CDZIHIGH SIGNALFINANCIAL10-K

Cadiz significantly restructured its Mojave Groundwater Bank financing strategy, securing a $51 million credit facility from Lytton Rancheria while experiencing substantial cash depletion and increased debt burden.

The company abandoned its previous MGSC financing structure in favor of a new partnership with a Native American tribe, suggesting challenges in securing the originally planned investor commitments. The substantial decline in cash position to $8.6 million combined with increased debt to $78.3 million creates heightened liquidity concerns, particularly given the company's continued operating losses and capital-intensive water infrastructure projects.

Comparing 2026-03-31 vs 2025-03-28View on EDGAR →
FINANCIAL ANALYSIS

Despite revenue growing substantially to $16.3 million, Cadiz's financial position deteriorated meaningfully with cash declining by half to $8.6 million and total debt increasing 29% to $78.3 million. Operating losses persisted at $25.6 million while stockholders' equity contracted to $23.3 million, reflecting the ongoing cash burn from infrastructure development. The modest improvement in operating cash flow to negative $18.9 million provides limited relief given the company's substantial capital requirements and weakened balance sheet position.

FINANCIAL STATEMENT CHANGES
Revenue
P&L
+69.8%
$9.6M→$16.3M

Strong top-line growth of 69.8% — accelerating demand or successful expansion into new markets.

Inventory
Balance Sheet
-62.3%
$3.0M→$1.1M

Inventory drawn down 62.3% — strong sell-through or deliberate destocking; watch for supply constraints.

Cash & Equivalents
Balance Sheet
-50.3%
$17.3M→$8.6M

Cash declined 50.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Current Assets
Balance Sheet
-37.8%
$25.8M→$16.1M

Current assets declined 37.8% — monitor working capital adequacy and short-term liquidity.

Stockholders Equity
Balance Sheet
-31.5%
$34.0M→$23.3M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Total Debt
Balance Sheet
+29.2%
$60.6M→$78.3M

Debt rose 29.2% — additional borrowing for investment or operations; monitor coverage ratios.

Accounts Receivable
Balance Sheet
+22.4%
$4.6M→$5.6M

Receivables grew 22.4% — monitor days sales outstanding for collection efficiency.

Total Liabilities
Balance Sheet
+17%
$100.5M→$117.7M

Liabilities increased 17% — monitor debt-to-equity ratio and interest coverage.

Operating Cash Flow
Cash Flow
+12.1%
-$21.5M→-$18.9M

Operating cash flow grew 12.1% — strong conversion of earnings to cash, healthy business fundamentals.

Operating Income
P&L
-10.1%
-$23.2M→-$25.6M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-28
ADDED
cdzi20251231_10k.htm 0000727273 CADIZ INC false --12-31 FY 2025 true true true false true The Committee receives periodic reports from management on our cybersecurity risks.
true false false false false true false 23,249 7,880 31,129 11 31,140 36,246 0.53 0.01 0.01 100,000 100,000 329 329 329 329 8.875 8.875 0.01 0.01 7,500 7,500 2,300 2,300 2,300 2,300 0.01 0.01 100,000,000 100,000,000 83,213,589 83,213,589 75,353,889 75,353,889 8.875 2,220 8.875 2,210 8.875 2 2 0 0 5 45 5 15 5.7 11 115,000 7 7 8 8 7 7 7 2021 2022 2023 2024 2025 3 4 0 329 0.001 2,300 3 3 1 625,000 420 420 420 420 http://fasb.org/us-gaap/2025#GainLossOnDerivativeInstrumentsNetPretax California represents the full tax effect in this category.
As of March 25, 2026 the Registrant had 83,424,366 shares of common stock outstanding.
To finance construction of all improvements and required facilities to operate the Mojave Groundwater Bank project including the Northern Pipeline, Southern Pipeline and related facilities, we established a new special purpose business entity, Mojave Water Infrastructure Company LLC ( MWI ), that will fund these capital costs in partnership with public sector, tribal and other investors.
In October 2025, we entered into a definitive agreement ( Lytton Credit Agreement ) with Lytton Rancheria of California, a federally recognized Native American Tribe ( Lytton ), pursuant to which we may require Lytton to provide up to $51 million in an unsecured loan facility, convertible into a majority interest in the storage cash flows from the Mojave Groundwater Bank ( Storage Cash Flows Right ), which Lytton would then contribute to MWI, in exchange for equity interests in MWI on the same economic terms offered to other equity investors in MWI.
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REMOVED
As of March 26, 2025 the Registrant had 81,785,011 shares of common stock outstanding.
These agreements cumulatively represent approximately 85% of the full capacity (25,000 AFY) of the Northern Pipeline.
To finance the estimated $800 million capital cost to bring the Northern Pipeline, Southern Pipeline and related facilities online to provide supply and storage to public water systems, in December 2024, we established a new business entity, Mojave Groundwater Storage Company LLC ( MGSC ) for public and private investors to take an ownership interest in the facility assets in exchange for equity capital to fund construction.
As of March 2025, we have entered into letters of intent and a letter of agreement with potential MGSC investors for up to $425 million.
The letters of intent and letter of agreement are non-binding and subject to on-going due diligence.
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