Freshpet (FRPT) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 03, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	FRPT
Entity Registrant Name	FRESHPET, INC.
Entity Central Index Key	1,611,647
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		33,538,485

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 266,129	$ 8,029,413
Short-term investments		3,250,000
Accounts receivable, net of allowance for doubtful accounts	7,133,456	7,030,719
Inventories, net	8,183,496	6,853,447
Prepaid expenses and other current assets	1,204,530	229,631
Total Current Assets	16,787,611	25,393,210
Property, plant and equipment, net	92,671,432	82,793,007
Deposits on equipment	3,020,939	3,243,519
Other assets	1,800,692	1,667,838
Total Assets	114,280,674	113,097,574
CURRENT LIABILITIES:
Accounts payable	7,245,531	6,668,643
Accrued expenses	3,681,036	2,274,557
Accrued warrants	146,192	204,314
Total Current Liabilities	11,072,759	9,147,514
Total Liabilities	11,072,759	9,147,514
STOCKHOLDERS' EQUITY:
Common stock — voting, $0.001 par value, 200,000,000 shares authorized, 33,538,485 and 33,536,940 issued and outstanding on March 31, 2016 and December 31, 2015, respectively	33,538	33,537
Additional paid-in capital	293,514,642	292,484,986
Accumulated deficit	(190,340,265)	(188,568,463)
Total Stockholders' Equity	103,207,915	103,950,060
Total Liabilities and Stockholders' Equity	$ 114,280,674	$ 113,097,574

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	33,538,485	33,536,940
Common stock, shares outstanding	33,538,485	33,536,940

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
NET SALES	$ 31,453,700	$ 27,054,674
COST OF GOODS SOLD	16,565,813	13,801,655
GROSS PROFIT	14,887,887	13,253,019
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES	16,487,082	15,677,598
LOSS FROM OPERATIONS	(1,599,195)	(2,424,579)
OTHER EXPENSES:
Other Expenses, net	(40,869)	(109,957)
Interest Expense	(116,738)	(37,538)
Other Expenses, Total	(157,607)	(147,495)
LOSS BEFORE INCOME TAXES	(1,756,802)	(2,572,074)
INCOME TAX EXPENSE	15,000	15,000
NET LOSS	(1,771,802)	(2,587,074)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (1,771,802)	$ (2,587,074)
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
-BASIC	$ (0.05)	$ (0.08)
-DILUTED	$ (0.05)	$ (0.08)
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING USED IN COMPUTING NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
-BASIC	33,537,280	33,469,749
-DILUTED	33,537,280	33,469,749

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,771,802)	$ (2,587,074)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
Provision for losses (gains) on accounts receivable	7,805	(918)
Loss on disposal of equipment and deposits on equipment	143,407	8,723
Share based compensation	1,006,046	1,860,112
Fair value adjustment for outstanding warrants	(58,122)	114,106
Change in reserve for inventory obsolescence	133,174	6,006
Depreciation and amortization	2,071,272	1,754,905
Amortization of deferred financing costs and loan discount	35,901	35,294
Changes in operating assets and liabilities
Accounts receivable	(110,542)	(1,172,276)
Inventories	(1,463,223)	(118,939)
Prepaid expenses and other current assets	(974,899)	572,122
Other assets	(184,987)	(130,025)
Accounts payable	1,774,682	1,477,326
Accrued expenses	1,406,479	(711,334)
Net cash flows provided by operating activities	2,015,191	1,108,028
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments		(7,499,205)
Proceeds from maturities of short-term investments	3,250,000
Acquisitions of property, plant and equipment, software and deposits on equipment	(13,045,117)	(4,964,527)
Proceeds from sale of equipment	5,672
Net cash flows used in investing activities	(9,789,445)	(12,463,732)
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of options to purchase common stock	10,970	14,960
Net cash flows provided by financing activities	10,970	14,960
NET CHANGE IN CASH AND CASH EQUIVALENTS	(7,763,284)	(11,340,744)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	8,029,413	36,259,252
CASH AND CASH EQUIVALENTS, END OF PERIOD	266,129	24,918,508
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	5,000	24,744
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property, plant and equipment purchases in accounts payable	$ 839,716	$ 1,320,823

Nature of the Business and Summ

Nature of the Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Nature of the Business and Summary of Significant Accounting Policies	Note 1 – Nature of the Business and Summary of Significant Accounting Policies: Nature of the Business – Freshpet, Inc. (hereafter referred to as “Freshpet” or the “Company”), a Delaware corporation, manufactures and markets natural fresh meals and treats for dogs and cats. The Company’s products are distributed throughout the United States and Canada into major retail classes including Grocery and Mass (which includes club) as well as Pet Specialty and Natural retail. Principles of Consolidation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The financial statements include the accounts of the Company as well as the Company’s wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Basis of Presentation – The accompanying consolidated balance sheet as of March 31, 2016, statements of operations and comprehensive loss for the three months ended March 31, 2016 and 2015, and statements of cash flows for the three months ended March 31, 2016 and 2015 are unaudited. The interim unaudited financial statements have been prepared on the same basis as the annual audited financial statements and in accordance with the rules and regulations of the United States Securities and Exchange Commission. In the opinion of management, the interim unaudited financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2016, the results of its operations for the three months ended March 31, 2016 and 2015, and its cash flows for the three months ended March 31, 2016 and 2015. The financial data and other information disclosed in these notes related to the three months ended March 31, 2016 and 2015 are unaudited. The results for three months ended March 31, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016, any other interim periods, or any future year or period. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our Annual Report on Form 10-K for the year ended December 31, 2015. Estimates and Uncertainties – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results, as determined at a later date, could differ from those estimates. Short-Term Investments – The Company holds interest-bearing certificates of deposits with financial institutions with maturities ranging from three months to one year. Certificates of deposit are classified as short-term investments and interest is recorded as other income. Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets includes prepaid assets that will incur expenses in less than a year as well as miscellaneous other current assets. As of March 31, 2016, the Company has recorded approximately $0.7 million of prepaid expenses and $0.5 million of other assets relating to miscellaneous operating receivables. As of December 31, 2015 the entire balance of $0.2 million within prepaid expense and other current assets related to prepaid expenses. Accrued Warrant – The income or expense related to the fair valuation of warrants is classified as other expenses, net in the statement of operations. Reclassifications – Certain prior period amounts were reclassified to conform to the current year’s presentation.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Note 2 – Recently Issued Accounting Standards: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In August 2015, the FASB amended the effective date of this ASU to fiscal years beginning after December 15, 2017, and early adoption is only permitted for fiscal years beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest,” which requires that debt issuance cost be presented on the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. This new guidance was adopted beginning January 1, 2016 and did not impact the Company’s consolidated financial statements other than presentation. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires that an entity carry its inventory at lower of cost or net realizable value (which replaces “lower of cost or market”) if the first-in first-out (FIFO) or average cost methods are used. This new guidance is effective for the Company beginning after December 15, 2016. The effects of ASU 2015-11 will depend on future valuation of the Company’s inventory. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The new guidance was adopted beginning January 1, 2016. The effects of ASU 2015-17 will change retrospectively how deferred tax assets and liabilities are classified within the balance sheet and notes thereto. Due to the Company’s full valuation allowance, deferred tax assets and liabilities have not been disclosed within the consolidated balance sheet. In February 2016, the FASB issued ASU 2016-02, "Leases,” which requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the effects adoption of this guidance will have on its consolidated financial statements and financial statement disclosures. In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which clarifies the implementation of guidance on principal versus agent considerations. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements under update 2014-09. The Company is currently assessing the impact of ASU 2016-08 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance will be effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of ASU 2016-09 on its consolidated financial statements, but at this point the Company does not expect a material impact.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Note 3 – Inventories: March 31, 2016 December 31, 2015 Raw Materials and Work in Process $ 1,711,415 $ 1,493,654 Packaging Components Material 1,052,707 1,161,814 Finished Goods 5,462,715 4,374,494 8,226,837 7,029,962 Reserve for Obsolete Inventory (43,341 ) (176,515 ) $ 8,183,496 $ 6,853,447

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2016
Property Plant And Equipment [Abstract]
Property, Plant and Equipment	Note 4 – Property, Plant and Equipment: Property, plant and equipment, net are summarized as follows: March 31, 2016 December 31, 2015 Refrigeration Equipment $ 56,463,866 $ 55,020,179 Machinery and Equipment 20,614,938 21,324,085 Building, Land, and Improvements 15,205,494 15,205,494 Furniture and Office Equipment 2,335,593 2,287,396 Automotive Equipment 317,616 317,292 Leasehold Improvements 141,726 140,672 Construction in Progress 29,679,049 19,388,195 124,758,282 113,683,313 Less: Accumulated Depreciation and Amortization (32,086,850 ) (30,890,306 ) $ 92,671,432 $ 82,793,007 Depreciation expense related to property, plant and equipment totaled $2,034,282 for the three months ended March 31, 2016, of which $678,678 was recorded to cost of goods sold for the three months ended March 31, 2016, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense. Depreciation expense related to property, plant and equipment totaled approximately $1,726,976 for the three months ended March 31, 2015, of which $619,254 was recorded to cost of goods sold for the three months ended March 31, 2015, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense. Due to the continued growth of the Company’s fresh pet food production, the company has undertaken a capital expansion project at its Freshpet Kitchens manufacturing facility to expand plant capacity and increase distribution. The Company invested $10.7 million during the first quarter of 2016 and expects to invest up to $7.0 million to complete the project on time and on budget by the end of the third quarter.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2016
Payables And Accruals [Abstract]
Accrued Expenses	Note 5 – Accrued Expenses: March 31, 2016 December 31, 2015 Accrued Compensation $ 1,198,967 $ 451,819 Accrued Chiller Maintenance 735,799 559,957 Accrued Freight 452,603 337,233 Accrued Marketing 403,884 231,353 Accrued Insurance 334,699 218,134 Accrued Sales and Use Tax 45,886 45,886 Other Accrued Expenses 509,198 430,175 $ 3,681,036 $ 2,274,557

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	Note 6 – Debt: On November 13, 2014, the Company entered into senior secured credit facilities (the “Debt Refinancing”) comprised of a 5-year $18.0 million term facility (the “Term Facility”), a 3-year $10.0 million revolving facility (the “Revolving Facility”) and a $12.0 million additional term loan commitment earmarked primarily for capital expenditures (the “Capex Commitments” and together with the Term Facility and Revolving Facility, the “Credit Facilities” and such loan agreement, the “Loan Agreement”). On December 23, 2014, the Company repaid the outstanding $18.0 million and modified the terms of the $40.0 million Credit Facilities. The $18.0 million term facility was extinguished, the 3-year $10.0 million Revolving Facility remained unchanged, and the $12.0 million term loan commitment earmarked for capital expenditures was increased to $30.0 million. Any drawn Capex Commitments will mature on the fifth anniversary of the execution of the Loan Agreement. Any undrawn Capex Commitments will expire on the third anniversary of the execution of the agreement. Under the terms of the Loan Agreement, the commitments for the Revolving Facility may be increased up to $20.0 million subject to certain conditions. The Loan Agreement provides for the maintenance of various covenants, including financial covenants, and includes events of default that are customary for facilities of this type. As of March 31, 2016, the Company was in compliance with all the covenants in the Loan Agreement and had no debt outstanding under the Credit Facilities. See Note 11.

Equity Incentive Plans

Equity Incentive Plans	3 Months Ended
	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Incentive Plans	Note 7 – Equity Incentive Plans: Total compensation cost for share-based payments recognized for the three months ended March 31, 2016 and 2015 was $ 1,018,688 1,887,820 2006 Stock Plan —In December 2006, the Company approved the 2006 Stock Plan (the “2006 Plan”) under which options to purchase approximately 624,223 shares of the Company’s common stock were granted to employees and affiliates of the Company. These options vest over 5 years. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2006 Plan). The options granted have maximum contractual terms ranging from 5 to 10 years. At March 31, 2016, there were zero shares available for grant as the plan is frozen. During the three months ended March 31, 2016, no shares were exercised or forfeited under the 2006 Plan. 2010 Stock Plan —In December 2010, the Company approved the 2010 Stock Plan (the “2010 Plan”) under which options to purchase approximately 2,146,320 shares of the Company’s common stock were granted to employees and affiliates of the Company (in 2012, the 2010 Plan was amended to allow for the granting of approximately 2,220,280 options to purchase shares of the Company’s common stock). These options are either time-based (vest over 4 years), performance-based (vest when performance targets are met, as defined in the stock option grant agreement), or vest at the occurrence of an exit event which is defined as a Change of Control in the Company or an initial public offering, as defined in the stock grant agreement . During the three months ended March 31, 2016, 1,545 shares were exercised at a weighted average exercise price of $7.10, and 2,319 shares were forfeited at a weighted average exercise price of $7.10 under the 2010 Plan. 2014 Omnibus Incentive Plan —In November 2014, the Company approved the 2014 Omnibus Incentive Plan (the “2014 Plan”) under which 1,479,200 shares of common stock may be issued or used for reference purposes as awards granted under the 2014 Plan. These awards may be in the form of stock options, stock appreciation rights, restricted stock, as well as other stock-based and cash-based awards. As of March 31, 2016, the stock options granted were either time-based (cliff vest over 3 years) or performance-based (vest when performance targets are met, as defined in the stock option grant agreement). During the three months ended March 31, 2016, there were no grants or exercises, and 740 shares were forfeited at a weighted exercise price of $15.00, under the 2014 Plan. At March 31, 2016, there were 940,447 shares of common stock available to be issued or used for reference purposes under the 2014 Plan.

Net Loss Attributable to Common

Net Loss Attributable to Common Stockholders	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss Attributable to Common Stockholders	Note 8 – Net Loss Attributable to Common Stockholders: Basic net loss per share of common stock is calculated by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per share of common stock is computed by giving effect to all potentially dilutive securities. Diluted net loss per share of common stock is the same as basic net loss per share of common stock, due to the fact that potentially dilutive securities would have an antidilutive effect as the Company incurred a net loss for the three months ended March 31, 2016 and March 31, 2015. The potentially dilutive securities excluded from the determination of diluted loss per share, as their effect is antidilutive, are as follows: Three months ended March 31, 2016 2015 Service Period Stock Options 1,976,470 2,019,647 Warrants 61,117 61,117 Total 2,037,587 2,080,764 For the three months ended March 31, 2016, and 2015, there were no adjustments between net loss and net loss attributable to common stockholders.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 9 – Related Party Transactions: Payments of $1,575,374 for the three months ended March 31, 2016, and $1,480,189 for the three months ended March 31, 2015, were made to one stockholder for the purchase of raw materials. For the three months ended March 31, 2015, payments of $29,589 were related to rent and associated utilities and maintenance to a stockholder who is also a landlord of one of our locations. As of March 31, 2016, the Company was no longer occupying the space, and as such, will no longer incur rent for this space. The rent and associated utilities and maintenance cost were at market rates. None of the payments made above were to stockholders who are either an employee, board member, subsidiary, or affiliate of the Company.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2016
Risks And Uncertainties [Abstract]
Concentrations	Note 10 – Concentrations: Concentration of Credit Risk —The Company maintains its cash balances in financial institutions which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 each. At times, such balances may be in excess of the FDIC insurance limit. Major Customers —For the three months ended March 31, 2016 and 2015, net sales to one of our distributors, which sells directly to three of our customers, accounted for 21% and 20% of our net sales, respectively. For the three months ended March 31, 2016, no customer accounted for more than 10% of our net sales, while one customer accounted for more than 10% of our net sales during the same period in 2015. Major Suppliers —The Company purchased approximately 22% of its raw materials from one vendor during the three months ended March 31, 2016, as no other vendor was over 10%, and approximately 50% of its raw materials from three vendors, whereas each vendor was over 10% of our purchased raw materials, during the three months ended March 31, 2015. The Company also purchased approximately 90% of its treats finished goods from four other vendors for the three months ended March 31, 2016, and approximately 91% from three vendors for the three months ended March 31, 2015. Each of the respective vendors was over 10% of our purchased treats finished goods during the respective period. The Company purchased approximately 72% of its packaging material from three vendors during the three months ended March 31, 2016, and 73% of its packaging material from three vendors during the three months ended March 31, 2015. Each of the respective vendors was over 10% of our purchased packaging material during the respective period. Net Sales By Class of Retail – The following table sets forth net sales by class of retail: Three months ended March 31, 2016 2015 Grocery, Mass and Club $ 24,154,710 $ 20,484,045 Pet Specialty, Natural and Other 7,298,990 6,570,629 Net Sales $ 31,453,700 $ 27,054,674

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 11 – Subsequent Events: The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or unrecognized subsequent events that have required adjustment or disclosure in the financial statements. In April 2016, the Company drew $5.0 million under its Credit Facilities.

Nature of the Business and Su17

Nature of the Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Nature of the Business	Nature of the Business – Freshpet, Inc. (hereafter referred to as “Freshpet” or the “Company”), a Delaware corporation, manufactures and markets natural fresh meals and treats for dogs and cats. The Company’s products are distributed throughout the United States and Canada into major retail classes including Grocery and Mass (which includes club) as well as Pet Specialty and Natural retail.
Principles of Consolidation	Principles of Consolidation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The financial statements include the accounts of the Company as well as the Company’s wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation – The accompanying consolidated balance sheet as of March 31, 2016, statements of operations and comprehensive loss for the three months ended March 31, 2016 and 2015, and statements of cash flows for the three months ended March 31, 2016 and 2015 are unaudited. The interim unaudited financial statements have been prepared on the same basis as the annual audited financial statements and in accordance with the rules and regulations of the United States Securities and Exchange Commission. In the opinion of management, the interim unaudited financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2016, the results of its operations for the three months ended March 31, 2016 and 2015, and its cash flows for the three months ended March 31, 2016 and 2015. The financial data and other information disclosed in these notes related to the three months ended March 31, 2016 and 2015 are unaudited. The results for three months ended March 31, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016, any other interim periods, or any future year or period. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our Annual Report on Form 10-K for the year ended December 31, 2015.
Estimates and Uncertainties	Estimates and Uncertainties – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results, as determined at a later date, could differ from those estimates.
Short-Term Investments	Short-Term Investments – The Company holds interest-bearing certificates of deposits with financial institutions with maturities ranging from three months to one year. Certificates of deposit are classified as short-term investments and interest is recorded as other income.
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets includes prepaid assets that will incur expenses in less than a year as well as miscellaneous other current assets. As of March 31, 2016, the Company has recorded approximately $0.7 million of prepaid expenses and $0.5 million of other assets relating to miscellaneous operating receivables. As of December 31, 2015 the entire balance of $0.2 million within prepaid expense and other current assets related to prepaid expenses.
Accrued Warrant	Accrued Warrant – The income or expense related to the fair valuation of warrants is classified as other expenses, net in the statement of operations.
Reclassifications	Reclassifications – Certain prior period amounts were reclassified to conform to the current year’s presentation.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Summary of Inventories	March 31, 2016 December 31, 2015 Raw Materials and Work in Process $ 1,711,415 $ 1,493,654 Packaging Components Material 1,052,707 1,161,814 Finished Goods 5,462,715 4,374,494 8,226,837 7,029,962 Reserve for Obsolete Inventory (43,341 ) (176,515 ) $ 8,183,496 $ 6,853,447

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property Plant And Equipment [Abstract]
Summary of Property, Plant and Equipment, Net	Property, plant and equipment, net are summarized as follows: March 31, 2016 December 31, 2015 Refrigeration Equipment $ 56,463,866 $ 55,020,179 Machinery and Equipment 20,614,938 21,324,085 Building, Land, and Improvements 15,205,494 15,205,494 Furniture and Office Equipment 2,335,593 2,287,396 Automotive Equipment 317,616 317,292 Leasehold Improvements 141,726 140,672 Construction in Progress 29,679,049 19,388,195 124,758,282 113,683,313 Less: Accumulated Depreciation and Amortization (32,086,850 ) (30,890,306 ) $ 92,671,432 $ 82,793,007

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2016
Payables And Accruals [Abstract]
Summary of Accrued Expenses	March 31, 2016 December 31, 2015 Accrued Compensation $ 1,198,967 $ 451,819 Accrued Chiller Maintenance 735,799 559,957 Accrued Freight 452,603 337,233 Accrued Marketing 403,884 231,353 Accrued Insurance 334,699 218,134 Accrued Sales and Use Tax 45,886 45,886 Other Accrued Expenses 509,198 430,175 $ 3,681,036 $ 2,274,557

Net Loss Attributable to Comm21

Net Loss Attributable to Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities	The potentially dilutive securities excluded from the determination of diluted loss per share, as their effect is antidilutive, are as follows: Three months ended March 31, 2016 2015 Service Period Stock Options 1,976,470 2,019,647 Warrants 61,117 61,117 Total 2,037,587 2,080,764

Concentrations (Tables)

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2016
Risks And Uncertainties [Abstract]
Net Sales by Class of Retail	Net Sales By Class of Retail – The following table sets forth net sales by class of retail: Three months ended March 31, 2016 2015 Grocery, Mass and Club $ 24,154,710 $ 20,484,045 Pet Specialty, Natural and Other 7,298,990 6,570,629 Net Sales $ 31,453,700 $ 27,054,674

Nature of the Business and Su23

Nature of the Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Prepaid expense, current	$ 700,000
Other current assets	500,000
Prepaid expenses and other current assets	$ 1,204,530	$ 229,631

Inventories - Summary of Invent

Inventories - Summary of Inventories (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw Materials and Work in Process	$ 1,711,415	$ 1,493,654
Packaging Components Material	1,052,707	1,161,814
Finished Goods	5,462,715	4,374,494
Inventory gross	8,226,837	7,029,962
Reserve for Obsolete Inventory	(43,341)	(176,515)
Inventory net	$ 8,183,496	$ 6,853,447

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 124,758,282	$ 113,683,313
Less: Accumulated Depreciation and Amortization	(32,086,850)	(30,890,306)
Property, plant and equipment, net	92,671,432	82,793,007
Refrigeration Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	56,463,866	55,020,179
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	20,614,938	21,324,085
Building, Land, and Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	15,205,494	15,205,494
Furniture and Office Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,335,593	2,287,396
Automotive Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	317,616	317,292
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	141,726	140,672
Construction in Progress
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 29,679,049	$ 19,388,195

Property, Plant and Equipment26

Property, Plant and Equipment - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2016
Property Plant And Equipment [Line Items]
Depreciation expense	$ 2,034,282	$ 1,726,976
Cost of goods sold, depreciation	678,678	$ 619,254
Kitchens Manufacturing Facility
Property Plant And Equipment [Line Items]
Capital expenditures	$ 10,700,000
Kitchens Manufacturing Facility | Maximum | Scenario, Forecast
Property Plant And Equipment [Line Items]
Capital expenditures to be invested			$ 7,000,000

Accrued Expenses - Summary of A

Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Payables And Accruals [Abstract]
Accrued Compensation	$ 1,198,967	$ 451,819
Accrued Chiller Maintenance	735,799	559,957
Accrued Freight	452,603	337,233
Accrued Marketing	403,884	231,353
Accrued Insurance	334,699	218,134
Accrued Sales and Use Tax	45,886	45,886
Other Accrued Expenses	509,198	430,175
Accrued expenses	$ 3,681,036	$ 2,274,557

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Dec. 23, 2014	Nov. 13, 2014	Mar. 31, 2016
Debt Instrument [Line Items]
Debt outstanding			$ 0
$40,000,000 Credit Facilities
Debt Instrument [Line Items]
Debt instrument, face amount	$ 40,000,000
Capex Commitments
Debt Instrument [Line Items]
Debt instrument, face amount		$ 12,000,000
Capex Commitments | $40,000,000 Credit Facilities
Debt Instrument [Line Items]
Debt instrument, face amount	30,000,000
Term Facility
Debt Instrument [Line Items]
Debt instrument, face amount		$ 18,000,000
Credit facility term		5 years
Term Facility | $40,000,000 Credit Facilities
Debt Instrument [Line Items]
Extinguishment amount of debt	18,000,000
Revolving Facility
Debt Instrument [Line Items]
Debt instrument, face amount		$ 10,000,000
Credit facility term		3 years
Increase in credit facility	$ 20,000,000

Equity Incentive Plans - Additi

Equity Incentive Plans - Additional Information (Details) - USD ($)	1 Months Ended			3 Months Ended
	Nov. 30, 2014	Dec. 31, 2010	Dec. 31, 2006	Mar. 31, 2016	Mar. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation				$ 1,018,688	$ 1,887,820
2006 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, number of shares granted			624,223
Vesting period			5 years
Stock options, available for grant				0
Options granted maximum contractual terms				5 years
Stock options exercised, shares				0
Stock options forfeited, shares				0
2010 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, number of shares granted		2,146,320
Vesting period		4 years
Stock options, available for grant		2,220,280
Stock options exercised, shares				1,545
Stock options forfeited, shares				2,319
Weighted average exercise price of options exercised				$ 7.10
Weighted average exercise price of options forfeited				$ 7.10
2014 Omnibus Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, number of shares granted	1,479,200			0
Vesting period				3 years
Stock options, available for grant				940,447
Stock options exercised, shares				0
Stock options forfeited, shares				740
Weighted average exercise price of options forfeited				$ 15
Maximum | 2006 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted maximum contractual terms				10 years

Net Loss Attributable to Comm30

Net Loss Attributable to Common Stockholders - Schedule of Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities	2,037,587	2,080,764
Service Period Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities	1,976,470	2,019,647
Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive Securities	61,117	61,117

Net Loss Attributable to Comm31

Net Loss Attributable to Common Stockholders - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Adjustments between net loss and net loss attributable to common stockholders	$ 0	$ 0

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Related Party Transaction [Line Items]
Incurred Rent	$ 0
Purchases of Raw Materials
Related Party Transaction [Line Items]
Payments made to a stockholder for distribution services	1,575,374	$ 1,480,189
Rent and Associated Utilities and Maintenance
Related Party Transaction [Line Items]
Payments made to a stockholder for distribution services		$ 29,589
Employee, Board Member, Subsidiary or Affiliates
Related Party Transaction [Line Items]
Payments made to a stockholder for distribution services	$ 0

Concentrations - Additional Inf

Concentrations - Additional Information (Details)	3 Months Ended
	Mar. 31, 2016USD ($)Customervendors	Mar. 31, 2015Customervendors
Customer Concentration Risk | Sales Revenue Net
Concentration Risk [Line Items]
Concentration risk, percentage	21.00%	20.00%
Number of customers | Customer	3	3
Supplier Concentration Risk | Purchases of Raw Materials
Concentration Risk [Line Items]
Concentration risk, percentage	22.00%	50.00%
Number of vendors	1	3
Supplier Concentration Risk | Finished Goods
Concentration Risk [Line Items]
Concentration risk, percentage	90.00%	91.00%
Number of vendors	4	3
Supplier Concentration Risk | Packaging Materials
Concentration Risk [Line Items]
Concentration risk, percentage	72.00%	73.00%
Number of vendors	3	3
Customer One | Customer Concentration Risk | Sales Revenue Net
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%	10.00%
Number of customers | Customer	0	1
Maximum
Concentration Risk [Line Items]
Cash, FDIC insured amount | $	$ 250,000

Concentrations - Net Sales by C

Concentrations - Net Sales by Class of Retail (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Concentration Risk [Line Items]
NET SALES	$ 31,453,700	$ 27,054,674
Grocery Mass And Club
Concentration Risk [Line Items]
NET SALES	24,154,710	20,484,045
Pet Specialty, Natural and Other
Concentration Risk [Line Items]
NET SALES	$ 7,298,990	$ 6,570,629

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) $ in Millions	1 Months Ended
	Apr. 30, 2016USD ($)
Subsequent Event | Revolving Facility
Subsequent Event [Line Items]
Amount withdrawn from credit facility	$ 5