Debt

The current terms and conditions of long-term debt outstanding at December 31, 2018 and 2017, are as follows:



	Interest rate	Monthly repayment	Maturity date	2018			2017
ACOA AIF grant (C$2,871,919)	0%	Royalties	-	$	2,106,840		$	2,287,771
ACOA term loan (C$337,000)	0%	C$3,120	June 2026	203,735			251,056
Kubota Canada Ltd (C$95,961)	0%	C$1,142	Jan 2025	61,178			—
PEI Finance term loan (C$2,717,093)	4%	C$4,333	July 2021	1,219,681			545,387
Total debt				$	3,591,434		$	3,084,214
less: current portion				(71,613		)	(49,794		)
Long-term debt				$	3,519,821		$	3,034,420

Principal payments due on the long-term debt are as follows:



Year	AIF		ACOA		Kubota		FPEI		Total
2019	$	—	$	27,466	$	10,057	$	34,090	$	71,613
2020	—		27,466		10,057		42,034		79,557
2021	—		27,466		10,057		43,746		81,269
2022	—		27,466		10,057		45,529		83,052
2023	—		27,466		10,057		1,054,282		1,091,805
Thereafter	2,106,840		66,405		10,893		—		2,184,138
Total	$	2,106,840	$	203,735	$	61,178	$	1,219,681	$	3,591,434

Atlantic Canada Opportunities Agency (“ACOA”)

ACOA is a Canadian government agency that provides funding to support the development of businesses and promote employment in the Atlantic region of Canada.

ACOA Atlantic Innovation Fund (“AIF”) Grant

In January 2009, the Canadian Subsidiary was awarded an AIF grant from ACOA to provide a contribution towards the funding of a research and development project. Contributions under the grant were made through 2014 and no further funds are available. Amounts claimed by the Canadian Subsidiary must be repaid in the form of a 10% royalty on any products that are commercialized out of this research project until the loan is fully repaid. Revenue from the sale of AquAdvantage Salmon are not subject to the royalty, and the Company does not expect to commercialize products that would be subject to the royalty in the next five years.

ACOA term loans

In February 2016, the Canadian Subsidiary executed an agreement with ACOA to partially finance the renovations to the Rollo Bay farm site. All available funding under the agreement was disbursed through May 2017, and no further amounts are available. The loan is being repaid over a period of nine years.

On November 13, 2018, the Canadian Subsidiary executed a second agreement with ACOA to partially finance the renovations to the Rollo Bay site. The terms of the agreement include funding up to C$500 thousand ($367 thousand) with repayment commencing after the final draw-down of the funds. The loan term is nine years with a zero percent interest rate. No funds were drawn during 2018.

Kubota

Kubota is a manufacturer of power equipment for the construction, agriculture, commercial, and residential industries.

In January 2018, the Canadian Subsidiary financed the purchase of equipment through a loan with Kubota. The total amount is being repaid in monthly installments. The loan is secured by the underlying equipment.

Finance PEI (“FPEI”)

FPEI is a corporation of the Ministry of Economic Development and Tourism for Prince Edward Island, Canada, and administers business financing programs for the provincial government.

In August 2016, the Canadian Subsidiary obtained a loan from FPEI to partially finance the purchase of the assets of the former Atlantic Sea Smolt plant in Rollo Bay West on Prince Edward Island.

On October 16, 2018, the Canadian Subsidiary obtained a new loan from FPEI, which incorporates the existing loan and provides

C$2.0 million ($1.5 million) of additional funds. As of December 31, 2018, C$1.0 million ($734 thousand) has been drawn down. Payments will commence once all funds have been drawn. The loan has an interest rate of 4% and is collateralized by a mortgage executed by the Canadian Subsidiary, which conveys a first security interest in all of its current and acquired assets. The loan is guaranteed by the Parent.

The Company recognized interest expense in 2018 of $22,185 (2017: $21,520; 2016: $402,554) on its interest-bearing debt.