Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 15, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | MARRONE BIO INNOVATIONS INC | |
Entity Central Index Key | 0001441693 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 133,404,053 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 7,899 | $ 18,221 | |
Accounts receivable | 7,346 | 2,720 | |
Inventories | 8,832 | 8,224 | |
Prepaid expenses and other current assets | 1,933 | 971 | |
Total current assets | 26,010 | 30,136 | |
Property, plant and equipment, net | 13,477 | 14,512 | |
Right of use assets, net | 4,722 | ||
Intangible assets | 24,409 | ||
Goodwill | 7,100 | ||
Restricted cash | 1,560 | 1,560 | |
Other assets | 1,042 | 359 | |
Total assets | 78,320 | 46,567 | |
Current liabilities: | |||
Accounts payable | 1,807 | 1,692 | |
Accrued liabilities | 15,110 | 6,871 | |
Deferred revenue, current portion | 441 | 438 | |
Lease liability, current portion | 862 | ||
Debt, current portion, net | 6,590 | 2,318 | |
Total current liabilities | 24,810 | 11,319 | |
Deferred revenue, less current portion | 2,093 | 2,399 | |
Lease liability, less current portion | 4,177 | ||
Debt, less current portion, net | 11,719 | 11,819 | |
Debt due to related parties | 7,300 | 7,300 | |
Other liabilities | 3,664 | 794 | |
Total liabilities | 53,763 | 33,631 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock: $0.00001 par value; 20,000 shares authorized and no shares issued or outstanding at September 30, 2019 and December 31, 2018 | |||
Common stock: $0.00001 par value; 250,000 shares authorized, 133,404 and 110,691 shares issued and outstanding as of September 30, 2019 and December 31, 2018 | 1 | 1 | |
Additional paid in capital | 335,064 | 296,409 | |
Accumulated deficit | [1] | (310,508) | (283,474) |
Total stockholders' equity | 24,557 | 12,936 | |
Total liabilities and stockholders' equity | $ 78,320 | $ 46,567 | |
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 133,404,000 | 110,691,000 |
Common stock, shares outstanding | 133,404,000 | 110,691,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||
Revenues: | |||||||
Total revenues | $ 6,966 | $ 5,425 | $ 22,679 | $ 15,501 | |||
Cost of product revenues | 3,381 | 2,803 | 10,298 | 8,075 | |||
Gross profit | 3,585 | 2,622 | 12,381 | 7,426 | |||
Operating Expenses: | |||||||
Research, development and patent | 3,760 | 2,658 | 10,336 | 7,685 | |||
Selling, general and administrative | 9,598 | 4,161 | 21,876 | 13,938 | |||
Total operating expenses | 13,358 | 6,819 | 32,212 | 21,623 | |||
Loss from operations | (9,773) | (4,197) | (19,831) | (14,197) | |||
Other income (expense): | |||||||
Interest expense | (355) | (300) | (1,014) | (1,759) | |||
Interest expense, related parties | (451) | ||||||
Change in fair value of financial instruments | (5,177) | ||||||
Loss on extinguishment of debt, net | [1] | [1] | (2,196) | [1] | |||
Gain on extinguishment of debt, related party | [1] | [1] | 9,183 | [1] | |||
Loss on modification of warrants | (1,564) | (1,564) | |||||
Loss on issuance of new warrants | (4,751) | (4,751) | |||||
Other income (expense), net | 77 | 14 | 126 | (13) | |||
Total other income (expense), net | (6,593) | (286) | (7,203) | (413) | |||
Net loss | $ (16,366) | [1] | $ (4,483) | $ (27,034) | [1] | $ (14,610) | [1] |
Basic and diluted net loss per common share: | $ (0.14) | $ (0.04) | $ (0.24) | $ (0.15) | |||
Weighted-average shares outstanding used in computing basic and diluted net loss per common share: | 116,186 | 110,568 | 112,553 | 98,067 | |||
Product [Member] | |||||||
Revenues: | |||||||
Total revenues | $ 6,859 | $ 5,310 | $ 22,342 | $ 15,171 | |||
License [Member] | |||||||
Revenues: | |||||||
Total revenues | $ 107 | $ 115 | $ 337 | $ 330 | |||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholder's Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Memeber] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Total | ||
Balance at Dec. 31, 2017 | $ 214,921 | $ (265,572) | $ (50,651) | |||
Balance, shares at Dec. 31, 2017 | 31,351 | |||||
ASC 606 Adjustment | 2,311 | 2,311 | ||||
Net loss | [1] | (5,257) | (5,257) | |||
Settlement of restricted stock units | ||||||
Settlement of restricted stock units, shares | 228 | |||||
Issuance of RSUs for 2017 bonuses | 205 | 205 | ||||
Conversion of related party notes for common stock and warrants | [1] | 21,685 | 21,685 | |||
Conversion of related party notes for common stock and warrants , shares | [1] | 20,000 | ||||
Conversion of secured promissory notes for common stock and warrants | [1] | 6,196 | 6,196 | |||
Conversion of convertible notes for common stock and warrants | [1] | 16,843 | 16,843 | |||
Fair value of common stock and warrants issued to placement agent in connection with private placement and note conversion | 1,610 | 1,610 | ||||
Fair value of common stock and warrants issued to placement agent in connection with private placement and note conversion , shares | 800 | |||||
Issuance of common stock and warrants in private placement, net of offering costs and underwriter commissions | $ 1 | 20,310 | 20,311 | |||
Issuance of common stock and warrants in private placement, net of offering costs and underwriter commissions, shares | 32,000 | |||||
Share-based compensation | 491 | 491 | ||||
Balance at Mar. 31, 2018 | $ 1 | 282,261 | (268,518) | 13,744 | ||
Balance, shares at Mar. 31, 2018 | 102,093 | |||||
Balance at Dec. 31, 2017 | 214,921 | (265,572) | (50,651) | |||
Balance, shares at Dec. 31, 2017 | 31,351 | |||||
Net loss | [2] | (14,610) | ||||
Balance at Sep. 30, 2018 | $ 1 | 295,843 | (277,871) | 17,973 | ||
Balance, shares at Sep. 30, 2018 | 110,668 | |||||
Balance at Mar. 31, 2018 | $ 1 | 282,261 | (268,518) | 13,744 | ||
Balance, shares at Mar. 31, 2018 | 102,093 | |||||
Net loss | (4,870) | (4,870) | [2] | |||
Settlement of restricted stock units | ||||||
Settlement of restricted stock units, shares | 11 | |||||
Net settlement of options | ||||||
Net settlement of options, shares | 3 | |||||
Share-based compensation | 382 | 382 | ||||
Issuance of common stock, in follow-on offering, net of offering costs and underwriter commissions | 12,665 | 12,665 | ||||
Issuance of common stock, in follow-on offering, net of offering costs and underwriter commissions, shares | 8,366 | |||||
Balance at Jun. 30, 2018 | $ 1 | 295,308 | (273,388) | 21,921 | ||
Balance, shares at Jun. 30, 2018 | 110,473 | |||||
Net loss | (4,483) | (4,483) | ||||
Settlement of restricted stock units | ||||||
Settlement of restricted stock units, shares | 99 | |||||
Net settlement of options | ||||||
Net settlement of options, shares | 18 | |||||
Share-based compensation | 437 | 437 | ||||
Exercise of warrants | 98 | 98 | ||||
Exercise of warrants, shares | 78 | |||||
Balance at Sep. 30, 2018 | $ 1 | 295,843 | (277,871) | 17,973 | ||
Balance, shares at Sep. 30, 2018 | 110,668 | |||||
Balance at Dec. 31, 2018 | $ 1 | 296,409 | (283,474) | 12,936 | ||
Balance, shares at Dec. 31, 2018 | 110,691 | |||||
Net loss | (3,917) | (3,917) | ||||
Share-based compensation | 558 | 558 | ||||
Balance at Mar. 31, 2019 | $ 1 | 296,967 | (287,391) | 9,577 | ||
Balance, shares at Mar. 31, 2019 | 110,691 | |||||
Balance at Dec. 31, 2018 | $ 1 | 296,409 | (283,474) | 12,936 | ||
Balance, shares at Dec. 31, 2018 | 110,691 | |||||
Net loss | [2] | (27,034) | ||||
Balance at Sep. 30, 2019 | $ 1 | 335,064 | (310,508) | 24,557 | ||
Balance, shares at Sep. 30, 2019 | 133,404 | |||||
Balance at Mar. 31, 2019 | $ 1 | 296,967 | (287,391) | 9,577 | ||
Balance, shares at Mar. 31, 2019 | 110,691 | |||||
Net loss | (6,751) | (6,751) | ||||
Net settlement of options | 42 | 42 | ||||
Net settlement of options, shares | 34 | |||||
Share-based compensation | 606 | 606 | ||||
Employee stock purchase plan | 23 | 23 | ||||
Balance at Jun. 30, 2019 | $ 1 | 297,638 | (294,142) | 3,497 | ||
Balance, shares at Jun. 30, 2019 | 110,725 | |||||
Net loss | (16,366) | (16,366) | [2] | |||
Net settlement of options | 13 | 13 | ||||
Net settlement of options, shares | 13 | |||||
Share-based compensation | 742 | 742 | ||||
Employee stock purchase plan | 57 | 57 | ||||
Modification of existing warrants | 1,564 | 1,564 | ||||
Issuance of common stock in connection with call to exercise warrants | 10,000 | 10,000 | ||||
Issuance of common stock in connection with call to exercise warrants, shares | 10,000 | |||||
Issuance of new warrants in connection with call to exercise warrants | 4,751 | 4,751 | ||||
Issuance of common stock in connection with Pro Farm acquisition | 20,299 | 20,299 | ||||
Issuance of common stock in connection with Pro Farm acquisition, shares | 12,666 | |||||
Balance at Sep. 30, 2019 | $ 1 | $ 335,064 | $ (310,508) | $ 24,557 | ||
Balance, shares at Sep. 30, 2019 | 133,404 | |||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. | |||||
[2] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |||||
Cash flows from operating activities | |||||||||||
Net loss | $ (16,366) | [1] | $ (3,917) | $ (4,483) | $ (5,257) | [2] | $ (27,034) | [1] | $ (14,610) | [1] | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 1,427 | 1,427 | |||||||||
Gain on disposal of equipment | (9) | ||||||||||
Right of use assets amortization | 602 | ||||||||||
Share-based compensation | 742 | 437 | 1,906 | 1,310 | |||||||
Non-cash interest expense | 213 | 807 | |||||||||
Change in fair value of financial instruments | 5,177 | ||||||||||
Loss on extinguishment of debt, net | [1] | [1] | 2,196 | [1] | |||||||
Gain on extinguishment of debt, related party, net | [1] | [1] | (9,183) | [1] | |||||||
Loss on modification of warrants | 1,564 | 1,564 | |||||||||
Loss on issuance of new warrants | 4,751 | 4,751 | |||||||||
Net changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (4,043) | 713 | |||||||||
Inventories | (84) | 984 | |||||||||
Prepaid Expenses and other assets | (904) | (359) | |||||||||
Deferred cost of product revenues | 4 | ||||||||||
Accounts payable | (384) | (1,758) | |||||||||
Accrued and other liabilities | 6,571 | (1,794) | |||||||||
Accrued interest due to related parties | (1,614) | ||||||||||
Lease Liability | (471) | ||||||||||
Deferred revenue | (500) | (114) | |||||||||
Net cash used in operating activities | (16,395) | (16,814) | |||||||||
Cash flows from investing activities | |||||||||||
Asset purchase | (544) | ||||||||||
Business combination, net of cash acquired | (5,849) | ||||||||||
Purchases of property, plant and equipment | (218) | (496) | |||||||||
Net cash used in investing activities | (6,611) | (496) | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from issuance of common stock, net of offering costs | 34,485 | ||||||||||
Proceeds from issuance of debt | 2,000 | ||||||||||
Proceeds from secured borrowings | 24,005 | 15,402 | |||||||||
Reductions in secured borrowings | (21,123) | (15,181) | |||||||||
Net settlement of options | (14) | ||||||||||
Exercise of stock options | 55 | 7 | |||||||||
Proceeds from employee stock purchase plan | 80 | ||||||||||
Exercise of warrants | 10,000 | 98 | |||||||||
Repayment of debt | (333) | (190) | |||||||||
Net cash provided by financing activities | 12,684 | 36,607 | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (10,322) | 19,297 | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | $ 19,781 | $ 2,833 | 19,781 | 2,833 | $ 2,833 | ||||||
Cash and cash equivalents and restricted cash, end of period | $ 9,459 | $ 22,130 | 9,459 | 22,130 | $ 19,781 | ||||||
Supplemental disclosure of cash flow information | |||||||||||
Cash paid for interest | 794 | 2,698 | |||||||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||
Property, plant and equipment included in accounts payable and accrued liabilities | 5 | 30 | |||||||||
Fair value of non-cash consideration issued in acquisition transactions | 22,054 | ||||||||||
Embedded derivative liability associated with bridge loan | 573 | ||||||||||
Conversion of debt to equity | 10,000 | ||||||||||
Conversion of bridge loan (convertible note) to equity | 6,000 | ||||||||||
Conversion of debt, related party to equity | 35,000 | ||||||||||
Conversion of accrued liabilities into equity associated with the granting of restricted stock units | $ 205 | ||||||||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. | ||||||||||
[2] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Summary of Business, Basis of P
Summary of Business, Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business, Basis of Presentation | 1. Summary of Business, Basis of Presentation Marrone Bio Innovations, Inc. (the “Company”), formerly Marrone Organic Innovations, Inc., was incorporated under the laws of the State of Delaware on June 15, 2006, and is located in Davis, California. In July 2012, the Company formed a wholly-owned subsidiary, Marrone Michigan Manufacturing LLC (“MMM LLC”), which holds the assets of a manufacturing plant the Company purchased in July 2012. In September 2019 the Company closed its acquisition of Pro Farm Technologies OY, a Finnish limited company, which consisted of Pro Farm Technology OY and its five subsidiaries Pro Farm International Oy (Finland), Pro Farm OU (Estonia), Pro Farm Technologies Comercio de Insumos Agricolas do Brasil ltda. (Brazil – 99% controlling interest), Pro Farm Inc. (Delaware), and Glinatur SA (Uruguay) (collectively “Pro Farm”). As a result of the acquisition, Pro Farm became a wholly-owned subsidiary of the Company. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company makes bio-based pest management and plant health and nutrition products. The Company targets the major markets that use conventional chemical pesticides, including certain agricultural and water markets where its bio-based products are used as alternatives for, or mixed with, conventional chemical pesticides. The Company also targets new markets for which (i) there are no available conventional chemical pesticides or (ii) the use of conventional chemical pesticides may not be desirable or permissible either because of health and environmental concerns (including for organically certified crops) or because the development of pest resistance has reduced the efficacy of conventional chemical pesticides. The Company delivers EPA-approved and registered biopesticide products and other bio-based products that address the global demand for effective, safe and environmentally responsible products. Going Concern, Liquidity, and Management Plans The accompanying condensed consolidated financial statements have been prepared under the assumption that the Company will continue to operate as a going concern, for the 12 months upon the issuance of these condensed consolidated financial statements, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts of liabilities that may result from any inability of the Company to continue as a going concern. As of September 30, 2019, the Company had an accumulated deficit of $310,508,000, has incurred significant losses since inception and expects to continue to incur losses for the foreseeable future. The Company had funded operations primarily with net proceeds from public sales and private placements of equity and debt securities and from term loans, as well as with the proceeds from the sale of its products and payments under strategic collaboration and distribution agreements and government grants. The Company will need to generate significant revenue growth to achieve and maintain profitability. As of September 30, 2019, the Company had working capital of $1,200,000, including cash and cash equivalents of $7,899,000. In addition, as of September 30, 2019, the Company had debt and debt due to related parties of $18,309,000 and $7,300,000, respectively, for which the underlying debt agreements contain various financial and non-financial covenants, as well as certain material adverse change clauses. As of September 30, 2019, the Company had a total of $1,560,000 of restricted cash relating to these debt agreements (see Note 7). The Company’s operating results, including historical prior periods of negative working capital, indicate that substantial doubt exists related to the Company’s ability to continue as a going concern for the next 12 months from the date of issuance of these condensed consolidated financial statements. However, the Company believes that its existing cash and cash equivalents of $3,701,000 at November 15, 2019 together with expected revenues, expected future debt or equity financings, including its ability to call outstanding warrants, and cost management as well as cost reductions will be sufficient to fund operations as currently planned through one year from the date of the issuance of these condensed consolidated financial statements. In August 2019, the Company entered into a warrant amendment and plan of reorganization agreement (the Warrant Reorganization Agreement) with certain holders of the February 2018 Warrants. Pursuant to the Warrant Reorganization Agreement, the Company has agreed to extend the expiration date under the February 2018 Warrants held by such holders from December 2020 to December 2021, and the holders have agreed, at any time the Company’s stock trades above $1.00 and upon request by the Company, to exercise up to 36,600,000 of their respective February 2018 Warrants, in consideration for the delivery of (x) the shares subject to the February 2018 Warrants so exercised and (y) the delivery of new warrants (“August 2019 Warrants”) to purchase such additional number of shares of common stock equal to the amount of shares so exercised and delivered under February 2018 Warrants. As of the date of these condensed consolidated financial statements, the Company has called the exercise of 10,000,000 shares under the February 2018 Warrants (See Note 3). In September 2019, the Company completed its asset acquisition of product lines Jet-Ag® and Jet-Oxide® and its acquisition of Pro Farm. The Company utilized an aggregate of $6,393,000 in cash to satisfy the cash consideration component of each transaction, net of the any cash acquired. Additionally, in connection with the acquisitions, the Company has incurred a total of $3,744,000 in advisory, legal and other professional services costs which have been paid or accrued for as of September 30, 2019. The Company anticipates securing additional sources of cash through equity and/or debt financings, collaborative or other funding arrangements with partners, or through other sources of financing, consistent with historic results. The Company cannot predict, with certainty, the outcome of its actions to grow revenue, to manage or reduce costs or to secure additional financing from outside sources on terms acceptable to the Company or at all. The Company has based this belief on assumptions and estimates that may prove to be wrong, and the Company could spend its available financial resources less or more rapidly than currently expected. The Company may continue to require additional sources of cash for general corporate purposes, which may include operating expenses, working capital to improve and promote its commercially available products, advance and register product candidates, expand international presence and commercialization, general capital expenditures and satisfaction of debt obligations. The actions discussed above cannot be considered probable of occurring and mitigating the substantial doubt raised by its operating results and satisfying its estimated liquidity needs for 12 months from the issuance of these condensed consolidated financial statements. If the Company becomes unable to continue as a going concern, it may have to liquidate its assets, and stockholders may lose all or part of their investment in the Company’s common stock. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial information as of September 30, 2019, and for the three and nine months ended September 30, 2019 and 2018, has been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q should be read in connection with the consolidated financial statements and accompanying notes included in the Company’s Annual Report filed on Form 10-K for the fiscal year ended December 31, 2018. In the opinion of management, the condensed consolidated financial statements as of September 30, 2019, and for the three and nine months ended September 30, 2019 and 2018, reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations and cash flows. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the operating results for the full fiscal year or any future periods. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company used significant estimates in accounting for assumptions and estimates associated with acquisition activities in determining the fair values of acquired assets, liabilities and goodwill, assumptions and estimates associated with revenue recognition, including assumptions and estimates used in determining the timing and amount of revenue to recognize for those transactions with variable considerations, fair value of warrants and financial instruments, right-of-use assets and corresponding lease liability, reserves for inventory obsolescence, fair value of stock-based compensation, and in its going concern analysis. Restricted Cash The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its June 2014 Secured Promissory Note. See Note 7 for further discussion. Concentrations of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, accounts receivable and debt. The Company deposits its cash and cash equivalents with high credit quality domestic financial institutions with locations in the U.S. and internationally. Such deposits may exceed federal or national deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due up to 120 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. The Company’s principal sources of revenues are its Regalia, Grandevo and Venerate product lines. These three product lines accounted for 85% and 95% of the Company’s total revenues for the three months ended September 30, 2019 and 2018, respectively, and 91% and 93% of the Company’s total revenues for the nine months ended September 30, 2019 and 2018, respectively. Revenues generated from international customers were 11% for each of the three months ended September 30, 2019 and 2018, respectively, and 8% and 11% for the nine months ended September 30, 2019 and 2018, respectively. Customers to which 10% or more of the Company’s total revenues are attributable for the three months ended September 30, 2019 and 2018 consist of the following: CUSTOMER A B C Three months ended September 30, 2019 26 % 13 % 10 % 2018 31 % 13 % 19 % Customers to which 10% or more of the Company’s total revenues are attributable for the nine months ended September 30, 2019 and 2018, which may or may not correspond with the customers for the periods above, consist of the following: CUSTOMER A B C Nine months ended September 30, 2019 26 % 12 % 10 % 2018 22 % 12 % 20 % Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either September 30, 2019 or December 31, 2018, which may or may not correspond with any of the customers above, consist of the following: CUSTOMER A B C September 30, 2019 22 % 11 % 4 % December 31, 2018 52 % 3 % 24 % Concentrations of Supplier Dependence The active ingredient in the Company’s Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company currently relies on one supplier for this plant. Such single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company’s manufacturing plant. While the Company does not have a long-term supply contract with this supplier, the Company does have a long-term business relationship with this supplier. The Company endeavors to keep 6 months of knotweed extract on hand at any given time, but an unexpected disruption in supply could have an effect on Regalia supply and revenues. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price. The Company continues to rely on third parties to formulate Grandevo and Zequanox into spray-dried powders, for all of its production of Venerate, Majestene/Zelto, Stargus and Haven, and from time to time, third-party manufacturers for supplemental production capacity to meet excess seasonal demand and for packaging. The Company’s products have been produced in quantities, and on timelines, sufficient to meet commercial demand and for the Company to satisfy its delivery schedules. However, the Company’s dependence upon others for the production of a portion of its products, or for a portion of the manufacturing process, particularly for drying and for all of its production of Venerate, may adversely affect its ability to satisfy demand and meet delivery obligations, as well as to develop and commercialize new products, on a timely and competitive basis. The Company has not entered into any long-term manufacturing or supply agreements for any of its products, and it may need to enter into additional agreements for the commercial development, manufacturing and sale of its products. There can be no assurance that it can do so on favorable terms, if at all. The Company’s subsidiary Pro Farm currently sources all of its products from one manufacturing plant in Russia, which it owns a 12% interests. While the Company does not have a long-term supply contract with this supplier, the Company does have a long-term business relationship with this supplier. Pro Farm plans for enough inventory on hand to fill its revenue forecasts for 12 months at any given time, but an unexpected disruption in supply could have an adverse effect on the Pro Farm subsidiary’s supply and revenues. Although the Company has identified additional manufacturers who are capable to produce its products, there can be no assurance that the Company will continue to be able to obtain products at a competitive price. Deferred Revenue When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring control of goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. The Company recognizes deferred revenue as net sales after the Company has transferred control of the goods or services to the customer and all revenue recognition criteria are met. The Company’s deferred revenue is broken out as follows (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Product revenues $ 348 $ 457 Financing costs 614 604 License revenues 1,572 1,776 2,534 2,837 Less current portion (441 ) (438 ) $ 2,093 $ 2,399 Revenue Recognition Product Sales. Licenses Revenues. Financing Component Revenues. Revenue recognition requires the Company to make a number of estimates that include variable consideration. For example, customers may receive sales or volume-based pricing incentives or receive incentives for providing the Company with marketing-related information. The Company makes estimates surrounding variable consideration and the net impact to revenues. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives and the likelihood that customers will achieve them. In the event estimates related to variable consideration change, the cumulative effect of these changes is recognized as if the revised estimates had been used since inception of revenue recognition under the contract. Such revisions could occur in any reporting period, and the effects may be material. From time to time, the Company offers certain product rebates to its distributors and growers, which are estimated and recorded as reductions to product revenues, and an accrued liability is recorded at the later of when the revenues are recorded, or the rebate, is being offered. Contract Assets. Contract Liabilities. Research, Development and Patent Expenses Research and development expenses include payroll-related expenses, field trial costs, toxicology costs, regulatory costs, consulting costs and lab costs. Patent expenses include legal costs relating to the patents and patent filing costs. These costs are expensed to operations as incurred. For the three months ended September 30, 2019 and 2018, research and development expenses totaled $3,473,000 and $2,381,000, respectively, and patent expenses totaled $287,000 and $277,000, respectively. For the nine months ended September 30, 2019 and 2018, research and development expenses totaled $9,490,000 and $6,898,000, respectively, and patent expenses totaled $846,000 and $787,000, respectively. Shipping and Handling Costs Amounts billed for shipping and handling are included as a component of product revenues. Related costs for shipping and handling have been included as a component of cost of product revenues. Shipping and handling costs for the three and nine months ended September 30, 2019 and 2018 were $281,000 and $249,000, respectively, and $998,000 and $705,000, respectively. Advertising The Company expenses advertising costs as incurred. Advertising costs for the three and nine months ended September 30, 2019 and 2018 were $173,000 and $192,000, respectively, and $548,000 and $794,000, respectively. Depreciation and Amortization The Company depreciates and amortizes its capitalized property, plant, and equipment and intangible assets over the useful life of each asset utilizing a straight-line method of expensing. All depreciation and amortization expenses are included in the “Selling, general, and administrative” caption in the statement of operations. As of the three and nine months ended September 30, 2019 and 2018 the total amount of depreciation expense were $359,000 and $444,000, respectively, and $1,262,000 and $1,427,000, respectively. As of the three and nine months ended September 30, 2019 the total amount of amortization expense was $165,000. No similar expense was incurred for the three and nine months ended September 30, 2018. Foreign currency Assets and liabilities have been translated to the U.S. dollar reporting currency using the exchange rates in effect on the condensed consolidated balance sheet dates. Equity accounts are translated at historical rates, except for the change in retained earnings during the year which is the result of the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rate during the period. The cumulative translation adjustments associated with the net assets of foreign subsidiaries are recorded in “Other income (expense)” in the accompanying condensed statement of operations. Segment Information The Company is organized as a single operating segment, whereby its chief operating decision maker assesses the performance of and allocates resources to the business as a whole. Net Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. The calculation of basic and diluted net loss per share is the same for all periods presented as the effect of certain potential common stock equivalents, which consist of stock options and warrants to purchase common stock and restricted stock units, and contingent shares to be issued in the future are anti-dilutive due to the Company’s net loss position. Anti-dilutive common stock equivalents are excluded from diluted net loss per share. The following table sets forth the potential shares of common stock as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive (in thousands): SEPTEMBER 30, 2019 2018 Stock options outstanding 12,056 7,256 Warrants to purchase common stock 52,647 52,725 Restricted stock units outstanding 1,918 1,049 Common shares to be issued in lieu of agent fees 498 498 Employee stock purchase plan 65 — Maximum contingent consideration shares to be issued 5,972 — 73,156 61,528 Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Leases: Amendments to the FASB Accounting Standards Codifications (“ASU 2016-02”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company adopted ASU 2016-02 in the first quarter of 2019 using the modified-retrospective method. This adoption primarily affected the Company’s condensed consolidated balance sheet based on the recording of Right-of-use assets and Lease liability, current and non-current for its operating leases. The adoption of ASU 2016-02, did not change the Company’s historical classification of these leases or the straight-line recognition of related expenses. See Note 5 for the effects of the adoption of ASU 2016-02 on the Company’s condensed consolidated financial statements as of January 1, 2019 and for the three and nine months ended September 30, 2019. The adoption of this standard had a material impact on the Company’s condensed consolidated financial statements and is expected to continue to have a material impact for the foreseeable future. In January 2017, the FASB issued Accounting Standards Updated No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business which adds guidance to assist registrants in the determination of whether an acquisition (or disposal) represents assets or a business – inputs, processes, and outputs. The update provides a screen to determine when an asset is not a business. If substantially all of the fair value of the assets acquired (or disposed) is concentrated in a single asset or a group of similar identifiable assets, the acquired assets do not represent a business. If this test is not met, the update provides further guidance to evaluate if the acquisition represents a business. The Company prospectively adopted the guidance in the third quarter of fiscal 2019. The adoption primarily impacted the Company’s condensed consolidated balance sheet based on the accounting treatment for the Jet-Ag Acquisition which could have otherwise been treated as a business combination had the acquired asset not met the screen test outlined in the ASU. The Company did not perform further analysis related to the treatment of the Jet-Ag Acquisition upon the results of the screen test. See Note 3 for the effects of the adoption of ASU 2017-01 on the Company’s condense consolidated financial statements as of July 1, 2019 and for the three and nine months ended September 30, 2019. The adoption of this standard has a material impact on the Company’s condensed consolidated financial statements and is expected to continue to have a material impact for the foreseeable future. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions The Company contemplates business combinations and acquisition opportunities that align with the Company’s overall strategy. Acquisitions are accounted for under Accounting Standards Codification (“ASC”) 805 Business Combinations based on the facts and circumstances of the transaction. Jet-Ag On September 10, 2019, the Company completed the purchase of substantially all rights and assets related to the Jet-Ag® and Jet-Oxide® product lines from Austin Grant, Inc., a Florida corporation d/b/a Jet Harvest Solutions, for approximately $2,534,000 in cash, of which $544,200 was paid upon closing and the remainder is to be paid in four installments over an 16-month window (the “Jet-Ag Acquisition”). The Jet-Ag Acquisition is accounted for as an asset acquisition consistent with ASC 2017-01, which requires that substantially all of the fair value of the gross assets acquired is concentrated in a single asset or a group of similar assets. The asset purchase agreement also contains a provision providing five yearly earn out payments from 2020 through 2024 based on the Company’s total future sales of Jet-Ag purchased through a specified supplier. The fair value of the contingent consideration was estimated at $190,000 at the close date of the transaction which the Company has included in its total cost to be allocated to the acquired assets. The Company intends to assess its contingent consideration estimate periodically upon the settlement of the revenue contingency at each interim reporting period. Acquisition costs of $117,000 were also included in the total consideration for the Jet-Ag Acquisition to be allocated among the acquired assets. The allocation of the total consideration was based on each of the acquired asset’s relative fair values as follows (in thousands): ALLOCATION OF COST OF ASSET ACQUISITION Cash paid, inclusive of future payments 2,534 Fair value of contingent consideration 190 Other cost to acquire assets 117 Total acquisition related costs $ 2,841 Intangible assets acquired: Customer list 2,291 Tradename 458 Non-compete 92 Total assets acquired 2,841 The fair value of the acquired customer list, trade name and non-compete assets were estimated using either a relief-from-royalty or multiperiod excess earning method to calculate the fair value of the assets acquired, based on management’s forecasted cash inflows and outflows. Each of the intangible assets are being amortized within the expense reflected in “Selling, general and administrative” expenses in the condensed consolidated statement of operations. The preliminary amortization periods for the customer list, trade name and non-compete are 15 years, 15 years and 6 years, respectively. Pro Farm Technologies OY On September 13, 2019, the Company completed its acquisition of 100% of the outstanding shares of Pro Farm Technologies OY, a Finnish limited company (“Pro Farm”) for consideration valued at approximately $28,076,000 (the “Pro Farm Acquisition”). Total consideration consisted of cash payments of $2,843,000 to beneficial owners and $3,178,000 in debt repayments made on behalf of Pro Farm, issuance of a total of 12,666,000 of the Company’s common stock, at the closing market price of $1.59, for an aggregate fair value of $20,299,000, inclusive of 100,000 restricted stock units at a fair value of $159,000 awarded to a key employee and the fair value of up to $7,500,000 of contingent consideration subject to the achievement of certain distributor, revenue, earnings before interest, taxes, depreciation and amortization, and debt and equity milestones from the date of the closing through December 31, 2024, fair valued at $1,755,000. The Pro Farm acquisition meets the definition of a business in accordance with ASC 805 Business Combinations Certain estimated fair values are not yet finalized and are subject to change, which could be significant. The Company expects to finalize its purchase accounting by the end of the second quarter of fiscal year 2020 when it has completed its assessment of certain consideration adjustments and completed the assessment of deferred taxes and uncertain tax positions. Amounts for acquired current assets and liabilities, deferred tax liabilities, intangibles and goodwill also remain subject to change. The preliminary estimated fair values of the assets acquired, and liabilities assumed are as follows (in thousands): PRELIMINARY ALLOCATION AT ACQUISITION DATE Accounts receivable $ 583 Inventory 524 Other current assets 212 Investments in subsidiary 537 Intangible assets: Developed technology 16,362 Tradename 2,658 In process research and development 2,713 Goodwill 7,100 Total assets acquired 30,689 Accounts payable 431 Accrued liabilities 757 Debt 1,612 Non-controlling interest (14 ) Net assets acquired $ 27,903 Cash paid, net of cash acquired 5,849 Fair Value of stock consideration 20,299 Fair value of contingent consideration 1,755 Total purchase price $ 27,903 Tangible assets and liabilities acquired were recorded at their preliminary fair values on the date of close based on management's preliminary assessment. The purchase price allocated to developed technology, in process technology and trade name were estimated using either a relief-from-royalty or multiperiod excess earning method to calculate the fair value of the assets purchased, based on management’s forecasted cash inflows and outflows. All intangible assets are being amortized with the expense reflected in “Selling, general and administrative” expenses in the condensed consolidated statement of operations. The preliminary amortization period for intangible assets acquired has been estimated between 10 and 11 years. The net deferred income tax liability represents the net amount of the estimated future impact of adjustments for any costs to be recognized as intangible asset amortization, which is not deductible for income tax purposes and transfer pricing exposure offset by the deferred tax asset for the preliminary calculation of NOLs. Acquisition costs are recorded in “Selling, general and administrative” expenses as incurred. As of September 30, 2019 the Company has incurred expenses of $2,724,000 in connection with the Pro Farm Acquisition. The Pro Farm Acquisition was financed through the Company’s exercise of 10,000,000 warrants in connection with the Company’s warrant call option under the Warrant Reorganization Agreement (see Note 8). The condensed consolidated statement of operation include $119,000 of product revenues and $276,000 of operating expenses from Pro Farm for the period from September 14, 2019 through September 30, 2019. The following unaudited pro forma results of operations assume the Pro Farm acquisition had occurred on January 1, 2019 (in thousands): PRO FORMA SEPTEMBER 30, 2019 Product revenues $ 23,530 Cost of product revenues 10,700 Gross profit 12,830 Operating expenses and other income/expense 32,705 Net Loss $ (19,875 ) Earnings per share: (0.11 ) PRO FORMA SEPTEMBER 30, 2018 Product revenues $ 15,802 Cost of product revenues 8,236 Gross profit 7,566 Operating expenses and other income/expense 21,65 1 Net Loss $ (14,145 ) Earnings per share: (0.14 ) Significant pro forma adjustments incorporated into the pro forma results above include elimination of nonrecurring acquisition-related costs incurred prior to the close of the Pro Farm Acquisition, amortization of acquired intangible assets. These pro forma results are based on estimates and assumptions, which the Company believes are reasonable. They are prepared for comparative purposes only and do not necessarily reflect the results that would have been realized had the Pro Farm Acquisition occurred at the beginning of the period ended September 30, 2019 and are not necessarily indicative of the Company’s consolidated results of operations in future periods. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories, net consist of the following (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Raw materials $ 2,012 $ 1,844 Work in progress 1,074 1,580 Finished goods 5,746 4,800 $ 8,832 $ 8,224 As of September 30, 2019 and December 31, 2018, the Company had $268,000 and $579,000, respectively, in reserves against its inventories. |
Right-of-Use of Assets and Leas
Right-of-Use of Assets and Lease Liability | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Right-of-Use of Assets and Lease Liability | 5. Right-Of-Use of Assets and Lease Liability On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” (ASU 2016-02) using the modified retrospective transition method allowing it to apply the new standard at the adoption date and to recognize a cumulative-effect adjustment to the opening balance of retained earnings on the date of adoption. Under this transition method, the prior comparative period continues to be reported under the accounting standards in effect for that period. The Company elected to use the package of practical expedients permitted which allows (i) an entity not to reassess whether any expired or existing contracts are or contain leases; (ii) an entity need not reassess the lease classification for any expired or existing leases; and (iii) an entity need not reassess any initial direct costs for any existing leases. The Company made an accounting policy election to adopt the short-term lease exception which allows the Company to not recognize on the balance sheet those leases with terms of 12 months or less resulting in short-term lease payments being recognized in the condensed consolidated statements of income on a straight-line basis over the lease term. All of the Company’s leases were previously classified as operating and are similarly classified as operating lease under the new standard. Adoption of the new standard resulted in recognition of both right-of-use assets and lease liabilities of approximately $5,324,000 and $5,510,000 as of January 1, 2019, respectively. As the right-of-use assets and lease liabilities were substantially the same at adoption, the Company did not record a cumulative effect adjustment to the opening balance of retained earnings. The Company’s operating leases have remaining terms ranging from less than one year to five years. The leases are for office space and various office equipment. The Company determines if an arrangement includes a lease at the inception of the agreement and the right-of-use asset and lease liability is determined at the lease commencement date and is based on the present value of estimated lease payments. The Company’s lease agreements contain both fixed and variable lease payments, none of which are based on a rate or an index. Fixed lease payments are included in the determination of the right-of-use asset and lease liability. Variable lease payments that are not based on a rate or index are expensed when incurred. The present value of estimated lease payments is determined utilizing the rate implicit in the lease agreement if that rate can be determined. If the implicit rate cannot be determined, the present value of estimated lease payments is determined utilizing the Company’s incremental borrowing rate. The incremental borrowing rate is determined at the lease commencement date and is estimated utilizing similar or collateralized borrowing instruments adjusted for the terms of leasing arrangement as necessary. Some of the leases include an option to renew that can extend the lease term. For those leases which are reasonably certain to be renewed, the Company included the renewal period in the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2019, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 7.03% and 5 years, respectively. The components of lease expense were as follows (in thousands): THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, 2019 SEPTEMBER 30, 2019 Operating lease cost $ 287 $ 874 Short-term lease cost 20 53 Sublease income (25 ) (73 ) $ 282 $ 854 Other information (in thousands) NINE MONTHS ENDED SEPTEMBER 30, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 678 Right-of-use assets obtained in exchange for operating lease liabilities $ 602 Maturities of lease liabilities for each future calendar year as of September 30, 2019 are as follows (in thousands): OPERATING LEASES 2019, remaining 3 months $ 292 2020 1,179 2021 1,202 2022 1,238 2023 and beyond 2,092 Total lease payments 6,003 Less: imputed interest 964 Total lease obligation 5,039 Less lease obligation, current portion 862 Lease obligation, non-current portion $ 4,177 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 6. Accrued Liabilities Accrued liabilities consist of the following (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Accrued compensation $ 3,437 $ 2,570 Accrued warranty costs 391 320 Accrued legal costs 1,032 69 Accrued customer incentives 4,459 2,170 Accrued liabilities, other 5,791 1,742 $ 15,110 $ 6,871 The Company warrants the specifications of its products through implied product warranties and has extended product warranties to qualifying customers on a contractual basis. The Company estimates the costs that may be incurred during the warranty period and records a liability in the amount of such costs at the time product is shipped. The Company’s estimate is based on historical experience and estimates of future warranty costs as a result of increasing usage of the Company’s products. During the three months ended September 30, 2019 and 2018, the Company recognized $75,500 and $58,000, respectively in warranty expense associated with product shipments for the period. This expense was reduced by $29,000 for the three months ended September 30, 2019 as a result of warranty claims being lower than previously estimated and during the three months ended September 30, 2019 the Company recognized $29,000 in warranty claims. During the nine months ended September 30, 2019 and 2018, the Company recognized $245,000 and $215,000, respectively in warranty expense associated with product shipments for the period. This expense was reduced by $173,000 for the nine months ended September 30, 2019 as a result of the historical usage of warranty reserves being lower than previously estimated. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. Changes in the Company’s accrued warranty costs during the period are as follows (in thousands): Balance at December 31, 2018 $ 320 Warranties issued (released) during the period 71 Settlements made during the period - Balance at September 30, 2019 $ 391 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Debt, including debt due to related parties, consists of the following (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Secured promissory notes (“October 2012 and April 2013 Secured Promissory Notes”) bearing interest at 8.00% per annum, interest and principal due at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets. $ 3,425 $ 3,425 Secured promissory note (“June 2014 Secured Promissory Note”) bearing interest at prime plus 2% (7.25% as of September 30, 2019) per annum, payable monthly through June 2036, collateralized by certain of the Company’s deposit accounts and MMM LLC’s inventories, chattel paper, accounts, equipment and general intangibles, net of unamortized debt discount as of September 30, 2019 and December 31, 2018 of $190 and $205. 8,466 8,639 Secured revolving borrowing (“LSQ Financing”) bearing interest at (12.80% annually) payable through the lenders direct collection of certain accounts receivable through November 2019, collateralized by substantially all of the Company’s personal property. 4,957 2,073 Senior secured promissory notes due to related parties (“August 2015 Senior Secured Promissory Notes”) bearing interest at 8% per annum, interest and principal payable at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets. 7,300 7,300 Research loan facility (“2018 Research Facility”) bearing interest at 1.00% per annum, interest payments are due annually on the anniversary date of the facility with principal payable in 25% increments on the anniversary date of the facility beginning on the fourth anniversary of the loan (September 2022), net of imputed interest as of September 30, 2019 of $10. 83 - Financial institution facility (“2018 Bank Facility”) bearing interest at Euribor plus 2.40% (2.60% as of September 30, 2019) per annum, interest payable monthly and principal payable at maturity (February 29, 2020), 60% guaranteed by Export Credit Agency of Finland for a fee of 2.49%. 63 - Secured borrowing (“Factoring Financing”) bearing interest at 15.00% per annum, interest and principal payable at maturity (December 17, 2019) 1,315 - Debt, including debt due to related parties 25,609 21,437 Less debt due to related parties, non-current (7,300 ) (7,300 ) Less current portion (6,590 ) (2,318 ) Debt, non-current $ 11,719 $ 11,819 As of September 30, 2019, aggregate contractual future principal payments on the Company’s debt, including debt due to related parties for each calendar year, are due as follows (in thousands): Period ended September 30, 2019 Debt Debt to Related Party 2019 $ 6,390 $ - 2020 276 - 2021 299 - 2022 2,794 5,000 2023 369 - Thereafter 7,396 - Total future principal payments 17,524 5,000 Interest payments included in debt balance (1) 975 2,300 $ 18,499 $ 7,300 (1) Due to the debt extinguishment requirement, the Company has included both accrued interest and future interest in the debt balance for certain outstanding debt. The following is a reconciliation of interest expense for the debt outstanding during the three and nine months ended September 30, 2019 and 2018 (in thousands). SEPTEMBER 30, 2019 Interest Expense Related Party, Net Non cash Three Months Ended June 2014 Secured Promissory Note $ 170 $ — $ 5 LSQ Financing 121 — — ASC 606 Financing Component 63 — 63 Other 1 — $ 355 $ — $ 68 SEPTEMBER 30, 2018 Interest Expense Related Party, Net Non cash Three Months Ended June 2014 Secured Promissory Notes 166 — 5 LSQ Financing 56 — — ASC 606 Financing Component 78 — 78 $ 300 $ — 83 SEPTEMBER 30, 2019 Interest Expense Related Party, Net Non cash Nine Months Ended June 2014 Secured Promissory Note $ 509 $ — $ 16 LSQ Financing 302 — — ASC 606 Financing Component 197 — 197 Other 6 — — $ 1,014 $ — $ 213 SEPTEMBER 30, 2018 Interest Expense Related Party, Net Non cash Nine Months Ended October 2012 and April 2013 Secured Promissory Notes (2) $ 213 $ — $ 42 June 2014 Secured Promissory Notes 474 — 16 Secured December 2017 Convertible Notes (1) 529 — 322 LSQ Financing 306 — 57 August 2015 Senior Secured Promissory Notes (2) — 451 133 ASC 606 Financing Component 237 — 237 $ 1,759 $ 451 $ 807 (1) This agreement was terminated in February 2018. (2) This agreement was amended in February 2018. Secured Promissory Notes On October 2, 2012, the Company borrowed $7,500,000 pursuant to senior notes (the “October 2012 Secured Promissory Notes”) with a group of lenders. On April 10, 2013 (“Conversion Date”), the Company entered into an amendment to increase, by up to $5,000,000, the amount available under the terms of the loan agreement with respect to the October 2012 Secured Promissory Notes. Under this amendment, an additional $4,950,000 was issued in partial consideration for $3,700,000 in cash received and in partial conversion for the cancellation of a $1,250,000 subordinated convertible note (collectively, the “April 2013 Secured Promissory Notes”). The total amount borrowed under the amended loan agreement for the October 2012 Secured Promissory Notes and the April 2013 Secured Promissory Notes increased from $7,500,000 to $12,450,000. On February 5, 2018, the Company converted, pursuant to an amendment, dated December 15, 2017, to the October 2012 and April 2013 Secured Promissory Notes, $10,000,000 aggregate principal amount of indebtedness outstanding under the October 2012 and April 2013 Secured Promissory Notes to an aggregate of 5,714,285 shares of common stock and warrants to purchase 1,142,856 shares of common stock (such conversion, the “Snyder Debt Conversion”), such that $2,450,000 of principal under the October 2012 and April 2013 Secured Promissory Notes is outstanding as of September 30, 2019. Simultaneously with the Snyder Debt Conversion, the maturity of the October 2012 and April 2013 Secured Promissory Notes was extended to December 31, 2022 (“Maturity Date”), the interest was reduced from 14% to 8% and all interest payments under the October 2012 and April 2013 Secured Promissory Notes were deferred to the Maturity Date. The October 2012 and April 2013 Secured Promissory Notes contain representations and warranties by the Company and the lender, certain indemnification provisions in favor of the lenders and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in the lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The October 2012 and April 2013 Secured Promissory Notes contain several restrictive covenants. The Company is in compliance with all related covenants, or has received an appropriate waiver of these covenants. In conjunction with the Snyder Debt Conversion, the Company accounted for the partial debt extinguishment under the troubled debt restructuring accounting guidance. The Company recognized a gain of $3,014,000 for the nine months ended September 30, 2018 on partial extinguishment of the October 2012 and April 2013 Secured Promissory Notes, which included the recognition of the debt discount. Because the Company recognized a gain on the partial extinguishment of debt, the Company was required to include all future interest and additional consideration, which included accrued interest, under the terms of this agreement as a reduction of the gain. As a result, the amount of the debt on the Company’s consolidated balance sheet related to the October 2012 and April 2013 Secured Promissory Notes is $3,425,000, as compared to $2,450,000 of contractual principal outstanding thereunder. Going forward, subject to future amendments to debt agreement or costs, the Company will not recognize future interest expense on the October 2012 and April 2013 Secured Promissory Notes. The accounting for the change due to the Snyder Debt Conversion is as follows (in thousands): Principal (pre-conversion) $ 12,450 Discount (pre-conversion) (134 ) Consideration of common stock and warrants provided at conversion (6,196 ) Gain on extinguishment (2,695 ) Principal and future interest at September 30, 2019 $ 3,425 Additionally, in conjunction with the terms of the October 2012 Secured Promissory Notes and the April 2013 Secured Promissory Notes, the Company agreed to pay a fee of 7% of the funded principal amount to the agent that facilitated the 2018 February Financing Transactions between the Company and the collective lenders. As part of the Snyder Debt Conversion, the Company renegotiated the Agent Fee, which resulted in 498,000 shares of the Company’s common stock being issuable to the agent in lieu of a cash payment for services. These shares are issuable at the Maturity Date of the note. The Company has included this liability in other non-current liabilities. The change in the value of the agent fee and the fair value of the common stock granted in lieu of cash was also included in the gain on partial extinguishment of debt as follows (in thousands): Agent fee, included in other liabilities, long term (pre-conversion) $ 827 Gain on extinguishment (319 ) Agent fee payable in common shares $ 508 June 2014 Secured Promissory Note In June 2014, the Company borrowed $10,000,000 pursuant to a business loan agreement and promissory note (“June 2014 Secured Promissory Note”) with Five Star Bank that bears interest at 7.5% as of September 30, 2019. The interest rate is subject to change and is based on the prime rate plus 2.00% per annum. The June 2014 Secured Promissory Note is repayable in monthly payments of $76,286 and adjusted from time-to-time as the interest rate changes, with the final payment due in June 2036. The Company is required to maintain a deposit balance with the Five Star Bank of $1,560,000, which is recorded as restricted cash included in non-current assets. Under this note the Company is required to maintain a current ratio of not less than 1.25-to-1.0, a debt-to-worth ratio of no greater than 4.0-to-1.0 and a loan-to-value ratio of no greater than 70% as determined by Five Star Bank. The Company is also required to comply with certain affirmative and negative covenants under the loan agreement discussed above. In the event of default on the debt, Five Star Bank may declare the entire unpaid principal and interest immediately due and payable. As of September 30, 2019, the Company was in compliance with the “loan to value ratio” covenant, however was not in compliance with the “current ratio”, nor the “debt to worth ratio” and, potentially, a requirement that no material adverse situation shall have occurred, given the Company’s current going concern assessment and the requirement that there be no unapproved compensation increases for the Company’s executives for calendar year 2019. However, the Company has obtained a waiver from the lender for any non-compliance through November 20, 2020. The following table reflects the activity under this note (in thousands): Principal balance, net at December 31, 2018 $ 8,639 Principal payments (683) Interest 494 Debt discount amortization 16 Principal balance, net at September 30, 2019 $ 8,466 Secured Convertible Promissory Note On October 12, 2017, the Company and Dwight W. Anderson (“Anderson”) entered into a $1,000,000 convertible promissory note, which was restated in its entirety by a convertible promissory note entered into by the Company and Anderson on October 23, 2017 (the “October 2017 Convertible Note”). The October 2017 Convertible Note was an unsecured promissory note in the aggregate principal amount of up to $6,000,000, was subject to Anderson’s approval and due on October 23, 2020 (the “Anderson Maturity Date”). On December 15, 2017, the Company entered into the Securities Purchase Agreement with an affiliate of Anderson and certain other accredited investors (collectively, the “Buyers”). In conjunction with the transaction contemplated in the Securities Purchase Agreement, Anderson was entitled to convert any portion of the balance outstanding under the October 2017 Convertible Note and any accrued interest into shares of the Company’s common stock at a rate of one share of common stock per $0.50. Anderson’s ability to affect conversions at the $0.50 rate was subject to, among other things, approval of the Company’s stockholders, which was received on January 31, 2018. On December 22, 2017, the Company and Anderson amended and restated in its entirety the terms of the October 2017 Convertible Note (“Secured December 2017 Convertible Note”). Under the amendment, the Secured December 2017 Convertible Note became a secured promissory note and the maturity date was reverted to the original terms, due on October 12, 2020 (the “Maturity Date”). The interest rate and conversion terms of the Secured December 2017 Convertible Note remain unchanged from the terms of the October 2017 Convertible Note as described above. As of December 31, 2017, the outstanding principal balance under the Secured December Convertible Note was $4,000,000, exclusive of a $510,000 discount. In January 2018, the Company borrowed the remaining available principal under the Secured December 2017 Convertible Note of $2,000,000, exclusive of an additional derivative liability discount of $574,000. On February 5, 2018, the holder converted the entire outstanding principal of $6,000,000 under the Secured December 2017 Convertible Note into 12,000,000 each common stock and warrants units in accordance with the terms of the Securities Purchase Agreement which provided for conversion of the outstanding balance at a rate of $0.50 per common share. Upon the conversion on February 5, 2018, the outstanding principal balance under the Secured December 2017 Convertible Note was reduced to zero. The Company accounted for the full conversion of the Secured December 2017 Convertible Note using the accounting guidance related to an induced debt conversion. Under the induced conversion guidance, the Company recognized a loss on conversion in the amount of $11,634,000 associated with the change between the debt’s original terms and the induced conversion terms. This loss related to the induced conversion feature was partially offset by a gain on extinguishment of $6,424,000 related to the fair value of the derivative liability on the date of conversion. The following table reflects the accounting for the activities under the Secured December 2017 Convertible Note as follows (in thousands): Principal (pre-conversion) $ 6,000 Discount (pre-conversion) (791 ) Consideration of common stock and warrants provided at conversion (16,843 ) Derivative liability extinguished 6,424 Loss on extinguishment 5,210 Balance at September 30, 2018 $ - LSQ Financing On March 24, 2017, the Company entered into an Invoice Purchase Agreement (the “LSQ Financing”) with LSQ Funding Group, L.C. (“LSQ”), pursuant to which LSQ may elect to purchase up to $7,000,000 of eligible customer invoices from the Company. The Company’s obligations under the LSQ Financing are secured by a lien on substantially all of the Company’s personal property; such lien is first priority with respect to the Company’s accounts receivable, inventory, and related property. Advances by LSQ may be made at an advance rate of up to 80% of the face value of the receivables being sold. Upon the sale of the receivable, the Company will not maintain servicing. LSQ may require the Company to repurchase accounts receivable if (i) the payment is disputed by the account debtor, with the purchaser being under no obligation to determine the bona fides of such dispute, (ii) the account debtor has become insolvent or (iii) upon the effective date of the termination of the LSQ Financing. LSQ will retain its security interest in any accounts repurchased from the Company. Under the initial agreement the Company would also pay to LSQ (i) an invoice purchase fee equal to 1.00% of the face amount of each purchased invoice, at the time of the purchase, and (ii) a funds usage fee equal to 0.035%, payable monthly in arrears. An aging and collection fee would be charged at the time when the purchased invoice is collected, calculated as a percentage of the face amount of such invoice while unpaid (which percentage ranges from 0% to 0.35% depending upon the duration the invoice remains outstanding). In June 2018, the Company amended the LSQ Financing arrangement and effectively (i) decreased the invoice purchase fee from 1.00% to a range of 0.40% to 1.00%, (ii) decreased the funds usage fee from 0.035% to a range of 0.020% to 0.035% and (iii) extended the term of the agreement to June 30, 2019. In June 2019, the Company and LSQ Financing mutually agreed to further extend the terms of the LSQ Financing arrangement through November 2019. The agreement contains representations and warranties by the Company and LSQ, certain indemnification provisions in favor of LSQ and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in LSQ’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The Company is in compliance with all terms of the agreement. As of September 30, 2019, $4,957,000 was outstanding under the LSQ Financing. September 2018 Research Facility On September 4, 2018, the Company’s subsidiary Pro Farm entered into a research loan facility under the Finnish Government Innovation Funding initiative with the Innovation Centre Business Finland, in the amount of $326,000 (€282,000). Pro Farm subsequently drew down $94,000 (€80,000) on September 21, 2018 in connection with research and development costs. The note bears interest at 3% below the reference rate for Finnish Government Aid, with a minimum of 1% interest annually. The current effective interest rate as of September 30, 2019 is 3.82%. The loan facility requires repayment in increments of 25% on each of the anniversary date of the loan after the third anniversary of the loan execution date as such the balance of the loan has been classified as long term. The terms of the loan facility allow for partial debt forgiveness if so determined by the State Council for the Financing of Research, Development and Innovation at the lender’s discretion. As of September 30, 2019, the outstanding principal balance net of imputed interest was $83,000 (€72,000). September 2018 Bank Facility On September 10, 2018, the Company’s subsidiary Pro Farm entered into a bank facility with Nordea Bank AB, under which the Company may borrow up to $266,000 (€230,000). The note bears interest at the Euribor three-month rates plus 2.4% which as of September 30, 2019 was increased to 2.60%. The bank facility includes a usage commitment fee of 0.95% and required repayment on its maturity date of February 28, 2019. On February 20, 2018, the bank facility was extended until August 31, 2019, and on August 30, 2019, the bank facility was again extended until February 29, 2020, The bank facility is 60% guaranteed by Export Credit Agency of Finland. In connection with the guarantee the Company pays a fee of 2.49% to the guarantor. As of September 30, 2019, the amount outstanding on the bank facility was $63,000 (€55,000). March 2019 Factoring On March 27, 2019, the Company’s subsidiary Pro Farm entered into a factoring agreement with Bab al Khail General Trading (“Bab al Khail”), in the amount of $1,314,000. The Bab al Khail agreement bears interest at an annual rate of 15% and matures on December 17, 2019. Certain of Pro Farm account receivables are pledged as collateral under the agreement. As of September 30, 2019, the amount outstanding under the factoring agreement was $1,315,000 (€1,163,200), which includes interest. |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2019 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | 8. Warrants On August 6, 2019, the Company entered into a warrant amendment and plan of reorganization agreement (“Warrant Reorganization Agreement”) with certain holders of the February 2018 Warrants. Pursuant to the Warrant Reorganization Agreement, the Company has agreed to extend the expiration date under the February 2018 Warrants held by such holders from December 2020 to December 2021, and the holders have agreed, at any time the Company’s stock trades above $1.00 and upon request by the Company, to exercise up to 36,600,000 of their respective February 2018 Warrants, in consideration for the delivery of (x) the shares subject to the February 2018 Warrants so exercised and (y) the delivery of new warrants (“August 2019 Warrants”) to purchase such additional number of shares of common stock equal to the amount of shares so exercised and delivered under February 2018 Warrants. Accordingly, up to a maximum of 36,600,000 new shares may be issued pursuant to the August 2019 Warrants, to the extent the Company exercises its rights to require exercise of the February 2018 Warrants. The Warrant Reorganization Agreement was treated as a modification of an equity-classified instrument, which did not result in a change in the classification of the instrument pre- and post-modification. Analogizing to Accounting Standards Codification (“ASC”) 718 – Compensation – Stock Compensation The Company’s fair value of the warrant post modification was estimated utilizing a Monte Carlo univariate option pricing model based on the following assumptions which have been determined consistent with the Company’s historical methodology for such assumptions: AUGUST 6, 2019 Expected life (years) 3.4 Estimated volatility factor 53.1 % Risk-free interest rate 1.52 % Expected dividend yield — Expected Life. Estimated Volatility Factor. Risk-Free Interest Rate. Expected Dividend Yield. The August 2019 Warrants have a term expiring on January 1, 2023, an exercise price of $1.75 per share, and are first exercisable 180 days after issuance. The August 2019 Warrants are exercisable in cash, provided that they may be exercised via net exercise if the Company does not have a registration statement registering the shares underlying the August 2019 Warrants effective as of June 30, 2020. On August 7, 2019, the Company requested under the Warrant Reorganization Agreement, the exercise of 10,000,000 February 2018 Warrants, resulting in the Company issuing 10,000,000 common shares and 10,000,000 August 2019 Warrants. The issuance of the August 2019 Warrants resulted in the Company incurring non-cash charge of $4,751,000 in connection with the fair value of new warrants. The Company’s fair value of the new warrants issued was estimated utilizing a Black Scholes option pricing model. Due to the insignificant time lapse between the warrant call and the date of the warrant modification, the same assumptions as outlined above were utilized to fair value the new warrants issued in connection with the warrant exercise. The following table summarizes information about the Company’s common stock warrants outstanding as of September 30, 2019 (in thousands, except exercise price data): NUMBER OF SHARES SUBJECT TO EXPIRATION WARRANTS EXERCISE DESCRIPTION ISSUE DATE DATE ISSUED PRICE In connection with June 2013 Credit Facility (June 2013 Warrants) June 2013 June 2023 (1) 27 $ 8.40 In connection with August 2015 Senior Secured Promissory Notes (August 2015 Warrants) August 2015 August 2023 4,000 $ 1.91 In connection with October 2012 and April 2013 Secured Promissory Notes (November 2016 Warrants) November 2016 November 2026 125 $ 2.38 In connection with June 2017 Consulting Agreement (November 2017 Warrants) June 2017 June 2027 80 $ 1.10 In connection with February 2018 Financing Transaction (February 2018 Warrants 1) February 2018 December 2020 6,750 $ 1.00 In connection with February 2018 Financing Transaction (February 2018 Warrants 2) February 2018 December 2020 5,065 $ 1.25 In connection with August 2019 Modification of February 2018 Warrants (Warrant Amendment and Plan of Reorganization Agreement) August 2019 December 2021 26,600 $ 1.00 In connection with Exercise 1 of Call Option under the Warrant Amendment and Plan of Reorganization Agreement (August 2019 Warrants) Various dates starting in August 2019 January 2023 10,000 $ 1.75 52,647 The weighted average remaining contractual life and exercise price for these warrants is 2.37 years and $1.24, respectively. (1) The June 2013 Warrants expire upon the earlier to occur of (i) the date listed above; (ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any transfer of more than 50% of the voting power of the Company, reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (iii) a sale of all or substantially all of the assets of the Company unless the Company’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company’s acquisition or sale or otherwise), hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity. |
Share-Based Plans
Share-Based Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Plans | 9. Share-Based Plans On May 31, 2019, the Company’s stockholders approved an Employee Stock Purchase Plan (the “ESPP”) whereby employees may purchase Company stock through payroll deductions over each six-month period beginning on June 1 and December 1 (the “Offer Period”). The total maximum number of shares available for purchase under the ESPP is 1,000,000. The purchase price of the shares will be 85% of the lower of the fair market value of the shares at the beginning or at the end of the Offer Period. The ESPP is a tax qualified plan under Section 423 of the Internal Revenue Code. All employees, including officers, are eligible to participate in the ESPP. A participant may withdraw all uninvested payment balances credited to their account at any time. An employee whose stock ownership in the Company exceeds 5% of the Company’s outstanding common stock is not eligible to participate in the ESPP. The ESPP is compensatory and the 15% discount will be expensed over the Offer Period. The Company has accounted for the ESPP in accordance with ASC 718, Compensation – Stock Based Compensation. As of the three and nine months ended September 30, 2019 the Company recorded stock-based compensation expense of approximately $13,000 and $18,000, respectively. As of September 30, 2019, there were options to purchase 12,056,000 shares of common stock outstanding, 1,918,000 restricted stock units outstanding and 4,269,000 share-based awards available for grant under the outstanding equity incentive plans. For the three and nine months ended September 30, 2019 and 2018, the Company recognized share-based compensation of $742,000 and $437,000, respectively, and $1,906,000 and $1,310,000, respectively. During the three months ended September 30, 2019 and 2018, the Company granted options to purchase 5,363,000 and 39,000 shares of common stock, respectively, at a weighted average exercise price of $1.43 and $1.99, respectively. During the three months ended September 30, 2019 and 2018, 13,000 and 53,000 options, respectively, were exercised at a weighted average exercise price of $1.16 and $1.17, respectively. The Company’s fair value of the option grants for the three months ended September 30, 2019 was estimated utilizing a Black Scholes option pricing model based on the following range of assumptions which have determined consistent with the Company’s historical methodology for such assumptions: SEPTEMBER 30, 2019 Expected life (years) 5.33-6.08 Estimated volatility factor 53.3-53.8 % Risk-free interest rate 1.41-1.92 % Expected dividend yield — Expected Life. Share-Based Payment Simplified Method for Plain Vanilla Share Options Estimated Volatility Factor. Risk-Free Interest Rate. Expected Dividend Yield During the nine months ended September 30, 2019 and 2018, the Company granted options to purchase 5,485,000 and 4,509,000 shares of common stock, respectively, at a weighted average exercise price of $1.43 and $1.78, respectively. During the nine months ended September 30, 2019 and 2018, 47,000 and 56,000 options, respectively, were exercised at a weighted average exercise price of $1.18 and $1.17, respectively. The following table summarizes the activity of stock options from December 31, 2018 to September 30, 2019 (in thousands, except weighted average exercise price): WEIGHTED- AVERAGE EXERCISE Options PRICE Balances at December 31, 2018 7,136 $ 3.31 Options granted 5,485 1.43 Options exercised (47 ) 1.18 Options cancelled (518 ) 2.19 Balances at September 30, 2019 12,056 2.51 The following table summarizes the activity of restricted stock units from December 31, 2018 to September 30, 2019 (in thousands, except weighted average grant date fair value): RESTRICTED UNITS Outstanding at December 31, 2018 1,146 Granted 772 Exercised - Forfeited - Outstanding at September 30, 2019 1,918 WEIGHTED AVERAGE GRANT SHARES DATE FAIR OUTSTANDING VALUE Non-vested at December 31, 2018 404 $ 1.40 Granted 772 $ 1.55 Vested (539 ) $ 1.49 Forfeited - $ - Non-vested at September 30, 2019 637 $ 1.50 The Company notes that the restricted stock units granted, as detailed above, includes 100,000 units related to one employee in connection with the Pro Farm Acquisition. This fair value of the restricted stock units were accounted for as part of the consideration transferred consistent with ASC 805 – Business Combinations, |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Operating Leases In June 2013 and then amended in April 2014, the Company entered into a lease agreement for approximately 27,300 square feet of office and laboratory space located in Davis, California. The initial term of the lease is for a period of 60 months and commenced in August 2014. The monthly base rent is $44,000 per month for the first 12 months with a 3% increase each year thereafter. Concurrent with this amendment, in April 2014, the Company entered into a lease agreement with an affiliate of the landlord to lease approximately 17,400 square feet of office and laboratory space in the same building complex in Davis, California. The initial term of the lease is for a period of 60 months and commenced in August 2014. The monthly base rent is $28,000 with a 3% increase each year thereafter. In November 2018, the Company elected to exercise the first extension option under the lease, extending the lease term for another 60 months and an amended lease agreement was executed on April 25, 2019. The extension of the lease was accounted for in accordance with ASC 842. As of September 30, 2019 and 2018, the Company incurred $854,000 and $458,000, respectively of rent expense, net. See Note 5 for the method of recognition of rent expense on the condensed consolidated financial statements and future maturities of the Company’s operating lease commitments. On January 19, 2016, the Company entered into an agreement with a sublessee to sublease approximately 3,800 square feet of vacant office space located in Davis, California. The initial term of the sublease is for a period of approximately 43 months and commenced on February 1, 2016. The monthly base rent is approximately $5,000 per month for the first 12 months with a 5% increase each year thereafter. The terms of the lease expired in August 2019 and therefore the lease is now subject to month to month terms under the original agreement. See Note 5 for the impact of lease income on the condensed consolidated financial statements. Litigation On April 3, 2018, the Company was named as a defendant in a complaint filed by Piper Jaffray, Inc. (“Piper”) with the Superior Court of the State of Delaware (the “Lawsuit”). The Company was informed of and received Piper’s complaint and related documents on April 5, 2018, following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Piper’s complaint alleged one breach of contract claim, specifically, that the Company breached an engagement letter (“Engagement Letter”) with Piper by failure to pay a $2,000,000 transaction fee, which Piper alleges is due under the Engagement Letter as a result of the Company’s consummation of its private placement and debt refinancing transactions in February 2018. Piper’s complaint included a demand for payment of the foregoing transaction fee, in addition to interest and costs and expenses incurred in pursuing the action, including reasonable attorneys’ fees. On October 8, 2019, the Company entered into a Settlement and Release Agreement with Piper to settle the Lawsuit without any admission or findings of liability (the “Settlement Agreement”) in an aggregate of $1,000,000. Under the Settlement Agreement, Piper agreed to dismiss the Lawsuit against the Company with prejudice and the parties agreed to mutual general releases of all claims relating to the Lawsuit other than their prospective obligations under the Settlement Agreement, the confidentiality obligations under the Engagement Letter and any potential indemnification obligations under the Engagement Letter unrelated to the Lawsuit. The settlement amount has been accrued as of September 30, 2019 and subsequently paid in October 2019. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions August 2015 Senior Secured Promissory Notes On August 20, 2015, the Company entered into a purchase agreement with Ivy Science & Technology Fund, Waddell & Reed Advisors Science & Technology Fund and Ivy Funds VIP Science and Technology, each an affiliate of Waddell & Reed, which is a beneficial owner of more than 5% of the Company’s common stock. Pursuant to such purchase agreement, the Company sold to such affiliates senior secured promissory notes (“August 2015 Senior Secured Promissory Notes”) in the aggregate principal amount of $40,000,000. In connection with the note, the Company incurred $302,000 in financing-related costs. These costs were recorded as deferred financing costs as a component of current and non-current other assets to amortize the interest expense over the term of the note. In connection with the August 2015 Senior Secured Promissory Notes, the Company issued warrants (“August 2015 Warrants”) to purchase 4,000,000 shares of common stock of the Company. The August 2015 Warrants are immediately exercisable at an exercise price of $1.91 per share and may be exercised at a holder’s option at any time on or before August 20, 2023 (subject to certain exceptions). The fair value of the August 2015 Warrants at the date of issuance of $4,610,000 was recorded as a discount to the August 2015 Senior Secured Promissory Notes as a component of non-current other liabilities and amortized to interest expense to related parties over the term of the arrangement. The August 2015 Senior Secured Promissory Notes provide for various events of default, including, among others, default in payment of principal or interest, breach of any representation or warranty by the Company or any subsidiary under any agreement or document delivered in connection with the notes, a continued breach of any other condition or obligation under any loan document, certain bankruptcy, liquidation, reorganization or change of control events, the acquisition by any person or persons acting as group, other than the lenders, of beneficial ownership of 40% or more of the outstanding voting stock of the Company and certain events in which Pamela G. Marrone, Ph.D. ceases to serve as the Company’s Chief Executive Officer. Upon an event of default, the entire principal and interest may be declared immediately due and payable. As of September 30, 2019, the Company was in compliance with its covenants under the August 2015 Senior Secured Promissory Notes. On February 5, 2018, the holders of the August 2015 Senior Secured Promissory Notes, pursuant to an amendment, converted $35,000,000 of the then outstanding debt into 20,000,000 shares of common stock and warrants to purchase 4,000,000 shares of common stock (such conversion, the “Waddell Debt Conversion”). After the conversion, $5,000,000 in principal remained outstanding. Simultaneously with the Waddell Debt Conversion, the maturity of the August 2015 Senior Secured Promissory Notes was extended to December 31, 2022, and payment of all future interest was deferred to maturity on December 31, 2022 (See Note 7 for further discussion). In conjunction with the Waddell Debt Conversion, the Company accounted for the partial debt extinguishment under the troubled debt restructuring accounting guidance, including consideration for the treatment of the transaction as a gain given the terms of the agreement. The Company recognized a gain of $9,183,000, including $2,171,000 related to debt discount and other cost, on partial extinguishment of the August 2015 Senior Secured Promissory Notes as of December 31, 2018. Because the Company recognized a gain on the partial extinguishment of debt, the Company was required to include all future interest and additional consideration, which included accrued interest, under the terms of this agreement as a reduction of the gain. As a result, the amount of the debt on the Company’s balance sheet related to the August 2015 Senior Secured Promissory Notes is $7,300,000, as compared to $5,000,000 of contractual principal amount outstanding thereunder. Going forward, subject to future amendments to debt agreement or costs, the Company will not recognize future interest expense on the August 2015 Senior Secured Promissory Notes. The accounting for the change due to the August 2015 Senior Secured Promissory Notes is as follows (in thousands): Principal (pre-conversion) $ 40,000 Accrued interest to be paid at maturity 339 Discount (pre-conversion) (2,171 ) Consideration of common stock and warrants provided at conversion (21,685 ) Gain on extinguishment (9,183 ) Principal and future interest at September 30, 2019 $ 7,300 Warrant Exercise On August 7, 2019, the Company requested under the Warrant Reorganization Agreement, the exercise of 10,000,000 February 2018 Warrants, resulting in the Company issuing 10,000,000 common shares and 10,000,000 August 2019 Warrants. Of the warrants exercised, two of the warrant holders, Ospraie Ag Science LLC (“Ospraie”) and Ardsley Advisory Partners (“Ardsley”), are beneficial owners of 29.3% and 8.8%, respectively, of the Company’s total outstanding common stock as of September 30, 2019. The total number of warrants exercised at the request of the Company by Ospraie and Ardsley were 8,378,871 and 1,457,195, respectively. Ospraie Loan to Pro Farm In connection with the Company’s closing of the Pro Farm Acquisition, the terms of the Share Purchase Agreement included as a condition to closing the repayment of certain indebtedness of Pro Farm. One of the indebtedness obligations to be repaid was a convertible loan in a principal amount of $1,000,000, held by Dwight Anderson, an affiliate of Ospraie, the Company’s largest shareholder. The Company paid in total $1,434,000 which is inclusive of the principal, interest and other charges under the terms of the debt arrangement. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events In October 2019, the Company granted 312,000 of restricted stock units at an average exercise price of $1.36 to certain of its employees, which vested immediately. The Company has evaluated its subsequent events from September 30, 2019 through the date these condensed consolidated financial statements were issued, and has determined that there are no additional subsequent events required to be disclosed in these condensed consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial information as of September 30, 2019, and for the three and nine months ended September 30, 2019 and 2018, has been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q should be read in connection with the consolidated financial statements and accompanying notes included in the Company’s Annual Report filed on Form 10-K for the fiscal year ended December 31, 2018. In the opinion of management, the condensed consolidated financial statements as of September 30, 2019, and for the three and nine months ended September 30, 2019 and 2018, reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations and cash flows. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company used significant estimates in accounting for assumptions and estimates associated with acquisition activities in determining the fair values of acquired assets, liabilities and goodwill, assumptions and estimates associated with revenue recognition, including assumptions and estimates used in determining the timing and amount of revenue to recognize for those transactions with variable considerations, fair value of warrants and financial instruments, right-of-use assets and corresponding lease liability, reserves for inventory obsolescence, fair value of stock-based compensation, and in its going concern analysis. |
Restricted Cash | Restricted Cash The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its June 2014 Secured Promissory Note. See Note 7 for further discussion. |
Concentrations of Risk | Concentrations of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, accounts receivable and debt. The Company deposits its cash and cash equivalents with high credit quality domestic financial institutions with locations in the U.S. and internationally. Such deposits may exceed federal or national deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due up to 120 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. The Company’s principal sources of revenues are its Regalia, Grandevo and Venerate product lines. These three product lines accounted for 85% and 95% of the Company’s total revenues for the three months ended September 30, 2019 and 2018, respectively, and 91% and 93% of the Company’s total revenues for the nine months ended September 30, 2019 and 2018, respectively. Revenues generated from international customers were 11% for each of the three months ended September 30, 2019 and 2018, respectively, and 8% and 11% for the nine months ended September 30, 2019 and 2018, respectively. Customers to which 10% or more of the Company’s total revenues are attributable for the three months ended September 30, 2019 and 2018 consist of the following: CUSTOMER A B C Three months ended September 30, 2019 26 % 13 % 10 % 2018 31 % 13 % 19 % 10 Customers to which 10% or more of the Company’s total revenues are attributable for the nine months ended September 30, 2019 and 2018, which may or may not correspond with the customers for the periods above, consist of the following: CUSTOMER A B C Nine months ended September 30, 2019 26 % 12 % 10 % 2018 22 % 12 % 20 % Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either September 30, 2019 or December 31, 2018, which may or may not correspond with any of the customers above, consist of the following: CUSTOMER A B C September 30, 2019 22 % 11 % 4 % December 31, 2018 52 % 3 % 24 % |
Concentrations of Supplier Dependence | Concentrations of Supplier Dependence The active ingredient in the Company’s Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company currently relies on one supplier for this plant. Such single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company’s manufacturing plant. While the Company does not have a long-term supply contract with this supplier, the Company does have a long-term business relationship with this supplier. The Company endeavors to keep 6 months of knotweed extract on hand at any given time, but an unexpected disruption in supply could have an effect on Regalia supply and revenues. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price. The Company continues to rely on third parties to formulate Grandevo and Zequanox into spray-dried powders, for all of its production of Venerate, Majestene/Zelto, Stargus and Haven, and from time to time, third-party manufacturers for supplemental production capacity to meet excess seasonal demand and for packaging. The Company’s products have been produced in quantities, and on timelines, sufficient to meet commercial demand and for the Company to satisfy its delivery schedules. However, the Company’s dependence upon others for the production of a portion of its products, or for a portion of the manufacturing process, particularly for drying and for all of its production of Venerate, may adversely affect its ability to satisfy demand and meet delivery obligations, as well as to develop and commercialize new products, on a timely and competitive basis. The Company has not entered into any long-term manufacturing or supply agreements for any of its products, and it may need to enter into additional agreements for the commercial development, manufacturing and sale of its products. There can be no assurance that it can do so on favorable terms, if at all. The Company’s subsidiary Pro Farm currently sources all of its products from one manufacturing plant in Russia, which it owns a 12% interests. While the Company does not have a long-term supply contract with this supplier, the Company does have a long-term business relationship with this supplier. Pro Farm plans for enough inventory on hand to fill its revenue forecasts for 12 months at any given time, but an unexpected disruption in supply could have an adverse effect on the Pro Farm subsidiary’s supply and revenues. Although the Company has identified additional manufacturers who are capable to produce its products, there can be no assurance that the Company will continue to be able to obtain products at a competitive price. |
Deferred Revenue | Deferred Revenue When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring control of goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. The Company recognizes deferred revenue as net sales after the Company has transferred control of the goods or services to the customer and all revenue recognition criteria are met. The Company’s deferred revenue is broken out as follows (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Product revenues $ 348 $ 457 Financing costs 614 604 License revenues 1,572 1,776 2,534 2,837 Less current portion (441 ) (438 ) $ 2,093 $ 2,399 |
Revenue Recognition | Revenue Recognition Product Sales. Licenses Revenues. Financing Component Revenues. Revenue recognition requires the Company to make a number of estimates that include variable consideration. For example, customers may receive sales or volume-based pricing incentives or receive incentives for providing the Company with marketing-related information. The Company makes estimates surrounding variable consideration and the net impact to revenues. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives and the likelihood that customers will achieve them. In the event estimates related to variable consideration change, the cumulative effect of these changes is recognized as if the revised estimates had been used since inception of revenue recognition under the contract. Such revisions could occur in any reporting period, and the effects may be material. From time to time, the Company offers certain product rebates to its distributors and growers, which are estimated and recorded as reductions to product revenues, and an accrued liability is recorded at the later of when the revenues are recorded, or the rebate, is being offered. Contract Assets. Contract Liabilities. |
Research, Development and Patent Expenses | Research, Development and Patent Expenses Research and development expenses include payroll-related expenses, field trial costs, toxicology costs, regulatory costs, consulting costs and lab costs. Patent expenses include legal costs relating to the patents and patent filing costs. These costs are expensed to operations as incurred. For the three months ended September 30, 2019 and 2018, research and development expenses totaled $3,473,000 and $2,381,000, respectively, and patent expenses totaled $287,000 and $277,000, respectively. For the nine months ended September 30, 2019 and 2018, research and development expenses totaled $9,490,000 and $6,898,000, respectively, and patent expenses totaled $846,000 and $787,000, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts billed for shipping and handling are included as a component of product revenues. Related costs for shipping and handling have been included as a component of cost of product revenues. Shipping and handling costs for the three and nine months ended September 30, 2019 and 2018 were $281,000 and $249,000, respectively, and $998,000 and $705,000, respectively. |
Advertising | Advertising The Company expenses advertising costs as incurred. Advertising costs for the three and nine months ended September 30, 2019 and 2018 were $173,000 and $192,000, respectively, and $548,000 and $794,000, respectively. |
Depreciation and Amortization | Depreciation and Amortization The Company depreciates and amortizes its capitalized property, plant, and equipment and intangible assets over the useful life of each asset utilizing a straight-line method of expensing. All depreciation and amortization expenses are included in the “Selling, general, and administrative” caption in the statement of operations. As of the three and nine months ended September 30, 2019 and 2018 the total amount of depreciation expense were $359,000 and $444,000, respectively, and $1,262,000 and $1,427,000, respectively. As of the three and nine months ended September 30, 2019 the total amount of amortization expense was $165,000. No similar expense was incurred for the three and nine months ended September 30, 2018. |
Foreign Currency | Foreign currency Assets and liabilities have been translated to the U.S. dollar reporting currency using the exchange rates in effect on the condensed consolidated balance sheet dates. Equity accounts are translated at historical rates, except for the change in retained earnings during the year which is the result of the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rate during the period. The cumulative translation adjustments associated with the net assets of foreign subsidiaries are recorded in “Other income (expense)” in the accompanying condensed statement of operations. |
Segment Information | Segment Information The Company is organized as a single operating segment, whereby its chief operating decision maker assesses the performance of and allocates resources to the business as a whole. |
Net Loss Per Share | Net Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. The calculation of basic and diluted net loss per share is the same for all periods presented as the effect of certain potential common stock equivalents, which consist of stock options and warrants to purchase common stock and restricted stock units, and contingent shares to be issued in the future are anti-dilutive due to the Company’s net loss position. Anti-dilutive common stock equivalents are excluded from diluted net loss per share. The following table sets forth the potential shares of common stock as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive (in thousands): SEPTEMBER 30, 2019 2018 Stock options outstanding 12,056 7,256 Warrants to purchase common stock 52,647 52,725 Restricted stock units outstanding 1,918 1,049 Common shares to be issued in lieu of agent fees 498 498 Employee stock purchase plan 65 — Maximum contingent consideration shares to be issued 5,972 — 73,156 61,528 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Leases: Amendments to the FASB Accounting Standards Codifications (“ASU 2016-02”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company adopted ASU 2016-02 in the first quarter of 2019 using the modified-retrospective method. This adoption primarily affected the Company’s condensed consolidated balance sheet based on the recording of Right-of-use assets and Lease liability, current and non-current for its operating leases. The adoption of ASU 2016-02, did not change the Company’s historical classification of these leases or the straight-line recognition of related expenses. See Note 5 for the effects of the adoption of ASU 2016-02 on the Company’s condensed consolidated financial statements as of January 1, 2019 and for the three and nine months ended September 30, 2019. The adoption of this standard had a material impact on the Company’s condensed consolidated financial statements and is expected to continue to have a material impact for the foreseeable future. In January 2017, the FASB issued Accounting Standards Updated No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business which adds guidance to assist registrants in the determination of whether an acquisition (or disposal) represents assets or a business – inputs, processes, and outputs. The update provides a screen to determine when an asset is not a business. If substantially all of the fair value of the assets acquired (or disposed) is concentrated in a single asset or a group of similar identifiable assets, the acquired assets do not represent a business. If this test is not met, the update provides further guidance to evaluate if the acquisition represents a business. The Company prospectively adopted the guidance in the third quarter of fiscal 2019. The adoption primarily impacted the Company’s condensed consolidated balance sheet based on the accounting treatment for the Jet-Ag Acquisition which could have otherwise been treated as a business combination had the acquired asset not met the screen test outlined in the ASU. The Company did not perform further analysis related to the treatment of the Jet-Ag Acquisition upon the results of the screen test. See Note 3 for the effects of the adoption of ASU 2017-01 on the Company’s condense consolidated financial statements as of July 1, 2019 and for the three and nine months ended September 30, 2019. The adoption of this standard has a material impact on the Company’s condensed consolidated financial statements and is expected to continue to have a material impact for the foreseeable future. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Significant Customer's Revenues and Account Receivable Percentage | Customers to which 10% or more of the Company’s total revenues are attributable for the three months ended September 30, 2019 and 2018 consist of the following: CUSTOMER A B C Three months ended September 30, 2019 26 % 13 % 10 % 2018 31 % 13 % 19 % Customers to which 10% or more of the Company’s total revenues are attributable for the nine months ended September 30, 2019 and 2018, which may or may not correspond with the customers for the periods above, consist of the following: CUSTOMER A B C Nine months ended September 30, 2019 26 % 12 % 10 % 2018 22 % 12 % 20 % Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either September 30, 2019 or December 31, 2018, which may or may not correspond with any of the customers above, consist of the following: CUSTOMER A B C September 30, 2019 22 % 11 % 4 % December 31, 2018 52 % 3 % 24 % |
Schedule of Deferred Revenue | The Company’s deferred revenue is broken out as follows (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Product revenues $ 348 $ 457 Financing costs 614 604 License revenues 1,572 1,776 2,534 2,837 Less current portion (441 ) (438 ) $ 2,093 $ 2,399 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the potential shares of common stock as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive (in thousands): SEPTEMBER 30, 2019 2018 Stock options outstanding 12,056 7,256 Warrants to purchase common stock 52,647 52,725 Restricted stock units outstanding 1,918 1,049 Common shares to be issued in lieu of agent fees 498 498 Employee stock purchase plan 65 — Maximum contingent consideration shares to be issued 5,972 — 73,156 61,528 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Consideration on Acquired Assets | The allocation of the total consideration was based on each of the acquired asset’s relative fair values as follows (in thousands): ALLOCATION OF COST OF ASSET ACQUISITION Cash paid, inclusive of future payments 2,534 Fair value of contingent consideration 190 Other cost to acquire assets 117 Total acquisition related costs $ 2,841 Intangible assets acquired: Customer list 2,291 Tradename 458 Non-compete 92 Total assets acquired 2,841 |
Schedule of Assets Acquired and Liabilities Assumed | The preliminary estimated fair values of the assets acquired, and liabilities assumed are as follows (in thousands): PRELIMINARY ALLOCATION AT ACQUISITION DATE Accounts receivable $ 583 Inventory 524 Other current assets 212 Investments in subsidiary 537 Intangible assets: Developed technology 16,362 Tradename 2,658 In process research and development 2,713 Goodwill 7,100 Total assets acquired 30,689 Accounts payable 431 Accrued liabilities 757 Debt 1,612 Non-controlling interest (14 ) Net assets acquired $ 27,903 Cash paid, net of cash acquired 5,849 Fair Value of stock consideration 20,299 Fair value of contingent consideration 1,755 Total purchase price $ 27,903 |
Schedule of Pro Forma Acquisition | The following unaudited pro forma results of operations assume the Pro Farm acquisition had occurred on January 1, 2019 (in thousands): PRO FORMA SEPTEMBER 30, 2019 Product revenues $ 23,530 Cost of product revenues 10,700 Gross profit 12,830 Operating expenses and other income/expense 32,705 Net Loss $ (19,875 ) Earnings per share: (0.11 ) PRO FORMA SEPTEMBER 30, 2018 Product revenues $ 15,802 Cost of product revenues 8,236 Gross profit 7,566 Operating expenses and other income/expense 21,65 1 Net Loss $ (14,145 ) Earnings per share: (0.14 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net consist of the following (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Raw materials $ 2,012 $ 1,844 Work in progress 1,074 1,580 Finished goods 5,746 4,800 $ 8,832 $ 8,224 |
Right-of-Use of Assets and Le_2
Right-of-Use of Assets and Lease Liability (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows (in thousands): THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, 2019 SEPTEMBER 30, 2019 Operating lease cost $ 287 $ 874 Short-term lease cost 20 53 Sublease income (25 ) (73 ) $ 282 $ 854 Other information (in thousands) NINE MONTHS ENDED SEPTEMBER 30, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 678 Right-of-use assets obtained in exchange for operating lease liabilities $ 602 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities for each future calendar year as of September 30, 2019 are as follows (in thousands): OPERATING LEASES 2019, remaining 3 months $ 292 2020 1,179 2021 1,202 2022 1,238 2023 and beyond 2,142 Total lease payments 6,053 Less: imputed interest 964 Total lease obligation 5,089 Less lease obligation, current portion 862 Lease obligation, non-current portion $ 4,227 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Accrued compensation $ 3,485 $ 2,570 Accrued warranty costs 391 320 Accrued legal costs 21 69 Accrued customer incentives 4,459 2,170 Accrued liabilities, other 6,773 1,742 $ 15,126 $ 6,871 |
Schedule of Changes in Accrued Warranty Costs | Changes in the Company’s accrued warranty costs during the period are as follows (in thousands): Balance at December 31, 2018 $ 320 Warranties issued (released) during the period 71 Settlements made during the period - Balance at September 30, 2019 $ 391 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Debt Including Debt to Related Parties | Debt, including debt due to related parties, consists of the following (in thousands): SEPTEMBER 30, 2019 DECEMBER 31, 2018 Secured promissory notes (“October 2012 and April 2013 Secured Promissory Notes”) bearing interest at 8.00% per annum, interest and principal due at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets. $ 3,425 $ 3,425 Secured promissory note (“June 2014 Secured Promissory Note”) bearing interest at prime plus 2% (7.25% as of September 30, 2019) per annum, payable monthly through June 2036, collateralized by certain of the Company’s deposit accounts and MMM LLC’s inventories, chattel paper, accounts, equipment and general intangibles, net of unamortized debt discount as of September 30, 2019 and December 31, 2018 of $190 and $205. 8,466 8,639 Secured revolving borrowing (“LSQ Financing”) bearing interest at (12.80% annually) payable through the lenders direct collection of certain accounts receivable through November 2019, collateralized by substantially all of the Company’s personal property. 4,957 2,073 Senior secured promissory notes due to related parties (“August 2015 Senior Secured Promissory Notes”) bearing interest at 8% per annum, interest and principal payable at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets. 7,300 7,300 Research loan facility (“2018 Research Facility”) bearing interest at 1.00% per annum, interest payments are due annual on the anniversary date of the facility with principal payable in 25% increments on the anniversary date of the facility beginning on the fourth anniversary of the loan (September 2022), net of imputed interest as of September 30, 2019 of $10. 83 - Financial institution facility (“2018 Bank Facility”) bearing interest at Euribor plus 2.40% (2.60% as of September 30, 2019) per annum, interest payable monthly and principal payable at maturity (February 29, 2020), 60% guaranteed by Export Credit Agency of Finland for a fee of 2.49%. 63 - Secured borrowing (“Factoring Financing”) bearing interest at 15.00% per annum, interest and principal payable at maturity (December 17, 2019) 1,315 - Debt, including debt due to related parties 25,609 21,437 Less debt due to related parties, non-current (7,300 ) (7,300 ) Less current portion (6,590 ) (2,318 ) Debt, non-current $ 11,719 $ 11,819 |
Schedule of Contractual Future Principal Payments | As of September 30, 2019, aggregate contractual future principal payments on the Company’s debt, including debt due to related parties for each calendar year, are due as follows (in thousands): Period ended September 30, 2019 Debt Debt to Related Party 2019 $ 6,390 $ - 2020 276 - 2021 299 - 2022 2,794 5,000 2023 369 - Thereafter 7,396 - Total future principal payments 17,524 5,000 Interest payments included in debt balance (1) 975 2,300 $ 18,499 $ 7,300 (1) Due to the debt extinguishment requirement, the Company has included both accrued interest and future interest in the debt balance for certain outstanding debt. |
Reconciliation of Interest Expense for Debt Outstanding | The following is a reconciliation of interest expense for the debt outstanding during the three and nine months ended September 30, 2019 and 2018 (in thousands). SEPTEMBER 30, 2019 Interest Expense Related Party, Net Non cash Three Months Ended June 2014 Secured Promissory Note $ 170 $ — $ 5 LSQ Financing 121 — — ASC 606 Financing Component 63 — 63 Other 1 — $ 355 $ — $ 68 SEPTEMBER 30, 2018 Interest Expense Related Party, Net Non cash Three Months Ended June 2014 Secured Promissory Notes 166 — 5 LSQ Financing 56 — — ASC 606 Financing Component 78 — 78 $ 300 $ — 83 SEPTEMBER 30, 2019 Interest Expense Related Party, Net Non cash Nine Months Ended June 2014 Secured Promissory Note $ 509 $ — $ 16 LSQ Financing 302 — — ASC 606 Financing Component 197 — 197 Other 6 — — $ 1,014 $ — $ 213 SEPTEMBER 30, 2018 Interest Expense Related Party, Net Non cash Nine Months Ended October 2012 and April 2013 Secured Promissory Notes (2) $ 213 $ — $ 42 June 2014 Secured Promissory Notes 474 — 16 Secured December 2017 Convertible Notes (1) 529 — 322 LSQ Financing 306 — 57 August 2015 Senior Secured Promissory Notes (2) — 451 133 ASC 606 Financing Component 237 — 237 $ 1,759 $ 451 $ 807 (1) This agreement was terminated in February 2018. (2) This agreement was amended in February 2018. |
Schedule of Fair Value of Agent Fee | The following table reflects the activity under this note (in thousands): Principal balance, net at December 31, 2018 $ 8,639 Principal payments (683) Interest 494 Debt discount amortization 16 Principal balance, net at September 30, 2019 $ 8,466 |
Schedule of Debt Activity | The following table reflects the accounting for the activities under the Secured December 2017 Convertible Note as follows (in thousands): Principal (pre-conversion) $ 6,000 Discount (pre-conversion) (791 ) Consideration of common stock and warrants provided at conversion (16,843 ) Derivative liability extinguished 6,424 Loss on extinguishment 5,210 Balance at September 30, 2018 $ - |
Snyder Debt Conversion [Member] | |
Schedule of Debt Conversion | The accounting for the change due to the Snyder Debt Conversion is as follows (in thousands): Principal (pre-conversion) $ 12,450 Discount (pre-conversion) (134 ) Consideration of common stock and warrants provided at conversion (6,196 ) Gain on extinguishment (2,695 ) Principal and future interest at September 30, 2019 $ 3,425 |
Secured December 2017 Convertible Note [Member] | |
Schedule of Debt Conversion | The change in the value of the agent fee and the fair value of the common stock granted in lieu of cash was also included in the gain on partial extinguishment of debt as follows (in thousands): Agent fee, included in other liabilities, long term (pre-conversion) $ 827 Gain on extinguishment (319 ) Agent fee payable in common shares $ 508 |
Warrants (Tables)
Warrants (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Fair Value Warrant Assumptions | The Company’s fair value of the warrant post modification was estimated utilizing a Monte Carlo univariate option pricing model based on the following assumptions which have been determined consistent with the Company’s historical methodology for such assumptions: AUGUST 6, 2019 Expected life (years) 3.4 Estimated volatility factor 53.1 % Risk-free interest rate 1.52 % Expected dividend yield — |
Summary of Information About Common Stock Warrants Outstanding | The following table summarizes information about the Company’s common stock warrants outstanding as of September 30, 2019 (in thousands, except exercise price data): NUMBER OF SHARES SUBJECT TO EXPIRATION WARRANTS EXERCISE DESCRIPTION ISSUE DATE DATE ISSUED PRICE In connection with June 2013 Credit Facility (June 2013 Warrants) June 2013 June 2023 (1) 27 $ 8.40 In connection with August 2015 Senior Secured Promissory Notes (August 2015 Warrants) August 2015 August 2023 4,000 $ 1.91 In connection with October 2012 and April 2013 Secured Promissory Notes (November 2016 Warrants) November 2016 November 2026 125 $ 2.38 In connection with June 2017 Consulting Agreement (November 2017 Warrants) June 2017 June 2027 80 $ 1.10 In connection with February 2018 Financing Transaction (February 2018 Warrants 1) February 2018 December 2020 6,750 $ 1.00 In connection with February 2018 Financing Transaction (February 2018 Warrants 2) February 2018 December 2020 5,065 $ 1.25 In connection with August 2019 Modification of February 2018 Warrants (Warrant Amendment and Plan of Reorganization Agreement) August 2019 December 2021 26,600 $ 1.00 In connection with Exercise 1 of Call Option under the Warrant Amendment and Plan of Reorganization Agreement (August 2019 Warrants) Various dates starting in August 2019 January 2023 10,000 $ 1.75 52,647 The weighted average remaining contractual life and exercise price for these warrants is 2.37 years and $1.24, respectively. (1) The June 2013 Warrants expire upon the earlier to occur of (i) the date listed above; (ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any transfer of more than 50% of the voting power of the Company, reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (iii) a sale of all or substantially all of the assets of the Company unless the Company’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company’s acquisition or sale or otherwise), hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity. |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Estimated Utilizing a Black Scholes Option Pricing Model Based on Assumptions | The Company’s fair value of the option grants for the three months ended September 30, 2019 was estimated utilizing a Black Scholes option pricing model based on the following range of assumptions which have determined consistent with the Company’s historical methodology for such assumptions: SEPTEMBER 30, 2019 Expected life (years) 5.33-6.08 Estimated volatility factor 53.3-53.8 % Risk-free interest rate 1.41-1.92 % Expected dividend yield — |
Summary of Stock Options Activity | The following table summarizes the activity of stock options from December 31, 2018 to September 30, 2019 (in thousands, except weighted average exercise price): WEIGHTED- AVERAGE EXERCISE Options PRICE Balances at December 31, 2018 7,136 $ 3.31 Options granted 5,485 1.43 Options exercised (47 ) 1.18 Options cancelled (518 ) 2.19 Balances at September 30, 2019 12,056 2.51 |
Summary of Restricted Stock Units Activity | The following table summarizes the activity of restricted stock units from December 31, 2018 to September 30, 2019 (in thousands, except weighted average grant date fair value): RESTRICTED UNITS Outstanding at December 31, 2018 1,146 Granted 772 Exercised - Forfeited - Outstanding at September 30, 2019 1,918 |
Summary of Non-Vested Restricted Stock Units Activity | WEIGHTED AVERAGE GRANT SHARES DATE FAIR OUTSTANDING VALUE Non-vested at December 31, 2018 404 $ 1.40 Granted 772 $ 1.55 Vested (539 ) $ 1.49 Forfeited - $ - Non-vested at September 30, 2019 637 $ 1.50 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
August 2015 Senior Secured Promissory Notes [Member] | |
Schedule of Debt Conversion | The accounting for the change due to the August 2015 Senior Secured Promissory Notes is as follows (in thousands): Principal (pre-conversion) $ 40,000 Accrued interest to be paid at maturity 339 Discount (pre-conversion) (2,171 ) Consideration of common stock and warrants provided at conversion (21,685 ) Gain on extinguishment (9,183 ) Principal and future interest at September 30, 2019 $ 7,300 |
Summary of Business, Basis of_2
Summary of Business, Basis of Presentation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Aug. 14, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Nov. 15, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | |
Accumulated deficit | [1] | $ 310,508 | $ 310,508 | $ 283,474 | ||||
Working capital | 1,200 | 1,200 | ||||||
Cash and cash equivalents | 7,899 | 7,899 | 18,221 | |||||
Debt excluding related parties | 18,309 | 18,309 | ||||||
Debt due to related parties | 7,300 | 7,300 | $ 7,300 | |||||
Restricted cash | $ 1,560 | $ 1,560 | ||||||
Number of warrant shares exercised | 52,647,000 | 52,647,000 | ||||||
Business combination, net of cash acquired | $ 5,849 | |||||||
Jet-Ag® and Jet-Oxide® [Member] | ||||||||
Business combination, net of cash acquired | $ 6,393 | |||||||
Advisory, legal and other professional services costs | $ 3,744 | |||||||
Warrant Reorganization Agreement [Member] | February 2018 Warrants [Member] | ||||||||
Warrants term description | The Company has agreed to extend the expiration date under the February 2018 Warrants held by such holders from December 2020 to December 2021 | |||||||
Number of warrant shares exercised | 10,000,000 | 10,000,000 | ||||||
Warrant Reorganization Agreement [Member] | February 2018 Warrants [Member] | Minimum [Member] | ||||||||
Stock trades price per share | $ 1 | |||||||
Warrant Reorganization Agreement [Member] | February 2018 Warrants [Member] | Maximum [Member] | ||||||||
Number of warrant shares exercised | 36,600,000 | |||||||
Subsequent Event [Member] | ||||||||
Cash and cash equivalents | $ 3,701 | |||||||
Pro Farm Technologies Comercio de Insumos Agricolas do Brasil ltda. [Member] | ||||||||
Ownership controlling interest percentage | 99.00% | |||||||
Marrone Organic Innovations, Inc. [Member] | State of Delaware [Member] | ||||||||
Date of incorporation | Jun. 15, 2006 | |||||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Number | Sep. 30, 2018USD ($) | |
Concentration risk, supplier | The active ingredient in the Company's Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company currently relies on one supplier for this plant. Such single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company's manufacturing plant. While the Company does not have a long-term supply contract with this supplier, the Company does have a long-term business relationship with this supplier. The Company endeavors to keep 6 months of knotweed extract on hand at any given time, but an unexpected disruption in supply could have an effect on Regalia supply and revenues. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price. | |||
Long term relationship of suppliers interest rate percentage | 12.00% | 12.00% | ||
Deferred cost of product revenues | $ 348 | $ 348 | ||
Revenue recognized | 60 | $ 47 | 60 | $ 47 |
Financing component revenues | 187 | 149 | 187 | 149 |
Research and development expenses | 3,473 | 2,381 | 9,490 | 6,898 |
Patent expenses | 287 | 277 | 846 | 787 |
Shipping and handling costs | 281 | 249 | 998 | 705 |
Advertising costs | 173 | 192 | 548 | 794 |
Depreciation expense | 359 | 1,262 | 444 | 1,427 |
Amortization expense | $ 165 | $ 165 | ||
Operating segment | Number | 1 | |||
Sales Revenue Net [Member] | International Customers [Member] | ||||
Customers accounted for percentage of company's total revenues | 11.00% | 11.00% | 8.00% | 11.00% |
Sales Revenue Net [Member] | International Customers [Member] | Three Product [Member] | ||||
Customers accounted for percentage of company's total revenues | 85.00% | 95.00% | 91.00% | 93.00% |
Maximum [Member] | ||||
Receivables due period | 120 days |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Significant Customer's Revenues and Account Receivable Percentage (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Customer A [Member] | Sales Revenue Net [Member] | |||||
Customers accounted for percentage of company's total revenues and accounts receivable | 26.00% | 31.00% | 26.00% | 22.00% | |
Customer A [Member] | Accounts Receivable [Member] | |||||
Customers accounted for percentage of company's total revenues and accounts receivable | 22.00% | 52.00% | |||
Customer B [Member] | Sales Revenue Net [Member] | |||||
Customers accounted for percentage of company's total revenues and accounts receivable | 13.00% | 13.00% | 12.00% | 12.00% | |
Customer B [Member] | Accounts Receivable [Member] | |||||
Customers accounted for percentage of company's total revenues and accounts receivable | 11.00% | 3.00% | |||
Customer C [Member] | Sales Revenue Net [Member] | |||||
Customers accounted for percentage of company's total revenues and accounts receivable | 10.00% | 19.00% | 10.00% | 20.00% | |
Customer C [Member] | Accounts Receivable [Member] | |||||
Customers accounted for percentage of company's total revenues and accounts receivable | 4.00% | 24.00% |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Product revenues | $ 348 | $ 457 |
Financing costs | 614 | 604 |
License revenues | 1,572 | 1,776 |
Deferred revenue | 2,534 | 2,837 |
Less current portion | (441) | (438) |
Deferred revenue, less current portion | $ 2,093 | $ 2,399 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earning per share | 73,156,000 | 61,528,000 |
Stock Options Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earning per share | 7,256,000 | |
Warrants to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earning per share | 52,647,000 | 52,725,000 |
Restricted Stock Units Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earning per share | 1,918,000 | 1,049,000 |
Common Shares to be Issued in Lieu of Agent Fees [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earning per share | 498,000 | 498,000 |
Employee Stock Purchase Plan [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earning per share | 65,000 | |
Maximum Contingent Consideration Shares To Be Issued [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earning per share | 5,972,000 |
Acquisitions (Details Narrative
Acquisitions (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Sep. 13, 2019 | Sep. 10, 2019 | Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 |
Acquired in cash consideration | $ 2,534 | ||||
Fair value of contingent consideration | 190 | ||||
Acquisition costs | 117 | ||||
Acquisition percentage | 50.00% | 50.00% | |||
Issuance of common stock value | $ 12,665 | ||||
Business acquisition on warrant exercised | 52,647,000 | 52,647,000 | |||
Customer List [Member] | |||||
Preliminary amortization period of acquired | 15 years | ||||
Trade Name [Member] | |||||
Preliminary amortization period of acquired | 15 years | ||||
Non-Compete [Member] | |||||
Preliminary amortization period of acquired | 6 years | ||||
Jet Harvest Solutions [Member] | |||||
Acquired in cash consideration | 2,534 | ||||
Payment of acquisition cash acquired | $ 544 | ||||
Acquisition payment, description | The remainder is to be paid in four installments over an 16-month window. | ||||
Earn out payments, description | The asset purchase agreement also contains a provision providing five earn out payments yearly from 2020 through 2024 based on the Company’s total future sales of Jet-Ag purchased through a specified supplier. | ||||
Fair value of contingent consideration | $ 190 | ||||
Acquisition costs | $ 117 | ||||
ProFarmTechnologiesOY [Member] | |||||
Acquired in cash consideration | $ 28,076 | ||||
Payment of acquisition cash acquired | 2,843 | ||||
Acquisition costs | $ 2,724 | ||||
Acquisition percentage | 100.00% | ||||
Debt incurred on behalf of acquirer | $ 3,178 | ||||
Issuance of common stock shares | 12,666,000 | ||||
Acquisition market price | $ 1.59 | ||||
Issuance of common stock value | $ 20,299 | ||||
Incurred expenses of business acquisition | $ 3,178 | ||||
Business acquisition on warrant exercised | 10,000,000 | ||||
Product revenues | $ 119 | ||||
Business acquisition on operating loss | $ 276 | ||||
ProFarmTechnologiesOY [Member] | Maximum [Member] | |||||
Fair value of contingent consideration | $ 7,500 | ||||
ProFarmTechnologiesOY [Member] | Key Employee [Member] | |||||
Fair value of restricted stock units, shares | 100,000 | ||||
Fair value of restricted stock units, value | $ 159 | ||||
ProFarmTechnologiesOY [Member] | Through December 31,2024 [Member] | |||||
Fair value | $ 1,755 |
Acquisitions - Schedule of Busi
Acquisitions - Schedule of Business Consideration on Acquired Assets (Details) $ in Thousands | Sep. 10, 2019USD ($) |
Cash paid, inclusive of future payments | $ 2,534 |
Fair value of contingent consideration | 190 |
Other cost to acquire assets | 117 |
Total acquisition related costs | 2,841 |
Total assets acquired | 2,841 |
Customer List [Member] | |
Total assets acquired | 2,291 |
Trade Name [Member] | |
Total assets acquired | 458 |
Non-Compete [Member] | |
Total assets acquired | $ 92 |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Sep. 13, 2019USD ($) |
Business Combinations [Abstract] | |
Accounts receivable | $ 583 |
Inventory | 524 |
Other current assets | 212 |
Investments in subsidiary | 537 |
Developed technology | 16,362 |
Tradename | 2,658 |
In process research and development | 2,713 |
Goodwill | 7,100 |
Total assets acquired | 30,689 |
Accounts payable | 431 |
Accrued liabilities | 757 |
Debt | 1,612 |
Non-controlling interest | (14) |
Net assets acquired | 27,903 |
Cash paid, net of cash acquired | 5,849 |
Fair Value of stock consideration | 20,299 |
Fair value of contingent consideration | 1,755 |
Total purchase price | $ 27,903 |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Business Combinations [Abstract] | ||
Product revenues | $ 23,530 | $ 15,802 |
Cost of product revenues | 10,700 | 8,236 |
Gross profit | 12,830 | 7,566 |
Operating expenses and other income/expense | 32,705 | 21,651 |
Net Loss | $ (19,875) | $ (14,145) |
Earnings per share: | $ (0.11) | $ (0.14) |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory reserve | $ 268 | $ 579 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,012 | $ 1,844 |
Work in progress | 1,074 | 1,580 |
Finished goods | 5,746 | 4,800 |
Inventories, total | $ 8,832 | $ 8,224 |
Right-of-Use of Assets and Le_3
Right-of-Use of Assets and Lease Liability (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 02, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Right-of-use assets | $ 4,722 | $ 5,324 | |
Lease liabilities | $ 862 | $ 5,510 | |
Weighted average incremental borrowing rate | 7.03% | ||
weighted average remaining lease term | 5 years |
Right-of-Use of Assets and Le_4
Right-of-Use of Assets and Lease Liability - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 287 | $ 874 |
Short-term lease cost | 20 | 53 |
Sublease income | (25) | (73) |
Total lease cost | $ 282 | 854 |
Cash paid for amounts included in the measurement of lease liabilities | 678 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 602 |
Right-of-Use of Assets and Le_5
Right-of-Use of Assets and Lease Liability - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 02, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
2019, remaining 3 months | $ 292 | ||
2020 | 1,179 | ||
2021 | 1,202 | ||
2022 | 1,238 | ||
2023 and beyond | 2,092 | ||
Total lease payments | 6,003 | ||
Less: imputed interest | 964 | ||
Total lease obligation | 5,039 | ||
Less lease obligation, current portion | 862 | $ 5,510 | |
Lease obligation, non-current portion | $ 4,177 |
Accrued Liabilities (Details Na
Accrued Liabilities (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Payables and Accruals [Abstract] | ||||
Warranty expense | $ 75,500 | $ 58,000 | $ 245,000 | $ 215,000 |
Reduction in warranty expense | $ 29,000 | $ 173,000 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 3,437 | $ 2,570 |
Accrued warranty costs | 391 | 320 |
Accrued legal costs | 1,032 | 69 |
Accrued customer incentives | 4,459 | 2,170 |
Accrued liabilities, other | 5,791 | 1,742 |
Accrued liabilities, total | $ 15,110 | $ 6,871 |
Accrued Liabilities - Schedul_2
Accrued Liabilities - Schedule of Changes in Accrued Warranty Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Payables and Accruals [Abstract] | |
Beginning Balance | $ 320 |
Warranties issued (released) during the period | 71 |
Settlements made during the period | |
Ending Balance | $ 391 |
Debt (Details Narrative)
Debt (Details Narrative) | Sep. 10, 2019USD ($) | Aug. 30, 2019 | Mar. 27, 2019USD ($) | Feb. 20, 2018 | Feb. 05, 2018USD ($)$ / sharesshares | Dec. 22, 2017 | Dec. 15, 2017$ / shares | Oct. 12, 2017USD ($) | Mar. 24, 2017USD ($) | Apr. 10, 2013USD ($) | Oct. 02, 2012USD ($) | Sep. 30, 2018 | Sep. 30, 2014USD ($) | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)shares | Sep. 30, 2019EUR (€)shares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019EUR (€)shares | Sep. 10, 2019EUR (€) | Sep. 04, 2019USD ($) | Sep. 04, 2019EUR (€) | Sep. 04, 2018USD ($) | Sep. 04, 2018EUR (€) | Jan. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |||
Debt conversion amount | $ 6,000,000 | |||||||||||||||||||||||||||||
Number of warrant shares exercised | shares | 52,647,000 | 52,647,000 | 52,647,000 | |||||||||||||||||||||||||||
Gain/loss on extinguishment of debt | [1] | [1] | (2,196,000) | [1] | ||||||||||||||||||||||||||
Amount of debt, outstanding | 18,499,000 | 18,499,000 | ||||||||||||||||||||||||||||
Repayment of secured debt | 21,123,000 | 15,181,000 | ||||||||||||||||||||||||||||
Required deposit balance | 1,560,000 | 1,560,000 | $ 1,560,000 | |||||||||||||||||||||||||||
LSQ Funding Group L.C [Member] | ||||||||||||||||||||||||||||||
Debt instrument description | The Company amended the LSQ Financing arrangement and effectively (i) decreased the invoice purchase fee from 1.00% to a range of 0.40% to 1.00%, (ii) decreased the funds usage fee from 0.035% to a range of 0.020% to 0.035% and (iii) extended the terms of the agreement to June 30, 2019. | |||||||||||||||||||||||||||||
Convertible promissory note | 4,957,000 | 4,957,000 | ||||||||||||||||||||||||||||
Sale of certain accounts receivable to third-party | $ 7,000,000 | |||||||||||||||||||||||||||||
Invoice purchase fee percentage | 1.00% | |||||||||||||||||||||||||||||
Additional monthly funds usage rate | 0.35% | |||||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||||
Aging collection fee percentage | 0.35% | |||||||||||||||||||||||||||||
Maximum [Member] | LSQ Funding Group L.C [Member] | ||||||||||||||||||||||||||||||
Advancement rate of receivables face value | 80.00% | |||||||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||||
Aging collection fee percentage | 0.00% | |||||||||||||||||||||||||||||
Secured Debt [Member] | ||||||||||||||||||||||||||||||
Amount of debt, outstanding | 25,609,000 | $ 25,609,000 | $ 21,437,000 | |||||||||||||||||||||||||||
Debt instrument description | The Company is required to maintain a current ratio of not less than 1.25-to-1.0, a debt-to-worth ratio of no greater than 4.0-to-1.0 and a loan-to-value ratio of no greater than 70% as determined by Five Star Bank. | The Company is required to maintain a current ratio of not less than 1.25-to-1.0, a debt-to-worth ratio of no greater than 4.0-to-1.0 and a loan-to-value ratio of no greater than 70% as determined by Five Star Bank. | ||||||||||||||||||||||||||||
Secured Convertible Debt [Member] | Securities Purchase Agreement [Member] | Dwight W. Anderson [Member] | ||||||||||||||||||||||||||||||
Conversion price per share | $ / shares | $ 0.50 | |||||||||||||||||||||||||||||
Common stock price per share description | Company's common stock at a rate of one share of common stock per $0.50. | |||||||||||||||||||||||||||||
October 2012 Secured Promissory Notes [Member] | Loan Agreement [Member] | ||||||||||||||||||||||||||||||
Debt instrument borrowing amount | $ 4,950,000 | |||||||||||||||||||||||||||||
Issued in partial consideration | 3,700,000 | |||||||||||||||||||||||||||||
Partial conversion for the cancellation amount | 1,250,000 | |||||||||||||||||||||||||||||
October 2012 Secured Promissory Notes [Member] | Loan Agreement [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Debt instrument borrowing amount | $ 5,000,000 | |||||||||||||||||||||||||||||
October 2012 Secured Promissory Notes [Member] | Secured Debt [Member] | ||||||||||||||||||||||||||||||
Debt instrument borrowing amount | $ 7,500,000 | |||||||||||||||||||||||||||||
October 2012 Secured Promissory Notes and April 2013 Secured Promissory Notes [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||
Debt instrument borrowing amount | 7,500,000 | |||||||||||||||||||||||||||||
October 2012 Secured Promissory Notes and April 2013 Secured Promissory Notes [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Debt instrument borrowing amount | $ 12,450,000 | |||||||||||||||||||||||||||||
October 2012 and April 2013 Secured Promissory Notes [Member] | ||||||||||||||||||||||||||||||
Debt conversion amount | $ 10,000,000 | |||||||||||||||||||||||||||||
Conversion of debt, shares | shares | 5,714,285 | |||||||||||||||||||||||||||||
Number of warrant shares exercised | shares | 1,142,856 | |||||||||||||||||||||||||||||
Secured debt | 2,450,000 | $ 2,450,000 | ||||||||||||||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |||||||||||||||||||||||||||
Gain/loss on extinguishment of debt | $ 319,000 | $ 3,014,000 | ||||||||||||||||||||||||||||
Amount of debt, outstanding | $ 3,425,000 | $ 3,425,000 | ||||||||||||||||||||||||||||
Debt fee percentage | 7.00% | 7.00% | ||||||||||||||||||||||||||||
Number of shares issued for services | shares | 498,000 | 498,000 | ||||||||||||||||||||||||||||
October 2012 and April 2013 Secured Promissory Notes [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Debt instrument, interest rate | 14.00% | |||||||||||||||||||||||||||||
October 2012 and April 2013 Secured Promissory Notes [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||
Debt instrument, interest rate | 8.00% | |||||||||||||||||||||||||||||
June 2014 Secured Promissory Note [Member] | Secured Debt [Member] | ||||||||||||||||||||||||||||||
Debt instrument, maturity date | Jun. 30, 2036 | Jun. 30, 2036 | Jun. 30, 2036 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 7.25% | 7.25% | 7.25% | |||||||||||||||||||||||||||
Amount of debt, outstanding | $ 8,466,000 | $ 8,466,000 | $ 8,639,000 | |||||||||||||||||||||||||||
Unamortized debt discount | $ 190,000 | $ 190,000 | $ 205,000 | |||||||||||||||||||||||||||
June 2014 Secured Promissory Note [Member] | Secured Debt [Member] | Business Loan Agreement [Member] | ||||||||||||||||||||||||||||||
Debt instrument borrowing amount | $ 10,000,000 | |||||||||||||||||||||||||||||
Debt instrument, maturity date | Jun. 30, 2036 | Jun. 30, 2036 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 7.50% | 7.50% | 7.50% | |||||||||||||||||||||||||||
Repayment of secured debt | $ 76,286 | |||||||||||||||||||||||||||||
Required deposit balance | $ 1,560,000 | 1,560,000 | ||||||||||||||||||||||||||||
Unamortized debt discount | ||||||||||||||||||||||||||||||
June 2014 Secured Promissory Note [Member] | Secured Debt [Member] | Business Loan Agreement [Member] | Prime Rate [Member] | ||||||||||||||||||||||||||||||
Debt instrument, interest rate | 2.00% | 2.00% | 2.00% | |||||||||||||||||||||||||||
October 2017 Convertible Note [Member] | Secured Convertible Debt [Member] | Dwight W. Anderson [Member] | ||||||||||||||||||||||||||||||
Debt instrument, maturity date | Oct. 23, 2020 | |||||||||||||||||||||||||||||
Convertible promissory note | $ 1,000,000 | |||||||||||||||||||||||||||||
October 2017 Convertible Note [Member] | Secured Convertible Debt [Member] | Maximum [Member] | Dwight W. Anderson [Member] | ||||||||||||||||||||||||||||||
Unsecured debt | $ 6,000,000 | |||||||||||||||||||||||||||||
Secured December 2017 Convertible Note [Member] | ||||||||||||||||||||||||||||||
Debt conversion amount | $ 6,000,000 | |||||||||||||||||||||||||||||
Conversion of debt, shares | shares | 12,000,000 | |||||||||||||||||||||||||||||
Secured debt | $ 2,000,000 | |||||||||||||||||||||||||||||
Gain/loss on extinguishment of debt | $ 6,424,000 | $ 5,210,000 | ||||||||||||||||||||||||||||
Conversion price per share | $ / shares | $ 0.50 | |||||||||||||||||||||||||||||
Unamortized debt discount | $ 574,000 | |||||||||||||||||||||||||||||
Loss on conversion of debt | $ 11,634,000 | |||||||||||||||||||||||||||||
Secured December 2017 Convertible Note [Member] | Dwight W. Anderson [Member] | ||||||||||||||||||||||||||||||
Secured debt | $ 4,000,000 | |||||||||||||||||||||||||||||
Debt instrument, maturity date | Oct. 12, 2020 | |||||||||||||||||||||||||||||
Unamortized debt discount | $ 510,000 | |||||||||||||||||||||||||||||
September 2018 Research Facility [Member] | Innovation Centre Business Finland [Member] | ||||||||||||||||||||||||||||||
Debt instrument, interest rate | 3.00% | 3.00% | ||||||||||||||||||||||||||||
Debt instrument face amount | $ 326,000 | |||||||||||||||||||||||||||||
Subsequently Debt drew amount | $ 94,000 | |||||||||||||||||||||||||||||
Repayment of increments percentage | 25.00% | 25.00% | ||||||||||||||||||||||||||||
Debt instrument effective interest rate percentage | 3.82% | 3.82% | ||||||||||||||||||||||||||||
Debt instrument outstanding principal balance | $ 83,000 | |||||||||||||||||||||||||||||
September 2018 Research Facility [Member] | Innovation Centre Business Finland [Member] | Euro [Member] | ||||||||||||||||||||||||||||||
Debt instrument face amount | € | € 282,000 | |||||||||||||||||||||||||||||
Subsequently Debt drew amount | € | € 80,000 | |||||||||||||||||||||||||||||
Debt instrument outstanding principal balance | € | € 72,000 | |||||||||||||||||||||||||||||
September 2018 Research Facility [Member] | Minimum [Member] | Innovation Centre Business Finland [Member] | ||||||||||||||||||||||||||||||
Debt instrument, interest rate | 1.00% | 1.00% | ||||||||||||||||||||||||||||
September 2018 Bank Facility [Member] | ||||||||||||||||||||||||||||||
Line of credit outstanding amount | $ 63,000 | |||||||||||||||||||||||||||||
September 2018 Bank Facility [Member] | Nordea Bank AB [Member] | ||||||||||||||||||||||||||||||
Debt instrument, interest rate | 2.40% | 2.60% | 2.60% | 2.60% | 2.40% | |||||||||||||||||||||||||
Line of credit borrow amount | $ 266,000 | |||||||||||||||||||||||||||||
Line of credit guarteed rate | 2.49% | 2.49% | ||||||||||||||||||||||||||||
September 2018 Bank Facility [Member] | Nordea Bank AB [Member] | Extended Maturity [Member] | ||||||||||||||||||||||||||||||
Line of credit repayment maturity date | Aug. 31, 2019 | |||||||||||||||||||||||||||||
September 2018 Bank Facility [Member] | Export Credit Agency of Finland [Member] | ||||||||||||||||||||||||||||||
Debt instrument, interest rate | 60.00% | 60.00% | 60.00% | |||||||||||||||||||||||||||
September 2018 Bank Facility [Member] | Euro [Member] | ||||||||||||||||||||||||||||||
Line of credit outstanding amount | € | € 55,000 | |||||||||||||||||||||||||||||
September 2018 Bank Facility [Member] | Euro [Member] | Nordea Bank AB [Member] | ||||||||||||||||||||||||||||||
Line of credit borrow amount | € | € 230,000 | |||||||||||||||||||||||||||||
Line of credit fee percentage | 0.95% | |||||||||||||||||||||||||||||
Line of credit repayment maturity date | Feb. 28, 2019 | |||||||||||||||||||||||||||||
September 2018 Bank Facility [Member] | Nordea Bank AB [Member] | Extended Maturity [Member] | ||||||||||||||||||||||||||||||
Line of credit repayment maturity date | Feb. 29, 2020 | |||||||||||||||||||||||||||||
March 2019 Factoring [Member] | Bab al Khail General Trading [Member] | ||||||||||||||||||||||||||||||
Debt instrument, maturity date | Dec. 17, 2019 | |||||||||||||||||||||||||||||
Debt instrument, interest rate | 15.00% | |||||||||||||||||||||||||||||
Debt instrument outstanding principal balance | $ 1,314,000 | $ 1,315,000 | $ 1,315,000 | |||||||||||||||||||||||||||
March 2019 Factoring [Member] | Bab al Khail General Trading [Member] | Euro [Member] | ||||||||||||||||||||||||||||||
Debt instrument outstanding principal balance | € | € 1,163,200 | |||||||||||||||||||||||||||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Debt - Schedule of Debt Includi
Debt - Schedule of Debt Including Debt to Related Parties (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt, including debt due to related parties | $ 18,499 | |
Less debt due to related parties, non-current | (7,300) | $ (7,300) |
Debt, non-current | 11,719 | 11,819 |
Secured Debt [Member] | ||
Debt, including debt due to related parties | 25,609 | 21,437 |
Less debt due to related parties, non-current | (7,300) | (7,300) |
Less current portion | (6,590) | (2,318) |
Debt, non-current | 11,719 | 11,819 |
Secured Debt [Member] | Secured Promissory Notes Interest Rate at 8.00% [Member] | ||
Debt, including debt due to related parties | 3,425 | 3,425 |
Secured Debt [Member] | June 2014 Secured Promissory Note [Member] | ||
Debt, including debt due to related parties | 8,466 | 8,639 |
Secured Debt [Member] | Secured Revolving Borrowing Interest Rate at 12.8% Through June 2019 [Member] | ||
Debt, including debt due to related parties | 4,957 | 2,073 |
Secured Debt [Member] | Senior Secured Promissory Note Interest Rate at 8% [Member] | ||
Debt, including debt due to related parties | 7,300 | 7,300 |
Secured Debt [Member] | Research Loan Facility Interest Rate at 1.00% [Member] | ||
Debt, including debt due to related parties | 83 | |
Secured Debt [Member] | 2018 Bank facility [Member] | ||
Debt, including debt due to related parties | 63 | |
Secured Debt [Member] | Secured Borrowing Interest Rate at 15.00% [Member] | ||
Debt, including debt due to related parties | $ 1,315 |
Debt - Schedule of Debt Inclu_2
Debt - Schedule of Debt Including Debt to Related Parties (Details) (Parenthetical) - Secured Debt [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Secured Promissory Notes Interest Rate at 8.00% [Member] | ||
Debt instrument, interest rate | 8.00% | 8.00% |
Debt instrument, maturity date | Dec. 31, 2022 | Dec. 31, 2022 |
June 2014 Secured Promissory Note [Member] | ||
Debt instrument, interest rate | 7.25% | |
Debt instrument, maturity date | Jun. 30, 2036 | Jun. 30, 2036 |
Unamortized debt discount | $ 190 | $ 205 |
Debt instrument, payment terms | Payable monthly through June 2036 | Payable monthly through June 2036 |
Debt instrument, prime rate | 2.00% | 2.00% |
Secured Revolving Borrowing Interest Rate at 12.8% Through June 2019 [Member] | ||
Debt instrument, interest rate | 12.80% | 12.80% |
Debt instrument, payment terms | Through November 2019 | Through November 2019 |
Senior Secured Promissory Note Interest Rate at 8% [Member] | ||
Debt instrument, interest rate | 8.00% | 8.00% |
Debt instrument, maturity date | Dec. 31, 2022 | Dec. 31, 2022 |
Research Loan Facility Interest Rate at 1.00% [Member] | ||
Debt instrument, interest rate | 1.00% | 1.00% |
Debt instrument, maturity date | Sep. 30, 2022 | Sep. 30, 2022 |
Debt instrument interest rate principal payment | 25.00% | |
Export Credit Agency of Finland for a Fee of 2.49% [Member] | ||
Debt instrument, interest rate | 60.00% | 60.00% |
2018 Bank facility [Member] | ||
Debt instrument, interest rate | 2.60% | 2.60% |
Debt instrument, maturity date | Feb. 29, 2020 | Feb. 29, 2020 |
Debt instrument, prime rate | 2.40% | 2.40% |
Debt instrument interest rate principal payment | 25.00% | |
Secured Borrowing Interest Rate at 15.00% [Member] | ||
Debt instrument, interest rate | 15.00% | 15.00% |
Debt instrument, maturity date | Dec. 17, 2019 | Dec. 17, 2019 |
Debt - Schedule of Contractual
Debt - Schedule of Contractual Future Principal Payments (Details) $ in Thousands | Sep. 30, 2019USD ($) | |
2019 | $ 6,390 | |
2020 | 276 | |
2021 | 299 | |
2022 | 2,794 | |
2023 | 369 | |
Thereafter | 7,396 | |
Total future principal payments | 17,524 | |
Interest payments included in debt balance | 975 | [1] |
Debt, including debt due to related parties | 18,499 | |
Related Party [Member] | ||
2019 | ||
2020 | ||
2021 | ||
2022 | 5,000 | |
2023 | ||
Thereafter | ||
Total future principal payments | 5,000 | |
Interest payments included in debt balance | 2,300 | [1] |
Debt, including debt due to related parties | $ 7,300 | |
[1] | Due to the debt extinguishment requirement, the Company has included both accrued interest and future interest in the debt balance for certain outstanding debt. |
Debt - Reconciliation of Intere
Debt - Reconciliation of Interest Expense for Debt Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Expense | $ 355 | $ 300 | $ 1,014 | $ 1,759 | |
Related Party, Net | 451 | ||||
Non cash | 68 | 83 | 213 | 807 | |
Secured Debt [Member] | June 2014 Secured Promissory Notes [Member] | |||||
Expense | 170 | 166 | 509 | 474 | |
Related Party, Net | |||||
Non cash | 5 | 5 | 16 | 16 | |
Secured Debt [Member] | LSQ Financing [Member] | |||||
Expense | 121 | 56 | 302 | 306 | |
Related Party, Net | |||||
Non cash | 57 | ||||
Secured Debt [Member] | ASC 606 Financing Component [Member] | |||||
Expense | 63 | 78 | 197 | 237 | |
Related Party, Net | |||||
Non cash | 63 | $ 78 | 197 | 237 | |
Secured Debt [Member] | Other [Member] | |||||
Expense | 1 | 6 | |||
Related Party, Net | |||||
Non cash | |||||
Secured Debt [Member] | October 2012 and April 2013 Secured Promissory Notes [Member] | |||||
Expense | [1] | 213 | |||
Related Party, Net | [1] | ||||
Non cash | [1] | 42 | |||
Secured Debt [Member] | Secured December 2017 Convertible Note [Member] | |||||
Expense | [2] | 529 | |||
Related Party, Net | [2] | ||||
Non cash | [2] | 322 | |||
Secured Debt [Member] | August 2015 Senior Secured Promissory Notes [Member] | |||||
Expense | [1] | ||||
Related Party, Net | [1] | 451 | |||
Non cash | [1] | $ 133 | |||
[1] | This agreement was amended in February 2018. | ||||
[2] | This agreement was terminated in February 2018. |
Debt - Schedule of Debt Convers
Debt - Schedule of Debt Conversion (Details) - USD ($) | Feb. 05, 2018 | Sep. 30, 2019 | [1] | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | [1] | |
Gain/loss on extinguishment | [1] | $ (2,196,000) | ||||||
Snyder Debt Conversion [Member] | ||||||||
Principal (pre-conversion) | 12,450,000 | |||||||
Discount (pre-conversion) | (134,000) | |||||||
Consideration of common stock and warrants provided at conversion | (6,196,000) | |||||||
Gain/loss on extinguishment | (2,695,000) | |||||||
Principal and future interest | 3,425,000 | |||||||
Secured December 2017 Convertible Note [Member] | ||||||||
Principal (pre-conversion) | 6,000,000 | |||||||
Discount (pre-conversion) | (791,000) | |||||||
Consideration of common stock and warrants provided at conversion | (16,843,000) | |||||||
Derivative liability extinguished | 6,424,000 | |||||||
Gain/loss on extinguishment | $ 6,424,000 | 5,210,000 | ||||||
Principal and future interest | ||||||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Debt - Schedule of Fair value o
Debt - Schedule of Fair value of Agent Fee (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | [1] | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
Gain on extinguishment | [1] | $ 2,196,000 | [1] | ||||
October 2012 and April 2013 Secured Promissory Notes [Member] | |||||||
Agent fee, included in other liabilities, long term (pre-conversion) | 827,000 | ||||||
Gain on extinguishment | (319,000) | $ (3,014,000) | |||||
Agent fee payable in common shares | $ 508,000 | ||||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Debt - Schedule of Debt Activit
Debt - Schedule of Debt Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Principal balance, net at Ending | $ 18,499 |
June 2014 Secured Promissory Notes [Member] | |
Principal balance, net at Beginning | 8,639 |
Principal payments | (683) |
Interest | 494 |
Debt discount amortization | 16 |
Principal balance, net at Ending | $ 8,466 |
Warrants (Details Narrative)
Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Aug. 06, 2019 | Sep. 30, 2019 | Aug. 07, 2019 |
Warrants expiration date description | On August 6, 2019, the Company entered into a warrant amendment and plan of reorganization agreement ("Warrant Reorganization Agreement") with certain holders of the February 2018 Warrants. Pursuant to the Warrant Reorganization Agreement, the Company has agreed to extend the expiration date under the February 2018 Warrants held by such holders from December 2020 to December 2021, and the holders have agreed, at any time the Company's stock trades above $1.00 and upon request by the Company, to exercise up to 36,600,000 of their respective February 2018 Warrants, in consideration for the delivery of (x) the shares subject to the February 2018 Warrants so exercised and (y) the delivery of new warrants ("August 2019 Warrants") to purchase such additional number of shares of common stock equal to the amount of shares so exercised and delivered under February 2018 Warrants. Accordingly, up to a maximum of 36,600,000 new shares may be issued pursuant to the August 2019 Warrants, to the extent the Company exercises its rights to require exercise of the February 2018 Warrants. | ||
Warrant exercise price | $ 1.24 | ||
Number of warrant shares exercised | 52,647,000 | ||
Warrant weighted average remaining contractual life | 2 years 4 months 13 days | ||
Warrant Reorganization Agreement [Member] | Non-cash Charge [Member] | |||
Increase in fair value of warrants | $ 4,751 | ||
Warrant Reorganization Agreement [Member] | Maximum [Member] | |||
Number of warrants exercised | 36,600,000 | ||
February 2018 Warrants One [Member] | |||
Stock trades price per share | $ 1 | ||
Increase in fair value of warrants | $ 1,564 | ||
Number of warrant shares exercised | 10,000,000 | ||
August 2019 Warrants [Member] | |||
Warrants expiration date | Jan. 1, 2023 | ||
Warrant exercise price | $ 1.75 | ||
Number of warrant shares exercised | 10,000,000 | ||
Issuance of common stock, shares | 10,000,000 | ||
August 2019 Warrants [Member] | Warrant Reorganization Agreement [Member] | |||
Number of warrant shares exercised | 10,000,000 |
Warrants - Schedule of Fair Val
Warrants - Schedule of Fair Value Warrant Assumptions (Details) | Aug. 06, 2019Number |
Expected Life (Years) [Member] | |
Warrants and rights outstanding term | 3 years 4 months 24 days |
Estimated Volatility Factor [Member] | |
Warrants and rights outstanding, measurement input | 53.1 |
Risk-Free Interest Rate [Member] | |
Warrants and rights outstanding, measurement input | 1.52 |
Expected Dividend Yield [Member] | |
Warrants and rights outstanding, measurement input |
Warrants - Summary of Informati
Warrants - Summary of Information About Common Stock Warrants Outstanding (Details) | 9 Months Ended | |
Sep. 30, 2019$ / sharesshares | ||
Class of Warrant or Right [Line Items] | ||
Number of shares subject to warrant issued | shares | 52,647,000 | |
Exercise price | $ / shares | $ 1.24 | |
June 2013 Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2013-06 | |
Expiration date | 2023-06 | [1] |
Number of shares subject to warrant issued | shares | 27,000 | |
Exercise price | $ / shares | $ 8.40 | |
August 2015 Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2015-08 | |
Expiration date | 2023-08 | |
Number of shares subject to warrant issued | shares | 4,000,000 | |
Exercise price | $ / shares | $ 1.91 | |
November 2016 Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2016-11 | |
Expiration date | 2026-11 | |
Number of shares subject to warrant issued | shares | 125,000 | |
Exercise price | $ / shares | $ 2.38 | |
June 2017 Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2017-06 | |
Expiration date | 2027-06 | |
Number of shares subject to warrant issued | shares | 80,000 | |
Exercise price | $ / shares | $ 1.10 | |
February 2018 Warrants 1 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2018-02 | |
Expiration date | 2020-12 | |
Number of shares subject to warrant issued | shares | 6,750,000 | |
Exercise price | $ / shares | $ 1 | |
February 2018 Warrants 2 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2018-02 | |
Expiration date | 2020-12 | |
Number of shares subject to warrant issued | shares | 5,065,000 | |
Exercise price | $ / shares | $ 1.25 | |
August 2019 Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2019-08 | |
Expiration date | 2021-12 | |
Number of shares subject to warrant issued | shares | 26,600,000 | |
Exercise price | $ / shares | $ 1 | |
Various Dates Starting in August 2019 [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issue date | 2019-08 | |
Expiration date | 2023-01 | |
Number of shares subject to warrant issued | shares | 10,000,000 | |
Exercise price | $ / shares | $ 1.75 | |
[1] | The June 2013 Warrants expire upon the earlier to occur of (i) the date listed above; (ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any transfer of more than 50% of the voting power of the Company, reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (iii) a sale of all or substantially all of the assets of the Company unless the Company's stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company's acquisition or sale or otherwise), hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity. |
Warrants - Summary of Informa_2
Warrants - Summary of Information About Common Stock Warrants Outstanding (Details) (Parenthetical) | Sep. 30, 2019 |
Warrants and Rights Note Disclosure [Abstract] | |
Subject to acquisition or sales percentage | 50.00% |
Share-Based Plans (Details Narr
Share-Based Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense | $ 742 | $ 437 | $ 1,906 | $ 1,310 | ||
Number of options outstanding | 12,056,000 | 12,056,000 | 7,136,000 | |||
Number of restricted stock units outstanding | 1,918,000 | 1,918,000 | ||||
Number of shares available for grant | 4,269,000 | 4,269,000 | ||||
Number of option granted to purchase common stock | 5,363,000 | 39,000 | 5,485,000 | 4,509,000 | ||
Number of options weighted-average exercise price granted | $ 1.43 | $ 1.99 | $ 1.43 | $ 1.78 | ||
Number of option exercised | 13,000 | 53,000 | 47,000 | 56,000 | ||
Number of options exercised weighted average exercise price | $ 1.18 | $ 1.17 | $ 1.18 | $ 1.17 | ||
Restricted stock units granted, shares | 772,000 | |||||
Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock units outstanding | 1,918,000 | 1,918,000 | 1,146,000 | |||
Restricted stock units granted, shares | 772,000 | |||||
One Employee [Member] | Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted, shares | 100,000 | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total maximum number of shares available for purchase under the plan | 1,000,000 | |||||
Percentage of purchase price of share on fair market value of share | 85.00% | |||||
Percentage of discount expensed | 15.00% | |||||
Stock based compensation expense | $ 13 | $ 18 |
Share-Based Plans - Schedule of
Share-Based Plans - Schedule of Estimated Utilizing a Black Scholes Option Pricing Model Based on Assumptions (Details) | 3 Months Ended |
Sep. 30, 2019 | |
Estimated volatility factor, minimum | 53.30% |
Estimated volatility factor, maximum | 53.80% |
Risk-free interest rate, minimum | 1.41% |
Risk-free interest rate, maximum | 1.92% |
Expected dividend yield | 0.00% |
Minimum [Member] | |
Expected life (years) | 5 years 3 months 29 days |
Maximum [Member] | |
Expected life (years) | 6 years 29 days |
Share-Based Plans - Summary of
Share-Based Plans - Summary of Stock Options Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Number of Options, beginning balance | 7,136,000 | |||
Number of Options granted | 5,363,000 | 39,000 | 5,485,000 | 4,509,000 |
Number of Options exercised | (13,000) | (53,000) | (47,000) | (56,000) |
Number of Options cancelled | (518,000) | |||
Number of Options, ending balance | 12,056,000 | 12,056,000 | ||
Weighted Average Exercise Price, beginning balance | $ 3.31 | |||
Weighted Average Exercise Price, granted | $ 1.43 | $ 1.99 | 1.43 | $ 1.78 |
Weighted Average Exercise Price, exercised | 1.18 | $ 1.17 | 1.18 | $ 1.17 |
Weighted Average Exercise Price, cancelled | 2.19 | |||
Weighted Average Exercise Price, ending balance | $ 2.51 | $ 2.51 |
Share-Based Plans - Summary o_2
Share-Based Plans - Summary of Restricted Stock Units Activity (Details) | 9 Months Ended |
Sep. 30, 2019shares | |
Restricted Units Outstanding, Granted | 772,000 |
Restricted Units Outstanding, Forfeited | |
Restricted Units Outstanding, Ending balance | 1,918,000 |
Restricted Stock Units [Member] | |
Restricted Units Outstanding, Beginning balance | 1,146,000 |
Restricted Units Outstanding, Granted | 772,000 |
Restricted Units Outstanding, Exercised | |
Restricted Units Outstanding, Forfeited | |
Restricted Units Outstanding, Ending balance | 1,918,000 |
Share-Based Plans - Summary o_3
Share-Based Plans - Summary of Non-Vested Restricted Stock Units Activity (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Shares outstanding, Beginning balance | shares | 404,000 |
Shares outstanding, Granted | shares | 772,000 |
Shares outstanding, Vested | shares | (539,000) |
Shares outstanding, Forfeited | shares | |
Shares outstanding, Ending balance | shares | 637,000 |
Weighted average grant date fair value, Beginning balance | $ / shares | $ 1.40 |
Weighted average grant date fair value, Granted | $ / shares | 1.55 |
Weighted average grant date fair value, Vested | $ / shares | 1.49 |
Weighted average grant date fair value, Forfeited | $ / shares | |
Weighted average grant date fair value, Ending balance | $ / shares | $ 1.50 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) $ in Thousands | Oct. 08, 2019USD ($) | Jan. 19, 2016USD ($)ft² | Nov. 30, 2018 | Feb. 28, 2018USD ($) | Apr. 30, 2014USD ($)ft² | Jun. 30, 2013USD ($)ft² | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Commitments And Contingencies [Line Items] | ||||||||
Rental expense, net | $ 854 | $ 458 | ||||||
Settlement Agreement [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Aggregate of settlement amount | $ 1,000 | |||||||
Piper Jaffray, Inc. [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Plaintiff's litigation settlement demand | $ 2,000 | |||||||
California [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Percentage of annual increase in base rent | 5.00% | |||||||
Area of vacant office space subleased | ft² | 3,800 | |||||||
Sublease description | The initial term of the sublease is for a period of approximately 43 months and commenced on February 1, 2016. The monthly base rent is approximately $5,000 per month for the first 12 months with a 5% increase each year thereafter. | |||||||
Sublease term | 43 months | |||||||
Sub lease commenced date | Feb. 1, 2016 | |||||||
Sublease agreement, monthly base rent | $ 5 | |||||||
Office and Laboratory Space One [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Office facility lease agreement | ft² | 27,300 | |||||||
Lease agreement period | 60 months | |||||||
Lease commenced date | Aug. 31, 2014 | |||||||
Monthly base rent | $ 44 | |||||||
Initial base rent, term | 12 months | |||||||
Percentage of annual increase in base rent | 3.00% | |||||||
Office and Laboratory Space Two [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Office facility lease agreement | ft² | 17,400 | |||||||
Lease agreement period | 60 months | |||||||
Lease commenced date | Aug. 31, 2014 | |||||||
Monthly base rent | $ 28 | |||||||
Percentage of annual increase in base rent | 3.00% | |||||||
Lease extended term | 60 months |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2019 | Feb. 05, 2018 | Aug. 20, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | [1] | Dec. 31, 2018 | Aug. 07, 2019 | Aug. 06, 2019 | ||
Number of warrant shares exercised | 52,647,000 | 52,647,000 | 52,647,000 | ||||||||||
Warrant exercise price per share | $ 1.24 | $ 1.24 | $ 1.24 | ||||||||||
Gain/loss on extinguishment of debt | [1] | [1] | $ (2,196) | ||||||||||
Debt due to related parties | $ 7,300 | $ 7,300 | $ 7,300 | $ 7,300 | |||||||||
Ospraie [Member] | |||||||||||||
Number of warrant shares exercised | 8,378,871 | 8,378,871 | 8,378,871 | ||||||||||
Ardsley [Member] | |||||||||||||
Number of warrant shares exercised | 1,457,195 | 1,457,195 | 1,457,195 | ||||||||||
Pro Farm Acquisition [Member] | |||||||||||||
Payment for principal, interest and other charges | $ 1,434 | ||||||||||||
Repayment of convertible debt | 1,000 | ||||||||||||
Ospraie Ag Science LLC [Member] | |||||||||||||
Percentage for outstanding common stock | 29.30% | ||||||||||||
Ardsley Advisory Partners [Member] | |||||||||||||
Percentage for outstanding common stock | 8.80% | ||||||||||||
August 2019 Warrants [Member] | |||||||||||||
Number of warrant shares exercised | 10,000,000 | ||||||||||||
Warrant exercise price per share | $ 1.75 | ||||||||||||
August 2015 Senior Secured Promissory Notes [Member] | |||||||||||||
Debt instrument to be issued, principal amount | 40,000 | $ 40,000 | $ 40,000 | ||||||||||
Unamortized debt discount | 2,171 | 2,171 | 2,171 | ||||||||||
August 2015 Senior Secured Promissory Notes [Member] | |||||||||||||
Number of warrant shares exercised | 4,000,000 | ||||||||||||
Number of shares converted amount | $ 35,000 | ||||||||||||
Number of shares converted | 20,000,000 | ||||||||||||
Principal remaining outstanding | 5,000 | $ 5,000 | 5,000 | 5,000 | |||||||||
Gain/loss on extinguishment of debt | 9,183 | ||||||||||||
Unamortized debt discount | $ 2,171 | ||||||||||||
Debt due to related parties | $ 7,300 | $ 7,300 | $ 7,300 | ||||||||||
August 2015 Senior Secured Promissory Notes [Member] | Extended Maturity [Member] | |||||||||||||
Maturity date | Dec. 31, 2022 | ||||||||||||
August 2015 Senior Secured Promissory Notes [Member] | August 2015 Warrants [Member] | |||||||||||||
Affiliate revenues percent | 40.00% | ||||||||||||
Number of warrant shares exercised | 4,000,000 | ||||||||||||
Warrant exercise price per share | $ 1.91 | ||||||||||||
Fair value of warrant | $ 4,610 | ||||||||||||
Purchase Agreement [Member] | Beneficial Owner [Member] | |||||||||||||
Affiliate revenues percent | 5.00% | ||||||||||||
Legal fees | $ 302 | ||||||||||||
Purchase Agreement [Member] | Beneficial Owner [Member] | August 2015 Senior Secured Promissory Notes [Member] | |||||||||||||
Debt instrument to be issued, principal amount | $ 40,000 | ||||||||||||
Warrant Reorganization Agreement [Member] | February 2018 Warrants [Member] | |||||||||||||
Number of warrant shares exercised | 10,000,000 | ||||||||||||
Warrant Reorganization Agreement [Member] | Common Stock [Memeber] | |||||||||||||
Number of warrant shares exercised | 10,000,000 | ||||||||||||
Warrant Reorganization Agreement [Member] | August 2019 Warrants [Member] | |||||||||||||
Number of warrant shares exercised | 10,000,000 | ||||||||||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Debt Conversion (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | [2] | ||||
Consideration of common stock and warrants provided at conversion | [1] | $ (21,685) | |||||||
Gain on extinguishment | [2] | [2] | $ (9,183) | ||||||
August 2015 Senior Secured Promissory Notes [Member] | |||||||||
Principal (pre-conversion) | 40,000 | 40,000 | |||||||
Accrued interest to be paid at maturity | 339 | ||||||||
Discount (pre-conversion) | $ (2,171) | (2,171) | |||||||
Consideration of common stock and warrants provided at conversion | (21,685) | ||||||||
Gain on extinguishment | (9,183) | ||||||||
Principal and future interest | $ 7,300 | ||||||||
[1] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. | ||||||||
[2] | The above includes revised numbers for the nine months ended September 30, 2018 as disclosed in the Notes 16 to our accompanying Notes to Consolidated Financial Statements included in Part II-Item 8-"Financial Statements and Supplementary Data" of the Annual Report on Form 10-K filed on March 29, 2019. |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Number of restricted stock to purchase common stock | 5,363,000 | 39,000 | 5,485,000 | 4,509,000 | |
Number of restricted stock weighted-average exercise price granted | $ 1.43 | $ 1.99 | $ 1.43 | $ 1.78 | |
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Employees [Member] | |||||
Number of restricted stock to purchase common stock | 312,000 | ||||
Number of restricted stock weighted-average exercise price granted | $ 1.36 |