Good afternoon and welcome to Arcadia Biosciences' Third Quarter 2017 Earnings Conference Call. Today's presenters will be Raj Ketkar, President and CEO; and Matt Plavan, CFO. This call is being webcast and you can refer to the company's press release and slides at arcadiabio.com. Before we start, if you refer to slide two, we would like to remind you, that the Arcadia Biosciences will be making forward-looking statements on this call based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, 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, and again, on slide two of this presentation. With that, I'll now turn the call over to Raj Ketkar, President and CEO.

Thank you, Nova and thanks to everyone who is joining us on the call today. I'd like to begin an update on our achievements during the quarter and our emerging product strategy. And then, Matt will review the financial results for the third quarter of 2017. At the end of the call, we will, as always, take your questions. Turning to slide three, the positive momentum we established in the first half of the year continued in the third quarter. A significant achievement this quarter was the signing of a licensing agreement with the Broad Institute of MIT and Harvard for research use of the CRISPR-Cas9 Genome editing technology in agriculture. We now have access to the best gene editing technology available, which can accelerate product development by up to two years compared to our TILLING technology. At the beginning of this year, we announced that Arcadia would focus on fewer products in our portfolio. In 2017, we've made great progress in the acceleration of our non-GM wheat quality traits portfolio, derived from the TILLING technology. We added a new product, reduced gluten wheat to our pipeline as we identified the phenotype that produces a significant reduction in gluten content in wheat. We advanced high fiber wheat and extended shelf life wheat towards commercialization. And we've enhanced near-term opportunities for our high fiber wheat by targeting the animal feed market. In this quarter, we also signed an agreement with Dow AgroSciences for the development of wheat quality trait in Dow germplasm. Turning to our abiotic stress mitigation trait, our key products are making great progress towards commercialization. In the third quarter, Mahyco received approval for planting of trails for the Nitrogen Use Efficiency and Water Use Efficiency traits in rice and cotton. This is significant because the Indian Regulatory Authorities…

Thank you, Raj and good afternoon everyone. With regards to our financial performance, as you can see in slide eight, our total revenues were a bit off the mark for the third quarter. However, total revenues are even with the first nine months of last year, and we continue to expect total revenues for the full year of 2017 to be greater than those in 2016. In comparing Q3 of this year to last year, you can see each of our revenue categories were lower. Product revenues were down 20% due to the timing of GLA orders, expected from new pet food sales, which we now believe we occur in early 2018. Our primary distributor for dry dog food ingredients, requires time to adjust their ingredient formulations, establish proper labeling, and prepare their channels. A process that could not be started until the pet food approval was formally published in the Federal Register. The approval was not published until the third quarter, which was four months following the actual approval and much later than we had anticipated. Therefore, we're now more cautious about predicting higher revenues in this category for 2017 over 2016. As for our license revenues, as we've reported all year, we're now amortizing our up-front licensing fees into revenue over a longer period of time, resulting in less revenue recognized per quarter. This causes the quarter and nine months revenues to be lower as compared to the prior year periods. However, on a positive note, we expect a significant one-time increase on our license revenue in the fourth quarter of this year. As discussed in more detail on our third quarter 10-Q, in conjunction with our primary licensee partner Mahyco, we're looking at the return to Arcadia of certain licensed geographies in favor of jointly pursuing new…

Thanks Matt. Before we get to your questions, I would like to summarize our results for the third quarter of 2017. As you've heard today, Arcadia's financial performance this year is tracking better than last year, and we expect that trend to continue to the end of the year. Our team has remained focused on the two key determinants of future success. Current financial performance and accelerating our paths to profitability. Our license for CRISPR-Cas9 enables us to utilize the best gene editing technology available for developing new products. Non-GM wheat traits are advancing to commercialization. The HB4 drought tolerant soybeans in Argentina completed important regulatory advancements and field trials. And our partner Mahyco in India received permits on planted field trials for the first time in three years. These tangible financial, operational, and market accomplishments reflect the fundamental advances we've made in our growth strategy for building long-term shareholder value. With that, I'd like to turn the call over to your questions now.

Thank you. [Operator Instructions] Our first question comes from the line of Tyler Etten of Piper Jaffray. Your line is open.

Good afternoon guys.

Hey Tyler.

Hey. Matt, I wasn't able to catch that last comment you had about the cash used. I was just wondering with this lower use of cash in the quarter, is that a rate that we can expect going forward? I mean, it's a pretty significant lag [ph] down from the $4 million to $5 million that we've seen in the past out of the used from operating activities. So, any color there would be helpful.

Yes. I think it -- as we look at 2018, we would expect our quarterly cash burn to be closer to what it was this past quarter versus the year ago quarter. I think that's a fair expectation.

Okay. Yes. That's exactly what I needed to know. And then for HB4 trials, could you just remind us the -- I guess the standards for these trials. Is it a three year minimum of trials to get through some of these regulatory authorities? I know the second year trials are about to begin. Just -- if you could just walk through how you see the regulatory process unfolding for HB4? That would be helpful.

Right. So, our main target for regulatory approvals -- or I should say that main target for commercialization is first to commercialize in Argentina. And for us to be able to do that, we have to submit for import approvals in China and Europe, which are the key import continents for grain coming out of Argentina. As you know, we've already received approvals in Argentina for planting. So, we're now awaiting approvals from China. So, we submitted to the Chinese regulatory authorities about a year ago, it was November of last year and we will be submitting to Europe in the next quarter we expect. So, the few trials for regulatory purposes that are going on in Argentina are more for other South American countries, but they are not crucial for approvals in Argentina or China or Europe. So they're really trying to get approvals in Paraguay, Uruguay, and so forth. So, those are what the trials -- regulatory parts of the trials. We're also conducting, I would say, commercial demos, which are large stripped trials, more for showing to farmers, the efficacy of the trait. And continuing to do -- to fine-tune the trait performance in different germplasm. And so those are the other set of trials that are going on and we'll be in the second year of that in this coming season.

Got it. Thanks. And then the CRISPR licensing, specifically, on the non-GM wheats. I was wondering if you could explain -- I know most of us have plans this year, but just on a more detailed level, how this technology will help on the existing product development. I know that you guys already had some of the traits discovered. Just on how this technology will help accelerate the traits that have already been worked on for some time?

So, the traits that are already well advanced as we showed in the slide, which had high fiber wheat and extended shelf life wheat, well into the line selection or breeding and introgression stages of development. Those specific lines will not be impacted by CRISPR, but we would start working on the next generation, if you will, of RS wheat or high fiber wheat in new line, as new lines of wheat become commercial. Because the advantage of CRISPR is, you don't have to go through a lengthy introgression and breeding process, you could actually do the editing in the germplasm -- targeted germplasm itself. So, we could do it in the commercial line. And which is what we are doing in parallel for the reduced gluten wheat, which is still early in the development cycle, even from our TILLING process, and we're starting work in parallel with that in reduced gluten, which is what we tried to demonstrate on the slide. But that's our first target. It's a great tool, a research tool, but we are just starting with it. So there's a learning curve there as well for us. But we're quickly getting up to speed. We've got our core of scientists, who are really good at this stuff and we're already applying that to different wheat lines.

Excellent. Thank you.

And our next question comes from the line of Bill Peters of [Indiscernible] Investments. Your line is open.

Hi, good day gentlemen. Thank you for taking my call.

Good day.

I have a quick question. So, based on the cash burn now, would you say that you have enough cash to get you through the year. I know in the past 10-Q, there was a going concern in reference to that, but since the cash burn has been decreased so much and the current cash on hand seems to be about $16 million, what is your opinion in that?

Yes Bill, that's a good question. I think just, kind of, teeing off of the answer to Tyler's question. I think if we were to continue our burn at the level of this quarter, we ought to be able to get through a year from now, maybe all the way to 2018, obviously that depends on how much more revenue we could bring in next year? But we will certainly -- can remain very focused on cash conservation and using every dollar as wisely as we can. And I think that is going to extend our run way through 2018.

Okay. And one more question in reference to the company's NOLs. Is that $100 million, that the company has invested?

Well--

Yes, go ahead. I'm sorry.

Yes, the company has raised approximately $170 million since inception.

Okay.

Yes, so that's what you're seeing in that retained deficit.

Okay. Thank you.

And I'm showing no further questions in the queue at this time. I'd like to turn the call back to your President and CEO, Raj Ketkar for closing remarks.

Thanks everyone for joining the call and your continued interest and support of Arcadia. We look forward to speaking with you again in 2018 during our year end conference call. Thank you.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the call. You may now disconnect. Everyone, have a wonderful day.