Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40125 | ||
Entity Registrant Name | Local Bounti Corporation/DE | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-1584830 | ||
Entity Address, Address Line One | 400 W. Main St. | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, State or Province | MT | ||
Entity Address, Postal Zip Code | 59840 | ||
City Area Code | (800) | ||
Local Phone Number | 640-4016 | ||
Title of 12(b) Security | Common Stock, par value of $0.0001 per share | ||
Trading Symbol | LOCL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14.4 | ||
Entity Common Stock, Shares Outstanding | 8,437,542 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the registrant's Annual Meeting of Stockholders to be held on June 13, 2024, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001840780 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | WithumSmith+Brown, PC |
Auditor Firm ID | 100 |
Auditor Location | Whippany, New Jersey |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 10,326 | $ 13,666 | |
Restricted cash | 6,569 | 11,272 | |
Accounts receivable, net | 3,078 | 2,691 | |
Inventory, net | 4,210 | 3,594 | |
Prepaid expenses and other current assets | 2,805 | 2,881 | |
Total current assets | 26,988 | 34,104 | |
Property and equipment, net | 313,166 | 157,844 | |
Operating lease right-of-use assets | 172 | 137 | |
Goodwill | 0 | 38,481 | |
Intangible assets, net | 41,353 | 47,273 | |
Other assets | 73 | 901 | |
Total assets | 381,752 | 278,740 | |
Current liabilities | |||
Accounts payable | 14,640 | 13,757 | |
Accrued liabilities | 17,204 | 9,426 | |
Operating lease liabilities | 97 | 84 | |
Total current liabilities | 31,941 | 23,267 | |
Long-term debt, net of debt issuance costs | 277,985 | 119,814 | |
Financing obligation | 49,225 | 14,139 | |
Operating lease liabilities, noncurrent | 114 | 187 | |
Warrant liability | 7,214 | 0 | |
Total liabilities | 366,479 | 157,407 | |
Commitments and contingencies (Note 16) | |||
Stockholders' equity | |||
Common stock, $0.0001 par value, 400,000,000 shares authorized, 8,311,229 and 7,976,980 issued and outstanding as of December 31, 2023 and December 31, 2022, respectively(1) | [1] | 1 | 1 |
Additional paid-in capital | 318,600 | 300,645 | |
Accumulated deficit | (303,328) | (179,313) | |
Total stockholders' equity | 15,273 | 121,333 | |
Total liabilities and stockholders' equity | $ 381,752 | $ 278,740 | |
[1]Prior comparative period share amounts issued and outstanding have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split (as defined below). See Note 12, Stockholders' Equity , for additional detail. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 8,311,229 | 7,976,980 |
Common stock, shares outstanding (in shares) | 8,311,229 | 7,976,980 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Income Statement [Abstract] | |||
Sales | $ 27,557 | $ 19,474 | |
Cost of goods sold | [1],[2],[3] | 25,341 | 17,259 |
Gross profit | 2,216 | 2,215 | |
Operating expenses: | |||
Research and development | [1],[2] | 16,086 | 14,059 |
Selling, general and administrative | [1],[2] | 64,559 | 82,682 |
Goodwill impairment | 38,481 | 0 | |
Total operating expenses | 119,126 | 96,741 | |
Loss from operations | (116,910) | (94,526) | |
Other income (expense): | |||
Change in fair value of warrant liability | 18,483 | 0 | |
Interest expense, net | (25,745) | (16,734) | |
Other income | 157 | 189 | |
Net loss | $ (124,015) | $ (111,071) | |
Net loss applicable to common stockholders per basic common share: | |||
Basic (in dollars per share) | [4] | $ (15.61) | $ (16.57) |
Diluted (in dollars per share) | [4] | $ (15.61) | $ (16.57) |
Weighted average common shares outstanding: | |||
Basic (in shares) | [4] | 7,943,874 | 6,701,126 |
Diluted (in shares) | [4] | 7,943,874 | 6,701,126 |
[1] Amounts include depreciation and amortization as follows: Year Ended December 31, 2023 2022 Cost of goods sold $ 3,513 $ 2,957 Research and development 2,505 1,304 Selling, general and administrative 7,114 6,166 Total depreciation and amortization $ 13,132 $ 10,427 Amounts include stock-based compensation as follows: Year Ended December 31, 2023 2022 Cost of goods sold $ 123 $ 104 Research and development 1,464 2,057 Selling, general and administrative 14,687 37,005 Total stock-based compensation expense, net of amounts capitalized $ 16,274 $ 39,166 Amounts include the impact for non-cash increase in cost of goods sold attributable to the fair value basis adjustment to inventory in connection with the Pete's Acquisition (as defined below) as follows: Year Ended December 31, 2023 2022 Cost of goods sold $ — $ 1,042 Total business combination fair value basis adjustment to inventory $ — $ 1,042 Stockholders' Equity , for additional detail. . |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total business combination fair value basis adjustment to inventory | $ 0 | $ 1,042 |
Total stock-based compensation expense, net of amounts capitalized | 16,274 | 39,166 |
Total depreciation and amortization | 13,132 | 10,427 |
Cost of goods sold | ||
Total business combination fair value basis adjustment to inventory | 0 | 1,042 |
Total stock-based compensation expense, net of amounts capitalized | 123 | 104 |
Total depreciation and amortization | 3,513 | 2,957 |
Research and development | ||
Total stock-based compensation expense, net of amounts capitalized | 1,464 | 2,057 |
Total depreciation and amortization | 2,505 | 1,304 |
Selling, general and administrative | ||
Total stock-based compensation expense, net of amounts capitalized | 14,687 | 37,005 |
Total depreciation and amortization | $ 7,114 | $ 6,166 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Voting Common Stock | Additional Paid-in Capital | Accumulated Deficit | ||
Beginning balance (in shares) at Dec. 31, 2021 | [1] | 6,641,914 | ||||
Beginning balance at Dec. 31, 2021 | $ 101,684 | $ 1 | [1] | $ 169,925 | $ (68,242) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock for business combination (in shares) | [1] | 434,969 | ||||
Issuance of common stock for business combination | 50,948 | 50,948 | ||||
Issuance of common stock for debt modification (in shares) | [1] | 148,687 | ||||
Issuance of common stock for debt modification | 17,416 | 17,416 | ||||
Issuance of common stock for PIPE Financing, net of issuance costs (in shares) | [1] | 716,923 | ||||
Issuance of common stock for PIPE Financing, net of issuance costs $553,287 | $ 22,746 | 22,746 | ||||
Issuance of common stock upon exercise of warrants (in shares) | [1] | 1 | ||||
Vesting of restricted stock units, net (in shares) | [1] | 34,478 | ||||
Stock-based compensation | $ 39,610 | 39,610 | ||||
Net loss | $ (111,071) | (111,071) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 7,976,980 | 7,976,972 | [1] | |||
Ending balance at Dec. 31, 2022 | $ 121,333 | $ 1 | [1] | 300,645 | (179,313) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash paid for fractional shares from the Reverse Stock Split (in shares) | [1] | (552) | ||||
Cash paid for fractional shares from the Reverse Stock Split | (3) | (3) | ||||
Vesting of restricted stock units, net (in shares) | [1] | 334,809 | ||||
Stock-based compensation | 17,958 | 17,958 | ||||
Net loss | $ (124,015) | (124,015) | ||||
Ending balance (in shares) at Dec. 31, 2023 | 8,311,229 | 8,311,229 | [1] | |||
Ending balance at Dec. 31, 2023 | $ 15,273 | $ 1 | [1] | $ 318,600 | $ (303,328) | |
[1] Share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split (as defined below). See Note 12, Stockholders' Equity , for additional detail. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
PIPE Financing, issuance costs | $ 553,287 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities: | ||
Net loss | $ (124,015) | $ (111,071) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Fixed assets and land | 7,212 | 5,400 |
Amortization | 5,920 | 5,027 |
Stock-based compensation expense, net of amounts capitalized | 16,274 | 39,166 |
Allowance for credit losses | 5 | 114 |
Inventory valuation allowance | 62 | 596 |
Loss on disposal of property and equipment | 4,709 | 2,568 |
Gain related to change in fair value of warrant liability | (18,483) | 0 |
Paid-in-kind interest | 23,977 | 0 |
Loss on debt extinguishment | 0 | 735 |
Amortization of debt issuance costs | 7,283 | 2,988 |
Interest on financing obligation | 313 | 231 |
Goodwill impairment | 38,481 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (392) | (643) |
Inventory | (678) | (88) |
Prepaid expenses and other current assets | 776 | 1,397 |
Other assets | (48) | 2,328 |
Accounts payable | (66) | 2,116 |
Operating lease liabilities | (96) | 151 |
Accrued liabilities | 5,609 | 177 |
Net cash used in operating activities | (33,157) | (48,808) |
Investing Activities: | ||
Purchases of property and equipment | (162,265) | (56,020) |
Asset acquisition | 0 | (25,813) |
Business combination, net of cash acquired | 0 | (90,552) |
Net cash used in investing activities | (162,265) | (172,385) |
Financing Activities: | ||
Proceeds from financing obligation | 35,000 | 0 |
Proceeds from Private Placement financing | 0 | 23,300 |
Transaction costs paid in connection with financing activities | 0 | (553) |
Proceeds from issuance of debt | 152,608 | 124,649 |
Payment of debt modification or issuance costs | (226) | (2,342) |
Fractional shares paid in cash pursuant to Reverse Stock Split | (3) | 0 |
Net cash provided by financing activities | 187,379 | 145,054 |
Net decrease in cash and cash equivalents and restricted cash | (8,043) | (76,139) |
Cash and cash equivalents and restricted cash at beginning of period | 24,938 | 101,077 |
Cash and cash equivalents and restricted cash at end of period | 16,895 | 24,938 |
Reconciliation of cash, cash equivalents, and restricted cash from the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows: | ||
Cash and cash equivalents | 10,326 | 13,666 |
Restricted cash | 6,569 | 11,272 |
Total cash and cash equivalents and restricted cash as shown in the Consolidated Statements of Cash Flows | 16,895 | 24,938 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net of interest capitalized | 4,039 | 10,743 |
Non-cash activities: | ||
Warrants issued in connection with debt modification | 25,697 | 0 |
Purchases of property and equipment included in accounts payable and accrued liabilities | 3,118 | 825 |
Non-cash equity settlement on employee receivable | 176 | 17,416 |
Stock-based compensation capitalized to property and equipment, net | 1,860 | 444 |
Interest capitalized to property and equipment, net | 14,873 | 1,695 |
Issuance of common stock for business combination | 0 | 50,948 |
Non-cash financing obligation activity | 0 | 840 |
Right-of-use asset obtained in exchange for operating lease liability | 0 | 388 |
Reduction of right of use asset and associated lease liability due to lease cancellation | $ 0 | $ 203 |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | Business Description Description of the Business Local Bounti Corporation ("Local Bounti" or the "Company") was founded in August 2018 and is headquartered in Hamilton, Montana. The Company is a producer of sustainably grown living lettuce, herbs, and loose leaf lettuce. The Company is a controlled environment agriculture ("CEA") company that utilizes patented Stack & Flow Technology ® |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the Consolidated Financial Statements herein. Liquidity and Going Concern The accompanying Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In accordance with Accounting Standards Codification ("ASC") 205-40, Going Concern, the Company’s management has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the Consolidated Financial Statements are issued. When substantial doubt exists under this methodology, the Company's management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about our ability to continue as a going concern. The mitigating effect of its plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the Consolidated Financial Statements are issued. The Company's expectation of generating operating losses and negative operating cash flows in the future, and the need for additional funding to support the Company's planned operations initially raised substantial doubt regarding its ability to continue as a going concern. However, based on management's current operating plan, the Company believes its cash on hand, projected cash generated from product sales, as well as the $15.0 million of working capital and cash interest payment deferrals under its credit facilities with Cargill Financial as disclosed in Note 18, Subsequent Events , are sufficient to fund the Company's operations for a period of a least 12 months subsequent to the issuance of the accompanying Consolidated Financial Statements and alleviates the conditions that initially raised substantial doubt regarding the Company's ability to continue as a going concern. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. On an ongoing basis, the Company evaluates its estimates, including those related to the valuation of instruments issued for stock-based compensation, the March 2023 Cargill Warrant liability, inventory valuation reserve, valuation of acquired intangibles and goodwill in business combinations, impairment analysis for goodwill and other intangible assets, and income taxes, among others. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. Significant Risks and Uncertainties The Company is subject to those risks common in the consumer products and agriculture industries and those risks common to early stage development companies, including, but not limited to, the possibility of not being able to successfully develop or market its products, competition, dependence on key personnel and key external alliances, the ability to maintain and establish relationships with current and future vendors and suppliers, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. Cash and Cash Equivalents The Company considers all highly liquid, short-term investments with an original maturity date of three months or less when purchased to be cash equivalents. The Company maintains its cash with major financial institutions that may at times exceed federally insured limits. The Company has not experienced any losses in such accounts. Restricted Cash Restricted cash is restricted through legal contracts or regulations. As described in more detail below, and using terms defined, in Note 9, Financing Obligations, as part of the April 2023 California Facilities Lease transaction, Hollandia delivered to the lessor a letter of credit in an amount equal to $6.5 million as security for the full and faithful performance by Hollandia of the terms, provisions, covenants and conditions of the California Facilities Lease . In the event of default under the California Facilities Lease , the lessor would have the right to draw on the letter of credit to satisfy any monetary obligations under the California Facilities Lease . The letter of credit will be released after five years, contingent on achieving certain financial metrics as specified in the California Facilities Lease . The $6.5 million for the letter of credit is included in "Restricted cash" on the Consolidated Balance Sheets. Accounts Receivable and Allowance for Credit Losses Accounts receivable includes billed receivables and is presented net of an allowance for credit losses. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. In establishing the required allowance, management considers historical losses, current market conditions, customers’ financial condition, the age of the receivables, and current payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts represents the Company’s best estimate of the amount of expected credit losses in existing accounts receivable. The allowance for doubtful accounts was $0.1 million and $0.1 million at December 31, 2023 and 2022, respectively. Fair Value Measurements The Company measures fair value based on the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs used in valuation techniques are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: • Level 1— This level consists of quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. • Level 2— This level consists of observable prices that are based on inputs not quoted on active markets but corroborated by market data. • Level 3— This level consists of unobservable inputs that are used when little or no market data is available. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Business Combinations The purchase consideration of acquisitions is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated respective fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Goodwill is adjusted for any changes to acquisition date fair value amounts made within the measurement period. Acquisition-related transaction costs are recognized separately from the business combination and expensed as incurred. Debt Issuance Costs Debt issuance costs are amortized into interest expense over the terms of the related loan agreements using the effective interest method or other methods which approximate the effective interest method. Debt issuance costs related to debt instruments are presented on the Consolidated Balance Sheets as a direct deduction from the carrying amount of that debt liability. Inventory Inventory is carried at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. Inventory write-downs are recorded for shrinkage, damaged, stale and slow-moving items. The assessment of recoverability of inventories and the amounts of any write-downs are based on currently available information and assumptions about future demand and market conditions. Demand for produce may fluctuate significantly over time, and actual demand and market conditions may be more or less favorable than the Company’s projections. If actual demand is lower than originally projected, additional inventory write-downs may be required. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for additions and improvements are capitalized; expenditures for maintenance and repairs that neither materially add to the value of the property nor appreciably prolong its economic life are charged to expense as incurred. Assets to be disposed of are reported as assets held for sale at the lower of the carrying amount or the asset's fair value less cost to sell and depreciation is ceased. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying amount of the asset and the net proceeds received. During the year ended December 31, 2023, the Company recognized $4.7 million on loss on disposals, primarily related to construction-in-progress assets related to certain growing technology equipment that will not be utilized in the Company's current facilities under construction or future construction projects, following the Company’s assessment of recent growing process advancements and alignment of its technology across its facilities. Loss on disposals are included in "Selling, general and administrative” on the Consolidated Statements of Operations. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Class Estimated Useful Life Greenhouse facility 30 years Production Equipment 5 to 15 years Office Equipment 3 years Leasehold Improvements Shorter of lease term or useful life of asset Capitalization of Interest The Company capitalizes interest on capital projects in accordance with ASC 835-20, Capitalization of Interest , which requires the capitalization of interest costs to get certain assets ready for their intended use. The Company capitalizes interest costs on borrowings during the construction period of major construction projects as part of the cost of the constructed assets. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Capitalization of interest ceases when the project is substantially complete and ready for its intended use. The Company amortizes capitalized interest to depreciation expense using the straight-line method over the same lives as the related assets. During the years ended December 31, 2023 and 2022 , the Company capitalized interest expense of $14.9 million and $1.2 million, respectively. Intangible Assets, Net Definite-lived intangible assets are carried at cost and amortized on a straight-line basis over their estimated useful lives or over the pattern in which the economic benefit is expected to be consumed. Goodwill The Company records goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized but rather tested for impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate impairment may exist. The Company's impairment tests are based on a single reporting unit structure. The goodwill impairment test consists of one step comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. Based on the 2023 annual impairment test, the Company determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount and recorded a goodwill impairment of $38.5 million for the year ended December 31, 2023. See Note 6, Goodwill & Intangible Assets , for more information. Impairment of Long-Lived Assets The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. The Company did not recognize any impairment of intangible assets and other long-lived assets for the years ended December 31, 2023 and 2022. Leases The Company determines if an arrangement contains a lease at inception of a contract, and leases are classified at commencement as either operating or finance leases. For operating leases, the Company recognizes a right-of-use ("ROU") asset and a lease liability on the balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and the lease liabilities represent the Company's obligation to make lease payments arising from the lease. The lease liability is determined as the present value of future lease payments over the lease term. The ROU asset is based on the lease liability adjusted for any prepaid lease payments or lease incentives. Lease terms may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the option will be exercised. The Company uses its incremental borrowing rate at the recognition date in determining the present value of future payments for leases that do not have a readily determinable implicit rate. The Company utilizes certain practical expedients and policy elections available under ASC 842. The Company does not recognize right-of-use assets or lease liabilities for short-term leases (leases with an initial term of 12 months or less) and the Company has elected to separate lease and non-lease components for all existing classes of assets. Operating lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. Variable lease payments to the lessor such as maintenance, utilities, insurance, and real estate taxes are expensed as incurred. For further discussion, see Note 10, Leases . Revenue Recognition The Company’s principal business is the production and sale of sustainably grown fresh greens through CEA facilities. Revenue is recognized at a point in time when control of the product is transferred or passed to the customer in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Control over the product generally passes to the customer based upon applicable shipping terms, which typically occurs when products leave the Company’s facilities with the first transportation carrier . Customer contracts do not include more than one performance obligation. Product prices are based on agreed upon rates with customers and do not include financing components or noncash consideration. Customer contracts do not include more than one performance obligation. Product prices are based on agreed upon rates with customers and do not include a financing component or noncash consideration. Also, the Company’s customer contracts do not include variable consideration and product sales are recorded net of discounts, returns and promotional allowances. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent there is a distinct good or service, in which case the expense is classified as selling or marketing expense. Provisions for discounts, returns and promotional allowances were not material at December 31, 2023 and 2022. The Company’s product sales do not typically include return rights, but the Company may offer in certain cases an assurance-type warranty to refund or replace the product if it does not meet quality specifications and such nonconformity is communicated to the Company within a set number of days of shipment. Refunds are recognized as a reduction of revenue based on a historical rate of experience when the product sale is consummated. Also, an estimate of the cost to replace a returned product is based on a historical rate of experience and recognized as a liability and related expense when the product sale is consummated. Product returns have not been material to date. The Company does not have unbilled receivable balances arising from transactions with customers. Payment terms are generally between 10 to 30 days. The Company does not capitalize contract inception costs, as contracts (which are in the form of purchase orders from customers) are one year or less and the Company does not incur significant fulfillment costs requiring capitalization. The Company has made the accounting policy election to exclude any sales and similar taxes from the transaction price. Research and Development Research and development expenses consist primarily of compensation to employees engaged in research and development activities, which include salaries, benefits, and stock-based compensation, overhead (including depreciation, utilities and other related allocated expenses), and supplies and services related to the development and testing of the Company's growing processes. Research and development efforts are focused on the development of the Company's processes utilizing its facilities, increasing production yields, developing new leafy green SKUs and value-added products such as grab-and-go salads, and exploring new crops, including spinach, arugula, and berries. Research and development costs are expensed as incurred. Derivatives Equity instruments issued in connection with debt and other equity instruments are required to be evaluated for derivative liability accounting treatment in accordance with ASC 815, Derivatives and Hedging . Unless certain exception criteria are met, the freestanding financial instrument or embedded feature must be recognized as a separate liability and subsequently measured on the balance sheet at fair value in accordance with ASC 820, Fair Value Measurement . The Company has evaluated the terms and features of its debt and equity instruments and identified a freestanding equity-linked instrument (the March 2023 Cargill Warrant) issued in connection with the Sixth Amendment that did not meet the criteria necessary to qualify for the derivative scope exception. See Note 8, Debt , and Note 11, Fair Value Measurements , for more information related to the Sixth Amendment and the March 2023 Cargill Warrant, respectively. Due to certain provisions that could result in the issuance of additional shares upon settlement, the warrant instrument did not meet the fixed-for-fixed criteria necessary for the instrument to be classified and recorded within equity. As a result, the warrant is accounted for at fair value until settled through exercise or expiration and is classified as a derivative liability in the Consolidated Balance Sheet at December 31, 2023. The initial $25.7 million fair value of the March 2023 Cargill Warrant was recorded as additional debt discount to the Facilities (as defined below) and a derivative liability in the "Warrant liability" line item of the Consolidated Balance Sheets. The change in fair value of the warrant is remeasured each quarter until the instrument is settled or expires with changes in fair value recorded in "Change in fair value of warrant liability" in the Consolidated Statements of Operations. The fair value of the warrant liability is determined using a Black-Scholes model. See Note 8, Debt , for more information. Stock-Based Compensation The Company measures and recognizes compensation expense for all equity-based awards made to employees, directors, and non-employees, based on estimated fair values recognized over the requisite service period in accordance with ASC 718, Stock-Based Compensation . The Company recognizes compensation expense for all equity-based awards with service vesting requirements on a tranche-by-tranche basis using the accelerated attribution method over the requisite service period of the award, which is generally the award’s vesting period. Forfeitures of awards are accounted for in the period in which they occur. Advertising Advertising expenses are expensed as incurred. The Company incurred advertising expenses of $1.1 million and $0.9 million for the years ended December 31, 2023 and 2022, respectively. Advertising expenses are included in "Selling, general and administrative" expense in the Consolidated Statements of Operations. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Consolidated Financial Statements. Under this method, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts of assets and liabilities for income tax purposes and operating losses carried forward, measured by applying tax rates based on currently enacted tax laws. Valuation allowances are calculated, when necessary, to reduce the net deferred tax assets to an amount that is more likely than not to be realized. Changes in the valuation allowances occurring in subsequent periods are included in the Consolidated Statements of Operations. The Company recognizes uncertain tax positions based upon its estimate of whether, and the extent to which, additional taxes will be due when such estimates are more likely than not to be sustained. Uncertain income tax positions are not recognized if there is less than a 50% likelihood of being sustained. The Company reviews the tax reserves as circumstances warrant and adjusts the reserves as events occur that affect its potential liability for additional taxes. The Company follows the applicable guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition with respect to tax positions. The Company reflects interest and penalties related to income tax liabilities as a component of income tax expense. Concentrations of Risk and Significant Customers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents accounts with financial institutions which management believes to be of high-credit quality. The Company is exposed to risk in the event of default by these financial institutions or the issuers of these securities to the extent the balances are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. The Company's receivables are derived from revenue earned primarily from customers located in the United States. The Company provides credit to its customers in the normal course of business and requires no collateral to secure accounts receivable. The Company maintains an allowance for doubtful accounts related to estimated credit losses. Significant customers are those customers who represent 10% or more of total revenue during the year or 10% or more of net accounts receivable at the balance sheet date. At December 31, 2023, there was one significant customer that accounted for approximately 34% of the Company's accounts receivable. For the year ended December 31, 2023, three individual customers represented more than 10% of total revenue. In aggregate, these customers represented approximately 37% of the Company's revenue. At December 31, 2022, there were two significant customers that accounted for approximately 28% of the Company's accounts receivable. For the year ended December 31, 2022, two individual customers represented more than 10% of total revenue. In aggregate, these two customers represented approximately 27% of the Company's revenue. Contingencies Loss contingencies (other than income tax-related contingencies) arise from actual or possible claims and assessments and pending or threatened litigation that may be brought against the Company by individuals, governments or other entities. Based on the Company's assessment of loss contingencies at each balance sheet date, a loss is recorded in the Consolidated Financial Statements if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. Segment Reporting The Company has a single operating and reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Emerging Growth Company Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The Company qualifies as an emerging growth company, as defined in the JOBS Act, and therefore intends to take advantage of certain exemptions from various public company reporting requirements, including delaying adoption of new or revised accounting standards until those standards apply to private companies. The effective dates shown in the Accounting Pronouncements sections shown below reflect the election to use the extended transition period. Accounting Pronouncements Recently Adopted In June 2016, the FASB issued Accounting Standards Update ("A SU") 2016-13, Financial Instruments-Credit Losses (Topic 326) , which amends the guidance on reporting credit losses for assets held at amortized cost and available for sale debt securities. For assets held at amortized cost, the amendment eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost of the financial assets to present the net amount expected to be collected. The Company adopted this guidance on January 1, 2023 using the modified retrospective method. The adoption of this guidance did not have a material impact on the Company's Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740 ), which requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280 ), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for certain financial instruments with characteristics of liability and equity, including convertible instruments and contracts on an entity’s own equity. The standard reduces the number of models used to account for convertible instruments, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, and requires the if-converted method for calculation of diluted earnings per share for all convertible instruments. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Pete's Business Combination On April 4, 2022, the Company acquired 100% of the shares of Pete's. The purchase price consideration for the acquisition was $92.5 million in cash (subject to customary adjustments) and 434,969 shares of Local Bounti common stock, which had an original consideration, at the time of signing, of $30.0 million and a fair value of $50.9 million as of the closing date of the Pete's Acquisition. The acquisition has been accounted for as a business combination. The Company acquired Pete's in order to leverage Pete's operational scale and retail distribution footprint to create a leading, scaled CEA operator with a national distribution footprint. Acquisition related costs of $4.4 million were included in selling, general and administrative expense in the Consolidated Statements of Operations for the year ended December 31, 2022. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill as shown below. Goodwill is primarily attributable to the assembled workforce and expanded market opportunities and was allocated to the Company's single reporting unit. The goodwill is deductible for tax purposes over 15 years and a 338(h)(10) election was filed to step up the tax basis of the assets acquired to fair value. The allocation is as follows (in thousands): Intangible assets $ 52,300 Goodwill 38,481 Assets acquired 56,449 Liabilities assumed (3,776) Total fair value of net assets acquired: $ 143,454 The useful life of the customer relationships, trade name, and non-compete agreements are approximately 16 years, seven years, and 18 months, respectively. Amortization expense of intangible assets was $5.9 million and $5.0 million for the years ended December 31, 2023 and 2022, respectively. Asset Acquisition On April 4, 2022, in connection with consummating the Pete's Acquisition, Pete's acquired the properties previously being leased by Pete's from an internally managed net-lease real estate investment trust ("REIT") pursuant to certain sale-leaseback agreements between Pete's and the REIT for an aggregate cash purchase price of $25.8 million (the "Property Acquisition"). The Company accounted for the properties as an asset acquisition as substantially all of the fair value of the acquisition is concentrated in a single asset or group of similar identifiable assets. The following table sets forth the fair value of the identifiable assets acquired as of the date of the acquisition (in thousands): Land $ 13,800 Construction-in-progress 12,013 Total: $ 25,813 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventories consisted of the following: December 31, 2023 2022 (in thousands) Raw materials $ 1,843 $ 2,018 Production (1) 3,010 2,213 Finished goods (1) 110 54 Inventory valuation allowance (753) (691) Total inventory, net $ 4,210 $ 3,594 _____________________ |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following: December 31, 2023 2022 (in thousands) Machinery, equipment, and vehicles $ 44,169 $ 32,774 Land 19,253 19,296 Buildings and leasehold improvements 66,754 55,392 Construction-in-progress 196,324 56,753 Less: Accumulated depreciation (13,334) (6,371) Property and equipment, net $ 313,166 $ 157,844 Depreciation expense related to property and equip ment was $7.2 million an d $5.4 million for the years ended December 31, 2023 and 2022, respectively. |
Goodwill & Intangible Assets
Goodwill & Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill & Intangible Assets | Goodwill & Intangible Assets During the year ended December 31, 2023, the Company identified indicators of impairment related to goodwill due to the significant decline in the Company’s stock price. Management concluded that due to the sustained decrease in its stock price and related market capitalization throughout 2023, it was more likely than not that the Company’s fair value was less than its carrying amount. After performing the quantitative impairment test in accordance with ASC 350, the Company determined that the carrying amount of its single reporting unit exceeded the fair value of the reporting unit, resulting in a full impairment of the goodwill asset for the year ended December 31, 2023. The following table presents changes in goodwill (in thousands): Balance as of December 31, 2022 $ 38,481 Impairment loss (38,481) Balance as of December 31, 2023 $ — Intangible assets, net, consisted of the following as of December 31, 2023 (in thousands): Gross Carrying Amount Accumulated Amortization Net Value Remaining Useful Life (Years) Customer relationships $ 40,200 $ (4,397) $ 35,803 14.25 Trade name 7,400 (1,850) 5,550 5.25 Non-compete agreements 4,700 (4,700) — 0 Total: $ 52,300 $ (10,947) $ 41,353 Intangible assets, net, consisted of the following as of December 31, 2022 (in thousands): Gross Carrying Amount Accumulated Amortization Net Value Remaining Useful Life (Years) Customer relationships $ 40,200 $ (1,884) $ 38,316 15.25 Trade name 7,400 (793) 6,607 6.25 Non-compete agreements 4,700 (2,350) 2,350 0.75 Total: $ 52,300 $ (5,027) $ 47,273 As of December 31, 2023 , future amortization expense is expected to be as follows (in thousands): 2024 $ 3,570 2025 3,570 2026 3,570 2027 3,570 2028 3,570 Thereafter 23,503 Total $ 41,353 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: December 31, 2023 2022 (in thousands) Interest $ 9,786 $ 4,372 Construction 2,995 825 Payroll 2,596 1,470 Production 690 1,438 Professional services 411 894 Other 726 427 Total accrued liabilities $ 17,204 $ 9,426 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following: December 31, 2023 2022 (in thousands) Senior Facility $ 269,395 $ 98,442 Subordinated Facility 48,132 42,500 Unamortized deferred financing costs (39,542) (21,128) Total debt $ 277,985 $ 119,814 Agreements with Cargill Financial On September 3, 2021, Local Bounti Operating Company LLC and certain subsidiaries entered into (a) a credit agreement (the "Senior Credit Agreement") with Cargill Financial for an up to $150.0 million multiple-advance term loan (the "Senior Facility") and (b) a subordinated credit agreement (the "Subordinated Credit Agreement" and, together with the Senior Credit Agreement, the "Original Credit Agreements") with Cargill Financial for an up to $50.0 million multiple-advance term loan (the "Subordinated Facility" and, together with the Senior Facility, the "Facilities"). As further described below, Local Bounti Operating Company LLC and certain subsidiaries entered into with Cargill Financial a First Amendment, a Second Amendment, a Third Amendment, Fourth Amendment, a Fifth Amendment, a Sixth Amendment, and a Seventh Amendment to the Original Credit Agreements (as so amended, collectively referred to as the "Amended Credit Agreements"). First Amendment to the Original Credit Agreements On March 14, 2022, Local Bounti Operating Company LLC and the Company and certain of its subsidiaries entered into a First Amendment to the Original Credit Agreements (the "First Amendment") with Cargill Financial to amend the Original Credit Agreements and the Facilities, effective on April 4, 2022 upon closing the Pete's Acquisition. The First Amendment provided (a) the Pete's Acquisition to be funded pursuant to the Facilities, (b) the aggregate amount of outstanding loans and undrawn commitments under the Facilities to be reduced to $170.0 million, (c) the minimum liquidity covenant to be reduced from $30.0 million to $20.0 million (inclusive of existing restricted cash on the Consolidated Balance Sheets), and (d) the interest rate of each of the Senior Facility and the Subordinated Facility to be increased by 2% to 12.5% per annum, among other matters. Pursuant to the First Amendment, in connection with the closing of the Pete's Acquisition, the Company (i) paid a $2.0 million amendment fee and (ii) issued 1,932,931 shares of common stock to Cargill Financial. As a result of reducing the Facilities from $200.0 million to $170.0 million, the Company wrote off $0.7 million of unamortized debt issuance costs in proportion to the decrease in borrowing capacity. The write-off amount was recorded as interest expense in the Consolidated Statement of Operations for the year ended December 31, 2022. The First Amendment fee of $2.0 million and the issued 1,932,931 shares of common stock with a fair value at the time of issuance of $17.4 million was recorded as additional debt discount and is amortized to interest expense over the remaining term of the Amended Credit Agreements on a straight-line basis. Second Amendment to the Original Credit Agreements On August 11, 2022, Local Bounti Operating Company LLC and the Company and certain of its subsidiaries entered into a Second Amendment to the Original Credit Agreements (the "Second Amendment") with Cargill Financial, effective on June 30, 2022. The Second Amendment provided that, until the earliest to occur of (x) the occurrence of any event of default, (y) the effective date of a qualified equity financing and (z) March 31, 2024, the requirement for the minimum interest amount for the Senior Facility and the Subordinated Facility is reduced to an amount equal to the greater of (i) $0 and (ii) the sum of all interest payments due and payable under the Senior Facility and the Subordinated Facility in respect of term loans outstanding for a period of four calendar quarters. Third Amendment to the Original Credit Agreements On December 30, 2022, Local Bounti Operating Company LLC and the Company and certain of its subsidiaries entered into a Third Amendment to the Original Credit Agreements (the "Third Amendment") with Cargill Financial. The Third Amendment provided for (i) the amount of cash required to be held in the debt service reserve account for the Credit Agreements to be reduced to $11.3 million through April 1, 2024; (ii) the payment date for regularly scheduled interest and principal payments and certain other payments under the Credit Agreements to be changed from the last business day of the applicable quarter to the first business day of the subsequent quarter; (iii) the payment in kind of the quarterly interest payment due and payable for the quarter ended December 31, 2022; and (iv) a capital expenditures covenant which limits capital expenditures to existing projects and restricts aggregate capital expenditures for existing projects in excess of amounts set forth in the applicable construction budget to $1,000,000 in any fiscal year. Fourth Amendment to the Original Credit Agreements On January 6, 2023, Local Bounti Operating Company LLC and the Company and certain of its subsidiaries entered into a Fourth Amendment to the Original Credit Agreements (the "Fourth Amendment") with Cargill Financial. The Fourth Amendment reduced the minimum liquidity covenant in each of the Original Credit Agreements from $20.0 million to $11.0 million. Fifth Amendment to the Original Credit Agreements On March 13, 2023, Local Bounti Operating Company LLC and the Company and certain of its subsidiaries entered into a Fifth Amendment to the Original Credit Agreements (the "Fifth Amendment") with Cargill Financial. The Fifth Amendment (i) reduced the amount of cash required to be held in the debt service reserve account by approximately $11.0 million until April 2, 2024, at which time the amount of cash required to be held in the debt service reserve account will be an amount equal to the sum of interest and principal payments that would be required under the Amended Credit Agreements for two calendar quarters; (ii) allowed for the payment in kind of the quarterly interest payment due and payable for the quarter ended March 31, 2023 and allowed for the payment in kind of the unused commitment fee payable for the quarter ended March 31, 2023 which amounted to $4.3 million; and (iii) reduced the minimum liquidity covenant in each of the Amended Credit Agreements from $11.0 million to $1.0 million. The aggregate amount of outstanding loans and undrawn commitments under the Amended Credit Agreements remained at $170.0 million (plus interest and fees paid in kind). Sixth Amendment to the Original Credit Agreements On March 28, 2023, Local Bounti Operating Company LLC and the Company and certain of its subsidiaries entered into a Sixth Amendment to the Original Credit Agreements (the "Sixth Amendment") with Cargill Financial. The Sixth Amendment, among other things, (i) expanded the Facilities from $170.0 million to up to $280.0 million (plus, in each case, interest and fees paid in kind), including capital to fund construction at the Company’s facilities in Georgia, Texas, and Washington, subject to certain conditions and at Cargill Financial's discretion; (ii) allowed for the payment in kind of the quarterly interest payment due and payable for the quarter ending June 30, 2023 which amounted to $5.0 million; and (iii) added a minimum production covenant based on a projected production forecast. In consideration for the improved flexibility and the expanded size of the Facilities, Local Bounti issued Cargill Financial 5.4 million warrants with a per share exercise price of $13.00 per share (both number of warrants and per share exercise price adjusted for the Reverse Stock Split) and a 5-year term that expires on March 28, 2028 (the "March 2023 Cargill Warrant"). Seventh Amendment to the Original Credit Agreements On October 2, 2023, Local Bounti Operating Company LLC and the Company and certain of its subsidiaries entered into a Seventh Amendment to the Original Credit Agreements (the “Seventh Amendment”) with Cargill Financial. The Seventh Amendment allowed for the payment in kind of the quarterly interest payments due and payable for the quarters ended September 30, 2023, and December 31, 2023. The Company evaluated the before and after cash flow changes resulting from the Fourth, Fifth Sixth, and Seventh Amendments and concluded the change in cash flows underlying these cumulative amendments were not significantly different from the cash flows underlying the terms in the Original Credit Agreements; therefore, the Company accounted for these amendments as a modification rather than as an extinguishment. Consequently, the $25.7 million fair value of the March 2023 Cargill Warrant was recorded as an additional debt discount that will be amortized to interest expense over the remaining term of the Amended Credit Agreements. Fees paid to non-lender third parties as a result of the modification have been expensed as incurred. General provisions to the Original Credit Agreements (as Amended) Subsequent to the Sixth Amendment, the interest rate on the Subordinated Facility is 12.5% per annum and the interest rate on the Senior Facility is equal to SOFR plus a margin (which varies between 7.5% to 8.5% depending on the Senior Facility net leverage ratio) per annum, with accrued interest paid quarterly in arrears on the first business day of the subsequent quarter through the maturity date on September 3, 2028. Principal payments under the Senior Facility are payable quarterly, beginning April 1, 2025, based on a 10-year straight line amortization schedule, with the remaining unpaid balance under both the Senior Facility and the Subordinated Facility due on the September 3, 2028 maturity date. In accordance with the Original Credit Agreements, the Company is required to have a debt service reserve account which is shown as restricted cash on the Consolidated Balance Sheets. The Fifth Amendment and Sixth Amendment, taken together, reduced the minimum balance to maintain in the debt service reserve account to $0 through March 31, 2025. From and after April 1, 2025, the minimum balance to maintain in the debt service reserve account will be increased to two quarters of scheduled interest payments and two quarters of scheduled principal payments. The Amended Credit Agreements also contain certain financial covenants that become measurable and effective beginning in the third quarter of 2025, including debt coverage, net leverage, and interest coverage ratios. Additional covenants and other provisions exist that may limit or affect the timing of the Company's ability, among other things, to undergo a merger or consolidation, sell certain assets, create liens, guarantee certain obligations of third parties, make certain investments or acquisitions, and declare dividends or make distributions. The Facilities are secured with a first-priority lien against substantially all of the assets of the Company and its subsidiaries, including their intellectual property. The Company was in compliance with all applicable covenants as of December 31, 2023 other than the financial covenant set forth in Section 6.8(g) of the Amended Credit Agreements. On October 31, 2023, and March 26, 2024, the Company, along with certain subsidiaries of the Company, entered into a Limited Covenant Waiver with Cargill Financial pursuant to which Cargill Financial waived the financial covenant set forth in Section 6.8(g) of the Amended Credit Agreements for the calendar quarters ended September 30, 2023 and December 31, 2023, respectively. |
Financing Obligations
Financing Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Financing Obligation [Abstract] | |
Financing Obligations | Financing Obligations Montana Facility Financing Obligation In June 2020, the Company completed the construction of the Montana Facility. Subsequent to the completion, the Company entered into a sale and finance leaseback transaction for the Grow Bitterroot, LLC ("Grow Bitterroot"), a related party, for total consideration of $6.9 million with an initial term of 15 years. The Company also has an option to extend the term of the facility lease for three consecutive terms of five years each. In April 2021, the Company elected to extend the first five-year period, resulting in a 20-year lease term. In addition, the Company and Grow Bitterroot entered into a property maintenance and management services agreement under which the Company will provide all property maintenance and management services including business, operational, strategic and advisory services in exchange for an annual fee of $0.1 million. The property maintenance and management services agreement includes an initial term of three years with one year autorenewals unless terminated by either party with 30 days’ notice. The transaction did not qualify for sale leaseback accounting due to the finance leaseback classification prohibiting sale accounting. As such, the transaction is accounted for as a financing transaction (a failed sale). Therefore, the assets remain on the Consolidated Balance Sheet with the proceeds from the transaction and purchases of equipment on behalf of the related party recorded as a financing obligation. In addition, the Company will manage the facility and perform maintenance in exchange for a management fee under the property maintenance and management services agreement. The contractual payments for both the lease agreement and property maintenance and management agreement are applied as payments of deemed principal and imputed interest. The lease agreement does not contain residual value guarantees. The agreement does not contain restrictions or covenants that may result in additional financial obligations. The landlord has the option to construct future improvements on the property; when the improvements are completed, the base rent will increase. The Company utilized a rate of 11.60% to calculate imputed interest and recognized $1.6 million and $1.6 million of interest expense related to the Montana Facility lease for the years ended December 31, 2023 and 2022, respectively. California Facilities Financing Obligation On April 27, 2023, Hollandia Real Estate, LLC ("Hollandia"), a wholly owned subsidiary of the Company, and STORE Master Funding XXXI, LLC ("STORE") consummated a $35 million multi-site sale and leaseback transaction relating to the Carpinteria Facility and the Oxnard Facility (collectively, the "California Facilities"). In connection with the sale and leaseback transaction, Hollandia and STORE entered into a Master Lease Agreement (the "California Facilities Lease"), dated April 27, 2023 (the "Effective Date"). Pursuant to the California Facilities Lease, Hollandia will lease the California Facilities from STORE, subject to the terms and conditions of the California Facilities Lease. The California Facilities Lease provides for an initial term of 25 years, commencing on the Effective Date and expiring on April 30, 2048 ("Initial Term"). Hollandia has four options to extend the Initial Term for separate renewal terms of five years each (together with the Initial Term, the "Lease Term"). Subject to adjustment as set forth in the California Facilities Lease, the combined annual minimum rent payable to STORE during the first year of the Lease Term is an amount equal to $3.2 million (the "Base Annual Rent") with payments made monthly, subject to annual rent increases of three percent (3%) of the Base Annual Rent. The California Facilities Lease contains certain representations, warranties, covenants, obligations, conditions, indemnification provisions and termination provisions customary for sale and leaseback transactions. As part of the California Facilities Lease, Hollandia delivered to STORE a letter of credit in an amount equal to $6.5 million as security for the full and faithful performance by Hollandia of the terms, provisions, covenants and conditions of the California Facilities Lease. In the event of default under the California Facilities Lease, STORE shall have the right to draw on the letter of credit to satisfy any monetary obligations under the California Facilities Lease. The letter of credit will be released after five years, contingent on achieving certain financial metrics as specified in the California Facilities Lease. The $6.5 million for the letter of credit is included in "Restricted cash" on the Consolidated Balance Sheets. The Company accounted for the California Facilities Lease as a financing transaction in accordance with ASC 842, Leases, as the California Facilities Lease was determined to be a finance lease. The presence of a finance lease indicates that control of the California Facilities has not transferred to STORE and, as such, the transaction was deemed a failed sale and leaseback and the proceeds from the sale and leaseback transaction are therefore accounted for as a financing obligation. The leased assets remain on the Consolidated Balance Sheets and will continue to be depreciated over their original estimated useful lives, and the contractual lease payments will be allocated between interest expense (as imputed interest) and repayment of the $35 million financing obligation through April 30, 2048, which is the end of the 25-year lease term and the time at which the Company expects control of the leased assets to transfer to STORE. The Company utilized a rate of 11.06% to calculate imputed interest and recognized $2.6 million of interest expense for the year ended December 31, 2023 related to the California Facilities Lease. The following tables summarizes the financing obligations and the presentation in our Consolidated Statements of Operations for the periods presented: Year Ended December 31, 2023 2022 (in thousands) Amortization of financing obligation assets $ 1,619 $ 599 Interest on financing liabilities 4,220 1,693 The following table summarizes future financing obligation payments by fiscal year: Montana Facility Financing Obligation California Facilities Financing Obligation (in thousands) 2024 $ 1,591 $ 3,302 2025 1,623 3,401 2026 1,655 3,503 2027 1,688 3,608 2028 1,722 3,717 Thereafter 23,187 98,346 Total financing obligation payments 31,466 115,877 Unamortized deferred financing costs — (220) Amount representing interest (21,645) (95,664) Net financing obligation and asset at end of term 4,171 15,240 Total financing obligation $ 13,992 $ 35,233 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily for administrative offices, vehicles, and other facilities. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. The components of lease expense were as follows: Year Ended December 31, 2023 2022 (in thousands) Operating lease cost $ 102 $ 137 Short-term lease cost 813 447 Variable lease cost 3 4 Total lease expense $ 918 $ 588 As of December 31, 2023, the weighted average remaining lease term and weighted average discount rate for all operating leases was 2.89 years and 9.4%, respectively. As of December 31, 2023, the maturities of lease liabilities under non-cancelable operating leases were as follows: Operating Leases (in thousands) 2024 $ 105 2025 64 2026 35 2027 26 Total minimum lease payments 230 Less: imputed interest (19) Total $ 211 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table sets forth, by level within the fair value hierarchy, the accounting of the Company’s financial assets and liabilities at fair value on a recurring and nonrecurring basis according to the valuation techniques the Company uses to determine their fair value: December 31, 2023 Level 1 Level 2 Level 3 (in thousands) Recurring fair value measurements Assets: Money market funds $ 16,322 $ — $ — Liabilities: March 2023 Cargill Warrant Liability $ — $ — $ 7,214 December 31, 2022 Level 1 Level 2 Level 3 (in thousands) Recurring fair value measurements Assets: Money market funds $ 13,997 $ — $ — The fair value of the Company's money market funds is determined using quoted market prices in active markets for identical assets. The fair value of the March 2023 Cargill Warrant Liability is determined using a Black-Scholes model. The following table presents changes in the Level 3 fair value measurement for the warrant liability on a recurring basis: December 31, 2023 (in thousands) Balance as of March 28, 2023 (initial measurement) $ 25,697 Fair value measurement adjustments through other income (expense) (18,483) Balance as of December 31, 2023 $ 7,214 The key inputs into the Black-Scholes model used to determine the fair value of the 2023 Cargill Warrant Liability were as follows at their measurement dates: December 31, March 28, 2023 Input Share price $ 2.07 $ 5.84 Risk-free interest rate 3.84% 3.63% Volatility 133% 135% Exercise price $ 13.00 $ 13.00 Warrant life (years) 4.2 5.0 Dividend yield —% —% As of December 31, 2023 and 2022, the carrying value of the Company's cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses approximated their respective fair values due to their short-term mat urities. There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders' Equity Common Stock Pursuant to the terms of the Company's Certificate of Incorporation, as amended, the Company is authorized to issue up to 400,000,000 common stock, $0.0001 par value per share, and 100,000,000 shares of Preferred Stock, $0.0001 par value per share. The rights of the holders of the voting common stock and nonvoting common stock are as follows: Voting Common Stock - Each holder of common stock is entitled to one vote for each share of common stock held. Nonvoting Common Stock - Each holder of nonvoting common stock is entitled to zero votes for each share of nonvoting common stock held. Holders of nonvoting common stock are not entitled to information rights, or rights to dividends or other distributions, until immediately prior to a liquidation event. Reverse Stock Split Stockholder Approval On April 3, 2023, the Company's board of directors (the "Board") authorized an amendment to the Company's Certificate of Incorporation to, at the discretion of the Board, effect a reverse stock split of the shares of Local Bounti's common stock, at any time prior to June 30, 2024, at a ratio within a range of 1-for-2 to 1-for-25, with the exact ratio and effective time of the reverse stock split to be determined at the discretion of the Board without further approval or authorization of the Company's stockholders. The amendment was approved by stockholders at a special meeting of stockholders held on April 26, 2023. On June 4, 2023, the Board approved a 1-for-13 reverse stock split (the "Reverse Stock Split") of the Company's issued and outstanding shares of common stock, par value $0.0001 per share. Trading of the Company's common stock on the NYSE commenced on a split-adjusted basis on June 15, 2023. As a result of the Reverse Stock Split, every 13 shares of common stock issued and outstanding were automatically reclassified into one new share of common stock without any action on the part of the holders. The Company paid cash in lieu of fractional shares resulting from the Reverse Stock Split. Proportionate adjustments were made to the exercise prices and the number of shares underlying the Company’s outstanding equity awards, as applicable, and warrants exercisable for shares of Common Stock, as well as to the number of shares issuable under the Company’s equity incentive plans and certain existing agreements. Also, for the Company’s outstanding warrants to purchase up to 81,139,179 shares of common stock, every 13 shares issuable under warrants became exercisable for one share of common stock at an exercise price of $149.50 per share of common stock for the Company's 2021 warrants and $13.00 per share of common stock for the March 2023 Cargill Warrant. See Note 8. Debt , Note 13. Stock-Based Compensation , and Note 15. Net Loss Per Share , for more information. The common stock issued pursuant to the Reverse Stock Split will remain fully paid and non-assessable. The Reverse Stock Split did not affect the number of authorized shares of common stock or the par value of the common stock. All share and per share amounts presented herein with respect to common stock have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split for all periods presented. Share Repurchase Program On October 29, 2023, the Company's Board of Directors authorized a common stock repurchase program that allows the Company to repurchase up to $1.0 million in shares of the Company's common stock. Under the new repurchase program, the Company may purchase shares of common stock from time to time through a variety of methods, which may include but are not limited to open market purchases, the implementation of a 10b5-1 plan, privately negotiated transactions and/or any other available methods in accordance with Securities and Exchange Commission and other applicable legal requirements. The repurchase program will remain in effect until the amount authorized has been fully repurchased or until the Company suspends or terminates the program with an outside date of December 31, 2024. As of December 31, 2023, the approximate aggregate dollar value of shares that may yet be purchased under the repurchase program is $1.0 million. 2021 Warrants and Private Placement Warrants Prior to the Business Combination of Local Bounti and Leo on November 19, 2021, Leo issued 833,333 warrants to purchase shares of the Company’s common stock. Each whole warrant entitles the registered holder to purchase one whole share of the Company’s common stock at a price of $149.50 per share, subject to adjustment as discussed below, 30 days after the Closing, provided that the Company has an effective registration statement under the Securities Act covering the shares of common stock issuable upon exercise of the warrants and a current prospectus relating to them is available and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of common stock. The warrants will expire on November 19, 2026, or earlier upon redemption or liquidation. The private placement warrants are identical to the 2021 warrants, except that the private placement warrants and the common stock issuable upon exercise of the private placement warrants were not transferable, assignable or salable until 30 days after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the private placement warrants are non-redeemable so long as they are held by Leo Investors III LP (the "Sponsor") or any of its permitted transferees. If the private placement warrants are held by someone other than the Sponsor or its permitted transferees, the private placement warrants will be redeemable by the Company and exercisable by such holders on the same basis as the 2021 warrants. The Company may redeem the outstanding warrants in whole and not in part at a price of $0.13 per warrant upon a minimum of 30 days' prior written notice of redemption, if and only if the last sale price of the Company's common stock equals or exceeds $234.00 per share for any 20-trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. In no event will the Company be required to net cash settle the warrant exercise. As of December 31, 2023, outstanding 2021 warrants and private placement warrants, excluding warrants issued to Cargill Financial, were 833,330. Assumed Warrants In March 2021, the Company entered into a loan with Cargill Financial to finance the general working capital for the Company. This loan had a principal balance of up to $10.0 million and bore interest at 8% per annum with a maturity date of March 22, 2022. In September 2021, this loan was repaid in full. In connection with the original loan, Cargill Financial also received a total of 54,299 warrants (the "Assumed Warrants"), which are still outstanding. On November 19, 2021, the Company issued the Assumed Warrants for the right to purchase Common Stock, with an exercise price of $110.50 per share pursuant to those certain Warrant Agreements, dated as of March 22, 2021 and September 3, 2021 between the Company and Cargill Financial. The Assumed Warrants are exercisable in whole or in part at any time and from time to time on or after November 19, 2021 and on or before November 19, 2026. Delisting of 2021 Warrants On October 17, 2023, the Company received notice from the NYSE that the NYSE had halted trading in the Company's 2021 warrants. The trading halt of the warrants on the NYSE was due to the low trading price of the warrants. On October 18, 2023, the NYSE provided written notice to the Company and publicly announced that NYSE Regulation has determined to commence proceedings to delist the warrants and that the warrants are no longer suitable for listing based on "abnormally low" price levels, pursuant to Section 802.01D of the NYSE Listed Company Manual. The delisting was effective as of November 13, 2023, and the 2021 warrants are no longer listed on the NYSE. Trading in the Company's common stock is unaffected and continues to be traded and listed on the NYSE under the ticker symbol "LOCL." Private Placement On October 21, 2022 (the "Agreement Date"), the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain purchasers (the "Purchasers"), pursuant to which the Company agreed to issue and sell to the Purchasers, in a private placement, shares of the Company's common stock at a purchase price of $32.50 per share (the "Private Placement"). The closing price of the common stock on the NYSE on October 20, 2022 (the last trading day before the Agreement Date), was $32.50 per share. Pursuant to the Securities Purchase Agreement, the Company agreed to sell and the Purchasers agreed to purchase 716,923 shares (the "Common Shares") of common stock resulting in gross proceeds to the Company of approximately $23.3 million before deducting estimated offering expenses. Affiliates of certain members of our Board and certain executive officers purchased an aggregate of 280,000 shares of common stock in the Private Placement. Registration Rights Agreement In connection with the Private Placement, the Company entered into a registration rights agreement (the "Registration Rights Agreement") with the Purchasers, pursuant to which the Company agreed to register for resale the Common Shares (the "Registrable Securities"). Under the Registration Rights Agreement, the Company agreed to file a registration statement covering the resale by the Purchasers of the Registrable Securities within 10 business days of the closing of the Securities Purchase Agreement. The Company agreed to be responsible for all fees and expenses incurred in connection with the registration of the Registrable Securities. The registration statement was filed on October 24, 2022 and became effective on November 1, 2022. The Company has agreed to keep such registration statement effective until such time as there are no longer Registrable Securities held by the Purchasers. The Company has granted the Purchasers customary indemnification rights in connection with the registration statement, including for liabilities arising under the Securities Act of 1933, as amended. The Purchasers have also granted the Company customary indemnification rights in connection with the registration statement. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-Based Compensation In 2020, the Company adopted an Equity Incentive Plan (the "2020 Plan") pursuant to which the Company’s Board of Directors could grant stock awards to employees and service providers. According to the 2020 Plan, incentive stock options could only be granted to eligible employees. Non-statutory stock options, stock appreciation rights, restricted stock, RSUs, and employee stock purchase plan were also included in the 2020 Plan and could be granted to service providers. In October 2021, the Company adopted a new Equity Incentive Plan (the "2021 Plan"), which replaced the 2020 Plan. The 2020 Plan terminated upon the effectiveness of the 2021 Plan, at which time the outstanding awards previously granted thereunder were assumed by the Company. Following termination of the 2020 Plan, no new awards will be granted under such plan but previously granted awards will continue to be subject to the terms and conditions of the 2020 Plan and the stock award agreements pursuant to which such awards were granted. Under the 2021 Plan, the Company can grant stock options, stock appreciation rights, restricted stock, restricted stock units and certain other awards which are settled in the form of common shares under the 2021 Plan. Restricted Common Stock Awards The Company has granted change in control restricted common stock awards ("RSAs") under the 2020 Plan. Upon a "change in control" (as defined in the 2020 Plan) of Local Bounti, the change in control restricted common stock awards would vest in full. If a "qualified public offering" of the common stock of Local Bounti occurred (as defined in the 2020 Plan, which includes the consummation of the Business Combination) prior to a change in control, then the change in control restricted common stock would vest upon the vesting schedule set forth in the 2020 Plan or individual award agreements. The fair value of the restricted common stock-based compensation awards was determined using the fair market value of the Company’s common stock on the date of the grant as determined by the Board. In November 2021, Legacy Local Bounti and certain restricted stockholders amended their change in control restricted stock awards to remove the vesting trigger and converted the vesting to four-year time-based vesting, with 10% vesting on the first anniversary of the original vesting commencement date and 30% vesting on each anniversary thereafter, subject to the grantee’s continued service on each applicable vesting date. As the vesting trigger was removed, the Company was required to recognize the compensation expenses through the Consolidated Statement of Operations. A summary of the RSA activity for 2023 and 2022 is as follows: Number of Shares of Restricted Common Stock Awards (1) Average Grant-Date Fair Value (1) Unvested at December 31, 2021 421,495 $ 23.40 Vested, settled (153,567) $ 23.40 Vested, unsettled 20,876 $ 31.59 Unvested at December 31, 2022 288,804 $ 24.05 Forfeited (19,175) $ 36.27 Vested (133,928) $ 22.71 Unvested and outstanding at December 31, 2023 135,701 $ 23.60 _____________________ (1) Share and per share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. Total expense of RSAs for the years ended December 31, 2023 and 2022 was $1.2 million and $4.5 million, respectively. As of December 31, 2023, the total compensation cost related to unvested RSAs not yet recognized is $0.7 million. Unvested RSA expense not yet recognized is expected to be recognized over a weighted average period of 0.99 years. Restricted Stock Units The Company has granted restricted stock units ("RSUs") under the 2020 Plan and the 2021 Plan. The Company has entered into various RSU agreements with both employees and nonemployees. The vesting for these RSUs range from three months to four years on a graded vesting schedule. A summary of the RSU activity for 2023 and 2022 is as follows: Number of RSUs (1) Average Grant-Date Fair Value (1) Unvested at December 31, 2021 184,291 $ 126.49 Granted 715,160 $ 74.36 Forfeited (135,106) $ 94.25 Vested (128,802) $ 92.82 Vested, unsettled 91,941 $ 81.64 Unvested and outstanding at December 31, 2022 727,484 $ 81.51 Granted 840,570 $ 8.44 Forfeited (483,246) $ 15.50 Vested (421,414) $ 62.41 Vested, unsettled 26,443 $ 4.73 Unvested and outstanding at December 31, 2023 689,837 $ 47.43 _____________________ (1) Share and per share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. The total expense value of RSUs for the years ended December 31, 2023 and 2022 was $15.1 million and $34.7 million, respectively. As of December 31, 2023, the total compensation cost related to unvested RSUs not yet recognized is $8.1 million. Unvested RSUs not yet recognized are expected to be recognized over a weighted average period of 2.03 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For th e years ended December 31, 2023 and 2022, the Company incurred net losses and, accordingly, no federal provision for income taxes has been recorded. In addition, no deferred benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. On December 31, 2023, the Company had approximately $382.9 million of U.S. federal and state net operating losses. On December 31, 2022, the Company had approximately $212.6 million of federal and state net operating losses. The federal net operating losses can be carried forward indefinitely while the state carryforwards will begin to expire in 2030. Federal net operating losses carryforwards generated in tax years ending after December 31, 2017 may be carried forward indefinitely, but the deductibility of such federal net operating losses carryforwards is limited to 80% of current year taxable income. Similar rules may apply under state tax laws. The components of the Company's deferred tax assets and liabilities are as follows: Year Ended December 31, (in thousands) 2023 2022 Currently reportable expense Federal $ — $ — State — — — — Deferred benefit: Federal 24,610 14,434 State 10,032 5,948 34,642 20,382 Less valuation allowance (34,642) (20,382) Total provision for income tax expense $ — $ — The following table presents the reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate: Year Ended December 31, 2023 2022 Federal statutory income tax rate 21.0% 21.0% State tax 6.4% 4.2% Stock-based compensation (2.6)% (5.3)% Non-deductible expenses 3.4% (1.6)% Research and development credit (0.3)% 0.1% Change in valuation allowance (27.9)% (18.4)% Effective tax rate — % — % December 31, (in thousands) 2023 2022 Gross deferred tax assets arising from Net operating loss carryforwards $ 51,490 $ 27,953 ASC 842 lease liability 3,846 3,317 Acquired intangibles 11,576 1,082 Accruals and reserves 11,780 1,418 Capitalized research expenditures 4,662 2,210 Gross deferred tax assets 83,354 35,980 Less valuation allowance (66,129) (31,487) Deferred tax assets, net of valuation allowance 17,225 4,493 Deferred tax liabilities arising from: ASC 842 right-of-use asset (3,077) (2,749) Fixed assets and land (14,148) (1,744) Gross deferred tax liabilities (17,225) (4,493) Net deferred tax liabilities $ — $ — For financial reporting purposes, the Company has incurred a loss in each period since its inception. Based on the available objective evidence, including the Company’s history of losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at December 31, 2023 and 2022. During the years ended December 31, 2023 and 2022, the change in the valuation allow ance of $34.6 million and $20.4 million, respectively, was primarily due to the generation of additional net operating losses. As of December 31, 2023 and 2022, the Company had $0.5 million and $0.1 million of federal research and development credits, respectively, which will begin to expire in 2042. Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminates the right to deduct research and development expenditures for tax purposes in the period the expenses were incurred and instead requires all U.S. and foreign research and development expenditures to be amortized over five and fifteen tax years, respectively. As a result, the Company recognized a deferred tax asset for the future tax benefit of the amortization deductions of the capitalized research and development expenditures that was fully offset by a change in valuation allowance. As of December 31, 2023 and 2022, the total amount of unrecognized tax benefits was $0.3 million and $0.1 million, respectively, none of which impact income tax expense. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months. The Company's income tax returns and the amount of income or loss reported are subject to examination by the respective taxing authorities. If such examinations result in changes to the profits or losses, the tax liabilities of the Company could be changed accordingly. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Net loss per share is computed by dividing net loss by the weighted average number of common stock outstanding during the period. In computing net loss per share, the Company's unvested restricted common stock and warrants are not considered participating securities. Diluted loss per common share is the same as basic loss per common share for the years ended December 31, 2023 and 2022 because the effects of potentially dilutive items were anti-dilutive given the Company's net loss. Diluted net loss per common share represents an adjustment to basic net loss per share attributable to common stockholders giving effect to all potential common shares that were dilutive and outstanding during the period. The following table sets forth the computation of the Company's net loss per share attributable to common stockholders: Year Ended December 31, (in thousands, except share and per share data) (1) 2023 2022 Net loss $ (124,015) $ (111,071) Weighted average common stock outstanding, basic and diluted 7,943,874 6,701,126 Net loss per common share, basic and diluted $ (15.61) $ (16.57) _____________________ (1) Share and per share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. The following table discloses the weighted-average shares outstanding of securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share as the impact would be anti-dilutive: Year Ended December 31, 2023 2022 Restricted Stock (1) 222,282 388,210 Warrants (2) 4,980,021 887,636 _____________________ (1) Share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. (2) Subsequent to the Reverse Stock Split, every 13 common shares under warrants becomes exercisable for one share of common stock at an exercise price of $149.50 per share of common stock for the Company's 2021 warrants and $13.00 per share of common stock for the March 2023 Cargill Warrant, which is reflected in the table above. See Note 12, Stockholders' Equity , for additional detail. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company has and may become party to various legal proceedings and other claims that arise in the ordinary course of business. The Company records a liability when it believes that it is probable that a loss will be incurred, and the amount of loss or range of loss can be reasonably estimated. Management is currently not aware of any matters that it expects will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Non-Cancelable Purchase Commitments As of December 31, 2023 , the Company had non-cancelable purchase commitments of $1.3 million, primarily related to software products and services used to facilitate the Company's operations at the enterprise level. Defined Contribution Plan The Company sponsors 401(k) defined contribution plans covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company's contributions to the 401(k) plans for the year ended December 31, 2023, and 2022, totaled $0.6 million and $0.4 million, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Grow Bitterroot Sale Lease Back Transaction and Services Agreement In June 2020 , the Company sold for total consideration of $6.9 million a greenhouse facility to Grow Bitterroot, a qualified opportunity zone fund owned in part by Live Oak Ventures, LLC, which owns more than 10% of the Company's common stock, and Orange Strategies LLC, of which Pamela Brewster, a member of the Company's Board of Directors, is principal. Travis M. Joyner, our Chief Technology Officer, is manager of Grow Bitterroot. Concurrently, Local Bounti's predecessor entity and Grow Bitterroot entered into an agreement whereby the Company leases land and the greenhouse facility from Grow Bitterroot. In addition, the Company and Grow Bitterroot entered into a property maintenance and management services agreement under which the Company provides all property maintenance and management services, including business, operational, strategic, and advisory services in exchange for an annual fee of $0.1 million . The property maintenance and management services agreement includes an initial term of three years , which renews automatically unless terminated by either party with 30 days ’ notice. See Note 9, Financing Obligations for more information regarding the Montana Facility lease and accounting treatment. The Company paid Grow Bitterroot $1.5 million under the lease agreement and $0.1 million under the property maintenance and management services agreement for the years ended |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Eighth Amendment to Credit Agreements On January 23, 2024, the Company, along with certain subsidiaries of the Company, entered into an Eighth Amendment to the Original Credit Agreements (the "Eighth Amendment") with Cargill Financial to further amend the Original Credit Agreements. The Eighth Amendment allows for the payment in kind of the quarterly interest payments due and payable for the quarter ending March 31, 2024. Ninth Amendment to Credit Agreements On March 26, 2024, the Company, along with certain of its subsidiaries, entered into a Ninth Amendment to the Original Credit Agreements (the "Ninth Amendment") with Cargill Financial to further amend the Original Credit Agreements. The Ninth Amendment allows for the payment in kind of the quarterly interest payments due and payable for the quarters ending June 30, 2024, September 30, 2024, and December 31, 2024.The Ninth amendment also provides for up to $15.0 million in working capital for the Company, $5.0 million of which was drawn down, and the remaining $10.0 million of which remains available to the Company. Common Stock Purchase Warrant Amendment On January 23, 2024, the Company entered into an Amendment to Common Stock Purchase Warrant (the "Warrant Amendment") with Cargill Financial to amend that certain Common Stock Purchase Warrant, dated March 28, 2023, issued by the Company to Cargill Financial (the "Original Warrant" and as amended, the "Warrant") to amend the exercise price under Section 2(b) thereunder from $13.00 (as adjusted for the Reverse Stock Split) to $6.50 per share of common stock. The Original Warrant was issued by the Company to Cargill Financial to purchase up to 5,353,846 shares of common stock (as adjusted for the Reverse Stock Split). Pursuant to the Warrant Amendment, the Warrant entitles Cargill Financial to purchase 5,353,846 shares of common stock at an exercise price of $6.50 per share. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net loss | $ (124,015) | $ (111,071) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the fiscal quarter ended December 31, 2023, none of our directors or officers informed us of the adoption, modification or termination of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408, except as described in the table below: Name & Title Date Adopted Character of Trading Arrangement (1) Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement Duration (2) Other Material Terms Date Terminated Mark Nelson Director November 14, 2023 Rule 10b5-1 Trading Arrangement Up to 23,673 shares to be sold June 30, 2024 N/A N/A _____________________ (1) Except as indicated by footnote, each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the “Rule”). (2) | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mark Nelson [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mark Nelson | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 14, 2023 | |
Arrangement Duration | 229 days | |
Aggregate Available | 23,673 | 23,673 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. On an ongoing basis, the Company evaluates its estimates, including those related to the valuation of instruments issued for stock-based compensation, the March 2023 Cargill Warrant liability, inventory valuation reserve, valuation of acquired intangibles and goodwill in business combinations, impairment analysis for goodwill and other intangible assets, and income taxes, among others. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. |
Significant Risks and Uncertainties | Significant Risks and Uncertainties The Company is subject to those risks common in the consumer products and agriculture industries and those risks common to early stage development companies, including, but not limited to, the possibility of not being able to successfully develop or market its products, competition, dependence on key personnel and key external alliances, the ability to maintain and establish relationships with current and future vendors and suppliers, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid, short-term investments with an original maturity date of three months or less when purchased to be cash equivalents. The Company maintains its cash with major financial institutions that may at times exceed federally insured limits. The Company has not experienced any losses in such accounts. |
Restricted Cash and Cash Equivalents | Restricted Cash Restricted cash is restricted through legal contracts or regulations. As described in more detail below, and using terms defined, in Note 9, Financing Obligations, as part of the April 2023 California Facilities Lease transaction, Hollandia delivered to the lessor a letter of credit in an amount equal to $6.5 million as security for the full and faithful performance by Hollandia of the terms, provisions, covenants and conditions of the California Facilities Lease . In the event of default under the California Facilities Lease , the lessor would have the right to draw on the letter of credit to satisfy any monetary obligations under the California Facilities Lease . The letter of credit will be released after five years, contingent on achieving certain financial metrics as specified in the California Facilities Lease . The $6.5 million for the letter of credit is included in "Restricted cash" on the Consolidated Balance Sheets. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses |
Fair Value Measurements | Fair Value Measurements The Company measures fair value based on the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs used in valuation techniques are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: • Level 1— This level consists of quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. • Level 2— This level consists of observable prices that are based on inputs not quoted on active markets but corroborated by market data. • Level 3— This level consists of unobservable inputs that are used when little or no market data is available. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. |
Business Combinations | Business Combinations The purchase consideration of acquisitions is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated respective fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Goodwill is adjusted for any changes to acquisition date fair value amounts made within the measurement period. Acquisition-related transaction costs are recognized separately from the business combination and expensed as incurred. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are amortized into interest expense over the terms of the related loan agreements using the effective interest method or other methods which approximate the effective interest method. Debt issuance costs related to debt instruments are presented on the Consolidated Balance Sheets as a direct deduction from the carrying amount of that debt liability. |
Inventory | Inventory Inventory is carried at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. Inventory write-downs are recorded for shrinkage, damaged, stale and slow-moving items. The assessment of recoverability of inventories and the amounts of any write-downs are based on currently available information and assumptions about future demand and market conditions. Demand for produce may fluctuate significantly over time, and actual demand and market conditions may be more or less favorable than the Company’s projections. If actual demand is lower than originally projected, additional inventory write-downs may be required. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for additions and improvements are capitalized; expenditures for maintenance and repairs that neither materially add to the value of the property nor appreciably prolong its economic life are charged to expense as incurred. Assets to be disposed of are reported as assets held for sale at the lower of the carrying amount or the asset's fair value less cost to sell and depreciation is ceased. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying amount of the asset and the net proceeds received. During the year ended December 31, 2023, the Company recognized $4.7 million on loss on disposals, primarily related to construction-in-progress assets related to certain growing technology equipment that will not be utilized in the Company's current facilities under construction or future construction projects, following the Company’s assessment of recent growing process advancements and alignment of its technology across its facilities. Loss on disposals are included in "Selling, general and administrative” on the Consolidated Statements of Operations. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Class Estimated Useful Life Greenhouse facility 30 years Production Equipment 5 to 15 years Office Equipment 3 years Leasehold Improvements Shorter of lease term or useful life of asset |
Capitalization of Interest | Capitalization of Interest The Company capitalizes interest on capital projects in accordance with ASC 835-20, Capitalization of Interest , which requires the capitalization of interest costs to get certain assets ready for their intended use. The Company capitalizes interest costs on borrowings during the construction period of major construction projects as part of the cost of the constructed assets. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Capitalization of interest ceases when the project is substantially complete and ready for its intended use. The Company amortizes capitalized interest to depreciation expense using the straight-line method over the same lives as the related assets. |
Intangible Assets | Intangible Assets, Net Definite-lived intangible assets are carried at cost and amortized on a straight-line basis over their estimated useful lives or over the pattern in which the economic benefit is expected to be consumed. |
Goodwill | Goodwill The Company records goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized but rather tested for impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate impairment may exist. The Company's impairment tests are based on a single reporting unit structure. The goodwill impairment test consists of one step comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. Based on the 2023 annual impairment test, the Company determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount and recorded a goodwill impairment of $38.5 million for the year ended December 31, 2023. See Note 6, Goodwill & Intangible Assets |
Impairment Assessment | Impairment of Long-Lived Assets The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. The Company did not recognize any impairment of intangible assets and other long-lived assets for the years ended December 31, 2023 and 2022. |
Leases | Leases The Company determines if an arrangement contains a lease at inception of a contract, and leases are classified at commencement as either operating or finance leases. For operating leases, the Company recognizes a right-of-use ("ROU") asset and a lease liability on the balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and the lease liabilities represent the Company's obligation to make lease payments arising from the lease. The lease liability is determined as the present value of future lease payments over the lease term. The ROU asset is based on the lease liability adjusted for any prepaid lease payments or lease incentives. Lease terms may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the option will be exercised. The Company uses its incremental borrowing rate at the recognition date in determining the present value of future payments for leases that do not have a readily determinable implicit rate. The Company utilizes certain practical expedients and policy elections available under ASC 842. The Company does not recognize right-of-use assets or lease liabilities for short-term leases (leases with an initial term of 12 months or less) and the Company has elected to separate lease and non-lease components for all existing classes of assets. |
Revenue Recognition | Revenue Recognition The Company’s principal business is the production and sale of sustainably grown fresh greens through CEA facilities. Revenue is recognized at a point in time when control of the product is transferred or passed to the customer in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Control over the product generally passes to the customer based upon applicable shipping terms, which typically occurs when products leave the Company’s facilities with the first transportation carrier . Customer contracts do not include more than one performance obligation. Product prices are based on agreed upon rates with customers and do not include financing components or noncash consideration. Customer contracts do not include more than one performance obligation. Product prices are based on agreed upon rates with customers and do not include a financing component or noncash consideration. Also, the Company’s customer contracts do not include variable consideration and product sales are recorded net of discounts, returns and promotional allowances. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent there is a distinct good or service, in which case the expense is classified as selling or marketing expense. Provisions for discounts, returns and promotional allowances were not material at December 31, 2023 and 2022. The Company’s product sales do not typically include return rights, but the Company may offer in certain cases an assurance-type warranty to refund or replace the product if it does not meet quality specifications and such nonconformity is communicated to the Company within a set number of days of shipment. Refunds are recognized as a reduction of revenue based on a historical rate of experience when the product sale is consummated. Also, an estimate of the cost to replace a returned product is based on a historical rate of experience and recognized as a liability and related expense when the product sale is consummated. Product returns have not been material to date. The Company does not have unbilled receivable balances arising from transactions with customers. Payment terms are generally between 10 to 30 days. The Company does not capitalize contract inception costs, as contracts (which are in the form of purchase orders from customers) are one year or less and the Company does not incur significant fulfillment costs requiring capitalization. |
Research and Development | Research and Development |
Derivatives | Derivatives Equity instruments issued in connection with debt and other equity instruments are required to be evaluated for derivative liability accounting treatment in accordance with ASC 815, Derivatives and Hedging . Unless certain exception criteria are met, the freestanding financial instrument or embedded feature must be recognized as a separate liability and subsequently measured on the balance sheet at fair value in accordance with ASC 820, Fair Value Measurement . The Company has evaluated the terms and features of its debt and equity instruments and identified a freestanding equity-linked instrument (the March 2023 Cargill Warrant) issued in connection with the Sixth Amendment that did not meet the criteria necessary to qualify for the derivative scope exception. See Note 8, Debt , and Note 11, Fair Value Measurements |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for all equity-based awards made to employees, directors, and non-employees, based on estimated fair values recognized over the requisite service period in accordance with ASC 718, Stock-Based Compensation |
Advertising | Advertising Advertising expenses are expensed as incurred. The Company incurred advertising expenses of $1.1 million and $0.9 million for the years ended December 31, 2023 and 2022, respectively. Advertising expenses are included in "Selling, general and administrative" expense in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Consolidated Financial Statements. Under this method, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts of assets and liabilities for income tax purposes and operating losses carried forward, measured by applying tax rates based on currently enacted tax laws. Valuation allowances are calculated, when necessary, to reduce the net deferred tax assets to an amount that is more likely than not to be realized. Changes in the valuation allowances occurring in subsequent periods are included in the Consolidated Statements of Operations. The Company recognizes uncertain tax positions based upon its estimate of whether, and the extent to which, additional taxes will be due when such estimates are more likely than not to be sustained. Uncertain income tax positions are not recognized if there is less than a 50% likelihood of being sustained. The Company reviews the tax reserves as circumstances warrant and adjusts the reserves as events occur that affect its potential liability for additional taxes. The Company follows the applicable guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition with respect to tax positions. The Company reflects interest and penalties related to income tax liabilities as a component of income tax expense. |
Concentrations of Risk and Significant Customers | Concentrations of Risk and Significant Customers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents accounts with financial institutions which management believes to be of high-credit quality. The Company is exposed to risk in the event of default by these financial institutions or the issuers of these securities to the extent the balances are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. The Company's receivables are derived from revenue earned primarily from customers located in the United States. The Company provides credit to its customers in the normal course of business and requires no collateral to secure accounts receivable. The Company maintains an allowance for doubtful accounts related to estimated credit losses. Significant customers are those customers who represent 10% or more of total revenue during the year or 10% or more of net accounts receivable at the balance sheet date. At December 31, 2023, there was one significant customer that accounted for approximately 34% of the Company's accounts receivable. For the year ended December 31, 2023, three individual customers represented more than 10% of total revenue. In aggregate, these customers represented approximately 37% of the Company's revenue. At December 31, 2022, there were two significant customers that accounted for approximately 28% of the Company's accounts receivable. For the year ended December 31, 2022, two individual customers represented more than 10% of total revenue. In aggregate, these two customers represented approximately 27% of the Company's revenue. |
Contingencies | Contingencies Loss contingencies (other than income tax-related contingencies) arise from actual or possible claims and assessments and pending or threatened litigation that may be brought against the Company by individuals, governments or other entities. Based on the Company's assessment of loss contingencies at each balance sheet date, a loss is recorded in the Consolidated Financial Statements if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. |
Segment Reporting | Segment Reporting |
Emerging Growth Company | Emerging Growth Company Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The Company qualifies as an emerging growth company, as defined in the JOBS Act, and therefore intends to take advantage of certain exemptions from various public company reporting requirements, including delaying adoption of new or revised accounting standards until those standards apply to private companies. The effective dates shown in the Accounting Pronouncements sections shown below reflect the election to use the extended transition period. |
Accounting Pronouncements Recently Adopted, Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Recently Adopted In June 2016, the FASB issued Accounting Standards Update ("A SU") 2016-13, Financial Instruments-Credit Losses (Topic 326) , which amends the guidance on reporting credit losses for assets held at amortized cost and available for sale debt securities. For assets held at amortized cost, the amendment eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost of the financial assets to present the net amount expected to be collected. The Company adopted this guidance on January 1, 2023 using the modified retrospective method. The adoption of this guidance did not have a material impact on the Company's Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740 ), which requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280 ), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for certain financial instruments with characteristics of liability and equity, including convertible instruments and contracts on an entity’s own equity. The standard reduces the number of models used to account for convertible instruments, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, and requires the if-converted method for calculation of diluted earnings per share for all convertible instruments. The standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Property and Equipment | Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Class Estimated Useful Life Greenhouse facility 30 years Production Equipment 5 to 15 years Office Equipment 3 years Leasehold Improvements Shorter of lease term or useful life of asset Property and equipment, net consisted of the following: December 31, 2023 2022 (in thousands) Machinery, equipment, and vehicles $ 44,169 $ 32,774 Land 19,253 19,296 Buildings and leasehold improvements 66,754 55,392 Construction-in-progress 196,324 56,753 Less: Accumulated depreciation (13,334) (6,371) Property and equipment, net $ 313,166 $ 157,844 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation is as follows (in thousands): Intangible assets $ 52,300 Goodwill 38,481 Assets acquired 56,449 Liabilities assumed (3,776) Total fair value of net assets acquired: $ 143,454 |
Schedule of Fair Value of the Identifiable Assets Acquired | The following table sets forth the fair value of the identifiable assets acquired as of the date of the acquisition (in thousands): Land $ 13,800 Construction-in-progress 12,013 Total: $ 25,813 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: December 31, 2023 2022 (in thousands) Raw materials $ 1,843 $ 2,018 Production (1) 3,010 2,213 Finished goods (1) 110 54 Inventory valuation allowance (753) (691) Total inventory, net $ 4,210 $ 3,594 _____________________ |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are as follows: Asset Class Estimated Useful Life Greenhouse facility 30 years Production Equipment 5 to 15 years Office Equipment 3 years Leasehold Improvements Shorter of lease term or useful life of asset Property and equipment, net consisted of the following: December 31, 2023 2022 (in thousands) Machinery, equipment, and vehicles $ 44,169 $ 32,774 Land 19,253 19,296 Buildings and leasehold improvements 66,754 55,392 Construction-in-progress 196,324 56,753 Less: Accumulated depreciation (13,334) (6,371) Property and equipment, net $ 313,166 $ 157,844 |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Amount of Goodwill | The following table presents changes in goodwill (in thousands): Balance as of December 31, 2022 $ 38,481 Impairment loss (38,481) Balance as of December 31, 2023 $ — |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net, consisted of the following as of December 31, 2023 (in thousands): Gross Carrying Amount Accumulated Amortization Net Value Remaining Useful Life (Years) Customer relationships $ 40,200 $ (4,397) $ 35,803 14.25 Trade name 7,400 (1,850) 5,550 5.25 Non-compete agreements 4,700 (4,700) — 0 Total: $ 52,300 $ (10,947) $ 41,353 Intangible assets, net, consisted of the following as of December 31, 2022 (in thousands): Gross Carrying Amount Accumulated Amortization Net Value Remaining Useful Life (Years) Customer relationships $ 40,200 $ (1,884) $ 38,316 15.25 Trade name 7,400 (793) 6,607 6.25 Non-compete agreements 4,700 (2,350) 2,350 0.75 Total: $ 52,300 $ (5,027) $ 47,273 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2023 , future amortization expense is expected to be as follows (in thousands): 2024 $ 3,570 2025 3,570 2026 3,570 2027 3,570 2028 3,570 Thereafter 23,503 Total $ 41,353 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: December 31, 2023 2022 (in thousands) Interest $ 9,786 $ 4,372 Construction 2,995 825 Payroll 2,596 1,470 Production 690 1,438 Professional services 411 894 Other 726 427 Total accrued liabilities $ 17,204 $ 9,426 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following: December 31, 2023 2022 (in thousands) Senior Facility $ 269,395 $ 98,442 Subordinated Facility 48,132 42,500 Unamortized deferred financing costs (39,542) (21,128) Total debt $ 277,985 $ 119,814 |
Financing Obligations (Tables)
Financing Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financing Obligation [Abstract] | |
Schedule of Financing Obligation | The following tables summarizes the financing obligations and the presentation in our Consolidated Statements of Operations for the periods presented: Year Ended December 31, 2023 2022 (in thousands) Amortization of financing obligation assets $ 1,619 $ 599 Interest on financing liabilities 4,220 1,693 |
Schedule of Future Payments for Financing Obligations | The following table summarizes future financing obligation payments by fiscal year: Montana Facility Financing Obligation California Facilities Financing Obligation (in thousands) 2024 $ 1,591 $ 3,302 2025 1,623 3,401 2026 1,655 3,503 2027 1,688 3,608 2028 1,722 3,717 Thereafter 23,187 98,346 Total financing obligation payments 31,466 115,877 Unamortized deferred financing costs — (220) Amount representing interest (21,645) (95,664) Net financing obligation and asset at end of term 4,171 15,240 Total financing obligation $ 13,992 $ 35,233 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2023 2022 (in thousands) Operating lease cost $ 102 $ 137 Short-term lease cost 813 447 Variable lease cost 3 4 Total lease expense $ 918 $ 588 |
Schedule of Maturities of Lease Liabilities | As of December 31, 2023, the maturities of lease liabilities under non-cancelable operating leases were as follows: Operating Leases (in thousands) 2024 $ 105 2025 64 2026 35 2027 26 Total minimum lease payments 230 Less: imputed interest (19) Total $ 211 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets And Liabilities Measured on Recurring Basis | The following table sets forth, by level within the fair value hierarchy, the accounting of the Company’s financial assets and liabilities at fair value on a recurring and nonrecurring basis according to the valuation techniques the Company uses to determine their fair value: December 31, 2023 Level 1 Level 2 Level 3 (in thousands) Recurring fair value measurements Assets: Money market funds $ 16,322 $ — $ — Liabilities: March 2023 Cargill Warrant Liability $ — $ — $ 7,214 December 31, 2022 Level 1 Level 2 Level 3 (in thousands) Recurring fair value measurements Assets: Money market funds $ 13,997 $ — $ — |
Schedule of Changes in Level 3 Fair Value Measurement for the Warrant Liability | The following table presents changes in the Level 3 fair value measurement for the warrant liability on a recurring basis: December 31, 2023 (in thousands) Balance as of March 28, 2023 (initial measurement) $ 25,697 Fair value measurement adjustments through other income (expense) (18,483) Balance as of December 31, 2023 $ 7,214 |
Fair Value Measurement Inputs and Valuation Techniques | The key inputs into the Black-Scholes model used to determine the fair value of the 2023 Cargill Warrant Liability were as follows at their measurement dates: December 31, March 28, 2023 Input Share price $ 2.07 $ 5.84 Risk-free interest rate 3.84% 3.63% Volatility 133% 135% Exercise price $ 13.00 $ 13.00 Warrant life (years) 4.2 5.0 Dividend yield —% —% |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Common Stock Awards, Activity | A summary of the RSA activity for 2023 and 2022 is as follows: Number of Shares of Restricted Common Stock Awards (1) Average Grant-Date Fair Value (1) Unvested at December 31, 2021 421,495 $ 23.40 Vested, settled (153,567) $ 23.40 Vested, unsettled 20,876 $ 31.59 Unvested at December 31, 2022 288,804 $ 24.05 Forfeited (19,175) $ 36.27 Vested (133,928) $ 22.71 Unvested and outstanding at December 31, 2023 135,701 $ 23.60 _____________________ (1) Share and per share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. |
Restricted Stock Unit, Activity | A summary of the RSU activity for 2023 and 2022 is as follows: Number of RSUs (1) Average Grant-Date Fair Value (1) Unvested at December 31, 2021 184,291 $ 126.49 Granted 715,160 $ 74.36 Forfeited (135,106) $ 94.25 Vested (128,802) $ 92.82 Vested, unsettled 91,941 $ 81.64 Unvested and outstanding at December 31, 2022 727,484 $ 81.51 Granted 840,570 $ 8.44 Forfeited (483,246) $ 15.50 Vested (421,414) $ 62.41 Vested, unsettled 26,443 $ 4.73 Unvested and outstanding at December 31, 2023 689,837 $ 47.43 _____________________ (1) Share and per share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Company's deferred tax assets and liabilities are as follows: Year Ended December 31, (in thousands) 2023 2022 Currently reportable expense Federal $ — $ — State — — — — Deferred benefit: Federal 24,610 14,434 State 10,032 5,948 34,642 20,382 Less valuation allowance (34,642) (20,382) Total provision for income tax expense $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate: Year Ended December 31, 2023 2022 Federal statutory income tax rate 21.0% 21.0% State tax 6.4% 4.2% Stock-based compensation (2.6)% (5.3)% Non-deductible expenses 3.4% (1.6)% Research and development credit (0.3)% 0.1% Change in valuation allowance (27.9)% (18.4)% Effective tax rate — % — % |
Schedule of Deferred Tax Assets and Liabilities | December 31, (in thousands) 2023 2022 Gross deferred tax assets arising from Net operating loss carryforwards $ 51,490 $ 27,953 ASC 842 lease liability 3,846 3,317 Acquired intangibles 11,576 1,082 Accruals and reserves 11,780 1,418 Capitalized research expenditures 4,662 2,210 Gross deferred tax assets 83,354 35,980 Less valuation allowance (66,129) (31,487) Deferred tax assets, net of valuation allowance 17,225 4,493 Deferred tax liabilities arising from: ASC 842 right-of-use asset (3,077) (2,749) Fixed assets and land (14,148) (1,744) Gross deferred tax liabilities (17,225) (4,493) Net deferred tax liabilities $ — $ — |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share, Basic and Diluted | The following table sets forth the computation of the Company's net loss per share attributable to common stockholders: Year Ended December 31, (in thousands, except share and per share data) (1) 2023 2022 Net loss $ (124,015) $ (111,071) Weighted average common stock outstanding, basic and diluted 7,943,874 6,701,126 Net loss per common share, basic and diluted $ (15.61) $ (16.57) _____________________ (1) Share and per share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. |
Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share | The following table discloses the weighted-average shares outstanding of securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share as the impact would be anti-dilutive: Year Ended December 31, 2023 2022 Restricted Stock (1) 222,282 388,210 Warrants (2) 4,980,021 887,636 _____________________ (1) Share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split. See Note 12, Stockholders' Equity , for additional detail. (2) Subsequent to the Reverse Stock Split, every 13 common shares under warrants becomes exercisable for one share of common stock at an exercise price of $149.50 per share of common stock for the Company's 2021 warrants and $13.00 per share of common stock for the March 2023 Cargill Warrant, which is reflected in the table above. See Note 12, Stockholders' Equity , for additional detail. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Liquidity and Going Concern (Details) $ in Millions | Mar. 29, 2024 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Working capital, amount | $ 15 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Restricted Cash and Cash Equivalents (Details) - California Facilities Lease $ in Millions | Apr. 27, 2023 USD ($) |
Sale Leaseback Transaction [Line Items] | |
Letters of credit included in restricted cash and cash equivalents | $ 6.5 |
Sale and leaseback transaction, letter of credit term | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 0.1 | $ 0.1 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and Equipment (Details) | Dec. 31, 2023 |
Greenhouse facility | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Machinery, equipment, and vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Machinery, equipment, and vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Capitalization of Interest (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Interest expense capitalized | $ 14.9 | $ 1.2 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Goodwill & Impairment Assessment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Goodwill impairment | $ 38,481 | $ 0 |
Loss on disposal of assets | 4,709 | $ 2,568 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Loss on disposal of assets | $ 4,700 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Revenue payment terms | 10 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Revenue payment terms | 30 days |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Advertising expense | $ 1.1 | $ 0.9 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Concentrations of Risk and Significant Customers (Details) - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable | One Significant Customer | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 34% | |
Accounts Receivable | Two Significant Customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 28% | |
Revenue | Three Significant Customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 37% | |
Revenue | Two Significant Customers | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 27% |
Acquisitions - Business Combina
Acquisitions - Business Combination - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 04, 2022 | Mar. 14, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Consideration transferred, equity interests issued and issuable | $ 0 | $ 50,948 | ||
Amortization | $ 5,920 | 5,027 | ||
Hollandia Produce Group, Inc. (Pete's) | ||||
Business Acquisition [Line Items] | ||||
Percentage of shares acquired | 100% | |||
Payments to acquire businesses | $ 92,500 | |||
Number of shares issued (in shares) | 434,969 | |||
Consideration transferred, equity interests issued and issuable | $ 50,900 | $ 30,000 | ||
Acquisition related costs | $ 4,400 | |||
Hollandia Produce Group, Inc. (Pete's) | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 16 years | |||
Hollandia Produce Group, Inc. (Pete's) | Trade name | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 7 years | |||
Hollandia Produce Group, Inc. (Pete's) | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 18 months |
Acquisitions - Identified Asset
Acquisitions - Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 04, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 0 | $ 38,481 | |
Hollandia Produce Group, Inc. (Pete's) | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 52,300 | ||
Goodwill | 38,481 | ||
Assets acquired | 56,449 | ||
Liabilities assumed | (3,776) | ||
Total fair value of net assets acquired: | $ 143,454 |
Acquisitions - Asset Acquisitio
Acquisitions - Asset Acquisition (Details) - STORE Master Funding XVIII, LLC $ in Thousands | Apr. 04, 2022 USD ($) |
Asset Acquisition [Line Items] | |
Asset acquisition, aggregate purchase price | $ 25,800 |
Land | 13,800 |
Construction-in-progress | 12,013 |
Total: | $ 25,813 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Raw materials | $ 1,843 | $ 2,018 |
Production | 3,010 | 2,213 |
Finished goods | 110 | 54 |
Inventory valuation allowance | (753) | (691) |
Inventory, net | 4,210 | $ 3,594 |
Revision of Prior Period, Reclassification, Adjustment | ||
Inventory [Line Items] | ||
Production | $ 1,800 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (13,334) | $ (6,371) |
Property and equipment, net | 313,166 | 157,844 |
Fixed assets and land | 7,212 | 5,400 |
Machinery, equipment, and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 44,169 | 32,774 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,253 | 19,296 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 66,754 | 55,392 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 196,324 | $ 56,753 |
Goodwill & Intangible Assets -
Goodwill & Intangible Assets - Schedule of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | $ 38,481 | |
Impairment loss | (38,481) | $ 0 |
Balance as of December 31, 2023 | $ 0 | $ 38,481 |
Goodwill & Intangible Assets _2
Goodwill & Intangible Assets - Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 52,300 | $ 52,300 |
Accumulated Amortization | (10,947) | (5,027) |
Net Value | 41,353 | 47,273 |
Customer relationships | ||
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 40,200 | 40,200 |
Accumulated Amortization | (4,397) | (1,884) |
Net Value | $ 35,803 | $ 38,316 |
Remaining Useful Life (Years) | 14 years 3 months | 15 years 3 months |
Trade name | ||
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,400 | $ 7,400 |
Accumulated Amortization | (1,850) | (793) |
Net Value | $ 5,550 | $ 6,607 |
Remaining Useful Life (Years) | 5 years 3 months | 6 years 3 months |
Non-compete agreements | ||
Acquired Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,700 | $ 4,700 |
Accumulated Amortization | (4,700) | (2,350) |
Net Value | $ 0 | $ 2,350 |
Remaining Useful Life (Years) | 9 months |
Goodwill & Intangible Assets _3
Goodwill & Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 3,570 | |
2025 | 3,570 | |
2026 | 3,570 | |
2027 | 3,570 | |
2028 | 3,570 | |
Thereafter | 23,503 | |
Net Value | $ 41,353 | $ 47,273 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Interest | $ 9,786 | $ 4,372 |
Construction | 2,995 | 825 |
Payroll | 2,596 | 1,470 |
Production | 690 | 1,438 |
Professional services | 411 | 894 |
Other | 726 | 427 |
Total accrued liabilities | $ 17,204 | $ 9,426 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 277,985 | $ 119,814 |
Senior Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 269,395 | 98,442 |
Subordinated Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 48,132 | 42,500 |
Unamortized deferred financing costs | $ (39,542) | $ (21,128) |
Debt - Narrative (Details)
Debt - Narrative (Details) | 9 Months Ended | 12 Months Ended | |||||||
Mar. 13, 2023 USD ($) quarter | Apr. 04, 2022 USD ($) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Mar. 28, 2023 USD ($) quarter $ / shares shares | Jan. 06, 2023 USD ($) | Dec. 30, 2022 USD ($) | Aug. 11, 2022 USD ($) quarter | Sep. 03, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Issuance of common stock for debt modification | $ 17,416,000 | ||||||||
Warrants outstanding (in shares) | shares | 833,330 | ||||||||
Warrant liability | $ 7,214,000 | 0 | |||||||
March 2023 Cargill Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant price (in dollars per share) | $ / shares | $ 13 | ||||||||
Warrant liability | $ 25,700,000 | ||||||||
Senior Credit Agreement | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 200,000,000 | ||||||||
Debt covenant, minimum liquidity amount | 30,000,000 | ||||||||
Debt instrument, increase of interest rate | 2% | ||||||||
Senior Facility | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 150,000,000 | ||||||||
Debt instrument, amortization period | 10 years | ||||||||
Senior Facility | Loans Payable | Minimum | Secured Overnight Financing Rate (SOFR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt basis spread on variable rate | 7.50% | ||||||||
Senior Facility | Loans Payable | Maximum | Secured Overnight Financing Rate (SOFR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt basis spread on variable rate | 8.50% | ||||||||
Subordinated Facility | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 50,000,000 | ||||||||
Interest rate percentage | 12.50% | ||||||||
First Amendment of the Credit Agreements | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 170,000,000 | ||||||||
Debt covenant, minimum liquidity amount | $ 20,000,000 | ||||||||
Interest rate percentage | 12.50% | ||||||||
Debt amendment fee | $ 2,000,000 | ||||||||
Issuance of common stock for debt modification (in shares) | shares | 1,932,931 | ||||||||
Write off of deferred debt issuance cost | 700,000 | ||||||||
Issuance of common stock for debt modification | $ 17,400,000 | ||||||||
Second Amendment of the Credit Agreements | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, covenant, interest amount | $ 0 | ||||||||
Outstanding period | quarter | 4 | ||||||||
Third Amendment of the Credit Agreements | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt covenant, debt service reserve account requirement | $ 11,300,000 | ||||||||
Capital expenditures covenant, applicable construction budget | $ 1,000,000 | ||||||||
Fourth Amendment of the Credit Agreements | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt covenant, minimum liquidity amount | $ 11,000,000 | ||||||||
Fifth Amendment To Original Credit Agreements | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 170,000,000 | ||||||||
Debt covenant, minimum liquidity amount | 1,000,000 | ||||||||
Debt covenant, debt service reserve account requirement | $ 11,000,000 | ||||||||
Debt covenant, debt service reserve account requirement, number of calendar quarters | quarter | 2 | ||||||||
Debt covenant, payment in kind of quarterly interest and unused commitment fee payable | $ 4,300,000 | ||||||||
Sixth Amendment To Original Credit Agreements | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 280,000,000 | ||||||||
Debt covenant, payment in kind of quarterly interest payment due and payable | 5,000,000 | ||||||||
Debt service reserve account | $ 0 | ||||||||
Debt covenant, debt service reserve account requirement, number of quarters of scheduled interest payments | quarter | 2 | ||||||||
Debt covenant, debt service reserve account requirement, number of quarters of scheduled amortization payments | quarter | 2 | ||||||||
Sixth Amendment To Original Credit Agreements | Loans Payable | March 2023 Cargill Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants outstanding (in shares) | shares | 5,400,000 | ||||||||
Warrant price (in dollars per share) | $ / shares | $ 13 | ||||||||
Warrants term | 5 years |
Financing Obligations - Narrati
Financing Obligations - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 27, 2023 USD ($) extensionOption | Apr. 30, 2021 | Jun. 30, 2020 USD ($) term | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||
Interest on financing obligation | $ 313 | $ 231 | |||
Montana Lease | |||||
Related Party Transaction [Line Items] | |||||
Sale and finance leaseback transaction, consideration | $ 6,900 | ||||
Sale and finance leaseback transaction, initial lease term | 15 years | ||||
Sale and finance leaseback transaction, number of extensions | term | 3 | ||||
Sale and finance leaseback transaction, extension period | 5 years | ||||
Sale and finance leaseback transaction, term | 20 years | ||||
California Facilities Lease | |||||
Related Party Transaction [Line Items] | |||||
Sale and finance leaseback transaction, initial lease term | 25 years | ||||
Leaseback transaction, amount | $ 35,000 | ||||
Number of options to extend | extensionOption | 4 | ||||
Renewal term | 5 years | ||||
Sale and leaseback transaction, base annual rent | $ 3,200 | ||||
Sale and leaseback transaction, base annual rent, increase percentage | 3% | ||||
Letters of credit included in restricted cash and cash equivalents | $ 6,500 | ||||
Sale and leaseback transaction, letter of credit term | 5 years | ||||
Sale and finance leaseback transaction, imputed interest rate | 11.06% | ||||
Interest on financing obligation | $ 2,600 | ||||
Property Maintenance And Management Services Agreement | Montana Lease | |||||
Related Party Transaction [Line Items] | |||||
Management services agreement, annual fee | $ 100 | ||||
Management services agreement, initial term | 3 years | ||||
Management services agreement, auto-renewal period | 1 year | ||||
Management services agreement, termination notice period | 30 days | ||||
Sale and finance leaseback transaction, imputed interest rate | 11.60% | ||||
Interest on financing obligation | $ 1,600 | $ 1,600 |
Financing Obligations - Schedul
Financing Obligations - Schedule of Financing Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Obligation [Abstract] | ||
Amortization of financing obligation assets | $ 1,619 | $ 599 |
Interest on financing liabilities | $ 4,220 | $ 1,693 |
Financing Obligations - Sched_2
Financing Obligations - Schedule of Future Financing Obligation Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Sale Leaseback Transaction [Line Items] | ||
Financing Obligation | $ 49,225 | $ 14,139 |
Montana Lease | ||
Sale Leaseback Transaction [Line Items] | ||
2024 | 1,591 | |
2025 | 1,623 | |
2026 | 1,655 | |
2027 | 1,688 | |
2028 | 1,722 | |
Thereafter | 23,187 | |
Total financing obligation payments | 31,466 | |
Unamortized deferred financing costs | 0 | |
Amount representing interest | (21,645) | |
Net financing obligation and asset at end of term | 4,171 | |
Financing Obligation | 13,992 | |
California Facilities Lease | ||
Sale Leaseback Transaction [Line Items] | ||
2024 | 3,302 | |
2025 | 3,401 | |
2026 | 3,503 | |
2027 | 3,608 | |
2028 | 3,717 | |
Thereafter | 98,346 | |
Total financing obligation payments | 115,877 | |
Unamortized deferred financing costs | (220) | |
Amount representing interest | (95,664) | |
Net financing obligation and asset at end of term | 15,240 | |
Financing Obligation | $ 35,233 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 102 | $ 137 |
Short-term lease cost | 813 | 447 |
Variable lease cost | 3 | 4 |
Total lease expense | $ 918 | $ 588 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2023 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 2 years 10 months 20 days |
Operating lease, weighted average discount rate, percent | 9.40% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 105 |
2025 | 64 |
2026 | 35 |
2027 | 26 |
Total minimum lease payments | 230 |
Less: imputed interest | (19) |
Total | $ 211 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Assets and Liabilities at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Level 1 | ||
Liabilities: | ||
March 2023 Cargill Warrant Liability | $ 0 | |
Level 1 | Money market funds | ||
Assets: | ||
Assets, fair value | 16,322 | $ 13,997 |
Level 2 | ||
Liabilities: | ||
March 2023 Cargill Warrant Liability | 0 | |
Level 2 | Money market funds | ||
Assets: | ||
Assets, fair value | 0 | 0 |
Level 3 | ||
Liabilities: | ||
March 2023 Cargill Warrant Liability | 7,214 | |
Level 3 | Money market funds | ||
Assets: | ||
Assets, fair value | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Changes in Level 3 Fair Value Measurement for the Warrant Liability (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Dec. 31, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 25,697 | |
Fair value measurement adjustments through other income (expense) | (18,483) | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income | |
Warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Ending balance | $ 7,214 | $ 7,214 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurement Key Inputs (Details) | Dec. 31, 2023 year $ / shares | Mar. 28, 2023 year $ / shares |
Share price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 2.07 | 5.84 |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.0384 | 0.0363 |
Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 1.33 | 1.35 |
Exercise price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 13 | 13 |
Warrant life (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | year | 4.2 | 5 |
Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0 | 0 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) | Jun. 04, 2023 $ / shares shares | Apr. 03, 2023 | Oct. 21, 2022 USD ($) $ / shares shares | Mar. 22, 2022 USD ($) | Nov. 19, 2021 d $ / shares shares | Dec. 31, 2023 USD ($) vote $ / shares shares | Oct. 29, 2023 USD ($) | Mar. 28, 2023 USD ($) $ / shares shares | Dec. 31, 2022 $ / shares shares | Oct. 20, 2022 $ / shares | Nov. 22, 2021 $ / shares shares | Mar. 22, 2021 $ / shares |
Class of Stock [Line Items] | ||||||||||||
Common stock, shares authorized (in shares) | shares | 400,000,000 | 400,000,000 | 400,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Preferred stock authorized (in shares) | shares | 100,000,000 | |||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||||||
Number of vote per share | vote | 1 | |||||||||||
Stock splits ratio | 0.0769 | |||||||||||
Warrants outstanding (in shares) | shares | 833,330 | |||||||||||
Stock repurchase program authorized amount | $ | $ 1,000,000 | |||||||||||
Stock repurchase program authorized remaining amount | $ | $ 1,000,000 | |||||||||||
Number of securities called by each warrant (in shares) | shares | 0.0769 | |||||||||||
Share price (in dollars per share) | $ / shares | $ 32.50 | |||||||||||
Minimum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock splits ratio | 0.50 | |||||||||||
Maximum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock splits ratio | 0.04 | |||||||||||
Sixth Amendment To Original Credit Agreements | Loans Payable | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Aggregate amount of outstanding loans and undrawn commitments | $ | $ 280,000,000 | |||||||||||
Private Placement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share price (in dollars per share) | $ / shares | $ 32.50 | |||||||||||
Number of shares issued in transaction (in shares) | shares | 716,923 | |||||||||||
Consideration from PIPE Financing | $ | $ 23,300,000 | |||||||||||
Period for filing registration statement | 10 days | |||||||||||
Private Placement | Board of Directors And Executive Officers | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares issued in transaction (in shares) | shares | 280,000 | |||||||||||
2021 Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants outstanding (in shares) | shares | 833,333 | |||||||||||
Warrant price (in dollars per share) | $ / shares | $ 149.50 | $ 149.50 | ||||||||||
Number of securities called by each warrant (in shares) | shares | 1 | |||||||||||
Warrant exercise term, period after closing | 30 days | |||||||||||
March 2023 Cargill Warrant | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant price (in dollars per share) | $ / shares | $ 13 | |||||||||||
March 2023 Cargill Warrant | Sixth Amendment To Original Credit Agreements | Loans Payable | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants outstanding (in shares) | shares | 5,400,000 | |||||||||||
Warrant price (in dollars per share) | $ / shares | $ 13 | |||||||||||
Assumed Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant price (in dollars per share) | $ / shares | $ 110.50 | |||||||||||
Private Placement Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrant exercise term, period after closing | 30 days | |||||||||||
Warrant redemption price (in dollars per share) | $ / shares | $ 0.13 | |||||||||||
Warrant redemption, written notice period | 30 days | |||||||||||
Share price (in dollars per share) | $ / shares | $ 234 | |||||||||||
Warrant redemption, threshold consecutive trading days | d | 20 | |||||||||||
Warrant redemption, threshold trading period | d | 30 | |||||||||||
Warrant redemption, period before redemption notice sent | d | 3 | |||||||||||
Loans Payable | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Aggregate amount of outstanding loans and undrawn commitments | $ | $ 10,000,000 | |||||||||||
Debt interest rate | 8% | |||||||||||
Loans Payable | Assumed Warrants | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Warrants outstanding (in shares) | shares | 54,299 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Common Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | 11 months 26 days | |
Total expenses | $ 1.2 | $ 4.5 | |
Cost not yet recognized, amount | $ 0.7 | ||
Restricted Common Stock Awards | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of vesting rights | 10% | ||
Restricted Common Stock Awards | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of vesting rights | 30% | ||
Restricted Common Stock Awards | Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of vesting rights | 30% | ||
Restricted Common Stock Awards | Tranche Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of vesting rights | 30% | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years 10 days | ||
Total expenses | $ 15.1 | $ 34.7 | |
Cost not yet recognized, amount | $ 8.1 | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 months | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Common Stock Awards and Restricted Stock Units Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Common Stock Awards | ||
Number of Shares of Restricted Common Stock Awards | ||
Unvested beginning balance (in shares) | 288,804 | 421,495 |
Vested, settled (in shares) | (153,567) | |
Vested, unsettled (in shares) | 20,876 | |
Forfeited (in shares) | (19,175) | |
Vested (in shares) | (133,928) | |
Unvested ending balance (in shares) | 135,701 | 288,804 |
Average Grant-Date Fair Value | ||
Unvested beginning balance (in dollars per share) | $ 24.05 | $ 23.40 |
Forfeited (in dollars per share) | 36.27 | |
Vested (in dollars per share) | 22.71 | |
Vested, settled (in dollars per share) | 23.40 | |
Vested, unsettled (in dollars per share) | 31.59 | |
Unvested ending balance (in dollars per share) | $ 23.60 | $ 24.05 |
Restricted Stock Units (RSUs) | ||
Number of Shares of Restricted Common Stock Awards | ||
Unvested beginning balance (in shares) | 727,484 | 184,291 |
Vested, unsettled (in shares) | 26,443 | 91,941 |
Granted (in shares) | 840,570 | 715,160 |
Forfeited (in shares) | (483,246) | (135,106) |
Vested (in shares) | (421,414) | (128,802) |
Unvested ending balance (in shares) | 689,837 | 727,484 |
Average Grant-Date Fair Value | ||
Unvested beginning balance (in dollars per share) | $ 81.51 | $ 126.49 |
Granted (in dollars per share) | 8.44 | 74.36 |
Forfeited (in dollars per share) | 15.50 | 94.25 |
Vested (in dollars per share) | 62.41 | 92.82 |
Vested, unsettled (in dollars per share) | 4.73 | 81.64 |
Unvested ending balance (in dollars per share) | $ 47.43 | $ 81.51 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal provision for income taxes | $ 0 | $ 0 |
Federal and state net operating losses | 382,900,000 | 212,600,000 |
Change of valuation allowance | 34,600,000 | 20,400,000 |
Tax Credit Carryforward [Line Items] | ||
Unrecognized tax benefits | 300,000 | 100,000 |
Research Tax Credit Carryforward | Domestic Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit amount | $ 500,000 | $ 100,000 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Currently reportable expense | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Total | 0 | 0 |
Deferred benefit: | ||
Federal | 24,610,000 | 14,434,000 |
State | 10,032,000 | 5,948,000 |
Total | 34,642,000 | 20,382,000 |
Less valuation allowance | (34,642,000) | (20,382,000) |
Total provision for income tax expense | $ 0 | $ 0 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21% | 21% |
State tax | 6.40% | 4.20% |
Stock-based compensation | (2.60%) | (5.30%) |
Non-deductible expenses | 3.40% | (1.60%) |
Research and development credit | (0.30%) | 0.10% |
Change in valuation allowance | (27.90%) | (18.40%) |
Effective tax rate | 0% | 0% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 51,490 | $ 27,953 |
ASC 842 lease liability | 3,846 | 3,317 |
Acquired intangibles | 11,576 | 1,082 |
Accruals and reserves | 11,780 | 1,418 |
Capitalized research expenditures | 4,662 | 2,210 |
Gross deferred tax assets | 83,354 | 35,980 |
Less valuation allowance | (66,129) | (31,487) |
Deferred tax assets, net of valuation allowance | 17,225 | 4,493 |
ASC 842 right-of-use asset | (3,077) | (2,749) |
Fixed assets and land | (14,148) | (1,744) |
Gross deferred tax liabilities | (17,225) | (4,493) |
Net deferred tax liabilities | $ 0 | $ 0 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Earnings Per Share [Abstract] | |||
Net loss | $ (124,015) | $ (111,071) | |
Weighted average common stock outstanding, basic (in shares) | [1] | 7,943,874 | 6,701,126 |
Weighted average common stock outstanding, diluted (in shares) | [1] | 7,943,874 | 6,701,126 |
Net loss per common share, basic (in dollars per share) | [1] | $ (15.61) | $ (16.57) |
Net loss per common share, diluted (in dollars per share) | [1] | $ (15.61) | $ (16.57) |
[1]Prior comparative period share and per share amounts have been retroactively adjusted to reflect the June 15, 2023 Reverse Stock Split (as defined below). See Note 12, Stockholders' Equity , for additional detail. . |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) | 12 Months Ended | |||
Jun. 04, 2023 shares | Dec. 31, 2023 shares | Dec. 31, 2022 shares | Mar. 28, 2023 $ / shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock splits ratio | 0.0769 | |||
Number of securities called by each warrant (in shares) | 0.0769 | |||
March 2023 Cargill Warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Warrant exercise price (in dollars per share) | $ / shares | $ 13 | |||
March 2023 Cargill Warrant | Sixth Amendment To Original Credit Agreements | Loans Payable | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Warrant exercise price (in dollars per share) | $ / shares | $ 13 | |||
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 222,282 | 388,210 | ||
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 4,980,021 | 887,636 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Non-cancelable purchase commitments amount | $ 1.3 | |
Employer contribution amount | $ 0.6 | $ 0.4 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2020 | |
Grow Bitterroot | Live Oak Ventures, LLC | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 10% | ||
Grow Bitterroot | Property Maintenance And Management Services Agreement | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 0.1 | $ 0.1 | |
Grow Bitterroot | Lease Agreements | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 1.5 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 12 Months Ended | |||||
Mar. 26, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 23, 2024 | Jun. 04, 2023 | Mar. 28, 2023 | |
Subsequent Event [Line Items] | ||||||
Amount drawn down | $ 152,608,000 | $ 124,649,000 | ||||
Number of common stock called by warrants (in shares) | 81,139,179 | |||||
March 2023 Cargill Warrant | ||||||
Subsequent Event [Line Items] | ||||||
Warrant price (in dollars per share) | $ 13 | |||||
Number of common stock called by warrants (in shares) | 5,353,846 | |||||
Subsequent Event | Warrant Amendment | ||||||
Subsequent Event [Line Items] | ||||||
Warrant price (in dollars per share) | $ 6.50 | |||||
Number of common stock called by warrants (in shares) | 5,353,846 | |||||
Subsequent Event | Ninth Amendment to Credit Agreements | Loans Payable | ||||||
Subsequent Event [Line Items] | ||||||
Debt, working capital borrowing capacity | $ 15,000,000 | |||||
Amount drawn down | 5,000,000 | |||||
Remaining borrowing capacity | $ 10,000,000 |