Good afternoon, and welcome to Arcadia Biosciences Fourth Quarter Year-end 2021 Earnings Conference Call. Today’s presenters will be Stan Jacot, President and CEO; 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 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. With that, I will now turn the call over to Stan Jacot, President and CEO.

Thank you, and welcome to our fourth quarter and full year 2021 conference call. I’m excited to speak with you today about the progress Arcadia has made in recent months as well as the plans we have in place to complete the transition from a bioscience company to one focused on bringing innovative, plant-based health and wellness products to the consumer marketplace. Arcadia had an unprecedented year of transition. The acquisitions from 2021 have broadened our reach within the health and wellness sector by entering the coconut water, topical pain relief and body care categories. In addition, we have made tremendous progress in becoming a CPG-driven company by adding new talent, sharpening our focus on the GoodWheat retail launch and winding down some of our existing noncore businesses, such as GoodHemp and Archipelago. We see significant opportunities to grow our business by accelerating the monetization of our GoodWheat portfolio, commercializing and scaling our consumer brands and evaluating future acquisition opportunities. Later in the call, Pam will walk you through the financial results, but I wanted to start by introducing myself as well as providing a background on some of the strategic work that has already taken place since I came on board as CEO in February. I have spent the last 3 decades growing CPG brands across dozens of categories. During this time, I’ve had the privilege of leading well-recognized brands and Fortune 100 companies as well as scaling small brands and launching new innovations and start-up environments. In my most recent role, I led several first-to-market new products in multibillion-dollar categories, resulting in a compound annual growth rate of more than 30%. I’m a hands-on operator, and my experience has taught me that success requires an agile, responsive organization across all functions in order to foster fast decision-making and…

Thank you, Stan. As Stan mentioned at the onset of the call, we have spent considerable time evaluating our business lines, determining which ones to grow and build and which ones to deemphasize. Acting on some of those decisions has had an impact on our financials, primarily in the fourth quarter, which is reflected in my commentary here. Total revenues recognized for the year were $6.8 million compared to $8 million during 2020, with the majority of the decrease driven by the license revenue generated from the transactions executed with Bioceres in 2020 that were not present in 2021. Revenue recognized during 2021 was primarily composed of product sales of the wellness brands acquired this May. Total operating expenses in 2021 were $42.3 million compared to $20.8 million in 2020. The unfavorable variance of $21.5 million was largely due to a gain in the amount of $8.8 million on the sale of our membership interest in Verdeca to Bioceres in 2020, which served as a credit against total operating expenses that year. In addition, we have recorded write-downs and impairment losses in 2021 of $10.4 million that had a negative impact on product cost of sales, R&D and SG&A. As a reminder, total operating expenses includes these 3 categories. Cost of product revenues were $8.7 million in 2021, primarily wellness brands product costs, while 2020 totaled $5.2 million. Both years included several inventory write-downs resulting from net realizable value and quality adjustments to wheat and hemp, and changes in the hemp industries regulatory framework triggered a significant write-down of hemp biomass in 2020. Research and development expenses were $3.9 million in 2021 as compared to $8 million in 2020. The downward trend in line with our pivot from an R&D-driven company to one focused on bringing commercial products to the…

[Operator Instructions] And our first question comes from Ben Klieve from Lake Street Capital.

Welcome aboard, Stan. Looking forward to seeing your strategy here on full and in coming quarters. Good to speak to you here finally. Got a handful of questions. I’ll start with a couple on the quarter itself. No, actually, not on the quarter itself. Let me ask you a couple of questions about kind of the high-level strategy, Stan, that you outlined. It sounds like hemp is pretty decidedly noncore at this point. My question is, are you looking to develop the products that leverage -- that integrates CBD, like ProVault, with inputs that are grown by Arcadia developed genetics? Or is the CBD that you’re going to be using for those products, something you’re just going to be buying from other industry sources?

Well, what’s nice is that we have the option. So we’ve harvested 22,000 pounds of biomass already due to our relationship with Archipelago. And so we have the capability to use that in our own products. But as always, we’ll be looking for the best opportunities to get the best cost.

Okay. And then kind of a similar question but on the wheat side, the IP that’s been developed by the company over the last decade in the wheat portfolio is something that looks like you’re clearly trying to monetize via your packaged goods. Is -- how do you view that IP now? Is that something that’s core to retain? Or do you think there’s an opportunity for you guys to kind of monetize that IP given the shift in strategy that you have?

Well, again, as you’ve mentioned, we do have a large portfolio of patents. We have 33 patents related to wheat. So we have a lot of opportunities to do both. But for now, what we’re really focused on is expanding our IP into consumer categories within the store.

Got it. Got it. Okay. Perfect. And then another question on the wheat side. I mean you’ve mentioned millions of pounds of GoodWheat are sending in inventory. This is a business that for a while has had a series of inventory write-downs. I guess I’m curious, the status of the wheat that’s on the shelf here, what the shelf life looks like. And your kind of confidence that this is going to be converted here into inventory, in the finished good inventory here relatively soon and not be exposed to write-downs.

Ben, it’s Pam. I can take this question. You’re right. We do have quite a bit of inventory on hand, and we are still working for our projections about the timing of when we can use that wheat internally, and we are also exploring options with partners on the best use of some of that wheat that we do have in inventory.

Okay. Perfect. And then last one for me. Again, kind of a question here on kind of the strategic shift. And the legacy B2B relationships that had been in place with organizations like Bay State Milling and Ardent Mills with the shift that you have, do you see those relationships still ongoing? Or because of the shift, are you guys going to be terminating those relationships?

We absolutely see them as valuable partners. And as a matter of fact, the shift in Arcadia towards more of a consumer product organization means there’s less competition. And so we feel that our partnership is only going to get stronger.

Got it. Very good. Well, all good stuff. Very interesting. And Stan, best of luck here rolling out what I know is a lot of different initiatives at the same time.

And I am showing no further questions. I would now like to turn the call back to Stan Jacot for closing remarks.

Well, great. Thank you. I’d like to thank everyone for joining us today. It is a very exciting time here at Arcadia. So we’re fast approaching the bid we pass to launch, and there are many other initiatives underway. And so we feel we are really well positioned to execute on these plans we’ve laid out and look forward to reporting our progress to you in May. So thank you again for joining. Have a great afternoon, everyone.

Thank you. This concludes today’s conference call. You may -- thank you for participating. You may now disconnect.