Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments, Fair Value, and Concentrations of Credit Risk

v3.19.1
Financial Instruments, Fair Value, and Concentrations of Credit Risk
3 Months Ended
Mar. 31, 2019
Text Block [Abstract]  
Financial Instruments, Fair Value, and Concentrations of Credit Risk

2.     FINANCIAL INSTRUMENTS, FAIR VALUE, 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 $15.6 million as of March 31, 2019, and $15.8 million as of December 31, 2018. The carrying amounts of our financing lease obligations, including the current portion, were $18.4 million as of March 31, 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 a result of the designation made on January 1, 2019, 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 December 31, 2018, were as follows:

 

     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  

 

 

Total

   $ -      $ 1      $ -      $ 1      $ -      $ 248      $ -      $ 248  

 

 
(a)

The fair value for forward purchase contracts is estimated based on commodity futures market prices.

Commodity Price Risk

We enter into purchase agreements for grain with settlement values based on commodity futures market prices. These agreements allow our counterparty to fix their sale prices to us at various times as defined in the contract. We do not currently hedge these floating or fixed rate exposures.

Foreign Exchange Risk

Foreign currency fluctuations affect our foreign currency cash flows related to payments to our 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 highly liquid 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.