Good afternoon, and welcome to Arcadia Biosciences First Quarter 2018 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 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, Heather, and thanks to everyone, who is joining us on the call today. The purpose of this call is to report on the first quarter 2018 earnings and some exciting developments at Arcadia. I will summarize the first quarter achievements and Matt will discuss our recently completed financing round and the first quarter 2018 financials. At the end of the call, we will, as always, take your questions. Turning to Slide three. In the first quarter of 2018, we took some major steps towards making the transition from a trait provider company to a health and nutrition ingredients company. A major accomplishment was the completion of a $10 million private placement financing round, which will meaningfully fortify our cash resources and allow us to better execute our health and nutrition growth strategy in 2018 and beyond. We also made important progress in developing our non-GM wheat traits portfolio. We announced achievement of two major milestones in Resistant Starch wheat, achieving high amylose content and meeting the threshold for high-fiber designation. We also added Reduced Gluten wheat to our portfolio of branded wheat ingredients and expect to have test quantities available by the end of the year for testing by food companies. We launched the GoodWheat consumer ingredient brand and we also appointed Sarah Reiter as the Chief Commercial Officer of the company. We also made good progress in the development of our ag productivity traits. Just yesterday, we announced that rice lines containing a triple-stack traits, which includes Nitrogen Use Efficiency, Water Use Efficiency and salt tolerant traits, demonstrated double-digit yield increases over two years of trials. On Slide four, in 2018, our focus is on commercializing products in a non-GM wheat quality traits portfolio to address the current growth opportunities in the food and agriculture value chain.…

Thank you, Raj, and good afternoon, everyone. We are very pleased with the completion of our $10 million pipe financing following our special meeting of shareholders on May 2. With this financing complete, we ended the first quarter with a strong balance sheet, having over $20 million in cash and no debt. We are well funded to begin commercialization of our GoodWheat portfolio of nutritional ingredients. With regard to the financial results for the quarter, I’d like to start with a brief discussion about the impact we expect our evolving business model will have on our near- and mid-term financial performance. As you know, today we derive our revenues from three sources; GLA product revenues, licensing revenues from payments associated with the rights to commercialize our GM technologies and revenue from contract research and government grants primarily associated with historical research projects. These revenues are associated with our former business model focused on R&D discovery and out-licensing of traits. Over the next 12 to 36 months, as we introduce our new nutritional ingredient products like GoodWheat to the market and we advance our HB4 soybeans to commercialization, we expect the onset and scale up of revenues, which will most likely be characterized as product revenues or trait fees depending upon the specific arrangement with our end customers. Because of our Q4 forward focus on the GoodWheat and HB4 and other products with near-term scale potential, we do not intend to continue pursuing new contract research in government grant projects at the levels we have historically. These projects are no longer relevant to our forward business strategy and divert critical resources away from essential breeding, production, and other commercialization deliverables essential to successful launch of our high-value health and nutrition products. As such, we expect these revenues to be lower this…

Thanks, Matt. Before we get to your questions, I just like to summarize our results for the first quarter of 2018. The first quarter was a great start to the year as we execute on our strategy of transitioning to a health and nutrition ingredients company. We raised $10 million in capital to fund our growth plan. Our fiscal discipline continued as we lowered our operating costs and reduced our operating losses. We launched our GoodWheat brand and achieved key milestones in Resistant Starch and Reduced Gluten wheat products. And our ag productivity traits continue to make advances through successful trials of our rice lines and completion of drought tolerant soybean trials. With that, I’d like to turn the call over to your questions now.

[Operator Instructions] Your first question comes from the line of Ram Selvaraju from H.C. Wainright, your line is open.

Hi. Thank you for taking the questions. This is Karthik on for Ram.

Hi Karthik.

Hi. What is the likelihood that the FDA and the EPA might elect to formulate rules that aren’t incongruence with the recent guidance provided by the USDA, indicating that crops produced using techniques like gene editing aren’t subject to regulation any different to those applied to crops produced using traditional breeding techniques?

What we know – we’ve seen the USDA declaration regarding gene editing and the regulatory processes. So they are essentially – what USDA has said is that these crops would not be regulated if they are produced by gene editing process. What the EPA and FDA will do we’re not sure yet. All the indications are so far that as long as you’re not adding a foreign gene or a gene source from a foreign organism to the transformed crop, they would not be regulated.

Perfect. And then in regards to product candidates. How many different product candidates have been created thus far using TILLING? And what’s the current average time from concept to crop cultivation for a candidate originating from this platform?

So from TILLING, today, we have four traits in wheat that are in the pipeline. These are Resistant Starch and Reduced Gluten that we’ve been talking about. We also have an extended shelf life trait that is in development. We also have some yield increase traits, again, from the TILLING platform and wheat. And we’re working on some other quality traits that are very early in the pipeline. We are also working on some soy products, in terms of soy quality, to improve soy quality. So currently, I would say we have probably five to six active candidates in the pipeline. And we have a fairly rich pipeline that we’ll deliver and we’ll be launching products for several years out of this current pipeline.

I see. And when is the food additive petition for use of SONOVA GLA in cat food slated to be approved?

We expect that literally any day now. That has been submitted and we’ve received indications that it would be approved. But until it actually appears in the federal register, we have to wait for that. So we’re currently waiting for that.

Okay.

And you asked another question earlier, Karthik, about the timelines. TILLING process takes about five to seven years from discovery to commercialization of TILLING derived trait.

All right. And one more question. What is likely to be the timing of RS Wheat flour product rollout in the U.S.?

So the RS product, we expect to see some early sales in the next 12 to 24 months period. And like I said earlier in the call, we’re testing it with consumer goods companies – food companies who have our material and are putting it into formulations. They will be doing the market – quality testing and then also market testing with consumers before we can start to get some sales. But that’s what we are focused on right now is bringing it to market as quickly as possible.

Awesome, thank you. I am going to jump out of queue now, but thanks for the information.

Thank you.

And I’m showing no further questions at this time. I’d like to turn the call back over to Raj Ketkar for closing remarks.

Thanks, everyone, for joining the call, and your continued interest in Arcadia. We look forward to speaking with you again in 2018 during our next quarterly call. Thank you.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude the program, and you all may disconnect. Everyone, have a wonderful day.