Basis of Presentation and Summary of Significant Accounting Policies (Policy)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. These financial statements include all adjustments that are necessary for a fair presentation of the Company's condensed consolidated results of operations, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. The condensed consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year. For additional information, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2020.

Adoption of Highly Inflationary Accounting in Argentina

Adoption of Highly Inflationary Accounting in Argentina

GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation rate exceeds 100 percent. The Company closely monitors the inflation data and currency volatility in Argentina, where there are multiple data sources for measuring and reporting inflation. In the second quarter of 2018, the Argentine peso rapidly devalued relative to the U.S. dollar, which along with increased inflation, indicated that the three-year cumulative inflation rate in that country exceeded 100 percent as of June 30, 2018. As a result, the Company elected to adopt highly inflationary accounting as of July 1, 2018 for its subsidiary in Argentina. Under highly inflationary accounting, the functional currency of the Company's subsidiary in Argentina became the U.S. dollar, and its income statement and balance sheet will be measured in U.S. dollars using both current and

historical rates of exchange. The effect of changes in exchange rates on Argentine peso-denominated monetary assets and liabilities will be reflected in earnings. As the three-year cumulative inflation rate exceeded 100 percent as of June 30, 2021, there is no change to highly inflationary accounting.

Disaggregation of Revenue and Contract Assets and Liabilities

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers into geographic region, product and timing of transfer of goods and services. The Company determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Revenues for the three months ended June 30, 2021

(in thousands)
Region	North America  (1)	EMEA (2)	Latin America (3)	Asia Pacific (4)	Total Revenues
Product
1-MCP based	$580	$5,434	$5,623	$5,212	$16,849
Fungicides, disinfectants and coatings	—	3,317	999	—	4,316
Other*	235	74	350	100	759
	$815	$8,825	$6,972	$5,312	$21,924
Pattern of Revenue Recognition
Products transferred at a point in time	$588	$8,755	$6,725	$5,218	$21,286
Services transferred over time	227	70	247	94	638
	$815	$8,825	$6,972	$5,312	$21,924

Revenues for the three months ended June 30, 2020

(in thousands)
Region	North America  (1)	EMEA (2)	Latin America (3)	Asia Pacific (4)	Total Revenues
Product
1-MCP based	$1,581	$2,997	$5,790	$5,558	$15,926
Fungicides, disinfectants and coatings	—	2,766	581	—	3,347
Other*	90	146	373	100	709
	$1,671	$5,909	$6,744	$5,658	$19,982
Pattern of Revenue Recognition
Products transferred at a point in time	$1,579	$5,763	$6,479	$5,558	$19,379
Services transferred over time	92	146	265	100	603
	$1,671	$5,909	$6,744	$5,658	$19,982

Revenues for the six months ended June 30, 2021

(in thousands)
Region	North America  (1)	EMEA (2)	Latin America (3)	Asia Pacific (4)	Total Revenues
Product
1-MCP based	$2,344	$10,796	$24,364	$11,176	$48,680
Fungicides, disinfectants and coatings	14	7,863	2,546	—	10,423
Other*	391	473	801	148	1,813
	$2,749	$19,132	$27,711	$11,324	$60,916
Pattern of Revenue Recognition
Products transferred at a point in time	$2,355	$18,663	$27,352	$11,191	$59,561
Services transferred over time	394	469	359	133	1,355
	$2,749	$19,132	$27,711	$11,324	$60,916

Revenues for the six months ended June 30, 2020

(in thousands)
Region	North America  (1)	EMEA (2)	Latin America (3)	Asia Pacific (4)	Total Revenues
Product
1-MCP based	$2,142	$8,317	$22,372	$10,373	$43,204
Fungicides, disinfectants and coatings	—	6,639	1,175	—	7,814
Other*	532	585	728	142	1,987
	$2,674	$15,541	$24,275	$10,515	$53,005
Pattern of Revenue Recognition
Products transferred at a point in time	$2,160	$14,966	$23,918	$10,373	$51,417
Services transferred over time	514	575	357	142	1,588
	$2,674	$15,541	$24,275	$10,515	$53,005

*Other includes FreshCloud, technical services and sales-type equipment leases related to Tecnidex.

(1)	North America includes the United States and Canada.
(2)	EMEA includes Europe, the Middle East and Africa.
(3)	Latin America includes Argentina, Brazil, Chile, Costa Rica, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Peru and Uruguay.
(4)	Asia Pacific includes Australia, China, India, Japan, New Zealand, the Philippines, South Korea, Taiwan and Thailand.

Contract Assets and Liabilities

Accounting Standards Codification ("ASC") 606 Revenue from contracts with Customers requires an entity to present a revenue contract as a contract asset when the entity performs its obligations under the contract by transferring goods or services to a customer before the customer pays consideration or before payment is due. ASC 606 also requires an entity to present a revenue contract as a contract liability in instances when a customer pays consideration, or an entity has a right to an amount of consideration that is unconditional (e.g., receivable), before the entity transfers a good or service to the customer. The following

table presents changes in the Company’s contract assets and liabilities during the six months ended June 30, 2021 and the year ended December 31, 2020:

(in thousands)	Balance at January 1, 2021	Additions	Deductions	Balance at June 30, 2021
Contract assets:
Unbilled revenue	$1,484	7,331	(7,667)	$1,148
Contract liabilities:
Deferred revenue	$1,474	2,762	(3,349)	$887

(in thousands)	Balance at January 1, 2020	Additions	Deductions	Balance at December 31, 2020
Contract assets:
Unbilled revenue	$1,666	13,624	(13,806)	$1,484
Contract liabilities:
Deferred revenue	$1,175	5,348	(5,049)	$1,474

The Company recognizes contract assets in the form of unbilled revenue in instances where services are performed by the Company but not billed by period end. The Company recognizes contract liabilities in the form of deferred revenue in instances where a customer pays in advance for future services to be performed by the Company. The Company generally receives payments from its customers based on standard terms and conditions.

Recently Issued Accounting Standards and Pronouncements

Recently Issued Accounting Standards and Pronouncements

In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04, "Intangibles - Goodwill and Other", which simplifies the test for goodwill impairment. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. The Company adopted this standard on January 1, 2020. The adoption of this standard did not have a material impact on the condensed consolidated financial statements of the Company.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”, which introduces a new

current expense credit loss model to measure impairment on certain types of financial instruments. This update requires an entity to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. In addition, the FASB issued various amendments during 2018 and 2019 to clarify the provisions of ASU 2016-13. The standard was effective for fiscal years beginning January 1, 2020, including interim periods. The Company adopted the new guidance on January 1, 2020. The adoption of this standard did not have a material impact on the condensed consolidated financial statements of the Company.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify and add

certain disclosure requirements related to fair value measurements covered in Topic 820, "Fair Value Measurement". The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the new guidance on January 1, 2020. The adoption of this standard did not have a material impact on the notes to condensed consolidated financial statements of the Company.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, "Income Taxes" and also improve consistent application by clarifying and amending existing guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted the new guidance on January 1, 2021. The adoption of the new guidance did not have a material impact on the condensed consolidated financial statements of the Company.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria

are met. The amendments are intended to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The new standard is effective on a date selected by the Company between March 12, 2020 and December 31, 2022. The Company is currently evaluating the impact of adopting this guidance.