RKDA Earning Date, Transcript Summary & Report

Coconut Water Sales Surge: 1. Revenue Growth: Total revenues increased by 18% year-over-year, reaching approximately $1.5 million, driven by a 55% increase in Zola Coconut Water sales.

Retail Store Expansion: 2. Zola Distribution Expansion: Zola's retail store count grew by 68% compared to the same period last year, marking the largest quarterly distribution gain in the company's history.

Sell-Through Performance Surge: 3. Strong Sell-Through Performance: Zola's sell-through, as measured by scan data, increased by more than 36% year-over-year, indicating robust end customer demand for the product.

Cash Burn Reduction: 4. Reduced Cash Burn: The company's cash used during the quarter declined to $1.5 million, the lowest level of cash used in a quarter since going public, despite including over $400,000 related to discontinued operations.

Market Share Expansion: 5. Market Share Gains: Zola outpaced the coconut water category growth, achieving a 23% increase over the last 52 weeks, compared to the category's 15% growth, demonstrating strong competitive positioning.

GLA Oil Sales Decline: 1. Declining GLA Oil Sales: Sales of GLA oil were approximately half of what they were in Q3 of last year, indicating a significant decline in this segment.

Rising Revenue Costs: 2. Increased Cost of Revenues: The total cost of revenues increased by about $200,000 or 26% compared to last year, which included a $150,000 write-down related to hemp and GoodWheat seed.

Rising Administrative Costs: 3. High Selling, General and Administrative Costs: Selling, general and administrative costs in Q3 were approximately $2.2 million, which included $380,000 of transition costs related to the sale of GoodWheat assets, representing a 20% increase in costs compared to last year.

Cash and Investments Decline: 4. Cash Decrease: Cash and short-term investments decreased to $6.6 million at the end of Q3 from $8.1 million at the end of Q2, reflecting a cash consumption of $1.5 million during the quarter.

Discontinued Operations Loss: 5. Loss from Discontinued Operations: The loss from discontinued operations was approximately $430,000, primarily due to termination costs and fees for remaining employees and vendors supporting the GoodWheat business.