What Cadiz, Inc. told the SEC could break it.

Cadiz's core supply, storage and pipeline assets are concentrated in a single remote location in eastern San Bernardino County (Mojave Desert), tying the company's value to that one site and its water rights/permitting.

“The Company's supply, storage and pipeline assets are located in a remote area of eastern San Bernardino County that sits at the crossroads of major highway, rail, energy, and water infrastructure between California's primary water supply systems, the Colorado River Basin and the State Water Project.”

Cadiz depends on continued debt/equity financing to fund its capital-intensive water projects — drawing on a $51M Lytton unsecured term loan and pursuing up to $194M of EPA WIFIA federal financing for the Northern Pipeline conversion — with limited liquidity to raise capital.

“Under the Lytton Credit Agreement, at our election we may draw, as an unsecured term loan, up to $51 million in one or more installments beginning on the Effective Date and ending April 30, 2027. We made an initial draw of $15 million for reimbursement of Mojave Groundwater Bank project expenses and to support development activities in November 2025 and a second draw of $15 million in March 2026.”

Cadiz's pipeline build-out depends on large quantities of steel pipe; it has secured a 3-year option to purchase up to 180 miles of 36-inch steel pipe at $155/linear foot, exposing the project to steel pricing and availability.

“The option agreement for the purchase of up to 180 miles of existing 36” steel pipe provides a 3-year option to purchase all or part of the pipeline assets at $155 per linear foot for a $5 million initial payment with certain rights to credit the initial payment against final purchase.”