Redeemable Non-Controlling Interest ("NCI")

6 Months Ended

Jun. 30, 2022

Redeemable Non-Controlling Interest ("NCI")

On November 7, 2017, the Company entered into a definitive agreement to acquire a controlling-interest in AgroFresh Fruit Protection. The transaction was closed on December 1, 2017. At the effective date of the acquisition, the Company acquired 75% of the outstanding capital stock of AgroFresh Fruit Protection. In connection with the acquisition of AgroFresh Fruit Protection, the Company concurrently entered into option agreements ("Option Agreement") with the Seller related to the remaining 25% equity interest. The Option Agreement permits the residual interest to be "put" by the Seller to the Company, or to allow the Company to "call" the residual interest gradually over time as outlined in the agreement. The Seller's ownership of AgroFresh Fruit Protection represents a NCI to the Company, which is classified outside of stockholders' equity as the option of the Seller is redeemable. As of June 30, 2022 the carrying amount of the NCI was $7.4 million in the unaudited condensed consolidated balance sheet. Any changes in the redemption value of the NCI are included as an adjustment to Additional paid-in capital on the balance sheet.

The following table summarizes the changes to the Company's redeemable NCI.


(in thousands)	June 30, 2022	December 31, 2021
Beginning balance	($7,787)	($8,446)
Net loss attributable to redeemable non-controlling interest	434	2,258
Adjustment of NCI to redemption value	—	(1,599)
Ending balance	($7,353)	($7,787)