NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Our unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (SEC) applicable to interim financial statements. In our opinion, the accompanying financial statements reflect all adjustments necessary for a fair presentation of our statements of financial position, results of operations and cash flows for the periods presented but they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Except as otherwise disclosed herein, these adjustments consist of normal recurring items. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole or any other interim period.
The preparation of the financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates.
Certain prior year amounts have been reclassified to conform to the current year presentation.
For further information, refer to the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 12, 2019. The accompanying Balance Sheet as of December 31, 2018 was derived from the audited financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with our financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2018.
Inventory
Inventories are recorded at the lower of cost or net realizable value and include all costs of seed production and grain we purchase as well as costs to transport and process the grain into finished products. Consideration we receive from our growers to purchase seed is recorded as reduction in the cost of inventory.
We evaluate inventory balances for obsolescence quarterly using projected selling prices for our products, market prices for the underlying agricultural markets, the age of products, and other factors that take into consideration our limited operating history.
Effective January 1, 2019, we designated all seed and grain production agreements (Forward Purchase Contracts) as normal purchases and as a result no longer consider these agreements to be accounting derivatives. As a result, we no longer reflect these agreements at fair value. As of that date, any mark-to-market gains or losses were frozen on our balance sheet and will be reflected in inventory upon delivery as part of the cost of the associated grain.
Prior to the commercialization of our High Oleic Soybean Products in late February 2019, we expensed all costs associated with the production of seed and acquisition of grain, net of proceeds from seed sales, as research and development (R&D) expense.
Revenue Recognition
We recognize sales revenue at the point in time that control transfers to the customer, which is based on shipping terms. Sales include shipping and handling charges if billed to the customer and are reported net of trade promotion and other costs, including estimated allowances for returns, unsalable product, and prompt pay discounts. Sales, use, value-added and other excise taxes are not recognized in revenue. Trade promotions are recorded based on estimated participation and performance levels for offered programs at the time of sale. We generally do not allow a right of return. However, on a limited basis with prior approval, we may allow customers to return product.
We also recognize revenue from license agreements. Revenues from license agreements may consist of nonrefundable up-front payments, milestone payments, royalties, and services. In addition, we may license our technology to third parties, which may or may not be part of a license agreement.
Nonrefundable up-front payments are deferred and recognized as revenue over the term of the license agreement. If a license agreement is terminated before the original term of the agreement is fulfilled, all remaining deferred revenue is recognized at termination.
Milestone payments represent amounts received from our licensees, the receipt of which is dependent upon the achievement of certain scientific, regulatory, or commercial milestones. We recognize milestone payments when the triggering event has occurred, there are
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Table of Contents
no further contingencies or services to be provided with respect to that event, and the counterparty has no right to refund of the payment.
Stock-Based Compensation
We measure employee stock-based awards at grant-date fair value and record compensation expense over the vesting period of the award. Prior to January 1, 2019, grants to nonemployees were previously remeasured each reporting period. Following the adoption of the new accounting pronouncement discussed below we no longer remeasure these awards as the fair value is determined on the grant date.
Recently Adopted Accounting Pronouncements
In the first quarter of 2019, we adopted new accounting requirements for recognition of revenue from contracts with customers. We adopted these requirements using the cumulative effect approach. The adoption did not have an impact on our financial statements.
Effective January 1, 2019, we adopted new accounting requirements for share-based payment transactions for acquiring goods and services from nonemployees. The adoption did not have an impact on our financial statements as each of the share-based payment awards granted to nonemployees had a measurement date upon grant, and thus no cumulative adjustment to retained earnings was required.
2. FINANCIAL INSTRUMENTS, FAIR VALUE, HEDGING ACTIVITIES, AND CONCENTRATIONS OF CREDIT RISK
The carrying values of cash and cash equivalents, restricted cash, due from related parties, accounts payable, due to related parties, and all other current liabilities approximate fair value. The fair value of our financing lease obligations, including the current portion, are $15.7 million as of June 30, 2019, and $15.8 million as of December 31, 2018. The carrying amounts of our financing lease obligations, including the current portion, were $18.6 million as of June 30, 2019, and $18.5 million as of December 31, 2018. The fair value of our financing lease obligations was determined using discounted cash flow analysis based on market rates for similar types of borrowings. Financing lease obligations are a Level 2 liability in the fair value hierarchy.
Fair Value Measurements and Financial Statement Presentation
As described in Note 1 to these financial statements our Forward Purchase Contracts are no longer carried at fair value.
The fair values of our assets, liabilities, and derivative positions recorded at fair value and their respective levels in the fair value hierarchy as of June 30, 2019 and December 31, 2018, were as follows:
|
|
June 30, 2019
|
|
|
June 30, 2019
|
|
|
|
Fair Values of Assets
|
|
|
Fair Values of Liabilities
|
|
In Thousands
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Other items reported at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Purchase Contracts (a)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
203
|
|
|
$
|
—
|
|
|
$
|
203
|
|
Commodity futures and options
|
|
|
174
|
|
|
|
—
|
|
|
|
—
|
|
|
|
174
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
|
|
$
|
174
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
$
|
203
|
|
|
$
|
—
|
|
|
$
|
203
|
|
|
|
December 31, 2018
|
|
|
December 31, 2018
|
|
|
|
Fair Values of Assets
|
|
|
Fair Values of Liabilities
|
|
In Thousands
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Other items reported at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Purchase Contracts (a)
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
248
|
|
Commodity futures and options
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
248
|
|
(a) The fair value for Forward Purchase Contracts were previously estimated based on commodity futures market prices.
Commodity Price Risk
We enter into Forward Purchase Contracts for grain with settlement values based on commodity futures market prices These Forward Purchase Contracts allow our counterparty to fix their sale prices to us at various times as defined in the contract. We may enter into
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hedging arrangements to either fix variable exposures or converting fixed prices to floating prices
through the use of commodity derivative contracts
.
At June 30, 2019, we h
ad entered into commodity contracts with a
notional amount of
$1.8 million
.
We have designated all of our commodity derivative contracts as cash flow hedges. As a result, all gains or losses associated with recording commodity derivative contracts at fair value are recorded as a component of accumulated other comprehensive income (AOCI). We reclassify amounts from AOCI to cost of goods sold when we sell the underlying products to which those hedges relate. As of June 30, 2019, we expect the entire AOCI balance to be reclassified into earnings within the next 12 months.
Certain amounts related to our hedging activities are as follows:
|
|
Amount of Gain (Loss)
Recognized in AOCI
|
|
|
|
|
Amount of Gain (Loss)
Reclassified to Earnings
|
|
|
|
Six months ended,
|
|
|
|
|
Six months ended,
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
In thousands
|
|
2019
|
|
|
2018
|
|
|
|
|
2019
|
|
|
2018
|
|
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity contracts
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign Exchange Risk
Foreign currency fluctuations affect our foreign currency cash flows related to payments to Cellectis and third-party purchases. Our principal foreign currency exposure is to the euro. We do not currently hedge these exposures, and we do not believe that the current level of foreign currency risk is significant to our operations.
Concentrations of Credit Risk
We invest our cash, cash equivalents, and restricted cash in short-term investments and hold deposits at financial institutions that may exceed insured limits. We evaluate the credit worthiness of these institutions in determining the risk associated with these deposits. We have not experienced any losses on these deposits.
3. RELATED-PARTY TRANSACTIONS
We have several agreements that govern our relationship with Cellectis. Pursuant to our management services agreement with Cellectis, we also pay management fees for services Cellectis provides to us. We perform Cellectis’ U.S. operations payroll services. We incurred management fee expenses of $0.5 million for the three months ended June 30, 2019 and $0.4 million for the same period in 2018. We incurred management fee expenses of $0.8
million for the six months ended June 30, 2019 and $1.0 for the same period in 2018.
Cellectis also has guaranteed our headquarters lease agreement. Cellectis’ guarantee of our obligations under the sale-leaseback transaction will terminate at the end of the second consecutive calendar year in which our tangible net worth exceeds $300 million. Any amounts borrowed from Cellectis bear floating-rate interest at a rate of 12-month Euribor plus five percent per annum.
TALEN technology was invented by researchers at the University of Minnesota and Iowa State University and exclusively licensed to Cellectis. We obtained from Cellectis an exclusive license for the TALEN technology for commercial use in plants. TALEN technology is the primary gene-editing technology used by us today. We also license other key technology from Cellectis and owe them royalties on any revenue we generate from sales of product as well as a percentage of any sublicense revenues we generate. With the exception of a one-time payment made to the University of Minnesota related to our commercialization of High Oleic Soybeans, we have incurred nominal license fees under these agreements in in the three and six month periods ended June 30, 2019 and 2018.
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-
Table of Contents
4. NET LOSS PER SHARE
Basic and diluted loss per share were calculated using the following:
All outstanding stock options and restricted stock units are excluded from the calculation since they are anti-dilutive.
|
Six months ended June 30,
|
|
In Thousands, Except Share Data and Per Share Amounts
|
2019
|
|
|
2018
|
|
Net loss
|
$
|
(16,778
|
)
|
|
$
|
(11,946
|
)
|
Average number of common shares—basic and diluted EPS
|
|
32,704,834
|
|
|
|
28,851,491
|
|
Loss per share—basic and diluted
|
$
|
(0.51
|
)
|
|
$
|
(0.41
|
)
|
|
|
2019
|
|
|
|
2018
|
|
Anti-dilutive stock options and restricted stock units
|
|
5,592,441
|
|
|
|
4,421,547
|
|
We have not used the treasury method in determining the number of anti-dilutive stock options and restricted stock units in the table above.
5.
STOCK-BASED COMPENSATION
We use broad-based stock plans to attract and retain highly qualified officers and employees and to help ensure that management’s interests are aligned with those of our shareholders. We have also granted equity-based awards to directors, nonemployees and certain employees of Cellectis.
In December 2014, we adopted the Calyxt, Inc. Equity Incentive Plan (2014 Plan), which allowed for the grant of stock options, and in June 2017, we adopted the 2017 Omnibus Plan (2017 Plan).
As of June 30, 2019, 2,006,505 shares were registered and available for grant under effective registration statements, while 2,444,581 shares were available for grant in the form of stock options, restricted stock, restricted stock units and performance stock units under the 2017 Plan. Stock-based awards currently outstanding also include awards granted under the 2014 Plan, under which no further awards will be granted.
Stock Options
The estimated fair values of stock options granted and the assumptions used for the Black-Scholes option pricing model were as follows:
|
|
Six months ended June 30,
|
|
|
|
2019
|
|
|
2018
|
|
Estimated fair values of stock options granted
|
|
$
|
10.61
|
|
|
$
|
10.26
|
|
Assumptions:
|
|
|
|
|
|
|
|
|
Risk-free interest rate
|
|
1.9% - 2.5%
|
|
|
2.5% - 2.8%
|
|
Expected volatility
|
|
77.9% - 78.9%
|
|
|
40.9% - 54.7%
|
|
Expected term (in years)
|
|
6.8 – 10.0 years
|
|
|
6.3 – 9.2 years
|
|
We estimate the fair value of each option on the grant date or other measurement date if applicable using a Black-Scholes option-pricing model, which requires us to make predictive assumptions regarding future stock price volatility, employee exercise behavior and dividend yield. The risk-free interest rate for periods during the expected term of the options is based on the U.S. Treasury zero-coupon yield curve in effect at the time of grant. We estimate our future stock price volatility using the historical volatility of comparable public companies over the expected term of the option. Our expected term represents the period of time that options granted are expected to be outstanding determined using the simplified method. We have not nor do we expect to pay dividends for the foreseeable future.
Option strike prices are set at 100 percent or more of the closing share price on the date of grant, and generally vest over six years following the grant date. Options generally expire 10 years after the date of grant.
- 10
-
Table of Contents
Information on stock option activity follows:
|
|
Options
Exercisable
|
|
|
Weighted-
Average
Exercise
Price Per
Share
|
|
|
Options
Outstanding
|
|
|
Weighted-
Average
Exercise
Price Per
Share
|
|
Balance as of December 31, 2018
|
|
|
1,278,038
|
|
|
$
|
7.45
|
|
|
|
3,201,887
|
|
|
$
|
10.67
|
|
Granted
|
|
|
|
|
|
|
|
|
|
|
1,490,000
|
|
|
|
14.75
|
|
Exercised
|
|
|
|
|
|
|
|
|
|
|
(85,452
|
)
|
|
|
3.61
|
|
Forfeited or expired
|
|
|
|
|
|
|
|
|
|
|
(12,085
|
)
|
|
|
17.72
|
|
Other activity
|
|
|
|
|
|
|
|
|
|
|
12,495
|
|
|
|
13.29
|
|
Balance as of June 30, 2019
|
|
|
1,585,276
|
|
|
$
|
8.34
|
|
|
|
4,606,845
|
|
|
$
|
12.11
|
|
Stock-based compensation expense related to stock option awards was $1.5 million for the three months ended June 30, 2019 and $1.4 million for the three months ended June 30, 2018. Stock-based compensation expense related to stock option awards was $2.3 million for the six months ended June 30, 2019, and $1.0 million for the six months ended June 30, 2018. The aggregate intrinsic value of options outstanding and exercisable at June 30, 2019 was $9.3 million and the weighted average remaining contractual term was 8.4 years as of that date.
Net cash proceeds from the exercise of stock options less shares used for minimum withholding taxes and the intrinsic value of options exercised were as follows:
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
In Thousands
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net cash proceeds
|
$
|
183
|
|
|
$
|
527
|
|
|
$
|
308
|
|
|
$
|
1,241
|
|
Intrinsic value of options exercised
|
$
|
527
|
|
|
$
|
1,899
|
|
|
$
|
880
|
|
|
$
|
5,159
|
|
Restricted Stock Units
Units settled in stock subject to a restricted period may be granted under the 2017 Plan. Restricted stock units generally vest and become unrestricted over five years after the date of grant.
Information on restricted stock unit activity follows:
|
|
Number of
Restricted Stock
Units Outstanding
|
|
|
Weighted-
Average Grant
Date Fair Value
|
|
Unvested balance at December 31, 2018
|
|
|
1,051,414
|
|
|
$
|
10.15
|
|
Granted
|
|
|
100,000
|
|
|
|
12.48
|
|
Vested
|
|
|
(168,718
|
)
|
|
|
8.36
|
|
Forfeited
|
|
|
(2,000
|
)
|
|
|
8.00
|
|
Unvested balance at June 30, 2019
|
|
|
980,696
|
|
|
$
|
10.62
|
|
The total grant-date fair value of restricted stock unit awards that vested was $1.3 million and $1.4 million for the three and six months ended June 30, 2019, and $1.5 million for three and six months ended June 30, 2018. Stock-based compensation expense related to restricted stock unit awards was $0.8 million and $1.6 million for the three and six months ended June 30, 2019, and $0.9 million and $1.2 million for the three and six months ended June 30, 2018
We treat stock-based compensation awards granted to employees of Cellectis as deemed dividends. We recorded deemed dividends of $0.4 million and $0.8 million for the three and six months ended June 30, 2019, and $0.7 million and $1.4 million for the three and six months ended June 30, 2018.
As of June 30, 2019, unrecognized compensation expense related to non-vested stock options and restricted stock units was $22.4 million. This expense will be recognized over 61 months on average for stock options and over 42 months on average for restricted stock units.
Performance Stock Units
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-
Table of Contents
On June 28, 2019, we granted
311,667
performance stock units to three executive officers. The pe
rformance stock units will vest as to 50%, 100% or 120% of the shares at the end of a
three
-
year
performance
period based upon the increases in our common stock from the starting price of $12.48
.
The awards vest
on a linear basis between vesting percentages during specified periods within the three
-
year performance period. If vested, the performance stock unit
s
will be settled in restricted stock with restrictions lapsing on the
two
-
year anniversary of the date of
issuance
.
Cellectis Equity Incentive Plan
Prior to 2018, Cellectis granted stock options to our employees. Compensation costs related to these grants have been recognized in the statements of operations with a corresponding credit to stockholders’ equity representing Cellectis’ capital contribution to us. The fair value of each stock option was estimated at the grant date using the Black-Scholes option pricing model.
We recognized stock-based compensation expense related to Cellectis’ grants of $0.1 million for the three months ended June 30, 2018 and $0.2 million for the six months ended June 30, 2018. Expenses in 2019 were de minimus.
6. INCOME TAXES
We provide for a valuation allowance when it is more likely than not that we will not realize a portion of the deferred tax assets. We have established a full valuation allowance for deferred tax assets due to the uncertainty that enough taxable income will be generated in the taxing jurisdiction to utilize the assets. Therefore, we have not reflected any benefit of such deferred tax assets in the accompanying financial statements.
As of June 30, 2019 there were no material changes to what we disclosed regarding tax uncertainties or penalties as of December 31, 2018.
7. LEASES, OTHER COMMITMENTS, AND CONTINGENCIES
Litigation and Claims
We are not currently a party to any material pending legal proceeding.
Leases
We lease our headquarters facility, office equipment, and other items. Our headquarters lease involved the sale of land and improvements to a third party who then constructed the facility. This lease is considered a finance lease.
We also have an equipment financing line that is considered a financing lease. The lease has a term of four years and following our $0.2 million draw down in the three month period ending June 30, 2019, we may add up to $0.9 million of future equipment purchases to the financing agreement. We were required to deposit cash into a restricted account in an amount equal to the future rent payments required by the lease. At June 30, 2019, this restricted cash totaled $1.5 million.
Rent expense from operating leases was $20,000 for the three months ended June 30, 2019, and was $78,000 for the three months ended June 30, 2018. Rent expense was expense $69,000 for the six months ended June 30, 2019, and was $160,000 during the six months ended June 30, 2018.
Other Commitments
As of June 30, 2019, we have committed to purchase grain from farmers at dates throughout 2019 and 2020 aggregating $19.0 million using commodity futures market prices, other payments to growers and estimated yields per acre. This amount is not recorded in the financial statements because we have not taken delivery of the grain as of that date.
8. EMPLOYEE BENEFIT PLAN
We provide a 401(k) defined contribution plan for all regular full-time employees who have completed three months of service. We match employee contributions up to certain amounts and those matching contributions vest immediately. Our expense was $49,000 for the three months ended June 30, 2019 and $27,000 for the same period in 2018. Our expense was $105,000 for the six months ended June 30, 2019,
and $76,000 for the six months ended June 30, 2018.
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-
Table of Contents
9. SUPPLEMENTAL INFORMATION
Certain balance sheet amounts are as follows:
|
|
As of June 30,
|
|
|
As of December 31,
|
|
In Thousands
|
|
2019
|
|
|
2018
|
|
Raw materials
|
|
$
|
79
|
|
|
$
|
—
|
|
Work-in-process
|
|
|
18
|
|
|
|
—
|
|
Finished goods
|
|
|
14
|
|
|
|
—
|
|
Total
|
|
$
|
111
|
|
|
$
|
—
|
|
Certain statements of operations amounts are as follows:
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
In Thousands
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Stock compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
$
|
539
|
|
|
$
|
1,325
|
|
|
$
|
779
|
|
|
$
|
888
|
|
Selling and general and administrative
|
|
|
1,765
|
|
|
|
967
|
|
|
|
3,081
|
|
|
|
1,336
|
|
Total
|
|
$
|
2,304
|
|
|
$
|
2,292
|
|
|
$
|
3,860
|
|
|
$
|
2,224
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
In Thousands
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Interest expense
|
|
$
|
(370
|
)
|
|
$
|
(317
|
)
|
|
$
|
(740
|
)
|
|
$
|
(552
|
)
|
Interest income
|
|
|
462
|
|
|
|
245
|
|
|
|
1,004
|
|
|
|
412
|
|
Interest, net
|
|
$
|
92
|
|
|
$
|
(72
|
)
|
|
$
|
264
|
|
|
$
|
(140
|
)
|
Certain statements of cash flows amounts are as follows:
|
|
As of June 30,
|
|
In Thousands
|
|
2019
|
|
|
2018
|
|
Cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
76,434
|
|
|
$
|
105,620
|
|
Restricted cash, current
|
|
|
381
|
|
|
|
—
|
|
Non-current restricted cash
|
|
|
1,128
|
|
|
|
—
|
|
Total
|
|
$
|
77,943
|
|
|
$
|
105,620
|
|
|
|
As of June 30,
|
|
In Thousands
|
|
2019
|
|
|
2018
|
|
Supplemental cash flow information
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
737
|
|
|
$
|
207
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
|
|
In Thousands
|
|
2019
|
|
|
2018
|
|
Supplemental non-cash investing and financing transactions
|
|
|
|
|
|
|
|
|
Sale and leaseback of land, buildings, and equipment
|
|
$
|
217
|
|
|
$
|
—
|
|
Non-cash additions to land, buildings, and equipment
|
|
|
—
|
|
|
|
7,096
|
|
Offering costs in accounts payable and accrued liabilities
|
|
|
—
|
|
|
|
445
|
|
Non-cash addition to financing lease obligations
|
|
|
12
|
|
|
|
—
|
|
Total
|
|
$
|
229
|
|
|
$
|
7,541
|
|
10. Segment Information
We operate in a single reportable segment, food ingredients. Our current commercial focus is North America. Our major product categories are High Oleic Soybean Oil and High Oleic Soybean Meal.
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