CADIZ INC (CDZI) SEC Filings & Earnings Calls

Going concern risk

“The Company incurred losses of $20.0 million for the six months ended June 30, 2026... had working capital of $1.6 million at June 30, 2026 and used cash in its operations of $12.2 million.”

Revenue concentration and decline

“Total revenues declined 76% YoY in Q2 2026, driven by reduced filter sales in ATEC.”

Debt service and covenant risk

“Total debt $87M (current + long-term) with effective interest rate 15.4%; covenants may restrict operations.”

Construction cost overrun risk mitigated by GMPs but still subject to owner-procured equipment pricing.

“owner-procured equipment and materials subject to contractual pricing, purchase options or supplier quotations” · word for word

Transition risk during CFO change, though orderly with advisory period.

“Stanley Speer to retire after 17 years; advisory role through Dec 31, 2026”

Delivery subject to contractual conditions and construction completion.

“delivery of which remains subject to the satisfaction of certain contractual conditions and completion of the necessary construction” · word for word

Going concern risk / liquidity

“The Company incurred losses of $ 8.6 million for the three months ended March 31, 2026... If the Company cannot raise needed funds, it might be forced to make substantial reductions in its operating expenses, which could adversely affect its ability to implement its current business plan and ultimately its viability as a company.” · word for word

Revenue concentration / decline

“Total revenues $ 1,632 $ 2,954 (44.7% decline YoY)” · word for word

Debt burden / interest expense

“Interest expense, net ( 2,465 ) (2,057 ) (20% increase YoY)” · word for word

Dilution risk from authorized share increase

“The additional shares of our common stock that would become available for issuance if this proposal is adopted... could be used by us to oppose a hostile takeover attempt or to delay or prevent changes in control or our management.” · word for word

Key person / succession risk

“CEO compensation heavily tied to milestone achievements; cancellation of some RSUs indicates potential adjustments.”

Project execution risk

“The Company's business plan and goals are linked to the development of our diverse land and water assets... which are largely pre-revenue” · word for word

Project Financing Risk

“We are currently engaged in the completion of due diligence with private equity investors for up to a targeted $400 million in equity commitment to MWI. Any agreements announced with these potential investors are not binding and there is no guarantee that we will be able to enter into binding definitive agreements.” · word for word

Revenue Generation Risk

“We have not received significant revenues from these development activities to date and we cannot predict with certainty when, if ever, we will receive operating revenues from these business segments sufficient to offset the costs of our development activities.” · word for word

Cost Overrun Risk

“the estimated cost to construct all required facilities to complete the Mojave Groundwater Bank... have increased from our previous estimate of approximately $800 million to our current estimate of between $1.25 and $1.5 billion.” · word for word

Regulatory Approval Risk

“Prior to operating the Northern Pipeline for water conveyance, we require change of use authorizations from the BLM, the Air Force, and the California State Lands Commission ("CLSC"). We have filed applications with each agency for these authorizations, and these applications are all in process.” · word for word

Debt Service Risk

“As of December 31, 2025, we had total indebtedness outstanding to our lenders of approximately $78.3 million, of which $63.3 million is secured by our assets.” · word for word

Project Financing Risk

“We are currently engaged in the completion of due diligence with the other potential investors in MWI for the contribution of up to $400 million of equity into MWI... Any agreements announced with these potential investors are not binding and there is no guarantee that we will be able to enter into binding definitive agreements.”

Revenue Generation Risk

“We have not received significant revenues from our water supply, storage, or conveyance assets to date.” · word for word

Debt Service Risk

“Net interest expense totaled $6.2 million during the nine months ended September 30, 2025 compared to $5.9 million during the same period in 2024.” · word for word