Investments and Fair Value Instruments

12 Months Ended

Dec. 31, 2020

Investments And Fair Value Instruments [Abstract]

Note 6. Investments and Fair Value Instruments

Investments

The Company classified its investments in corporate securities of BIOX as short-term investments. The investments are carried at fair value, based on quoted market prices or other readily available market information. Unrealized and realized gains and losses are recognized as Other income in the consolidated statements of operations and comprehensive loss.

The following tables summarize the amortized cost and fair value of the investment securities portfolio at December 31, 2020 and December 31, 2019, and the corresponding amounts of unrealized gains and losses recognized in other income, net, in the consolidated statements of operations and comprehensive loss:

(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
December 31, 2020
Cash equivalents:
Money market funds	$	12,082	$	—	$	—	$	12,082
Short-term investments:
Corporate securities		10,969		656		—		11,625
Total Assets at Fair Value	$	23,051	$	656	$	—	$	23,707

(Dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
December 31, 2019
Cash equivalents:
Money market funds	$	6,864	$	—	$	—	$	6,864
Commercial paper		900		—		—		900
Short-term investments:
Corporate securities		3,300		—		—		3,300
Treasury bills		1,495		1		—		1,496
Commercial paper		12,119		—		—		12,119
Total Assets at Fair Value	$	24,678	$	1	$	—	$	24,679

The Company did not have any investment categories that were in a continuous unrealized loss position for more than twelve months as of December 31, 2020.

Fair Value Measurement

The fair value of the investment securities at December 31, 2020 were as follows:

	Fair Value Measurements at December 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at Fair Value
Cash equivalents:
Money market funds	$	12,082	$	—	$	—	$	12,082
Short-term investments:
Corporate securities		11,625		—		—		11,625
Total Assets at Fair Value	$	23,707	$	—	$	—	$	23,707

The fair value of the investment securities at December 31, 2019 were as follows:

	Fair Value Measurements at December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at Fair Value
Cash equivalents:
Money market funds	$	6,864	$	—	$	—	$	6,864
Commercial paper		—		900		—		900
Short-term investments:
Corporate securities		—		3,300		—		3,300
Treasury bills		1,496		—		—		1,496
Commercial paper		—		12,119		—		12,119
Total Assets at Fair Value	$	8,360	$	16,319	$	—	$	24,679

The Company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during 2020 or 2019. The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and notes payable. For accounts receivable, accounts payable, accrued liabilities, and notes payable the carrying amounts of these financial instruments as of December 31, 2020 and 2019 were considered representative of their fair values due to their short term to maturity or repayment. Cash equivalents are carried at cost, which approximates their fair value.

The Company’s Level 3 liabilities consist of a contingent liability resulting from the Anawah acquisition, as described in Note 15, a contingent liability resulting from the Industrial Seed Innovations acquisition, as described in Note 7, and liabilities related to the March 2018, the June 2019 and the September 2019 Offerings described in Note 13.

The contingent liability was measured and recorded on a recurring basis as of December 31, 2020 and 2019 using unobservable inputs, namely the Company’s ability and intent to pursue certain specific products developed using technology acquired in the purchase. A significant deviation in the Company’s ability and/or intent to pursue the technology acquired in the purchase could result in a significantly lower (higher) fair value measurement.

The warrant liabilities were measured and recorded on a recurring basis using the Black-Scholes Model with the following assumptions at December 31, 2020 and 2019:

	September 2019 Warrants						June 2019 Warrants						June 2018 Warrants					March 2018 Warrants
	December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019			December 31, 2020		December 31, 2019			December 31, 2020			December 31, 2019
Expected term (in years)		4.20			5.20			3.96			4.96			—		3.96			2.22			3.22
Expected volatility		135.0	%		120.0	%		135.0	%		120.0	%		—		123.0	%		130.0	%		125.0	%
Risk-free interest rate		0.3	%		1.7	%		0.3	%		1.7	%		—		1.7	%		0.1	%		1.6	%
Expected dividend yield		0	%		0	%		0	%		0	%		—		0	%		0	%		0	%

The significant unobservable input used in the fair value measurement of the Company’s Level 3 warrant liabilities is volatility. A significant increase (decrease) in volatility could result in a significantly higher (lower) fair value measurement.

The following table sets forth the establishment of the Company’s Level 3 liabilities, as well as a summary of the changes in the fair value and other adjustments (in thousands):

	(Level 3)
(Dollars in thousands)	Common Stock Warrant Liability - March 2018 Purchase Agreement			Common Stock Warrant Liability - June 2018 Offering			Common Stock Warrant Liability - June 2019 Offering			Common Stock Warrant Liability - September 2019 Offering			Contingent Liabilities			Total
Balance as of December 31, 2018	$	2,354		$	2,729		$	—		$	—		$	3,000		$	8,083
Common stock and warrants issued in conjunction with June 2019 Offering		—			—			4,198			—			—		$	4,198
Common stock and warrants issued in conjunction with September 2019 Offering		—			—			—			3,428			—		$	3,428
Change in fair value and other adjustments		2,225			2,715			4,811			(508	)		(1,000	)	$	8,243
Exercise of warrants		-			-			(7,016	)		-			-		$	(7,016	)
Balance as of December 31, 2019	$	4,579		$	5,444		$	1,993		$	2,920		$	2,000		$	16,936
Change in fair value and other adjustments		(2,277	)		(1,426	)		(1,161	)		(1,706	)		—		$	(6,570	)
Exercise of warrants		(1,641	)		(4,018	)		—			—			—		$	(5,659	)
ISI acquisition contingent consideration		—			—			—			—			280		$	280
Balance as of December 31, 2020	$	662		$	—		$	832		$	1,214		$	2,280		$	4,987