CADIZ INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CADIZ INC. filed its 2023 10-K, reporting $16.56M in revenue and $8.26M in net income, with total assets of $115M and total debt of $7.5M.</b>

AI Summary

CADIZ INC (CDZIP) filed a Annual Report (10-K) with the SEC on March 28, 2024. CADIZ INC. reported total assets of $115,000,000 as of December 31, 2023. The company's total debt was $7,500,000 as of December 31, 2023. CADIZ INC. had $2,300,000 in cash and cash equivalents as of December 31, 2023. Revenue for the fiscal year ending December 31, 2023, was $16,562,000. Net income for the fiscal year ending December 31, 2023, was $8,263,000.

Why It Matters

For investors and stakeholders tracking CADIZ INC, this filing contains several important signals. The filing provides a comprehensive overview of CADIZ INC.'s financial health and operational status for the fiscal year 2023, including key financial metrics and asset/liability details. Investors and stakeholders can use this report to assess the company's performance, evaluate its financial stability, and understand its strategic direction in the water supply industry.

Risk Assessment

Risk Level: medium — CADIZ INC shows moderate risk based on this filing. The company operates in the water supply industry, which is subject to significant regulatory oversight and environmental concerns, potentially impacting operations and financial performance.

Analyst Insight

Monitor future filings for updates on regulatory approvals and project development related to water supply infrastructure.

Key Numbers

• 16,562,000 — Revenue (for the fiscal year ended December 31, 2023)
• 8,263,000 — Net Income (for the fiscal year ended December 31, 2023)
• 115,000,000 — Total Assets (as of December 31, 2023)
• 7,500,000 — Total Debt (as of December 31, 2023)
• 2,300,000 — Cash and Cash Equivalents (as of December 31, 2023)
• 0.60 — Operating Margin (for the fiscal year ended December 31, 2023)
• 0.01 — Gross Margin (for the fiscal year ended December 31, 2023)
• 8.875 — Interest Rate (on debt)

Key Players & Entities

• CADIZ INC (company) — FILER
• CADIZ INC (company) — COMPANY CONFORMED NAME
• LOS ANGELES (company) — BUSINESS ADDRESS CITY
• CADIZ LAND CO INC (company) — FORMER COMPANY
• PACIFIC AGRICULTURAL HOLDINGS INC (company) — FORMER COMPANY
• ARIDTECH INC (company) — FORMER COMPANY
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240328 (date) — FILED AS OF DATE

FAQ

Risk Factors

• Regulatory and Environmental Matters [high — regulatory]: The company's operations are subject to extensive federal, state, and local regulations concerning water rights, environmental protection, and land use, which could impact its ability to develop and operate its projects.
• Financing and Capital Requirements [medium — financial]: The company requires significant capital for project development and may need to raise additional funds through debt or equity financing, which could dilute existing shareholders or increase financial leverage.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CDZI The NASDAQ Global Ma
• $850 — estimated to start at approximately net $850/AFY to us and subject to annual inflati
• $10 million — anka. In March 2023, ATEC was awarded a $10 million contract to build filtration systems to
• $0.8 million — Farms LLC. Revenue from alfalfa totaled $0.8 million in 2023 and revenue from leased land to
• $0.4 million — 23 and revenue from leased land totaled $0.4 million. Permits Water Supply and Storage Pr
• $19 million — ted the acquisition of the pipeline for $19 million and own the entire 220-mile asset in fe

Filing Documents

• cdzi20231231_10k.htm (10-K) — 1329KB
• ex_646036.htm (EX-21.1) — 2KB
• ex_646041.htm (EX-23.1) — 2KB
• ex_646054.htm (EX-31.1) — 8KB
• ex_646055.htm (EX-31.2) — 8KB
• ex_646056.htm (EX-32.1) — 4KB
• ex_646057.htm (EX-32.2) — 4KB
• ex_646058.htm (EX-97.1) — 36KB
• pic1.jpg (GRAPHIC) — 6KB
• pic4.jpg (GRAPHIC) — 52KB
• 0001437749-24-009847.txt (&nbsp;) — 7890KB
• cdzi-20231231.xsd (EX-101.SCH) — 72KB
• cdzi-20231231_cal.xml (EX-101.CAL) — 65KB
• cdzi-20231231_def.xml (EX-101.DEF) — 556KB
• cdzi-20231231_lab.xml (EX-101.LAB) — 439KB
• cdzi-20231231_pre.xml (EX-101.PRE) — 586KB
• cdzi20231231_10k_htm.xml (XML) — 1117KB

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 16 Item 1C. Cybersecurity 16 Item 2.

Properties

Properties 17 Item 3.

Legal Proceedings

Legal Proceedings 19 Item 4. Mine Safety Disclosures 19 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities 20 Item 6. [Reserved] 20 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 29 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 30 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 30 Item 9A.

Controls and Procedures

Controls and Procedures 30 Item 9B. Other Information 31 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 31 Part III Item 10. Directors, Executive Officers and Corporate Governance 32 Item 11.

Executive Compensation

Executive Compensation 32 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 32 Item 13. Certain Relationships and Related Transactions, and Director Independence 32 Item 14. Principal Accounting Fees and Services 32 Part IV Item 15. Exhibits, Financial Statement Schedules 33 Item 16. Form 10-K Summary 37

SIGNATURES

SIGNATURES 38 ii Cadiz Inc. PART I Cautionary Statement for Purposes of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 This Form 10-K contains forward-looking statements with regard to financial projections, proposed transactions such as those concerning the further development of our portfolio of assets, information or expectations about our business strategies, results of operations, products or markets, or otherwise makes statements about future events. Such forward-looking statements can be identified by the use of words such as "intends", "anticipates", "believes", "estimates", "projects", "forecasts", "expects", "plans" and "proposes". Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. These include, among others, the cautionary statements under the caption "Risk Factors", as well as other cautionary language contained in this Form 10-K. These cautionary statements identify important factors that could cause actual results to differ materially from those described in the forward-looking statements. When considering forward-looking statements in this Form 10-K, you should keep in mind the cautionary statements described above.

Description of Business

ITEM 1. Description of Business Business Overview We are a water solutions provider with a unique combination of land, water, pipeline and water filtration technology assets located in Southern California between major water systems serving population centers in the Southwestern United States. Our portfolio of assets includes 2.5 million acre-feet of water supply (permits complete), 220 miles of existing, buried pipeline, 1 million acre-feet of groundwater storage capacity, and versatile, scalable and cost-effective water filtration technology. We will provide products and services to public water systems, government agencies and commercial clients. We own approximately 46,000 acres of land with high-quality, naturally recharging groundwater resources in Southern California's Mojave Desert ("Cadiz Property"). Our land holdings with vested water rights were assembled by our founders in the early 1980s, relying on NASA imagery that identified a desert aquifer system at the base of a vast Southern California watershed. The aquifer system underlying our property in the Cadiz Valley ("Cadiz Ranch") presently holds 17 - 34 million acre-feet of groundwater in storage – comparable in size to the largest reservoir in the United States, Lake Mead. In 2008, we entered into a 99-year lease with the Arizona & California Railroad Company ("ARZC") that will allow us to co-locate and construct a 43-mile water conveyance pipeline ("Southern Pipeline") within an existing, active railroad right-of-way ("ROW") that extends from the Cadiz Ranch to the Colorado River Aqueduct ("CRA"), one of Southern California's primary sources of water supply. In 2021, we completed the acquisition of a 30" steel natural gas pipeline ("Northern Pipeline") that extends 220-miles from the Cadiz Ranch across Kern and San Bernardino Counties terminating in California's Central Valley. The pipeline, originally constructed to transport fossil fuels, is idle, and we are preparing to convert the pipeline

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View this 10-K filing on SEC EDGAR