Good afternoon, and welcome to Arcadia Biosciences’ Fourth Quarter and Full-Year 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 2, 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 recent filing 10-K and again, on Slide 2 of this presentation. With that, I'll now turn the call over to Raj Ketkar, President and CEO. You may begin.

Thank you, Victor, and thanks to everyone who is joining us on the call. I'm joined today by Matt Plavan, CFO of Arcadia; and now additionally, the President of Arcadia Specialty Genomics. We recently announced the formation of this new strategic business unit and look forward to talking about this new venture today. I'll start by summarizing our overall 2018 accomplishments, including in the fourth quarter before I turn it over to Matt to talk about Arcadia Specialty Genomics and review our financial performance. Turning to Slide 3, 2018 was a transformative year for Arcadia. We emerged as a health and nutrition ingredients company serving the food industry. It was a year of many accomplishments across our business, and we are now well-positioned to complete our transition to a commercially focused company bringing high value, non-GM wheat ingredients to the health and nutrition food industry. Some of the significant highlights of 2018 include, establishing the GoodWheat brand, achieving key – technical milestones in amylose levels in our Resistant Starch wheat lines, adding Reduced Gluten wheat to the GoodWheat line of products, building partnerships with key players in the wheat value chain, including wheat growers to grow seed and grain, several food companies who are testing our ingredients in their food product, and wheat milling companies like Ardent Mills. In the fourth quarter, we announced our collaboration with Ardent Mills for the development of innovative wheat technologies. The first product will be a patented approach to extend shelf life and improve the taste of whole wheat flour. Ardent Mills is North America's premier milling company with more than 40 milling operations across the U.S., Canada, and Puerto Rico. The project with Ardent Mills introduces this trait designed to extend whole wheat shelf life by slowing the enzymatic processes that produce bitterness…

Thanks Raj, and good afternoon, everyone. It was just 30 days ago that we announced our decision to turn our considerable and unmatched expertise in plant transformation to a new crop for us, cannabis, focusing exclusively in federal and state legal markets. With the establishment of our strategic business unit, Arcadia Specialty Genomics, we declared our ambition not just to enter the space, but to establish early on a leadership position by extending our reputation in traditional agriculture as a leading -science driven company into the burgeoning U.S. cannabis category. As of today, Arcadia Specialty Genomics is up and running with a research operation focused on optimizing and standardizing the cannabis plant across a number of critical quality and productivity value targets. I'm honored and inspired to lead this important new endeavor and very appreciative of Raj and the Board's confidence in me to execute our strategy in this promising new frontier. I will also retain my role as CFO with continued emphasis on maximizing shareholder value at Arcadia. If you'll turn to Slide 6, I'd like to start by telling you why we made the decision to enter the cannabis market and why now. Starting with why cannabis, well, in fact, it is because cannabis has been illegal in most of the industrialized world and banned as an agricultural crop until very recently that makes it such a right and potentially enormous opportunity for Arcadia. That sounds strange I know, but having been an illegal crop, the cannabis plant has not benefited from a concerted breeding effort to improve its agronomic performance in the way all conventional crops has. As you can see by the stats on Slide 6, due to two major green revolutions over the past 50 years or so, productivity gains and improvements in caloric content…

Thanks, Matt. Before we get to your questions, I'd like to summarize our results for the fourth quarter and full-year 2018, during which we made good progress towards commercialization of key product. 2018 was a transformative year for Arcadia as we delivered significant regulatory, commercial and scientific advancements in wheat, soy, tomato and safflower. We emerged as a commercially focused health and nutrition ingredients business serving the food and consumer packaged goods industries. We established the GoodWheat brand achieved key milestones in Resistant Starch wheat and established Reduced Gluten wheat on the commercial track. We announced our collaboration with Ardent Mills, which is an exciting development towards the commercialization of our wheat technology. We received the U.S. patent for extended shelf life wheat, which adds to our overall portfolio of intellectual property relating to wheat product. We completed development of recipes of popular foods containing GoodWheat and expanded our list of food companies around the globe testing GoodWheat and their products. We received approval from Argentina, regulatory authorities for HB4 stack with Herbicide Tolerant Trait which will expand the market for HB4 soybeans. HB4 showed good performance in severe drought conditions in Argentina and we are now awaiting import approval in China, so that we can commercially launch HB4 soybeans in Argentina. Extended Shelf Life tomatoes developed by a non-GM TILLING technology also reached an important milestone and are moving towards commercialization in India. We are now well positioned in 2019 to apply our years of expertise to a new crop, cannabis with the formation of Arcadia Specialty Genomics dedicated to improving the plant quality, productivity, consistency and climate resilience of cannabis working initially in hemp. This is a natural evolution of our business, consistent with Arcadia's focus as a consumer-driven agricultural technology company, developing and commercializing innovative food ingredients, nutritional oils and products that improve crop productivity, nutritional quality and value. We are excited about our new journey in the health and nutrition ingredients business and we look forward to reporting our continuing positive results next quarter. With that, I'd like to turn the call over to your questions now.

[Operator Instructions] And our first question comes from the line of Ben Klieve from National Securities. You may begin.

Hi, thank you. And handful of questions here. First, regarding GoodWheat, I'm curious if you anticipate a 100% of your acreage that's in the ground to date to convert to revenue this year and next year, or is there any kind of meaningful percent that can be converted into seed in and harden and won't hit the income statement?

I think what we have in the ground today, Ben, includes some seed bulk up, it includes some production of grain and it also includes testing of various lines. So we have a lot of different things in the ground that will go in spring. We expect some of it to convert to sales this year. We're pretty confident that we will get first sales of GoodWheat product before the end of the year 2019 for sure. But right now, we can't quite predict exactly how much that will be.

Got it. Fair enough. Perfect. And then on the HB4 side, a couple of questions. I’d assume you have seed inventory on the shelves set to deploy when the Chinese approval comes. Is that accurate?

Yes, we've got some small – it's limited to what we were approved to produce in Argentina as far as seed production goes. So yes, we will have some seed available for sales as soon as we get approvals. As we now look at the plant and [indiscernible] seeds into U.S., so commercial planting has happened around the December time frame, so we're hoping that we get approval by then so that farmers can plant.

And actually, you read my mind, Raj. My next question was going to be the Chinese approval, is there a kind of a date that we really need to – is there a date that you're looking for that approval to really ensure that you'll be able to sell this – sell your product here at late this year or early next year as opposed to having again pushed to the right by, I mean, what's kind of the cutoff point that you're really looking at?

I wish I had a crystal ball to give you an exact date. When it comes to regulatory approvals in any country, China or any other, it's really hard to predict the date because, those are factors completely out of our control. We submit the data and they take their time to review everything. So we hope that even if we get it by November, we should be able to supply product to farmers, so that they can plant in December. If it comes later than that it'll probably slip into the next season or we might have to find some locations in Argentina which are planting late and where it could still be able to plant, but we're really looking for November approval.

Got it. Perfect. And then transitioning to the cannabis side, a couple of questions here. As I understand that the development of cannabis, Matt, you commented that the germplasm is pretty fragmented, but my understanding is that it's also relatively inaccessible. I'm wondering if you can talk a bit about that aspect of the market and really what you're doing to gain access to germplasm to really enable your development efforts to take off?

It is accessible and increasingly accessible, and certainly through our license programs, we're getting access to a fair variety. So I think that it's a positive because this is an instance, where we're going to be able to acquire, innovate, protect, and own germplasm and build in a state of our own, which as you know would be very, very difficult to do in traditional crops right now. But I think, we have early access to some important lines not only through our Hawaii license and research program, but through, as I mentioned on the call, it’s been a lot of inbound interest since our announcement from potential collaborators and many of them do have access to germplasm. And so we're seeing actually a pretty good availability to do what we want to do and what we're able to do, and certainly, as part of building that germplasm library or a state if you will, will be bulking up and breeding on our own, therein creating the necessary library and supply for what we want to do.

Okay. Perfect. Thank you. I guess one last one for me and I'll get back in queue here. As you look to OpEx in 2019, Matt, you may have elaborated on this in your comments and I apologize if I missed it, but do you expect any kind of uptick in either SG&A or R&D here as your efforts towards commercialization pick up or the genomics business picks up or the kind of $4.5 million quarter run rate for OpEx that you've had here for a while going to be a good one for the next year?

I didn't cover that in my comments, so thanks for asking. I think when you look at 2018, we were at what $3.5 was our average 14 in total was the burn for the year. I do see an uptick, both from – our move into cannabis, and we are reinvesting in the business, so to speak. I think the last two years, we really wanted to, as we were kind of reconfiguring things, we wanted to take a hard look at how we were deploying capital and how best to redeploy to the new initiatives, and that allowed us to cut our operating expenses pretty significantly 20% to 30% during 2016 and 2017, but now we're talking about really ramping up and growing, being commercial and really getting back into the innovation phase. So I think cannabis is going to add maybe 10% to our burn, not a significant number, it doesn't significantly change our – what we need to implement our near-term plan, but it certainly will start to drive OpEx a little bit in the other direction. Not significant, but maybe I think the number you used $4.5 for quarter would be safe for 2019.

Okay. That's perfect. Thanks for the color. Yes, thank you both. I'll get back in line.

Okay. Thanks, Ben.

Thank you. And I'm showing no further questions at this time. I'd like to turn the call back 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 during our first quarter 2019 conference call.

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