769,000 of issuance costs associated with the PIPE transaction in January of 2021 with no similar costs incurred or recorded in 2022. This concludes our financial highlights for the first quarter of 2022. Thank you very much for your attention today. And I'll turn the call over to the operator for questions. Operator?

[Operator Instructions] And we do have Benjamin Klieve from Lake Street Capital Markets.

I got a few questions for you. First, kind of in the context of the 1x wheat revenue that you realized. Can you guys quantify the amount of tons or bushels of grain you have in inventory now? And then also talk about the level of wheat acreage you are intending to plant this spring to secure inventory here in the fall?

We've got about 12 million pounds of inventory in right now and that will be enough to last us for a few years. And so we don't need to immediately grow new grain this year in order to support our needs. And as we stated in the script, the grain that we sold were against wheat that we weren't planning to commercialize.

And by the way, I apologize if I made you repeat the things you said in the prepared comments. My phone dropped off for a few minutes there, but that's helpful. Next question on the GoodWheat launch. The product looks great. It'll be really excited to hear progress. I have a question on the marketing of it in the -- specifically around the protein content. I mean the protein content is really significantly higher than just about anything else that you'll see, in the pasta aisle outside of brand -- the brand themselves as high protein because of additives. Are you guys able or interested in adding a high protein label to this box, and can you talk about your decision maybe to do so or to not do so?

No, that's a smart comment. And it is true, our protein content is significantly higher than other pastas in the category and without additives. We do plan on changing our packaging in order to make that statement on the front panel. So we just weren't in a position to do that from a regulatory perspective prior to launch.

And then so that brings up in a follow up question. I mean, I know that silly label can not really weird rules around them. I mean, what -- is it just kind of a formality that you'll have to go through to be able to have a high protein label, or is there something that you have to -- anything you have to do to the recipe to do that? What really is required for that?

We don't have to add anything to the formula. It will still be one simple ingredient. It's just a matter of the right language that we are able to put on the front panel and location.

On kind of a modeling front. When you look at this first quarter OpEx, as GoodWheat starting to ramp here, do you think the kind of marketing costs are included in those first quarter numbers? Or do you think you're going to see a step up in OpEx here in the second and third quarter ahead of a revenue ramp?

We will see marketing expenses continue to increase. But at the same time, there are other expenses that we're also trying to reduce in our SG&A. So this is a pretty similar pattern that we expect throughout the rest of the year.

And one other question on the e-commerce initiative. So I think you indicated it's going to be available on Amazon next month. Are you guys -- can you talk about your marketing efforts to get the word out ahead of that e-commerce launch.

Well, we actually see the e-commerce launch as a way to ramp up marketing nationally, because as of now we're not able to do that with our current retail distribution. So yes, we are looking at omnichannel approach to getting the word out about our GoodWheat pasta and the benefits, and allowing people to try it for themselves.

We'll stay tuned for more there. I'll -- that will leave it there, I’ll get back in queue. But thanks for taking my questions and best of luck here next quarter.

And that concludes our Q&A session. I'll turn the call back over to Stan Jacot for final remarks.

Thank you. In closing, I'd like to thank everyone for joining us today. We are excited about the launch of GoodWheat, as well as the momentum we are building in body care and Zola. Our financial results have improved. We have made strategic decisions that will enable continued improvement during the second half of the year. And we feel that we are well positioned to execute on these plans and we look forward to updating you on our progress. Thank you for joining us today and have a great afternoon, everyone.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.