Freshpet (FRPT) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 05, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
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 Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		35,536,573

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 2,850,063	$ 2,184,259
Accounts receivable, net of allowance for doubtful accounts	13,130,215	12,721,521
Inventories, net	8,709,111	10,118,394
Prepaid expenses	772,014	1,200,834
Other non-trade receivable	1,291,369	337,340
Other current assets	351,612	395,620
Total Current Assets	27,104,384	26,957,968
Property, plant and equipment, net	103,085,709	100,598,639
Deposits on equipment	3,540,516	4,370,922
Other assets	2,067,086	1,972,805
Total Assets	135,797,695	133,900,334
CURRENT LIABILITIES:
Accounts payable	9,889,931	9,173,169
Accrued expenses	6,821,475	7,519,348
Borrowings under Credit Facilities	2,000,000	0
Total Current Liabilities	18,711,406	16,692,517
Other liabilities	281,596	304,839
Total Liabilities	18,993,002	16,997,356
STOCKHOLDERS' EQUITY:
Common stock — voting, $0.001 par value, 200,000,000 shares authorized, 35,524,330 issued and 35,510,161 outstanding on September 30, 2018, and 35,132,548 issued and outstanding on December 31, 2017	35,524	35,132
Additional paid-in capital	320,115,324	312,783,195
Accumulated deficit	(203,110,100)	(195,991,478)
Accumulated other comprehensive income	20,171	76,129
Treasury stock, at cost — 14,169 shares on September 30, 2018 and no shares on December 31, 2017	(256,226)
Total Stockholders' Equity	116,804,693	116,902,978
Total Liabilities and Stockholders' Equity	$ 135,797,695	$ 133,900,334

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
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	35,524,330	35,132,548
Common stock, shares outstanding	35,510,161	35,132,548
Treasury stock, at cost, shares	14,169	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
NET SALES	$ 50,799,601	$ 40,125,006	$ 141,594,158	$ 112,530,942
COST OF GOODS SOLD	27,183,648	20,622,277	74,972,294	59,055,099
GROSS PROFIT	23,615,953	19,502,729	66,621,864	53,475,843
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES	23,572,314	19,303,705	73,397,781	57,844,411
INCOME (LOSS) FROM OPERATIONS	43,639	199,024	(6,775,917)	(4,368,568)
OTHER INCOME/(EXPENSES):
Other Income/(Expenses), net	(27,392)	41,435	(24,302)	(515,473)
Interest Expense	(94,381)	(465,253)	(261,307)	(830,932)
Other Income/(Expenses), Total	(121,773)	(423,818)	(285,609)	(1,346,405)
LOSS BEFORE INCOME TAXES	(78,134)	(224,794)	(7,061,526)	(5,714,973)
INCOME TAX EXPENSE	19,032	20,754	57,096	62,261
NET LOSS	(97,166)	(245,548)	(7,118,622)	(5,777,234)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	(97,166)	(245,548)	(7,118,622)	(5,777,234)
OTHER COMPREHENSIVE LOSS:
Change in foreign currency translation	(54,325)		(55,958)
TOTAL OTHER COMPREHENSIVE LOSS	(54,325)		(55,958)
TOTAL COMPREHENSIVE LOSS	$ (151,491)	$ (245,548)	$ (7,174,580)	$ (5,777,234)
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
-BASIC	$ 0	$ (0.01)	$ (0.20)	$ (0.17)
-DILUTED	$ 0	$ (0.01)	$ (0.20)	$ (0.17)
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING USED IN COMPUTING NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
-BASIC	35,396,550	34,666,180	35,259,365	34,316,161
-DILUTED	35,396,550	34,666,180	35,259,365	34,316,161

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,118,622)	$ (5,777,234)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
Provision for loss/(gains) on accounts receivable	(15,300)	30,953
Loss on disposal of equipment and deposits on equipment	104,769	97,692
Share-based compensation	4,170,409	3,292,362
Fair value adjustment for outstanding warrants		334,628
Change in reserve for inventory obsolescence	69,912	315,006
Depreciation and amortization	10,418,274	9,411,173
Amortization of deferred financing costs and loan discount	86,327	398,648
Changes in operating assets and liabilities
Accounts receivable	(393,394)	(3,534,273)
Inventories	1,339,371	(3,603,074)
Prepaid expenses, other non-trade receivables and other current assets	(481,201)	(347,876)
Other assets	(118,675)	(162,488)
Accounts payable	1,190,993	2,307,943
Accrued expenses	(697,873)	2,129,095
Other liabilities	(23,243)	236,878
Net cash flows provided by operating activities	8,531,747	5,129,433
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property, plant and equipment, software and deposits on equipment	(12,681,600)	(10,835,532)
Net cash flows used in investing activities	(12,681,600)	(10,835,532)
CASH FLOWS FROM FINANCING ACTIVITIES:
Debt issuance costs		245,291
Exercise of options to purchase common stock	3,071,883	5,612,557
Purchase of stock for tax withholding	(256,226)
Proceeds from borrowings under Credit Facilities	6,000,000	7,500,000
Repayment of borrowings under Credit Facilities	(4,000,000)	(9,000,000)
Net cash flows provided by financing activities	4,815,657	3,867,266
NET CHANGE IN CASH AND CASH EQUIVALENTS	665,804	(1,838,833)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	2,184,259	3,908,177
CASH AND CASH EQUIVALENTS, END OF PERIOD	2,850,063	2,069,344
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	164,202	489,738
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property, plant and equipment purchases in accounts payable	$ 572,465	497,209
Conversion of warrants to common stock		$ 588,019

Nature of the Business and Summ

Nature of the Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
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, Canada, and Europe into major retail classes including Grocery (including online), Mass and Club as well as Pet Specialty and Natural retail. Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The unaudited consolidated 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. The interim unaudited consolidated financial statements have been prepared on the same basis as the annual audited consolidated 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 September 30, 2018, the results of its operations for the three and nine months ended September 30, 2018 and 2017, and its cash flows for the nine months ended September 30, 2018 and 2017. The results for three and nine months ended September 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018, or 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, 2017. 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. Treasury Stock – The Company may purchase or withhold shares of stock to satisfy statutory employee tax obligations upon the issuance of restricted stock units to employees. Such repurchased or withheld shares are treated as treasury stock and carried at cost on the Consolidated Balance Sheet in Stockholders’ equity. During the nine months ended September 30, 2018, the Company accumulated $0.3 million of treasury stock related to employee tax withholdings. Reclassifications – Certain prior period amounts were reclassified to conform to the current period’s presentation. Other non-trade receivables previously presented in other current assets in the consolidated balance sheet is now presented separately.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Note 2 – Recently Issued Accounting Standards: Recently Adopted Standards Revenue Recognition In May 2014, the Financial Accounting Standard Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers,” (Topic 606). Under the ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Topic 606 permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or modified retrospectively with the cumulative effect of applying the guidance as of the date of initial application (the cumulative catch-up transition method). The Company adopted Topic 606 in the first quarter of 2018 using the full retrospective method approach and recast prior year results as shown below. The adoption did not have any material impact on our financial statements and is limited to classification differences within the Consolidated Statements of Operations and Comprehensive Loss from cost of goods sold to a reduction to net sales. The new accounting standard did not impact Net Loss. The Company recast certain prior period amounts to conform with the adoption of the revenue recognition standard, as shown in the table below: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 As Previously Reported Adjustments Current Presentation As Previously Reported Adjustments Current Presentation Net Sales $ 41,199,780 $ (1,074,774 ) $ 40,125,006 $ 115,682,698 $ (3,151,757 ) $ 112,530,942 Cost of Goods Sold 21,697,051 (1,074,774 ) 20,622,277 62,206,855 (3,151,757 ) 59,055,099 Gross Profit $ 19,502,729 $ — $ 19,502,729 $ 53,475,843 $ — $ 53,475,843 Revenue from product sales is recognized when obligations under the terms of the contract with the customer are satisfied, which occurs once control is transferred upon shipment to the customer. R evenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The amount of consideration the Company receives and revenue the Company recognizes varies with changes in trade incentives the Company offers to its customers and their consumers. S There were no contract assets as of September 30, 2018 and December 31, 2017. Information about the Company’s net sales by class of retailer is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Grocery (including Online), Mass and Club $ 41,882,395 $ 32,766,387 $ 115,874,906 $ 91,266,283 Pet Specialty and Natural 8,917,206 7,358,619 25,719,252 21,264,659 Net Sales $ 50,799,601 $ 40,125,006 $ 141,594,158 $ 112,530,942 Standards Effective in Future Years Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases” (Topic 842), 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 assessing the impact of Topic 842 on its corporate office lease, and upon adoption of this guidance, expects to record the lease on its consolidated balance sheet in accordance with Topic 842.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Note 3 – Inventories: September 30, December 31, 2018 2017 Raw Materials and Work in Process $ 2,667,133 $ 2,471,498 Packaging Components Material 1,108,469 804,616 Finished Goods 4,952,142 7,105,425 8,727,744 10,381,539 Reserve for Obsolete Inventory (18,633 ) (263,145 ) $ 8,709,111 $ 10,118,394

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2018
Property Plant And Equipment [Abstract]
Property, Plant and Equipment	Note 4 – Property, Plant and Equipment, net: September 30, December 31, 2018 2017 Refrigeration Equipment $ 78,118,968 $ 70,489,454 Machinery and Equipment 51,681,285 47,558,838 Building, Land, and Improvements 25,575,213 25,543,568 Furniture and Office Equipment 4,745,053 4,404,735 Leasehold Improvements 393,474 375,661 Automotive Equipment 319,496 319,496 Construction in Progress 4,076,615 3,763,894 164,910,104 152,455,646 Less: Accumulated Depreciation and Amortization (61,824,395 ) (51,857,007 ) $ 103,085,709 $ 100,598,639 Depreciation expense related to property, plant and equipment totaled $3,549,460 and $10,208,173 for the three and nine months ended September 30, 2018, respectively, of which $1,579,278 and $4,568,607 was recorded to cost of goods sold for the three and nine months ended September 30, 2018, respectively, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense. Depreciation expense related to property, plant and equipment totaled $3,154,623 and $9,235,932 for the three and nine months ended September 30, 2017, respectively, of which $1,447,992 and $4,329,624 was recorded to cost of goods sold for the three and nine months ended September 30, 2017, respectively, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2018
Payables And Accruals [Abstract]
Accrued Expenses	Note 5 – Accrued Expenses: September 30, December 31, 2018 2017 Accrued Compensation and Employee Related Costs $ 3,305,920 $ 3,902,688 Accrued Chiller Cost 1,464,609 1,371,940 Accrued Freight 515,396 354,959 Accrued Marketing 478,683 835,997 Accrued Customer Consideration 409,371 263,235 Accrued Utility 118,158 198,000 Accrued VAT 14,499 172,711 Other Accrued Expenses 514,839 419,818 $ 6,821,475 $ 7,519,348

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt	Note 6 – Debt: During the third quarter of 2017, we amended our Credit Facilities to replace our Term Facility and Capex Commitments of $30.0 million and $10.0 million Revolving Facility with a straight $30.0 million revolver (the “New Revolving Facility”) and the ability to increase the New Revolving Facility by an additional $10.0 million. The New Revolving Facility will mature in September 2020 and borrowings thereunder will bear interest at variable rates depending on the Company’s election, either at a base rate or at the London Interbank Offered Rate (“LIBOR”), in each case, plus an applicable margin. Subject to the Company’s leverage ratio, the applicable margin will vary between 0.75% and 1.25% for base rate loans and 1.75% and 2.25% for LIBOR loans. The amendment resulted in a reduction in the unused rate of between 25 and 75 basis points and a reduction in the total rate of between 200 and 250 basis points. Borrowings under our Revolving Credit Facilities totaled $6.0 million, offset by repayments of $4.0 million, for the nine months ended September 30, 2018. There was $2.0 million of debt outstanding under the Credit Facilities as of September 30, 2018. Interest expense and fees totaled $0.1 million and $0.3 million for the three and nine months ended September 30, 2018, respectively, and $0.5 million and $0.8 million for the three and nine months ended September 30, 2017, respectively. There was less than $0.1 million of accrued interest on the Credit Facilities as of September 30, 2018 and December 31, 2017.

Equity Incentive Plans

Equity Incentive Plans	9 Months Ended
	Sep. 30, 2018
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 September 30, 2018 and 2017 is $1,866,604 and $1,132,852, respectively. Total compensation cost for share-based payments recognized for the nine months ended September 30, 2018 and 2017 is $4,260,638 and $3,292,362, respectively. 2006 Stock Plan— The options in this plan are time-based (vest over five years). Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2006 Plan). At September 30, 2018, there were zero shares available for grant as the 2006 Plan is frozen. The total number of unexercised options for the 2006 Plan is 6,266. 2010 Stock Plan — The outstanding options are time-based (vest between two and four years). At September 30, 2018, there were zero shares available for grant as the 2010 Plan is frozen no further grants may be issued under the 2010 Plan. The total number of unexercised options for the 2010 Plan is 610,658. 2014 Omnibus Incentive Plan —In November 2014, the Company approved the 2014 Omnibus Incentive Plan (the “2014 Plan”). Under the 2014 Plan 3,979,200 shares of common stock may be issued or used for reference purposes as awards granted. 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. At September 30, 2018, the awards granted were either time-based, performance-based (vest when performance targets are met, as defined in the stock option grant agreement), or restricted stock units (employee RSUs vest over three years and non-employee director RSUs vest over one year).The total number of unexercised options and RSUs for the 2014 Plan is 1,575,814. At September 30, 2018, there were 1,937,945 shares of common stock available to be issued or used for reference purposes under the 2014 Plan. NASDAQ Marketplace Rules Inducement Award —During fiscal year 2016, share-based awards were granted to the Company’s Chief Executive Officer as an inducement under the NASDAQ Marketplace Rules, and therefore outside of any Plan. Under the terms of the agreement, the grant is governed as if issued under the 2014 Omnibus Plan. As of September 30, 2018, the awards granted were time-based (cliff vest in equal increments over four years) and performance-based (vest when performance targets are met, as defined in the stock option grant agreement). Service Period Stock Options The following table includes activity related to outstanding service period stock options during the nine months ended September 30, 2018. Service Period Stock Options Shares Weighted Average Exercise Price Outstanding at December 31, 2017 2,030,266 $ 9.47 Granted 95,366 16.45 Exercised (291,229 ) 9.74 Outstanding at September 30, 2018 1,834,403 $ 9.79 Performance-Vested Stock Options The following table includes activity related to outstanding performance-vested stock options during the nine months ended September 30, 2018. Performance Based Options Shares Weighted Average Exercise Price Outstanding at December 31, 2017 1,154,393 $ 10.50 Granted 21,456 16.45 Exercised (25,970 ) 9.05 Outstanding at September 30, 2018 1,149,879 $ 10.64 During the three months ended September 30, 2018 an additional 219,185 performance shares were deemed to have performance metrics that are probable of achievement. Due to the change in assessment an additional expense of $544,530 was incurred. As of September 30, 2018, 707,537 performance-vested stock options at a weighted average exercise price of $9.97 have performance metrics that are probable of achievement. These shares are included in share-based compensation costs for the three and nine months ended September 30, 2018. Restricted Stock Units The following table includes activity related to outstanding restricted stock units during the nine months ended September 30, 2018. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Per Unit Outstanding at December 31, 2017 165,240 $ 10.99 Granted 118,764 16.70 Issued upon vesting (74,583 ) 10.53 Forfeited (188 ) 16.45 Outstanding at September 30, 2018 209,233 $ 14.39

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Share	Note 8 – Net Loss Per Share: 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. For the three and nine months ended September 30, 2018 and 2017, there were no adjustments between net loss and net loss attributable to common stockholders. The potentially dilutive securities are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Service Period Stock Options 1,932,268 2,471,469 2,009,372 2,691,504 Restricted Stock Units 208,402 152,598 197,492 142,180 Performance Stock Options 13,283 — 13,283 — Total 2,153,953 2,624,067 2,220,147 2,833,684 For the three and nine months ended September 30, 2018 and 2017, 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 during such periods.

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2018
Risks And Uncertainties [Abstract]
Concentrations	Note 9 – 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 10 – Subsequent Events: The Company evaluates events that have occurred after the balance sheet date but before the consolidated 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.

Nature of the Business and Su_2

Nature of the Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
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, Canada, and Europe into major retail classes including Grocery (including online), Mass and Club as well as Pet Specialty and Natural retail.
Basis of Presentation	Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The unaudited consolidated 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. The interim unaudited consolidated financial statements have been prepared on the same basis as the annual audited consolidated 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 September 30, 2018, the results of its operations for the three and nine months ended September 30, 2018 and 2017, and its cash flows for the nine months ended September 30, 2018 and 2017. The results for three and nine months ended September 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018, or 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, 2017.
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.
Treasury Stock	Treasury Stock – The Company may purchase or withhold shares of stock to satisfy statutory employee tax obligations upon the issuance of restricted stock units to employees. Such repurchased or withheld shares are treated as treasury stock and carried at cost on the Consolidated Balance Sheet in Stockholders’ equity. During the nine months ended September 30, 2018, the Company accumulated $0.3 million of treasury stock related to employee tax withholdings.
Reclassifications	Reclassifications – Certain prior period amounts were reclassified to conform to the current period’s presentation. Other non-trade receivables previously presented in other current assets in the consolidated balance sheet is now presented separately.

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Information About Company's Nets By Class of Retailer	Information about the Company’s net sales by class of retailer is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Grocery (including Online), Mass and Club $ 41,882,395 $ 32,766,387 $ 115,874,906 $ 91,266,283 Pet Specialty and Natural 8,917,206 7,358,619 25,719,252 21,264,659 Net Sales $ 50,799,601 $ 40,125,006 $ 141,594,158 $ 112,530,942
ASU 2014-09
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Schedule of Certain Prior Period Amounts To Confirm With Adoption of Revenue Recognition	The Company recast certain prior period amounts to conform with the adoption of the revenue recognition standard, as shown in the table below: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 As Previously Reported Adjustments Current Presentation As Previously Reported Adjustments Current Presentation Net Sales $ 41,199,780 $ (1,074,774 ) $ 40,125,006 $ 115,682,698 $ (3,151,757 ) $ 112,530,942 Cost of Goods Sold 21,697,051 (1,074,774 ) 20,622,277 62,206,855 (3,151,757 ) 59,055,099 Gross Profit $ 19,502,729 $ — $ 19,502,729 $ 53,475,843 $ — $ 53,475,843

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Summary of Inventories	September 30, December 31, 2018 2017 Raw Materials and Work in Process $ 2,667,133 $ 2,471,498 Packaging Components Material 1,108,469 804,616 Finished Goods 4,952,142 7,105,425 8,727,744 10,381,539 Reserve for Obsolete Inventory (18,633 ) (263,145 ) $ 8,709,111 $ 10,118,394

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2018
Property Plant And Equipment [Abstract]
Summary of Property, Plant and Equipment, Net	September 30, December 31, 2018 2017 Refrigeration Equipment $ 78,118,968 $ 70,489,454 Machinery and Equipment 51,681,285 47,558,838 Building, Land, and Improvements 25,575,213 25,543,568 Furniture and Office Equipment 4,745,053 4,404,735 Leasehold Improvements 393,474 375,661 Automotive Equipment 319,496 319,496 Construction in Progress 4,076,615 3,763,894 164,910,104 152,455,646 Less: Accumulated Depreciation and Amortization (61,824,395 ) (51,857,007 ) $ 103,085,709 $ 100,598,639

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Payables And Accruals [Abstract]
Summary of Accrued Expenses	September 30, December 31, 2018 2017 Accrued Compensation and Employee Related Costs $ 3,305,920 $ 3,902,688 Accrued Chiller Cost 1,464,609 1,371,940 Accrued Freight 515,396 354,959 Accrued Marketing 478,683 835,997 Accrued Customer Consideration 409,371 263,235 Accrued Utility 118,158 198,000 Accrued VAT 14,499 172,711 Other Accrued Expenses 514,839 419,818 $ 6,821,475 $ 7,519,348

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2018
Service Period Stock Options
Summary of Activity Related to Outstanding Stock Options	The following table includes activity related to outstanding service period stock options during the nine months ended September 30, 2018. Service Period Stock Options Shares Weighted Average Exercise Price Outstanding at December 31, 2017 2,030,266 $ 9.47 Granted 95,366 16.45 Exercised (291,229 ) 9.74 Outstanding at September 30, 2018 1,834,403 $ 9.79
Performance-Vested Stock Options
Summary of Activity Related to Outstanding Stock Options	The following table includes activity related to outstanding performance-vested stock options during the nine months ended September 30, 2018. Performance Based Options Shares Weighted Average Exercise Price Outstanding at December 31, 2017 1,154,393 $ 10.50 Granted 21,456 16.45 Exercised (25,970 ) 9.05 Outstanding at September 30, 2018 1,149,879 $ 10.64
Restricted Stock Units
Summary of Activity Related to Outstanding Stock Options	The following table includes activity related to outstanding restricted stock units during the nine months ended September 30, 2018. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Per Unit Outstanding at December 31, 2017 165,240 $ 10.99 Granted 118,764 16.70 Issued upon vesting (74,583 ) 10.53 Forfeited (188 ) 16.45 Outstanding at September 30, 2018 209,233 $ 14.39

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Potentially Dilutive Securities	The potentially dilutive securities are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Service Period Stock Options 1,932,268 2,471,469 2,009,372 2,691,504 Restricted Stock Units 208,402 152,598 197,492 142,180 Performance Stock Options 13,283 — 13,283 — Total 2,153,953 2,624,067 2,220,147 2,833,684

Nature of the Business and Su_3

Nature of the Business and Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Accounting Policies [Abstract]
Payments related to tax withholding for share-based compensation	$ 256,226

Recently Issued Accounting St_3

Recently Issued Accounting Standards - Schedule of Certain Prior Period Amounts To Confirm With Adoption of Revenue Recognition (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	$ 50,799,601	$ 40,125,006	$ 141,594,158	$ 112,530,942
Cost of Goods Sold	27,183,648	20,622,277	74,972,294	59,055,099
Gross Profit	$ 23,615,953	19,502,729	$ 66,621,864	53,475,843
ASU 2014-09 | As Previously Reported
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales		41,199,780		115,682,698
Cost of Goods Sold		21,697,051		62,206,855
Gross Profit		19,502,729		53,475,843
ASU 2014-09 | Adjustments
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales		(1,074,774)		(3,151,757)
Cost of Goods Sold		$ (1,074,774)		$ (3,151,757)

Recently Issued Accounting St_4

Recently Issued Accounting Standards - Additional Information (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
ASU 2014-09
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Contract assets	$ 0	$ 0

Recently Issued Accounting St_5

Recently Issued Accounting Standards - Information About Company's Nets By Class of Retailer (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Concentration Risk [Line Items]
Net Sales	$ 50,799,601	$ 40,125,006	$ 141,594,158	$ 112,530,942
Grocery (including Online), Mass and Club
Concentration Risk [Line Items]
Net Sales	41,882,395	32,766,387	115,874,906	91,266,283
Pet Specialty and Natural
Concentration Risk [Line Items]
Net Sales	$ 8,917,206	$ 7,358,619	$ 25,719,252	$ 21,264,659

Inventories - Summary of Invent

Inventories - Summary of Inventories (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw Materials and Work in Process	$ 2,667,133	$ 2,471,498
Packaging Components Material	1,108,469	804,616
Finished Goods	4,952,142	7,105,425
Inventory gross	8,727,744	10,381,539
Reserve for Obsolete Inventory	(18,633)	(263,145)
Inventory net	$ 8,709,111	$ 10,118,394

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 164,910,104	$ 152,455,646
Less: Accumulated Depreciation and Amortization	(61,824,395)	(51,857,007)
Property, plant and equipment, net	103,085,709	100,598,639
Refrigeration Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	78,118,968	70,489,454
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	51,681,285	47,558,838
Building, Land, and Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	25,575,213	25,543,568
Furniture and Office Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	4,745,053	4,404,735
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	393,474	375,661
Automotive Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	319,496	319,496
Construction in Progress
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 4,076,615	$ 3,763,894

Property, Plant and Equipment_2

Property, Plant and Equipment - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Property Plant And Equipment [Line Items]
Depreciation expense	$ 3,549,460	$ 3,154,623	$ 10,208,173	$ 9,235,932
Product
Property Plant And Equipment [Line Items]
Cost of goods sold, depreciation	$ 1,579,278	$ 1,447,992	$ 4,568,607	$ 4,329,624

Accrued Expenses - Summary of A

Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Accrued Compensation and Employee Related Costs	$ 3,305,920	$ 3,902,688
Accrued Chiller Cost	1,464,609	1,371,940
Accrued Freight	515,396	354,959
Accrued Marketing	478,683	835,997
Accrued Customer Consideration	409,371	263,235
Accrued Utility	118,158	198,000
Accrued VAT	14,499	172,711
Other Accrued Expenses	514,839	419,818
Accrued expenses	$ 6,821,475	$ 7,519,348

Equity Incentive Plans - Additi

Equity Incentive Plans - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Nov. 30, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 1,866,604	$ 1,132,852	$ 4,260,638	$ 3,292,362
Service Period Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Granted			95,366
Service Period Stock Options | Chief Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			4 years
Performance-Vested Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 544,530
Shares, Granted	219,185		21,456
Performance-vested stock options	707,537		707,537
Performance-vested stock options, weighted average exercise price	$ 9.97		$ 9.97
2014 Omnibus Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, available for grant	1,937,945		1,937,945		3,979,200
2014 Omnibus Incentive Plan | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total number of unexercised options	1,575,814		1,575,814
2014 Omnibus Incentive Plan | Restricted Stock Units | Employee
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
2014 Omnibus Incentive Plan | Restricted Stock Units | Non-employee Director
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			1 year
2006 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			5 years
Stock options, available for grant	0		0
Total number of unexercised options	6,266		6,266
2010 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, available for grant	0		0
Total number of unexercised options	610,658		610,658
2010 Stock Plan | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			2 years
2010 Stock Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			4 years

Equity Incentive Plans - Summar

Equity Incentive Plans - Summary of Activity Related to Outstanding Stock Options (Details) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Service Period Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Outstanding Beginning Balance		2,030,266
Shares, Granted		95,366
Shares, Exercised		(291,229)
Shares, Outstanding Ending Balance	1,834,403	1,834,403
Weighted Average Exercise Price, Outstanding Beginning Balance		$ 9.47
Weighted Average Exercise Price, Granted		16.45
Weighted Average Exercise Price, Exercised		9.74
Weighted Average Exercise Price, Outstanding Ending Balance	$ 9.79	$ 9.79
Performance-Vested Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Outstanding Beginning Balance		1,154,393
Shares, Granted	219,185	21,456
Shares, Exercised		(25,970)
Shares, Outstanding Ending Balance	1,149,879	1,149,879
Weighted Average Exercise Price, Outstanding Beginning Balance		$ 10.50
Weighted Average Exercise Price, Granted		16.45
Weighted Average Exercise Price, Exercised		9.05
Weighted Average Exercise Price, Outstanding Ending Balance	$ 10.64	$ 10.64
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Outstanding Beginning Balance		165,240
Shares, Granted		118,764
Shares, Issued Upon Vesting		(74,583)
Shares, Forfeited		(188)
Shares, Outstanding Ending Balance	209,233	209,233
Weighted-Average Grant-Date Fair Value Per Unit, Outstanding Beginning Balance		$ 10.99
Weighted-Average Grant-Date Fair Value Per Unit, Granted		16.70
Weighted-Average Grant-Date Fair Value Per Unit, Issued Upon Vesting		10.53
Weighted-Average Grant-Date Fair Value Per Unit, Forfeited		16.45
Weighted-Average Grant-Date Fair Value Per Unit, Outstanding Ending Balance	$ 14.39	$ 14.39

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Borrowings under credit facilities			$ 6,000,000	$ 7,500,000
Repayments of borrowings			4,000,000	9,000,000
Debt outstanding	$ 2,000,000		2,000,000		$ 0
Interest expense and fees	100,000	$ 500,000	300,000	800,000
Maximum
Debt Instrument [Line Items]
Accrued interest	$ 100,000		$ 100,000		$ 100,000
New Revolving Facility
Debt Instrument [Line Items]
Debt instrument, face amount		30,000,000		$ 30,000,000
Increase in credit facility		$ 10,000,000
Line of credit facility, maturity month and year		2020-09
New Revolving Facility | Minimum
Debt Instrument [Line Items]
Debt instrument reduction in unused rate			0.25%
Debt instrument reduction in total rate			2.00%
New Revolving Facility | Minimum | Base Rate
Debt Instrument [Line Items]
Line of credit facility, applicable margin		0.75%
New Revolving Facility | Minimum | LIBOR
Debt Instrument [Line Items]
Line of credit facility, applicable margin		1.75%
New Revolving Facility | Maximum
Debt Instrument [Line Items]
Debt instrument reduction in unused rate			0.75%
Debt instrument reduction in total rate			2.50%
New Revolving Facility | Maximum | Base Rate
Debt Instrument [Line Items]
Line of credit facility, applicable margin		1.25%
New Revolving Facility | Maximum | LIBOR
Debt Instrument [Line Items]
Line of credit facility, applicable margin		2.25%

Net Loss Per Share - Additional

Net Loss Per Share - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Adjustments between net loss and net loss attributable to common stockholders	$ 0	$ 0	$ 0	$ 0

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Potentially Dilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities	2,153,953	2,624,067	2,220,147	2,833,684
Service Period Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities	1,932,268	2,471,469	2,009,372	2,691,504
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities	208,402	152,598	197,492	142,180
Performance Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities	13,283		13,283

Concentrations - Additional Inf

Concentrations - Additional Information (Details)	Sep. 30, 2018USD ($)
Maximum
Concentration Risk [Line Items]
Cash, FDIC insured amount	$ 250,000